SB 1361 - This act establishes a new means of distributing education funds. The act adds a 2% income tax surcharge, with a credit provided based upon property taxes paid to local school districts. The act sets up a $5,000 base pupil amount (to be adjusted annually by the CPI, not to exceed five percent) and adds adjustments for certain factors, including cost of living, gifted, special education, English as second language, free and reduced price lunch, among others. Overall, this formula contains a more student-needs approach than the current tax rate driven formula. The act contains a hold harmless clause that is adjusted for inflation. The act would allow any school district not in St. Louis or Kansas City to elect to become a charter district. Such districts may issue charters to schools within their district. Such charter schools shall be governed by provisions somewhat equivalent to those in the current charter school law. Further, the act phases in a policy whereby the summer school add-on for eligible pupils shall only include those eligible pupils that attended summer school in the current year. Also, the act specifies that in order for a school district to utilize an eligible pupil count for kindergarten from the immediately preceding or second preceding school years, the district must schedule the same number of hours on a daily basis in the current year for kindergarten instruction as that district scheduled in the immediately preceding or second preceding years for kindergarten instruction. In all other cases, the eligible pupils payment shall only include the current year kindergarten average daily attendance. This section of the act contains an emergency clause. DONALD THALHUBER