Transportation Transfer Provision - In Effect for FY 2018 - 2021
SB 02, section 10 requires districts transfer budgeted and non-budgeted funds to the transportation fund to eliminate any increase in school district property taxes that would otherwise be caused by Senate Bill 2. This can be accomplished by reducing transportation spending, covering the lost state revenue from transportation fund reserves, or transferring budgeted and/or non-budgeted funds to the transportation fund. The maximum amount allowed to transfer is equivalent to the shortages associated with the transportation block grant reduction and state transportation appropriation reduction. (Districts cannot transfer from the debt service fund or retirement fund.)
All transfers related to this must use the object code 913 and the corresponding revenue code 5303. This transaction should be recorded as an interfund operating transfer, addressed in the School Accounting Manual, Section 5-0520.30 – Interfund Transfers – Operating Transfer.
For example:
To record an operating transfer between funds: For example, assume the district transfers $600 from the General Fund to the Transportation Fund at fiscal year-end.
General Fund (01)
Debit: 802 Expenditures $600
Credit: 101 Cash $600
Expenditures Subsidiary Ledger
X01-XXX-6100-913 Transportation Transfers (FY 18 – 21) Out $600
Transportation Fund (10)
Debit: 101 Cash $600
Credit: 402 Revenues $600
Revenues Subsidiary Ledger
X10-5303 Transportation Transfers (FY 18 – 21) $600
NOTE: Charges to expenditure object 913-Transportation Transfers and income credited to revenue source 5303-Transportation Transfers (FY 18 – 21) should balance at all times.
Ensure a cash transfer entry is also completed by September 30th.
Assuming an increase in district property taxes is estimated:
1. For FY 2018, districts will need to transfer up to an amount equivalent to the payment reduction (the final amount will not be known until June 2018).
2. In FY 2019, districts will need to transfer up to an amount equivalent to the payment reduction (the final amount will not be known until June 2019) and the amount of the school transportation block grant amounts (found in the district budget for FY 2018 under fund (10) and revenue 3444 or refer to the chart below).