Do You Have a Sinking Fund Coming up on Your Ballot?

Aaron Keel

By Aaron Keel, MASB Assistant Director of Government Relations

DashBoard, March 16, 2016

Expanding the use of sinking funds has been a MASB legislative priority for many years, and in early February we were very pleased to see House Bill 4388 unanimously pass out of the House Appropriations Committee. It is currently awaiting action on the House floor.

HB 4388 would expand the use of sinking funds to include school security and technology. Also under the proposal, the maximum millage amount would go from five to three mills, and the maximum duration would go from 20 to 10 years. Current sinking funds would be grandfathered in until their specified end date.

If passed and signed into law, this legislation will provide an additional tool that will allow schools to more easily make needed investments in each of these important categories with the limited resources we have, and meet the growing demands of a district.

Many of you may be considering or already are planning on putting a sinking fund question on an upcoming ballot. Therefore, it is imperative for the Legislature to act quickly and pass this legislation to ensure the expanded use for newly authorized funds. If you have a sinking fund coming up in your community, please contact your legislator and urge her/him to support and pass HB 4388.

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