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Senate education panel backs two-year extension of school cash-reserve limit
Summary
The Senate Education Committee on Jan. 30 advanced Senate File 137 to extend, until June 30, 2028, a 2022 provision allowing school districts to carry up to 30% of operating balances and cash reserves from one year to the next; the committee approved a "do pass" recommendation unanimously.
The Senate Education Committee on Jan. 30 advanced Senate File 137, a measure to extend a 2022 change that allows school districts to carry up to 30% of their operating balances and cash reserves from one year to the next.
Sponsor Senator Lloyd Dockstader told the committee the 2022 increase from a longstanding 15% limit was intended to help districts manage federal COVID-era funds and other timing mismatches; the provision is scheduled to sunset on June 30, 2026 under current law. "This extends the sunset date from June 30, 2026 to June 30, 2028," he said, adding the bill sets an effective date of July 1, 2025.
Committee members pressed the sponsor on the policy trade-offs. Senator Tim Rothfuss and others noted the underlying policy goal is that state foundation dollars be spent on current-year students; critics of large reserves say a large, persistent reserve could…
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