SENATE BILL NO. 307
AS AMENDED BY
HOUSE AMENDMENT NO. 3
AN ACT MAKING A SUPPLEMENTAL APPROPRIATION OF TWENTY MILLION DOLLARS TO THE OFFICE OF MANAGEMENT AND BUDGET TO FUND A RECOVERY LOAN TO THE CHRISTINA SCHOOL DISTRICT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :
Section 1. There is hereby appropriated $20,000,000 (Twenty Million Dollars) in General Funds to the Office of Management and Budget, Budget Development Planning and Administration, Contingencies and One-Time Items (10-02-11) for “Christina School District Recovery Loan”. This appropriation shall be a supplemental appropriation and shall be paid from general funds not otherwise appropriated.
Section 2. From the funds appropriated in Section 1 of this Act, and upon the request of the Secretary of the Department of Education, the Director of the Office of Management and Budget with the approval of the Controller General, may transfer any amounts necessary to ensure the continued operations of the Christina School District. The expenditure of any funds transferred to the Christina School District pursuant to this section shall be subject to the approval of the Financial Recovery Team as established in Section 1802, Title 14 of the Delaware Code.
Section 3. Of said funds appropriated in Section 1 of this Act, the Secretary of Education, with the approval of the Director of the Office of Management and Budget and the Controller General, may establish contractual arrangements to carryout the provisions of this Act.
Section 4. The transfer of funds appropriated in Section 1 of this act shall be considered a loan and all proceeds of said loan shall be paid back to the state without interest within a period not to exceed five years. No later than January 1, 2007 the Christina School District shall submit a plan to provide for the repayment of the loan subject to the approval of the Secretary of the Department of Education, the Director of the Office of Management and Budget and the Controller General. In the event that said plan is not approved then the Secretary of the Department of Education, the Director of the Office of Management and Budget and the Controller General shall impose a repayment plan. Said plan shall institute a repayment schedule providing for a minimum repayment of loan proceeds of at least ten percent of the original loan amount per year.
Section 5. Funds remaining in the “Christina School District Recovery Loan” account at the end of a fiscal year shall not be subject to reversion until June 30, 2007.
Section 6. The Financial Recovery Team shall investigate alternative financing options to ameliorate the Christina School District’s financial situation. Such analysis will be made available to the Governor, Legislative leaders, and the Joint Finance Committee by June 20, 2006.
Section 7. This Act shall be effective upon its enactment.
Approved May 11, 2006