EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 387 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2, 3 and 4 of this act.

1-3 Sec. 2. 1. Except as otherwise provided in this section, in each

1-4 school year a school district shall spend for textbooks, library books and

1-5 supplies and materials relating to instruction, including, without

1-6 limitation, software for computers, an amount of money, expressed as an

1-7 amount per pupil, that is at least equal to the average of the total amount

1-8 of money that was expended per year by the school district for those items

1-9 in the immediately preceding 3 years.

1-10 2. Except as otherwise provided in this section, in each school year a

1-11 school district shall spend for the purchase of equipment relating to

1-12 instruction, including, without limitation, equipment for

1-13 telecommunications and for the purchase of equipment relating to the

2-1 transportation of pupils, an amount of money, expressed as an amount

2-2 per pupil, that is at least equal to the average of the total amount of

2-3 money that was expended per year by the school district for those items in

2-4 the immediately preceding 3 years.

2-5 3. Except as otherwise provided in this section, in each school year a

2-6 school district shall spend for the maintenance and repair of equipment,

2-7 vehicles, and buildings and facilities an amount of money, expressed as

2-8 an amount per pupil, that is at least equal to the average of the total

2-9 amount of money that was expended per year by the school district for

2-10 those items in the immediately preceding 3 years.

2-11 4. A school district may satisfy the expenditures required by

2-12 subsections 1, 2 and 3 if the school district spends an aggregate amount

2-13 of money for all the items identified in those subsections that is at least

2-14 equal to the average of the total amount of money expended by the

2-15 school district per year for all those items in the immediately preceding 3

2-16 years.

2-17 5. A school district is not required to satisfy the expenditures

2-18 required by this section for a school year in which:

2-19 (a) The total number of pupils who are enrolled in public schools

2-20 within the school district has declined from the immediately preceding

2-21 school year; or

2-22 (b) The total revenue available in the general fund of the school

2-23 district has declined from the immediately preceding school year.

2-24 Sec. 3. If the ending balance of the general fund of a school district

2-25 has declined for 3 consecutive years, the school district shall submit to

2-26 the committee on local government finance created pursuant to NRS

2-27 266.0165 a written explanation of the cause of the decline.

2-28 Sec. 4. 1. Except as otherwise provided in this section, the total

2-29 expenditures of a school district in a fiscal year must not exceed the total

2-30 revenue that is estimated to be collected in the general fund during the

2-31 fiscal year, excluding the opening balance in the fund, as set forth in the

2-32 final budget or the amended final budget of the school district.

2-33 2. Except as otherwise provided in this subsection and subsection 3,

2-34 the board of trustees of a school district shall not use money that is

2-35 available in the opening balance of the general fund of the school district

2-36 to pay for expenditures that occur on an annual or ongoing basis. The

2-37 board of trustees of a school district may use money that is available in

2-38 the opening balance of the general fund to pay for designated leases and

2-39 to pay legal obligations to retire debt.

2-40 3. If the department of taxation has determined that a condition of

2-41 financial emergency exists in a school district, the board of trustees of

3-1 that school district may use money that is available in the opening

3-2 balance of its general fund to pay for expenses that occur on an annual

3-3 or ongoing basis or to meet other contractual obligations.

3-4 4. If the opening balance of the general fund of a school district

3-5 exceeds 10 percent of budgeted expenditures, the amount of money in

3-6 excess of 10 percent may be expended for the purchase of goods that by

3-7 their nature create no recurring financial obligation, other than

3-8 recurring expenses for maintenance of equipment.

3-9 Sec. 5. NRS 387.205 is hereby amended to read as follows:

3-10 387.205 1. [Money] Subject to the limitations set forth in section 2

3-37 (c) Repair and construction of buildings for school use.

3-38 Sec. 6. NRS 354.598 is hereby amended to read as follows:

3-39 354.598 1. At the time and place advertised for public hearing, or at

3-43 be heard.

4-1 2. At the public hearing, the governing body shall indicate changes, if

4-2 any, to be made in the tentative budget, and shall adopt a final budget by

4-3 the favorable votes of a majority of all members of the governing body.

4-4 Except as otherwise provided in this subsection, the final budget must be

4-5 adopted on or before June 1 of each year. The final budgets of school

4-6 districts must be adopted on or before June 8 of each year and must be

4-7 accompanied by copies of the written report and written procedure

4-8 prepared pursuant to subsection 3 of NRS 385.351. Should the governing

4-9 body fail to adopt a final budget that complies with the requirements of law

4-10 and the regulations of the department of taxation on or before the required

4-11 date, the budget adopted and approved by the department of taxation for

4-12 the current year, adjusted as to content and rate in such a manner as the

4-13 department of taxation may consider necessary, automatically becomes the

4-14 budget for the ensuing fiscal year. When a budget has been so adopted by

4-15 default, the governing body may not reconsider the budget without the

4-16 express approval of the department of taxation. If the default budget

4-17 creates a combined ad valorem tax rate in excess of the limit imposed by

4-18 NRS 361.453, the Nevada tax commission shall adjust the budget as

4-19 provided in NRS 361.4547 or 361.455.

4-20 3. The final budget must be certified by a majority of all members of

4-21 the governing body and a copy of it, together with an affidavit of proof of

4-22 publication of the notice of the public hearing, must be transmitted to the

4-23 Nevada tax commission. If a tentative budget is adopted by default as

4-24 provided in subsection 2, the clerk of the governing body shall certify the

4-25 budget and transmit to the Nevada tax commission a copy of the budget,

4-26 together with an affidavit of proof of the notice of the public hearing, if

4-27 that notice was published. Certified copies of the final budget must be

4-28 distributed as determined by the department of taxation.

4-29 4. Upon the adoption of the final budget or the amendment of the

4-30 budget in accordance with NRS 354.606, the several amounts stated in it as

4-31 proposed expenditures are appropriated for the purposes indicated in the

4-32 budget.

4-33 5. No governing body may adopt any budget which appropriates for

4-34 any fund any amount in excess of the budget resources of that fund.

4-35 6. On or before January 1 of each school year, each school district

4-36 shall adopt an amendment to its final budget after the count of pupils is

4-37 completed pursuant to subsection 1 of NRS 387.1233. The amendment

4-38 must reflect any adjustments necessary as a result of the completed count

4-39 of pupils.

4-40 Sec. 7. This act becomes effective on July 1, 1999.