HCS/SCS/SB 326 - Current law includes, as part of the state school aid formula, a "hold harmless" calculation which guarantees no less state aid per pupil than a district received in the 1992-93 school year. This hold harmless currently includes a reduction of state aid guarantee based on the difference between the minimum required operating levy ($2.75) and the district's operating levy in 1993. This reduction is often referred to as the "local hold harmless". This act would eliminate the local hold harmless requirement. The act provides that the Department of Elementary and Secondary Education (DESE) may continue to make required state aid reductions for districts which make unlawful payments for capital projects as provided in section 177.088, RSMo, and DESE may continue to make required state aid reductions for unlawful transfers from the incidental fund to the capital projects fund as provided in section 165.011, RSMo. Such reductions shall be made after the hold harmless is applied.
OTTO FAJEN