CHAPTER 304
FORMERLY
HOUSE BILL NO. 472
AN ACT TO AMEND TITLE 14 AND TITLE 29 OF THE DELAWARE STATE CODE RELATING TO THE CALCULATION OF INTEREST ON SCHOOL FUNDS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :
Section 1. Amend Section 1923, Chapter 19, Title 14 of the Delaware Code by deleting the entire section and substituting the following in lieu thereof:
Ҥ1923. Payment of interest upon local school funds on deposit.
The State Treasurer shall credit to the account of each local school district that has funds on deposit with the State Treasurer such amount of interest as determined by this section upon such funds. The rate of interest applied shall be based upon net interest earned and calculated under guidelines established by the Cash Management Policy Board.
(a) On or before the last day of each month, the State Treasurer shall credit the operating and debt service accounts respectively of each school district’s operating and debt service funds with interest on the average balances in operating and debt service funds for the preceding month. The amount of interest due shall be calculated upon the average daily account balances determined by the respective financial activity reports of the Department of Finance.
(b) On or before the last day of each month, the State Treasurer shall credit the debt service account of each local school district’s construction fund with interest on the average balance of that proportion of the construction account contributed by the local school district. The amount of interest due shall be calculated upon the average daily account balances determined by the respective financial activity repots of the Department of Finance.”
Section 2. Amend Section 7514, Chapter 75, Title 29 of the Delaware Code by deleting the entire section and substituting the following in lieu thereof:
§7514. Local funds and State appropriations to be deposited.
The monies paid to the State Treasurer by a school district as its local share under any school construction bond authorization act and any funds appropriated as its local share by the State under any school construction bond authorization act, including any additional amount appropriated to such school district by the State, and for the financing of which bonds of the State are to be issued, shall be deposited by the State Treasurer in a special fund and shall be expended only for school construction in such district. Each of said local shares and additional amounts shall be credited with interest in the following manner:
(1) The State Treasurer shall credit to the account of each local school district which has funds on deposit with the State Treasurer such amount of interest as determined by this section upon such funds. The rate of interest applied shall be based upon net interest earned and calculated under guidelines established by the Cash Management Policy Board.
(2) On or before the last day of each month, the State Treasurer shall credit the operating and debt service accounts respectively of each school district’s operating and debt service funds with interest on the average daily balances in operating and debt service funds for the preceding month. The amount of interest due shall be calculated upon the average daily account balances determined by the respective financial activity reports of the Department of Finance.
(3) On or before the first day of each month, the State Treasurer shall credit the debt service of each local school district’s construction fund with interest on the average balance of that proportion of the construction account contributed by the local district. The amount of interest due shall be calculated upon the average daily account balances determined by the respective financial activity reports of the Department of Finance.”