SB 983 - This act requires, beginning July 1, 2007, each school district to adopt as a goal the expenditure of at least two-thirds of its current operational expenditures on classroom instruction. The act defines the term "classroom instruction" and links it's meaning to a U.S. Department of Education Institute of Education Sciences publication, provided that the term shall be construed to include both "library and media services" and "guidance services." Further, the act defines the term "current operational expenditures" as all expenditures made by a school district other than expenditures for capital construction or debt or bond payments, including payment of interest on debt or bonds. The department shall ensure that each district's target percentage and actual classroom instruction expenditures are reported annually in both the district's annual accountability report card and in the department's "Report of the Public Schools" publication. The act requires the State Board of Education to report to the General Assembly and to the Governor a list of those districts that have and have not met the 66% goal. The report shall offer analysis regarding the effectiveness of the goal, as well as statistical correlations regarding each district's educational outcomes and their percent of current operational expenditures used for classroom instruction. The Governor shall publicly recognize those districts meeting the 66% goal as a "Governor's 'Students First' District". This act contains a referendum clause. DONALD THALHUBER