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SECOND REGULAR SESSION
HOUSE BILL NO. 930
92ND GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES BIVINS (Sponsor), COOPER (155), STEFANICK,
SANDER AND ICET (Co-sponsors).
Pre-filed December 30, 2003, and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
3196L.01I
AN ACT
To repeal section 163.031, RSMo, and to enact in lieu thereof one new section relating to state
aid for public schools, with an emergency clause.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 163.031, RSMo, is repealed and one new section enacted in lieu
thereof, to be known as section 163.031, to read as follows:
163.031. 1. School districts which meet the requirements of section 163.021 shall be
entitled to an amount computed as follows: an amount determined by multiplying the number
of eligible pupils by the lesser of the district's equalized operating levy for school purposes as
defined in section 163.011 or two dollars and seventy-five cents per one hundred dollars assessed
valuation multiplied by the guaranteed tax base per eligible pupil times the proration factor plus
an amount determined by multiplying the number of eligible pupils by the greater of zero or the
district's equalized operating levy for school purposes as defined in section 163.011 minus two
dollars and seventy-five cents per one hundred dollars assessed valuation multiplied by the
guaranteed tax base per eligible pupil times the proration factor. For the purposes of this section,
the proration factor shall be equal to the sum of the total appropriation for distribution under
subsections 1 and 2 of this section; and the state total of the deductions as calculated in
subsection 2 of this section which do not exceed the district entitlements as adjusted by the same
proration factor; divided by the amount of the state total of district entitlements before proration
as calculated pursuant to this subsection; provided that, if the proration factor so calculated is
greater than one, the proration factor for line 1(b) shall be the greater of one or the proration
factor for line 1(a) minus five hundredths, and provided that if the proration factor so calculated
is less than one, the proration factor for line 1(a) shall be the lesser of one or the proration factor
for line 1(b) plus five hundredths.
2. From the district entitlement for each district there shall be deducted the following
amounts: an amount determined by multiplying the district equalized assessed valuation by the
district's equalized operating levy for school purposes times the district income factor plus ninety
percent of any payment received the current year of protested taxes due in prior years no earlier
than the 1997 tax year minus the amount of any protested taxes due in the current year and for
which notice of protest was received during the current year; one hundred percent of the amount
received the previous year for school purposes from intangible taxes, fines, forfeitures and
escheats, payments in lieu of taxes and receipts from state assessed railroad and utility tax,
except that any penalty paid after July 1, 1995, by a concentrated animal feeding operation as
defined by the department of natural resources rule shall not be included; one hundred percent
of the amounts received the previous year for school purposes from federal properties pursuant
to sections 12.070 and 12.080, RSMo; federal impact aid received the previous year for school
purposes pursuant to P.L. 81-874 less fifty thousand dollars multiplied by ninety percent or the
maximum percentage allowed by federal regulation if that percentage is less than ninety; fifty
percent, or the percentage otherwise provided in section 163.087 of Proposition C revenues
received the previous year for school purposes from the school district trust fund pursuant to
section 163.087; one hundred percent of the amount received the previous year for school
purposes from the fair share fund pursuant to section 149.015, RSMo; and one hundred percent
of the amount received the previous year for school purposes from the free textbook fund,
pursuant to section 148.360, RSMo.
3. School districts which meet the requirements of section 163.021 shall receive
categorical add-on revenue as provided in this subsection. There shall be individual proration
factors for each categorical entitlement provided for in this subsection, and each proration factor
shall be determined by annual appropriations, but no categorical proration factor shall exceed the
entitlement proration factor established pursuant to subsection 1 of this section, except that the
vocational education entitlement proration factor established pursuant to line 16 of subsection
6 of this section and the educational and screening program entitlements proration factor
established pursuant to line 17 of subsection 6 of this section may exceed the entitlement
proration factor established pursuant to subsection 1 of this section. The categorical add-on for
the district shall be the sum of: seventy-five percent of the costs of adopting and providing a
violence prevention program pursuant to section 161.650, RSMo, multiplied by the proration
factor; seventy-five percent of the district allowable transportation costs pursuant to section
163.161 multiplied by the proration factor; the special education approved or allowed cost
entitlement for the district, provided for by section 162.975, RSMo, multiplied by the proration
factor; seventy-five percent of the district gifted education approved or allowable cost
entitlement as determined pursuant to section 162.975, RSMo, multiplied by the proration factor;
the free and reduced lunch eligible pupil count for the district, as defined in section 163.011,
multiplied by twenty percent, for a district with an operating levy in excess of two dollars and
seventy-five cents per one hundred dollars assessed valuation, or twenty-two percent, otherwise
times the guaranteed tax base per eligible pupil times two dollars and seventy-five cents per one
hundred dollars assessed valuation times the proration factor plus the free and reduced lunch
eligible pupil count for the district, as defined in section 163.011, times thirty percent times the
guaranteed tax base per eligible pupil times the following quantity: ((the greater of zero or the
district's operating levy for school purposes minus two dollars and seventy-five cents per one
hundred dollars assessed valuation) times one or, beginning in the fifth year following the
effective date of this section, the quotient of the district's fiscal instructional ratio of efficiency
for the prior year divided by the fiscal year 1998 statewide average fiscal instructional ratio of
efficiency, if the district's prior year fiscal instructional ratio of efficiency is at least five percent
below the fiscal year 1998 statewide average) times the proration factor, minus court-ordered
state desegregation aid received by the district for operating purposes; the career ladder
entitlement for the district, as provided for in sections 168.500 to 168.515, RSMo, multiplied by
the proration factor; the vocational education entitlement for the district, as provided for in
section 167.332, RSMo, multiplied by the proration factor and the district educational and
screening program entitlements as provided for in sections 178.691 to 178.699, RSMo, times the
proration factor.
