SB 108 - Currently, hold harmless school districts with an average daily attendance of 350 or less receive state aid under a different calculation than hold harmless school districts with an average daily attendance of greater than 350. This act creates the School District Contingency Fund in the state treasury. If a hold harmless school district’s average daily attendance increases from 350 or less to greater than 350, any decrease in state funding due to the district will be made up from moneys in the School District Contingency Fund. Moneys in the School District Contingency Fund will also be used to provide any lost funds the district had received from the annual $15 million appropriation under section 163.044 to districts with an average daily attendance of 350 or less.
The Department of Elementary and Secondary Education must annually calculate these funding amounts for any hold harmless school district whose average daily attendance increases above 350. The Department must report this information to the chairs of the Senate Appropriations Committee, Budget Committee of the House of Representatives, and the Joint Committee on Education.