(1) A school district may qualify as financially distressed if the district:
- (a) has a deficit of three percent or more in its year end unappropriated maintenance and operation fund balance following a reduction for any amount in an undistributed reserve;
- (b) is unable to meet its financial obligations in a timely manner;
- (c) is unable to reduce the maintenance and operation deficit by 25 percent in its budget for the next year;
- (d) can demonstrate that it has made reasonable, local efforts to eliminate the deficit;
- (e) is financially incapable of meeting statewide educational standards adopted by the Board; and
- (f) has a deficit resulting from circumstances not subject to administrative decisions.
- (2) The Superintendent shall evaluate the criteria outlined in Subsection (1) and make a determination on whether a district is financially distressed following an on-site visit and consultation with the school district and local school board.
KEY: education finance
Date of Last Change: November 7, 2017
Notice of Continuation: September 15, 2022
Authorizing, and Implemented or Interpreted Law: 53G-7-306; 53E-3-401(4); 53G-7-304