4. Each district's apportionment shall be the prorated categorical add-ons plus the greater
of the district's prorated entitlement minus the total deductions for the district or zero.
5. (1) In the 1993-94 school year and all subsequent school years, pursuant to section
10(c) of article X of the state constitution, a school district shall adjust upward its operating levy
for school purposes to the extent necessary for the district to at least maintain the current
operating expenditures per pupil received by the district from all sources in the 1992-93 school
year, except that its operating levy for school purposes shall not exceed the highest tax rate in
effect subsequent to the 1980 tax year, or the minimum rate required by subsection 2 of section
163.021, whichever is less.
(2) The revenue per eligible pupil received by a district from the following sources: line
1 minus line 10, or zero if line 1 minus line 10 is less than zero, plus line 14 of subsection 6 of
this section, shall not be less than the revenue per eligible pupil received by a district in the
1992-93 school year from the foundation formula entitlement payment amount plus the amount
of line 14 per eligible pupil that exceeds the line 14 per pupil amount from the 1997-98 school
year, or the revenue per eligible pupil received by a district in the 1992-93 school year from the
foundation formula entitlement payment amount plus the amount of line 14(a) per eligible pupil
times the quotient of line 1 minus line 10, divided by the number of eligible pupils, or zero if line
1 minus line 10 is less than zero, divided by the revenue per eligible pupil received by the district
in the 1992-93 school year from the foundation formula entitlement payment amount, whichever
is greater. The department of elementary and secondary education shall make an addition in the
payment amount of line 19 of subsection 6 of this section to assure compliance with the
provisions contained in this section, provided that, beginning in the 2004-05 school year no
district which levies, in the current year, an equalized, adjusted operating levy for school
purposes which is equal to or greater than two dollars and seventy-five cents per one
hundred dollars assessed valuation shall receive, in the current year as compared to the
2002-03 school year, less revenue per pupil pursuant to this subdivision than the revenue
the district received in the 2002-03 school year plus the cumulative change in the consumer
price index for all urban consumers for the United States, or its successor index, as defined
and officially recorded by the United States Department of Labor or its successor agency.
(3) For any school district which meets the eligibility criteria for state aid as established
in section 163.021, but which under subsections 1 to 4 of this section, receives no state aid for
two successive school years, other than categorical add-ons, by August first following the second
such school year, the commissioner of education shall present a plan to the superintendent of the
school district for the waiver of rules and the duration of said waivers, in order to promote
flexibility in the operations of the district and to enhance and encourage efficiency in the delivery
of instructional services. The provisions of other law to the contrary notwithstanding, the plan
presented to the superintendent shall provide a summary waiver, with no conditions, for the pupil
testing requirements pursuant to section 160.257, RSMo. Further, the provisions of other law
to the contrary notwithstanding, the plan shall detail a means for the waiver of requirements
otherwise imposed on the school district related to the authority of the state board of education
to classify school districts pursuant to section 161.092, RSMo, and such other rules as
determined by the commissioner of education, except that such waivers shall not include the
provisions established pursuant to sections 160.514 and 160.518, RSMo.
(4) In the 1993-94 school year and each school year thereafter for two years, those
districts which are entitled to receive state aid under subsections 1 to 4 of this section, shall
receive state aid in an amount per eligible pupil as provided in this subsection. For the 1993-94
school year, the amount per eligible pupil shall be twenty-five percent of the amount of state aid
per eligible pupil calculated for the district for the 1993-94 school year pursuant to subsections
1 to 4 of this section plus seventy-five percent of the total amount of state aid received by the
district from all sources for the 1992-93 school year for which the district is entitled and which
are distributed in the 1993-94 school year pursuant to subsections 1 to 4 of this section. For the
1994-95 school year, the amount per eligible pupil shall be fifty percent of the amount of state
aid per eligible pupil calculated for the district for the 1994-95 school year pursuant to
subsections 1 to 4 of this section plus fifty percent of the total amount of state aid received by
the district from all sources for the 1992-93 school year for which the district is entitled and
which are distributed in the 1994-95 school year pursuant to subsections 1 to 4 of this section.
For the 1995-96 school year, the amount of state aid per eligible pupil shall be seventy-five
percent of the amount of state aid per eligible pupil calculated for the district for the 1995-96
school year pursuant to subsections 1 to 4 of this section plus twenty-five percent of the total
amount of state aid received by the district from all sources for the 1992-93 school year for
which the district is entitled and which are distributed in the 1995-96 school year pursuant to
subsections 1 to 4 of this section. Nothing in this subdivision shall be construed to limit the
authority of a school district to raise its district operating levy pursuant to subdivision (1) of this
subsection.
