(a) A local board of education shall develop a plan to establish and maintain a minimum reserve fund equal to one month's operating expenses. Also, a local board of education shall develop a plan to replenish its reserve fund after any withdrawal is made pursuant to subsection (b).
(b) Local boards of education are authorized to expend such reserve funds if either of the following occur:
(1) The Governor declares proration in the Education Trust Fund.
(2) Total state funds appropriated by the Legislature to the local boards of education are less than the same appropriation for the preceding fiscal year.
Structure Code of Alabama
Chapter 13A - School Fiscal Accountability.
Section 16-13A-1 - Fiscal Management Policies.
Section 16-13A-3 - Financial Training of Local Superintendents of Education.
Section 16-13A-4 - Appointment; Removal of Chief School Financial Officer; Qualifications.
Section 16-13A-5 - Supervision, Fiduciary Responsibility of Chief School Financial Officer; Duties.
Section 16-13A-6 - Required Reports.
Section 16-13A-8 - Authority to Expend Funds.
Section 16-13A-9 - Reserve Funds.
Section 16-13A-10 - Penalties for Failing to Comply With Chapter.
Section 16-13A-11 - Liability.
Section 16-13A-13 - Publication of Budget and Financial Information.