School district interfund transfers

(1) A school district shall spend revenues only within the fund for which they were originally authorized, levied, collected, or appropriated. (2) Except as otherwise provided in this section, school district interfund transfers of residual equity are prohibited. (3) The state board may authorize school district interfund transfers of residual equity when a district states its intent to create a new fund or expand, contract, or liquidate an existing fund. (4) The state board may also authorize school district interfund transfers of residual equity for a financially distressed district if the state board determines the following: (a) the district has a significant deficit in its maintenance and operations fund caused by circumstances not subject to the administrative decisions of the district; (b) the deficit cannot be reasonably reduced under Section 53G-7-305; and (c) without the transfer, the school district will not be capable of meeting statewide educational standards adopted by the state board. (5) The state board shall develop by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, standards for defining and aiding financially distressed school districts under this section. (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded and reported in the debt service fund. (b) Debt service levies under Subsection 59-2-924(5)(d) that are not subject to the public hearing provisions of Section 59-2-919 may not be used for any purpose other than retiring general obligation debt. (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal year shall be used in subsequent years for general obligation debt retirement. (d) Any amounts left in the debt service fund after all general obligation debt has been retired may be transferred to the capital projects fund upon completion of the budgetary hearing process required under Section 53G-7-303.