Districts with uncorrected financial record problems would face withheld funds, training, and election limits

The state board of education would direct that state money be withheld from a district and order training and other fixes for its leaders. This applies to a school district that fails to correct a deficiency in the uniform system of financial records within 90 days after notice from the auditor general. The board directs the withholding of up to 10 percent of the district's state money for each violation until the auditor general reports the district is in compliance. The Department of Education gives the district a list of approved training programs and providers. Within 30 days after getting the list, the district must carry out the required fixes and train its superintendent, business manager, chief financial officer, and any other named administrators, and report progress to the department. This starts when a problem is not corrected within 90 days after notice from the auditor general.

The state board of education would tell the district's governing board that the superintendent is not eligible for performance-based pay. This applies to a school district superintendent, including the performance pay portion of the annual salary, when the district fails to correct a financial records deficiency within 18 months after notice from the auditor general. The ban starts on the first day of the 18th month after the district receives notice and lasts until the auditor general reports the district is in compliance.

A district's governing board could not order certain override elections or call certain bond elections until the district fixes the problem. This covers capital override elections and elections to issue bonds or change the list of capital projects approved for earlier bonds. A district is treated as having fixed the problem from the date the auditor general reports it is in compliance. The limit applies if the problem is not corrected within 18 months after notice from the auditor general.