Finance and Taxation panel rejects amendment to cap school-dissolution transfers at $50,000; committee recommends 'do not pass' on SB2158

The Finance and Taxation Committee debated Senate Bill 2158, which would allow a dissolving school district to grant its unobligated cash balance to another political subdivision rather than following the current statutory distribution methods. The committee voted down an amendment to reduce the proposed cap from $500,000 to $50,000 and to require any transferred funds be spent on the donated school building, then voted to recommend a do-not-pass on the bill.

The bill, discussed at the committee meeting, would change current Century Code procedures for distributing unobligated cash balances when a district dissolves. Lisonbee Hicks, assistant attorney general and general counsel to the State Board of Public School Education, told the committee, "To be clear, the law currently doesn't allow for this donation at all." She said the $500,000 figure does not appear in current law but was proposed based on a dissolution plan presented by Edmore.

Committee members argued over local control, taxpayer fairness and…