Section 6-641-A - ContentsA financial recovery plan developed under this subarticle shall:
(1) Provide for the delivery of effective educational services to all students enrolled in the financial recovery school district.(2) Provide for the payment of lawful financial obligations of the financial recovery school district.(3) Provide for the timely deposit of required payments to the Public School Employees' Retirement Fund.(4) Provide a plan for the financial recovery school district's return to financial stability, which may include any of the following, if appropriate to restoring the financial recovery school district's financial stability: (i) Recommendations for:(A) Satisfying judgments, past-due accounts payable and past-due and payable payroll and fringe benefits.(B) Eliminating deficits and deficit funds.(C) Restoring to special fund accounts money from those accounts that was used for purposes other than those specifically authorized.(D) Balancing the budget, avoiding future deficits in funds and maintaining current payments of payroll, fringe benefits and accounts through possible revenue enhancement recommendations, including tax or fee changes.(E) Avoiding a future declaration of financial recovery status.(F) Enhancing the ability of the financial recovery school district to negotiate new general obligation bonds, lease rental debt, funded debt and tax and revenue anticipation borrowings.(G) Considering changes in accounting and automation procedures for the financial benefit of the financial recovery school district.(H) Proposing a reduction of debt due on specific claims by an amortized or lump-sum payment considered to be the most reasonable disposition of each claim possible for the financial recovery school district considering the totality of the circumstances.(ii) Recommendations for:(A) Changes in permanent and temporary staffing levels.(B) Changes in organization.(C) Changes in school district policy.(D) Special audits or further studies.(E) The sale, lease, conveyance, assignment or other use or disposition of the financial recovery school district's assets.(F) The application for a loan under the Financial Recovery Transitional Loan Program established in Subdivision (vii) in an amount specified by the chief recovery officer in the financial recovery plan. The financial recovery plan shall specify the current expenses of the school district to which the loan proceeds would be applied.(iii) An analysis of whether functional consolidation or privatization of existing noninstructional or other school district services is appropriate and feasible and recommendations for carrying out such consolidation or privatization, including timelines for implementation and anticipated cost efficiencies to be attained.(iv) A capital budget which addresses infrastructure deficiencies.(v) Recommendations for greater use of Commonwealth or intermediate unit programs.(vi) Recommendations for, and anticipated cost savings resulting from, the use of powers permitted to be used under section 642-A.(5) Set forth a cash flow analysis for the financial recovery school district.(6) State projections of revenues and expenditures for the current year and the next two years, both assuming the continuation of present operations and as impacted by the measures included in the financial recovery plan.(7) State benchmarks and timelines for restoring the financial recovery school district to financial stability.(8) Require the financial recovery school district to use financial data software that is connected directly to the department's financial data systems to ensure that both the financial recovery school district and the department are using accurate and consistent data. All costs of the financial data software required to be used by the financial recovery school district under this paragraph shall be paid by the department.(9) Establish specific criteria that the financial recovery school district must satisfy before the secretary may terminate the financial recovery school district's financial recovery status under section 624-A. Such criteria shall include, but shall not be limited to:(i) The financial recovery school district does not request an advance of its basic education subsidy.(ii) All teacher and other employee salaries are paid when due.(iii) The financial recovery school district is not in default on any bonds, notes or lease rentals and is not subject to withholding by the secretary under section 633.(iv) The financial recovery school district does not satisfy the criteria stated in regulations promulgated under section 621-A(a)(2).(v) The financial recovery school district is making progress toward financial stability.Added by P.L. 1142 2012 No. 141, § 10, eff. 7/12/2012.