A. As used in this Section, the following words and phrases shall have the following meanings unless the context otherwise requires:

            (1) “Department” means the state Department of Education acting through the superintendent or his designee.

            (2) “Schedule notice” means a notice sent by the department by registered or certified mail to each affected parish and city school board describing a disbursement schedule for the amounts payable annually to the board under the minimum foundation program pursuant to this Section.

            (3) “Transmit” means depositing in the mail, allowing a designated person to pick up the check, or directly depositing the check in a bank in the city of Baton Rouge designated by the parish or city school board, whichever method each city or parish school board designates to the department.

            B.(1) The department shall transmit to each parish and city school board, not later than the twenty-fifth day of each month, one-twelfth of the amount payable annually to the board under the minimum foundation program, unless the department mails a schedule notice to each parish and city school board on or before May first of each year which contains such information as is required to inform such boards that a disbursement schedule of the amount payable annually to the board under the minimum foundation program will be implemented pursuant to this Section.

            (2) Notice and implementation of a disbursement schedule pursuant to this Section shall by its terms in no way reduce the aggregate annual minimum foundation program funds payable to all parish and city school boards and the annual minimum foundation program funds payable to an individual parish or city school board in accordance with La. Const. Art. VIII, § 13(B) .

            C. The schedule notice shall set forth the fraction or percentage of annual minimum foundation program disbursements, if any, to be transmitted each month; the latest day on which the disbursements, if any, will be transmitted, which date shall not be later than the twenty-fifth day of any month during which disbursements are scheduled to be transmitted; and such other information as the department deems necessary or convenient.

            D. The department shall submit appropriate warrants and documents to the division of administration and the state treasurer at such times as will allow the state treasurer to issue checks for such payments on the twenty-fourth day of each month, or if the schedule notice has been given as provided by this Section, at such times as will allow the state treasurer to issue checks for such disbursements no later than the dates set forth in the schedule notice.

            E.(1) A disbursement schedule for which the schedule notice has been given shall not be effective during the fiscal year described therein unless and until an amount in addition to the aggregate minimum foundation program formula amount shall have been included in the general appropriations act for such fiscal year sufficient to reimburse each parish and city school board for the interest expense and costs, if any, incurred as a direct result of an alternative borrowing caused by the implementation of a disbursement schedule pursuant to this Section. The aggregate interest expense and costs, if any, projected to be incurred by parish and city school boards and included in the general appropriations act shall be projected and calculated by the department and such calculation shall be conclusive.

            (2) Any expenditure by the state for the reimbursement to any parish or city school board of any interest expense and costs shall be made upon proof of actual direct expenditures by the parish or city school board and shall be payable no later than the last day of the then current fiscal year.

            F. Nothing herein shall relieve the state of the obligation to make payments in the event that borrowable funds are not available to parish and city school boards as certified by the department.

            Acts 1984, No. 463, §1; Acts 1988, No. 728, §1, eff. July 18, 1988; Acts 2022, No. 374, §1.