HCS/SB 644 - This act alters various provisions regarding public school funding. Currently, the phase-in period of the SB 287 formula contains a provision that reduces current year funding for any district that decreases its summer school average daily attendance below 15% of the district's 2005-2006 summer school average daily attendance. The level of such funding reduction is pegged to the district's drop in summer school attendance from the 2005-2006 summer school attendance. This act alters the aforementioned policy by phasing the threshold for allowable decreases in summer school attendance upward as follows: 20% for the 2006-2007 school year, 30% for the 2007-2008 school year, and 35% for school years 2008-2012. Further, the act applies the reduction only to the percent reduction that is in excess of the threshold rather than the reduction from the base 2005-2006 summer school amount. When calculating the local effort component of a district’s state aid calculation, the formula utilizes information from fiscal year 2005. In subsequent years, this figure is adjusted to include any increase in the amount received for school purposes from fines. This act adds a provision which would adjust the local effort figure to include any decrease in the amount received for school purposes from fines. Further, the act grants hold harmless districts an additional payment equal to the decrease, if any, in the amount of revenue the district receives from fines in the current year from the revenue the district received from fines in fiscal year 2005. Currently, under Department of Elementary and Secondary Education rules, school districts may be financially penalized for transporting students who live less than a mile from school. This act exempts from administrative penalties districts that demonstrate their students have to cross highways and arterials under specified conditions. This act contains an emergency clause with an effective date of July 1, 2006. DONALD THALHUBER