Maryland General Assembly 2009
Bill would limit school system financial reports
ANNAPOLIS — Financial status reports to the state from local school systems would be limited under a bill being considered by Maryland lawmakers.
Sen. George C. Edwards, R-Garrett/Allegany/Washington, has proposed legislation that would end a requirement that school systems file biannual reports with the Maryland State Department of Education. Districts would continue to file annual audits, he said.
The biannual reports were first required in 2004, but Edwards said school systems are not facing the same budgetary issues they were when the law was put in place. Now, the reporting has become a burden and a waste of time and resources, Edwards said.
The legislation was supported by the Maryland State Department of Education.
State Superintendent of Education Nancy S. Grasmick said in written testimony that the bill “provides relief to local school systems from burdensome reporting requirements contained in the current statute that are no longer needed.”
Edwards’ bill has passed in the Senate and is being considered by lawmakers in the House of Delegates. His bill was cross-filed in the House, where it also passed.
At the time biannual reports were first required in 2004, three school systems had negative general fund balances in their fiscal year 2003 financial audits, according to testimony. At that time, Baltimore City Public Schools had a deficit of $49,318,756 — the largest of any school system.
In the following fiscal year, Baltimore City Public Schools was the only school system to report a deficit and was forced to submit a plan to reduce costs along with monthly financial status reports, as required by the bill.
Edwards said since the problem the state experienced in 2004 is no longer being reported it made sense to reduce the burden of time and money on local districts.
He said the annual audit would provide sufficient financial data from school systems.
