To repeal sections 162.975 and 162.980, RSMo 1994, relating to state aid for special education programs, and to enact in lieu thereof one new section relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Sections 162.975 and 162.980, RSMo 1994, are repealed and one new section enacted in lieu thereof, to be known as section 162.975, to read as follows:

     162.975. 1. Each school district or special school district which provides approved special education services for handicapped or severely handicapped children under sections 162.670 to 162.995 or approved extended school year services for such children, shall be entitled under section 163.031, RSMo, to receive state aid. Additional state aid for such programs shall be allocated as follows in the following order of priority:

     (1) A school district or special school district shall receive state aid for each child receiving services on homebound status or served by contractual arrangement with a private or public agency approved by the department of elementary and secondary education. The amount paid from state aid for such services shall be adjusted annually by the percent change in the appropriation of state funds to this section for the current fiscal year compared with that for the first preceding fiscal year.

     (2) A school district or special school district shall receive state aid for approved extended school year services for handicapped or severely handicapped children. Prior to full implementation of subdivision (5) of this subsection, state aid paid for each approved staff member shall bear the same ratio to the amount payable for such staff during the immediate preceding school year as the ratio of the number of hours in the approved extended school year program bears to the number of hours in regular term programs for each respective school district or special school district approved under this section; provided that this amount shall be adjusted annually by the percent change in the appropriation of state funds to this section for the current fiscal year compared with the appropriation level for the first preceding fiscal year. After full implementation of subdivision (5) of this subsection, state aid shall be paid for each approved staff in an amount which bears the same ratio to the amount payable for such staff during the immediate preceding school year as the ratio of the number of hours in the approved extended school year program bears to the number of hours in regular term programs for each respective school district or special school district approved pursuant to this section; provided that the amount payable per approved staff member pursuant to this subdivision for the year of full implementation of subdivision (5) of this subsection and thereafter shall be, on a prorated basis, two times the amount payable per approved staff member pursuant to subdivision (4) of this subsection for the current school year.

     (3) A school district or special school district shall receive state aid for approved special education services provided by the division of youth services within the Missouri department of social services. State aid shall be paid for each full time equivalent professional and paraprofessional staff member approved by the department of elementary and secondary education at the rate paid during the first full fiscal year preceding the year in which this section becomes effective plus an annual adjustment equal to the percent change in the appropriation of state funds to this section for the current fiscal year compared with the appropriation level for the first preceding year.

     (4) A school district or special school district shall receive state aid for approved professional and paraprofessional staff who are employed or contracted to provide special education services for handicapped and severely handicapped children, including staff used by a school district or special school district to provide services before and after the normal school day for students attending nonpublic schools, including children for whom declarations of enrollment under section 167.042, RSMo, have been filed. Each school district or special school district employing or contracting for professional services or paraprofessional staff in the provision of special education services, as defined and approved by the department of elementary and secondary education, shall receive state aid at a full time equivalent rate based upon the total allocation of funds pursuant to this subdivision, after sufficient funds are allocated for subdivisions (1), (2) and (3) of this subsection. Paraprofessional staff shall be paid at one-half the rate paid full time equivalents of professional staff and contractors.

     (5) Each school district or special school district providing special education services for handicapped or severely handicapped children shall receive state aid pursuant to section 163.031, RSMo, for each such eligible pupil, and such school district shall receive state aid for each child domiciled in the district and enrolled in a nonpublic school, including children for whom declarations of enrollment under section 167.042, RSMo, have been filed. The per resident student rate paid for students enrolled in nonpublic schools shall be one-half that paid per eligible pupil for students enrolled in a school district or special school district.

     (6) No more than fifty percent of the total state aid appropriated pursuant to subdivisions (4) and (5) of this subsection shall be distributed pursuant to subdivision (5) of this subsection. No less than fifty percent of the state aid appropriated pursuant to subdivisions (4) and (5) of this subsection shall be distributed pursuant to subdivision (4) of this subsection. A sufficient share of the funds appropriated pursuant to this subsection shall be appropriated pursuant to subdivisions (1), (2) and (3) of this subsection to meet the requirements of those subdivisions. To the extent allowed by appropriations, the share of funds appropriated pursuant to this subsection under subdivision (5) shall be increased until that share is equal to fifty percent, at which time subdivision (5) of this subsection shall be considered fully implemented, and such share shall remain equal to fifty percent for all years thereafter. No district shall receive less state aid under this section than received during the year preceding that when the phased implementation was begun.

     (7) Contractors providing professional services funded under this section shall meet the state licensing and certification requirements appropriate to their contracted duties, as determined by the department of elementary and secondary education.

