Printable Format10-1113. Creating indebtedness in excess of funds unlawful; exceptions. Unless otherwise provided in this act, it shall be unlawful after May 1, 1933, for any member of any governing body of any municipality to knowingly vote for or in any manner aid or promote the passage or adoption of any order, motion, ordinance, resolution, legislation or other act of said governing body, creating an indebtedness in excess of the amount of funds actually on hand in the treasury of such municipality at the time for such purpose, or to knowingly vote for the drawing of any order, warrant or check, or other evidence of such indebtedness on the treasury of said municipality, in payment of any such indebtedness, in excess of the amount of funds actually on hand in the treasury at the time for such purpose. School districts and community junior colleges, may, however, issue cancelable purchase orders for school supplies and equipment, school buses, books purchased in conjunction with textbook rental programs and data processing equipment in advance of the budget year during which moneys will become available to pay for such purposes, but contracts for the purchase of such school supplies and equipment, books, buses and data processing equipment cannot be entered into except during the budget year in which moneys will become available for such purchases and risk of loss and title thereto shall not pass to the school district or community junior college prior to entering into such contracts. Issuance of such a cancelable purchase order shall not constitute an indebtedness within the meaning of K.S.A. 79-2935.
History: L. 1933, ch. 319, § 13; L. 1969, ch. 67, § 1; L. 1970, ch. 66, § 1; L. 1972, ch. 40, § 2; July 1.
Law Review and Bar Journal References:
Negotiated agreements would be invalid if they violated the cash basis school financing laws, Larry L. Deemer and Robert J. Fowks, 7 W.L.J. 291, 297 (1968).
Attorney General's Opinions:
Cash-basis law; liability; estimate in budget to cover creation of indebtedness; uniform procedure for payment of claims. 82-14.
Lease or installment purchase agreements; when allowed. 85-167.
Creation of indebtedness in excess of budget is void. 86-104.
Creating indebtedness in excess of funds unlawful; exceptions. 89-28.
Investment of public moneys by governmental subdivisions, units and entities. 89-109.
County commissioners' authority over employment of assistants by county treasurer. 89-131.
Municipal libraries; bonds and warrants; cash-basis law. 93-45.
Board of county commissioners; contracts binding future boards; cash-basis law; exceptions. 98-13.
Payment for utility services by unified school district. 2001-09.
County policy for paid time-off does not violate cash-basis law if obligation is contingent on future events. 2007-25.
CASE ANNOTATIONS
1. Refunding of overdrawn funds held proper; purpose of act discussed. State, ex rel., v. Toy, 138 Kan. 166, 171, 23 P.2d 601.
2. Teacher's contract creating indebtedness in excess of funds held void. Patterson v. Montgomery County Comm'rs, 145 Kan. 559, 562, 66 P.2d 400.
3. Inapplicable to warrants issued under K.S.A. 19-1503, 19-1504 and 19-1505. State, ex rel., v. Republic County Comm'rs, 148 Kan. 376, 378, 381, 82 P.2d 84.
4. Purpose of act discussed; applies to statutory claims. Shouse v. Cherokee County Comm'rs, 151 Kan. 458, 461, 462, 464, 466, 99 P.2d 779. Affirmed: 152 Kan. 41, 102 P.2d 1043.
5. Township's lease purchase contract for road machinery held invalid hereunder. J. D. Adams Co. v. Dor Township, 153 Kan. 623, 624, 625, 626, 627, 628, 631, 632, 113 P.2d 138.
6. School district's tuition claim against county not in county budget not payable. Gridley High School Dist. v. Woodson County Comm'rs, 155 Kan. 407, 411, 413, 125 P.2d 383.
7. Financing of flood control plan of watershed district not violation hereof. Barten v. Turkey Creek Watershed Joint District No. 32, 200 Kan. 489, 497, 506, 507, 438 P.2d 732.
8. City's two-year agreement with firefighters' union not in violation of budget law or cash-basis law. International Ass'n of Firefighters v. City of Lawrence, 14 Kan. App. 2d 788, 791, 802, 798 P.2d 960 (1990).
9. Bonding provisions of K.S.A. 12-1770 et seq. for auto race track do not violate cash basis law. State ex rel. Tomasic v. Unified Gov't of Wyandotte County/Kansas City, 265 Kan. 779, 803, 962 P.2d 543 (1998).