HCS/SB 399 - RECALCULATED OPERATING LEVY - School districts which are required, pursuant to Article X, Section 22 of the Missouri Constitution, to make reassessment tax rate roll backs receive state aid based upon a higher, "recalculated levy" to ensure that the district receives no less state aid than the district received based upon the tax rate prior to the roll back. Under current law, the recalculated levy lasts until such time as the district votes to raise its levy back up to or in excess of the recalculated levy.

This act revises the "recalculated levy" provision such that all school districts will continue to receive state aid based upon inclusion of the recalculated levy, even if the district votes to raise its levy up to or above the recalculated levy.

Similar provisions are included in the perfected version of SS/SCS/SBs 347 et al.

EQUIVALENT SALES RATIO STUDIES - When conducting a second equivalent sales ratio study on county property assessments in counties with sales ratios more than five percent below the target value, current law requires the State Tax Commission to use a new sample at least twice as large as the original sample. The act requires the sample in the second study to include the sample in the first study plus an equal number of newly selected parcels.

PENALTIES FOR UNLAWFUL FUND TRANSFERS - The act revises the state school aid penalty faced by a district which makes a transfer of operating funds for capital projects purposes in violation of section 165.011, RSMo, such as the penalty faced by the McDonald County R-I School District. Current law requires that the full amount of the unlawful transfer shall be deducted from state aid payments to the district in the school year following the unlawful transfer.

The act provides that the full state aid penalty will be required; except that the penalty will be spread equally over five years if the district satisfies the following criteria:

(1) The district shall provide written notice to the State Board of Education, no later than June 1 of the first school year after the unlawful transfer, stating the district's intention to comply with these requirements and have state aid deducted over a five-year period for that unlawful transfer;

(2) On or before September 1 of the second school year following the year of the unlawful transfer, the district approves an operating levy increase to the greater of $2.75 or the levy which produces an increase in total state and local revenues, as determined by DESE, which is equal to or greater than the amount of state aid to be deducted each school year, except that increases for subsequent illegal transfers shall be made against this latter rate, rather than $2.75;

(3) During each following year in which state aid is deducted, the district shall maintain an operating levy which provides no less total state and local revenues than the levy required in item (2);

(4) Beginning with the 1999-2000 school year, during each year state aid is deducted, the district maintains teacher salary compliance without any recourse to waivers or base year adjustments and without the option to demonstrate compliance based upon the district's fund balances; and

(5) If the district fails to comply with any of these requirements in any year, the full, remaining amount of state aid to be deducted shall be deducted during such school year.

Similar provisions are contained in the perfected version of SS/SCS/SB's 347 et al and SS#2/HCS/HB 889.

The act contains an emergency clause for the provisions pertaining to penalties for unlawful fund transfers.
OTTO FAJEN