92 Neb. Admin. Code, ch. 8, § 007

Current through September 17, 2024
Section 92-8-007 - State Board / Commissioner Determinations and Opportunities to be Heard Before Commissioner

Several provisions of State Statute require the State Board to make certain determinations concerning local budgets. The following procedures apply to such determinations and hearings:

007.01Special Grant Fund List

Section 79-1003 R.R.S., subsection (37) requires the State Board to approve a listing of special grant funds that are excluded from the expenditure limitations as provided in the Tax Equity and Educational Opportunities Support Act. The following procedures shall be followed by the Department in approving special grant fund list:

007.01A The Commissioner shall provide school districts with a list of current special grant funds.
007.01B School districts must notify the Commissioner of special grant funds not included on the current special grant fund list.
007.01C The State Board shall approve the effective special grant fund list and any supplementary grant not listed on the State Board approved special grant fund list (see Section 007.02).
007.02Special Grant Fund Exclusion Determinations

Section 79-1003(37) R.R.S., requires the State Board to approve a listing of special grant funds that are excluded from the expenditure limitations as provided in the Tax Equity and Educational Opportunities Support Act. The following procedures shall be followed by districts seeking special grant fund exclusions for any supplementary grant not listed on the State Board approved special grant fund list:

007.02A The school district shall submit a letter to the Commissioner requesting approval for exclusions to the expenditure limitation for insurance settlements, inter-fund loans, reimbursements for wards of the court, repayments to county governments for previous overpayments, and for short-term borrowings. The district should provide details regarding the purpose of the item and the amount of funds anticipated to be received or disbursed.
007.02B The Commissioner, or his or her designee(s), will review the submitted data, and make a recommendation to the State Board in accordance with 79-1003 R.R.S., on such applications. The Commissioner, or his or her designee(s), will provide a written notice to the district of the State Board approval, denial, or modification of the requested increases.
007.03Financial Hardship Determinations

Section 004.02 provides for the State Board to make financial hardship determinations in cases where federal funds exceed twenty-five percent of a district general fund budget and are not received in a timely manner.

007.03A Such applications shall be made to the Department, in writing, at any time and shall include a resolution of the district board supporting the application and a written summary of the hardship.
007.03B The Department will review the submitted data, and prepare a recommendation to the State Board, a copy of which will be provided to the district, along with a time at which the matter will be presented to the State Board.
007.03C The State Board may review the recommendations of the Department and may take additional oral testimony from the district and any other interested person at its discretion, or may assign a hearing officer to take such testimony and prepare a summary for the Board.
007.03D The State Board shall make a decision on the hardship application in accordance with 79-1033(2)R.R.S. and provide a written notice to the district approving, denying, or modifying the request.
007.04Early Payment of Postponed State Aid

Section 004.01 provides for the State Board to grant early payment of postponed State Aid in cases where there has been a clerical error in adjusted valuation or, assessed value changes by reason of special use valuation pursuant to sections 77-1343 to 77-1348 R.R.S., which have not been included in the calculation of State Aid. The following apply to such cases:

007.04A Clerical error means transposition of numbers, allocation of value to the wrong school district, mathematical error, and omitted value.
007.04B Such applications shall be made to the Department, in writing, at any time and shall include a resolution of the district board supporting the application and a written summary of the clerical error in adjusted valuation, or assessed value changes by reason of special use valuation. The Department may assist the district in determining the amount of postponed State Aid that is due the district.
007.04C The Department will review the submitted data, and prepare a recommendation to the State Board, a copy of which will be provided to the district, along with a time at which the matter will be presented to the State Board.
007.04D The State Board may review the recommendations of the Department and may take additional oral testimony from the district and any other interested person at its discretion.
007.04E The State Board may grant the entire amount applied for or any portion of such amount it determines appropriate under the statutory standards in section 004.01.
007.04F The State Board shall make a decision, unless the district and the Department reach an alternative agreement, on the early payment of postponed State Aid and provide a written notice to the district approving, denying, or modifying the request.
007.05Failure to Submit Budget Documents

Section 005.01A provides that if a school district fails to submit budget documents pursuant to section 79-1024 R.R.S., or fails to make any corrections of errors in the documents pursuant to section 13-504 R.R.S., the Commissioner after notice and an opportunity to be heard, shall direct that any State Aid granted pursuant to the Tax Equity and Educational Opportunities Support Act be withheld until such time as the required budget documents or corrections of errors are received. The following apply to such cases:

