SB 454 – This act modifies the elementary and secondary education foundation formula. Current law will allow the state adequacy target to be adjusted to accommodate available appropriations effective July 1, 2012, which is the completion date of the phase-in of the formula. This adjustment method is repealed. This act provides proration benchmarks for appropriations beginning in fiscal year 2014 that increase and continue until fiscal year 2017. In any year in which appropriations do not equal the amount necessary to fully fund the formula, payments will be modified to accommodate available appropriations. Payment reductions or increases will be calculated differently for hold-harmless and formula districts. If the formula is overfunded, payments to hold-harmless districts will be increased at half the rate of formula districts. If appropriations are less than what is required to fully fund the formula, payments to hold-harmless districts will be decreased at half the rate of formula districts. Language pertaining to the phase-in, which will be completed on July 1, 2012, is repealed. In addition, language pertaining to the summer school penalty, which terminated at the end of the 2008-2009 school year, is repealed. (Sections 163.011 & 163.031) This act contains an effective date of July 1, 2012, or upon the Governor's approval. (Section B) This act is similar to HB 1043 (2012). MICHAEL RUFF