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SCS/SB 287 - Currently, the state's education formula is essentially an equalized tax-rate driven formula, meaning that the formula provides a certain amount of money per student, per penny of tax rate. This act seeks to transition the state away from this tax-rate driven philosophy to a formula that is primarily student-needs based. The formula requires the Department of Elementary and Secondary Education to calculate a state adequacy target. The adequacy target amount is the minimum amount of funds a district will receive in order to educate each student. In order to calculate the target, the department will identify certain high performing districts (performance districts) and extrapolate the amount that those districts spent on educating their students. This amount will become the new state minimum per student, or the state adequacy target. The state adequacy target will be recalculated by the department every two years using the most current list of performance districts. This number will not decrease due to any such recalculation. The formula assigns additional weight to districts' student counts based on certain student characteristics, specifically, to students who qualify for free and reduced lunch, receive special education services, or possess limited English language proficiency. The department will identify the aggregate percentage of the performance districts' free and reduced price lunch, special education, and limited English language proficiency populations in order to create threshold percentage amounts. Any district with student populations above the threshold percentages in any of the weighted characteristic areas will be assigned additional "weight" for the number of the district's students above the threshold amounts. These additional weights will be added to the district's student population in order to arrive at that district's weighted average daily attendance. A district's state aid calculation will be: The district's weighted average daily attendance multiplied by the state adequacy target. This figure may be adjusted upward by the dollar value modifier, which is an index corresponding to the actual buying power of a dollar, derived from county wage-per-job data. From this total, the district's local effort will be subtracted, and if this number is above zero, this number is the district's state aid payment. If the number is below zero, then the district will receive no less revenue on a per weighted daily attendance basis than the district received last year. However, the "hold harmless" calculation is adjusted to reflect usage of weighed average daily attendance and the dollar value modifier. The formula is phased in over a five-year period, during which time the state adequacy target may not be adjusted downward. The local revenue figure utilized in a district's state aid calculation is the amount of locally generated revenue the district would have received in fiscal year 2005 if its operating levy was set at $3.35. The $3.35 amount is the performance levy, which is extrapolated from data regarding the median operating levy of each performance district. In every year subsequent to the first-year calculation, a district's "local effort" amount will be frozen, so that any growth in local revenue collections will be retained by the district and not used to offset state aid payments. The act renders an additional multitude of alterations to current law, including, but not limited to establishing the classroom trust fund and option districts and altering minimum salary provisions and fund transfer regulations. The provisions of this act will become effective July 1, 2006. DONALD THALHUBER
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