007.05A The Auditor of Public Accounts shall inform the Department, in writing, of the failure of any school district to submit budget documents or the failure of a school district to make any corrections of errors in the documents, and of any Class I district failing to submit the items required in subsection 13-504 R.R.S. and 13-508 R.R.S. to its high school districts by the date established in section 79-1083.03 R.R.S.; or
007.05A1 The Department, upon its own review, may determine that any school district has failed to submit budget documents to the Department, or has failed to make the corrections of errors in the documents as required by the Department, or a Class I district has failed to submit items required in subsection 13-504 R.R.S. and 13-508 R.R.S. to its high school districts by the date established in section 79-1083.03 R.R.S..
007.05B Upon review of the data on file in the Department, and/or the data submitted by the Auditor of Public Accounts, the Department shall prepare a recommendation to the Commissioner.
007.05C The Commissioner, or his or her designee, shall provide the district an opportunity to be heard and present any evidence relevant to the issue of the failure to submit the required document(s) or correct errors. The district shall be notified in writing of the time and place of such hearing, together with a copy of the Department recommendations. If, after reviewing the recommendations of the Department and any evidence adduced at the hearing, the Commissioner is thereafter satisfied that the required document(s) or corrections of errors were not submitted to the Department as required by law and continue to have not been submitted, the Commissioner shall order that State Aid be withheld until such time as the required documents or corrections of errors are received by the Department. The decision and order of the Commissioner shall be in writing and shall be provided to the district. The decision and order may be appealed to the State Board under 92 NAC 61 within 15 days of its receipt, however, such appeal does not preclude the order from taking effect.
007.05D State Aid shall be withheld until such time as the required budget documents or corrections of errors have been received by the Department and/or the Auditor of Public Accounts. The Commissioner shall direct the county treasurer to withhold all school money belonging to the school district until such time as the Commissioner notifies the county treasurer in writing of receipt of the required budget documents or corrections of errors.
007.05E If the school district does not submit the required budget documents or corrections of errors to the Department and/or the Auditor of Public Accounts prior to the end of the state biennium following the biennium which included the fiscal year for which State Aid was calculated, the State Aid funds shall revert to the General Fund. The amount of any reverted funds shall be included in data provided to the Governor in accordance with section 79-1031 R.R.S..
007.06Failure to Submit Annual Financial Report, Fall School District Membership Report, Annual Statistical Summary Report, and Audit Report

Sections 006.01, 006.02, 006.03, and 006.05 provide the statutory requirements for submission of various required reports. Such requirements provide that if the reports are not received by the required date, the Commissioner, after notice to the district and an opportunity to be heard, shall direct that any State Aid granted to the district be withheld until such time as the reports are received. The following apply to such cases:

007.06A The Department, upon its own review, may determine that a school district has failed to file the Annual Statistical Summary Report by June 30, that a school district has failed to file the Annual Financial Report by November 1, that a school district has failed to file the required Audit Report by November 5, or that a school district has failed to file the Fall School District Membership Report by November 1.
007.06B Upon review of the data on file in the Department, the Department shall prepare a recommendation to the Commissioner.
007.06C The Commissioner, or his or her designee, shall provide the district an opportunity to be heard and present any evidence relevant to the issue of the failure to submit the required document(s). The district shall be notified in writing of the time and place of such hearing, together with a copy of the Department recommendations. If, after reviewing the recommendations of the Department and any evidence adduced at the hearing, the Commissioner is thereafter satisfied that the required document(s) were not submitted to the Department as required by law and continue to have not been submitted, the Commissioner shall order that State Aid be withheld until such time as the required documents are received by the Department. The decision and order of the Commissioner shall be in writing and shall be provided to the district. The decision and order may be appealed to the State Board under 92 NAC 61 within 15 days of its receipt, however, such appeal shall not preclude the order from taking effect.
007.06D State Aid shall be withheld until such time as the required Annual Statistical Summary Report, Annual Financial Report, Fall School District Membership Report, and/or Audit Report has been received by the Department. The Commissioner shall direct the county treasurer to withhold all school money belonging to the school district until such time as the Commissioner notifies the county treasurer in writing, of the receipt of the required Annual Financial Report, Fall School District Membership Report, and/or Audit Report.
007.06E If the school district does not submit its Annual Statistical Summary Report, Annual Financial Report, Fall School District Membership Report, and/or Audit Report to the Department prior to the end of the state biennium following the biennium which included the school fiscal year for which State Aid was calculated, the State Aid funds shall revert to the General Fund. The amount of any reverted funds shall be included in data provided to the Governor in accordance with section 79-1031 R.R.S..
007.07Contested Cases

Any allegation of error, miscalculation, or mistake in computations or activities performed by the Department shall be first reported to the Commissioner in writing for his or her review. Following his or her determination, such matters shall be considered contested cases if they affect the legal rights, duties, or privileges of individuals and shall be subject to appeal under 92 NAC 61.

92 Neb. Admin. Code, ch. 8, § 007