Perfected

SS/SB 943 – This act modifies the elementary and secondary education funding formula.

FOUNDATION FORMULA MODIFICATIONS: The phase-in of the SB 287 formula will be extended through the 2016-2017 school year. The phase-in percentages for the new and old formulas are modified, as described in the act. This act contains allowances for the distribution of state aid depending on the amount of available appropriations, as described below.

This act allows the General Assembly to appropriate more funds than required by the phase-in percentages for any particular school year. In such a situation, the Department of Elementary and Secondary Education is required to adjust the phase-in percentages to accommodate appropriations in order to distribute one hundred percent of the total amount of appropriated funds. In addition, during the phase-in, if the foundation formula appropriation is equal to or greater than the state aid expenditure for fiscal year 2010 but is insufficient to fully fund the applicable phase-in percentages for the formula during that school year, the Department of Elementary and Secondary Education must adjust the phase-in percentages to accommodate the total amount of available appropriations. The phase-in percentages must equal one hundred and the total amount of appropriated funds must be distributed.

In any school year in which the foundation formula appropriation is less than the fiscal year 2010 actual state aid expenditure, the Department of Elementary and Secondary Education must reduce the state aid payment by ten percent to any hold harmless district that has a local effort figure greater than its total formula entitlement calculation.

In addition, in any school year in which the foundation formula appropriation is less than the fiscal year 2010 actual state aid expenditure, the Department of Elementary and Secondary Education must reduce the payment amounts awarded to all school districts, including hold harmless districts. The Department of Elementary and Secondary Education must calculate a uniform proportional reduction percentage based on all available state aid to be applied to the payment amount to which all districts would otherwise be entitled under the applicable phase-in percentages. This calculation will occur after the Department has already reduced payments to any hold harmless district that has a local effort figure greater than its total formula entitlement calculation.

In addition, language pertaining to the summer school penalty, which terminated at the end of the 2008-2009 school year, is repealed. (Section 163.031)

SUMMER SCHOOL: Beginning in the 2010-2011 school year, summer school attendance that can be included in a district's average daily attendance will only include attendance hours of students exclusively in academic areas of study. Curriculum must be based on core subject areas of the regular instruction program for relevant grade levels. Each school district must verify to the Department of Elementary and Secondary Education that its summer school program conforms to these requirements. School districts may offer a summer school program that offers non-academic or enrichment activities at their own expense. (Section 163.036)

JOINT COMMITTEE ON EDUCATION STUDY: The Joint Committee on Education must conduct a study on the issue of the timing and delivery of state funding for elementary and secondary education to school districts. The study must be conducted during the legislative interim with a final report, with any recommendations for legislative action, to be submitted to the General Assembly by December 31, 2010. (Section 163.500)

CAREER LADDER: This act modifies the Career Ladder program. This act removes the requirement that the General Assembly make an annual appropriation. Beginning in fiscal year 2012, Career Ladder payments will only be made available to local school districts if an appropriation is made. Any state appropriation must be made prospectively in relation to the year in which work under the program is performed. Nothing in this act shall be construed to prohibit a local school district from funding the program for its teachers for work performed in years for which no state appropriation is made available.

In addition, this act removes the variable match portion of Career Ladder. Instead, Career Ladder will be funded by sixty percent local funding and forty percent state funding. The three groups of school districts with variable funding rates are eliminated. (Sections 168.500 and 168.515)

This act contains an emergency clause on sections 163.031, 163.036, 168.500 and 168.515 to be effective on July 1, 2010 or upon the signature of the Governor, whichever occurs later.

MICHAEL RUFF


Return to Main Bill Page