     2. For approved special education and related services provided for handicapped and severely handicapped children under five years of age, but not under the age of three, entitlements for state aid established pursuant to this section and distributed pursuant to section 163.031, RSMo, shall not exceed ninety percent of the cost of the programs as specified in project applications and approved by the department of elementary and secondary education. Such programs shall not be eligible to receive funds allocated pursuant to subsection 1 of this section.

     3. Each school district or special school district which provides an approved remedial reading program under provisions of sections 162.670 to 162.995 shall receive state aid established pursuant to this subsection and distributed pursuant to section 163.031, RSMo; provided that the state aid shall not exceed ninety percent of the approved cost of the program and provided that the amount paid from state aid for such services shall be adjusted annually by the percent change in the appropriation of state funds for the state school aid district entitlements as established pursuant to section 163.031, RSMo, for the current fiscal year compared with that for the first preceding fiscal year. Such programs shall not be eligible to receive funds allocated pursuant to subsection 1 of this section.

     4. For approved programs for gifted children, districts shall receive state aid under section 163.031, RSMo, not to exceed seventy-five percent of the cost of instructional personnel and special materials listed in project applications and approved by the department of elementary and secondary education. Such programs shall not be eligible to receive funds allocated pursuant to subsection 1 of this section.

          [162.975. 1. Each school district or special school district maintaining one or more approved special programs for handicapped or severely handicapped children under the provisions of sections 162.670 to 162.995 shall be entitled under section 163.031, RSMo, to receive state aid at the rate of eleven thousand six hundred forty-six dollars for each approved class of children per term of one hundred seventy-four days as provided by section 163.021, RSMo, except that approved classes for the educable mentally retarded shall be funded at ten thousand five hundred dollars in 1986-87 and thereafter shall be entitled under section 163.031, RSMo, to receive state aid at the same rate as granted for handicapped or severely handicapped children under the provisions of sections 162.670 to 162.995 and approved classes of remedial reading shall be funded at six thousand seven hundred ninety-four dollars per approved class. The rates of entitlement for approved classes in this subsection shall be adjusted annually by the lesser of the percentage change in state average per pupil operating costs or the percentage change in the total of the state's apportionments from the second preceding school year to the preceding school year. The rate of entitlement for this section for fiscal years 1994, 1995 and 1996 shall be the same as fiscal year 1993.

          2. For approved classes of handicapped and severely handicapped children under five years of age, but not under the age of three, entitlements for state aid established under this section and distributed pursuant to section 163.031, RSMo, shall not exceed seventy-seven percent of approved cost of the program as specified in the project application.

          3. For approved programs for gifted children, districts shall be entitled to receive state aid under section 163.031, RSMo, not to exceed seventy-five percent of the cost of instructional personnel and special materials listed and approved on the project application shall be apportioned.

          4. A district shall be entitled to receive, under section 163.031, RSMo, an additional amount of eight thousand dollars for each professional staff member, other than classroom teachers, who is employed to work full time with handicapped or severely handicapped children, ages five through twenty. The rate of entitlement provided by this subsection shall be adjusted annually by the lesser of the percentage change in state average teacher salary or the percentage change in the total of the state's apportionments from the second preceding school year to the preceding school year. The rate of entitlements for this section for fiscal years 1994, 1995 and 1996 shall be the same as for fiscal year 1993.

          5. For classes of handicapped children, ages five through twenty, a district shall be entitled to receive under section 163.031, RSMo, the amount of four thousand dollars for each full-time teacher aide when such aide is employed in accordance with standards approved by the state board of education. The rate of entitlement provided by this subsection shall be adjusted annually by the lesser of the percentage change in state average teacher salary or the percentage change in the total of the state's apportionments from the second preceding school year to the preceding school year. The rate of entitlement for this section for fiscal years 1994, 1995 and 1996 shall be the same as for fiscal year 1993.

          6. For the purposes of this section, "class" shall mean a group of not less than ten children; except that, fewer than ten children may constitute a class when it is found necessary and advisable by the state board of education.

          7. Each school district or special school district maintaining one or more approved summer school programs for handicapped or severely handicapped children shall be entitled to receive state aid under section 163.031, RSMo, for each approved class of children in an amount which bears the same ratio to the amount payable under subsection 1 of this section as the ratio of the number of hours in the approved summer program bears to the number of hours in regular term programs approved under subsection 1 of this section.

          8. Funds to which a district is entitled under this section shall be distributed as provided by section 163.031, RSMo.

          9. No class under this section may be disapproved by the state because the class may be a part-time class, in which case the state aid will be prorated.]

          [162.980. Each school district or special district shall receive up to eight hundred dollars per year for each homebound child, child receiving special services outside the special class, or child served by contractual arrangement with a private or public agency. The rate of reimbursement provided by this section shall be increased by two hundred dollars annually in 1986-87, 1987-88, 1988-89 and 1989-90 and shall thereafter be adjusted annually by the same percent that the appropriation of state funds for the school foundation program is changed from the previous year.]