School districts and public school academies with a general fund balance less than 5% of unrestricted revenue for any of the two previous years are required to submit the following budget assumptions by July 7:
- Projected foundation allowance per pupil for the upcoming fiscal year
- Projected membership for the upcoming fiscal year
- Expenditure per pupil for the previous fiscal year
- Projected expenditure per pupil for the upcoming fiscal year
These districts will also submit the following summary information for both the final budget amendment for the current year and adopted budget for the upcoming year:
- The estimated total general fund balance existing at the beginning of the year
- The total budgeted general fund revenue
- The total budgeted general fund expenditure
- The estimated total general fund balance existing at the end of the year
Districts that incur a general fund deficit projecting to last five years or more are under Treasury oversight and thereby required to develop an approved Enhanced Deficit Elimination Plan (EDEP). An EDEP includes monthly reporting of year-to-date revenue, expenditure, and cash flow in addition to the approved deficit elimination plan.
Pursuant to Public Act 109 of 2015, school districts and PSAs may choose to contract with an ISD or Authorizer within 60 days of being notified of the existence of potential fiscal stress in order to receive an administrative review. Schools that do not contract for an administrative review, or do not implement any of the recommendations of their administrative review within 365 days of being notified of the existence of potential fiscal stress, may be required to submit periodic financial status reports to Treasury.