Q Does a school district have the authority, pursuant to Section 37-57-108, to issue promissory notes to cover shortfalls for prior years for which budgets have lapsed?
A No. Pursuant to Section 37-57-108, a school district may only issue such notes if the budget for the fiscal year in which the shortfall occurred has not lapsed. (NOTE: It is the position of the State Auditorís Office that a budget has lapsed when no expenses incurred during the corresponding fiscal year remain unpaid.)