SB 12 – This act modifies the elementary and secondary education foundation formula and state aid for summer school. FOUNDATION FORMULA MODIFICATIONS: The phase-in of the SB 287 formula will be extended through the 2013-2014 school year. The phase-in percentages for the new and old formulas are modified, as described in the act. This act contains allowances for the distribution of state aid depending on the amount of available appropriations, as described below. This act allows the General Assembly to appropriate more funds than required by the phase-in percentages for any particular school year. In such a situation, the Department of Elementary and Secondary Education is required to adjust the phase-in percentages to accommodate appropriations in order to distribute one hundred percent of the total amount of appropriated funds. During the phase-in, if the foundation formula appropriation is equal or greater than the fiscal year 2010 foundation formula expenditure and the previous fiscal year's appropriation but is insufficient to fully fund the applicable phase-in percentages, the Department of Elementary and Secondary Education must adjust the phase-in percentages to accommodate the total amount of available funds. If the Governor withholds funds, the reduced figure will be used. In any school year in which the foundation formula appropriation is less than the fiscal year 2010 foundation formula expenditure; less than the previous year's foundation formula expenditure; or reduced from the current year appropriation by the Governor, as described in the act, the Department of Elementary and Secondary Education must reduce the payment amounts awarded to all school districts, including hold harmless districts. The Department of Elementary and Secondary Education must calculate a uniform proportional reduction percentage based on all available state aid to be applied to the payment amount to which all districts would otherwise be entitled under the applicable phase-in percentages. In addition, language pertaining to a penalty for a decrease in summer school enrollment, which terminated at the end of the 2008-2009 school year, is repealed. These provisions are similar to SS/SB 943 (2010) and provisions contained in SS#2/SCS/HCS#2/HB 1543 (2010). (Section 163.031) SUMMER SCHOOL: Beginning in the 2011-2012 school year, summer school attendance must not be included in a school district's average daily attendance. School districts may operate summer school programs at their own expense or at the expense of the parent. This provision is similar to SS/SB 943 (2010). (Section 163.036) This act contains an emergency clause. MICHAEL RUFF