(5) If the total of state aid apportionments to all districts pursuant to subdivision (3) of
this subsection is less than the total of state aid apportionments calculated pursuant to
subsections 1 to 4 of this section, then the difference shall be deposited in the outstanding
schools trust fund. If the total of state aid apportionments to all districts pursuant to subdivision
(1) of this subsection is greater than the total of state aid apportionments calculated pursuant to
subsections 1 to 4 of this section, then funds shall be transferred from the outstanding schools
trust fund to the state school moneys fund to the extent necessary to fund the district entitlements
as modified by subdivision (4) of this subsection for that school year with a district entitlement
proration factor no less than one and such transfer shall be given priority over all other uses for
the outstanding schools trust fund as otherwise provided by law.
6. State aid shall be determined as follows:
District Entitlement 1(a).Number of eligible pupils x (lesser of district's equalized
operating levy for school purposes or two dollars and
seventy-five cents per one hundred dollars assessed valuation)
x (proration x GTB per EP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $............
1(b). Number of eligible pupils x (greater of: 0, or district's equalized
operating levy for school purposes minus two dollars and
seventy-five cents per one hundred dollars assessed valuation)
x (proration x GTB per EP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $............
Deductions 2.District equalized assessed valuation x district income factor
x district's equalized operating levy for school purposes plus
ninety percent of any payment received the current year of
protested taxes due in prior years no earlier than the 1997 tax
year minus the amount of any protested taxes due in the current
year and for which notice of protest was received during the
current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $............
3. Intangible taxes, fines, forfeitures, escheats, payments in lieu of
taxes, etc. (100% of the amount received the previous year for
school purposes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $............
4. Receipts from state assessed railroad and utility tax (100% of the
amount received the previous year for school purposes) . . . . . . . . . . . . . . . . .$............
5. Receipts from federal properties pursuant to sections 12.070 and
12.080, RSMo (100% of the amount received the previous year
for school purposes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $............
6. (Federal impact aid received the previous year for school purposes
pursuant to P.L. 81-874 less $50,000) x 90% or the maximum
percentage allowed by federal regulations if less than 90% . . . . . . . . . . . . . . .$............
7. Fifty percent or the percentage otherwise provided in section
163.087 of Proposition C receipts from the school district trust
fund received the previous year for school purposes pursuant to
section 163.087 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$............
8. One hundred percent of the amount received the previous year for
school purposes from the fair share fund pursuant to section
149.015, RSMo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$............
9. One hundred percent of the amount received the previous year for
school purposes from the free textbook fund pursuant to section
148.360, RSMo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$............
10. Total deductions (sum of lines 2-9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $............
Categorical Add-ons 11.The amount distributed pursuant to section 163.161 x proration . . . . . . . . . . .$............
12. Special education approved or allowed cost entitlement for the district
pursuant to section 162.975, RSMo, x proration . . . . . . . . . . . . . . . . . . . . . . . $............
13. Seventy-five percent of the gifted education approved or allowable cost
entitlement as determined pursuant to section 162.975, RSMo,
x proration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$............
14(a). Free and reduced lunch eligible pupil count for the district, as defined
in section 163.011, x .20, if operating levy in excess of $2.75, or .22,
otherwise x GTB per EP x $2.75 per $100 AV x proration . . . . . . . . . . . . . . . .$...........
14(b). Free and reduced lunch eligible pupil count for the district, as defined
in section 163.011 x .30 x GTB x ((the greater of zero or the
district's adjusted operating levy minus $2.75 per $100 AV)
x (1.0 or, beginning in the fifth year following the effective
date of this section, the district's FIRE for the prior year/statewide
average FIRE for FY 1998, if the district's prior year FIRE is at
least five percent below the FY 1998 statewide average FIRE)
x proration) - court-ordered state desegregation aid received by
the district for operating purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $...........
15. Career ladder entitlement for the district as provided for in sections
168.500 to 168.515, RSMo, x proration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$...........
16. Vocational education entitlements for the district as provided in
section 167.332, RSMo, x proration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $...........
17. Educational and screening program entitlements for the district as
provided in sections 178.691 to 178.699, RSMo, x proration . . . . . . . . . . . . . .$...........
18. Sum of categorical add-ons for the district (sum of lines 11-17) . . . . . . . . . . . .$...........
19. District apportionment (line 18 plus the greater of line 1 minus
line 10 or zero) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$...........
7. Revenue received for school purposes by each school district pursuant to this section
shall be placed in each of the incidental and teachers' funds based on the ratio of the property tax
rate in the district for that fund to the total tax rate in the district for the two funds.
8. In addition to the penalty for line 14 described in subsection 6 of this section,
beginning in school year 2004-05, any increase in a school district's funds received pursuant to
line 14 of subsection 6 of this section over the 1997-98 school year shall be reduced by one
percent for each full percentage point the percentage of the district's pupils scoring at or above
five percent below the statewide average level on either mathematics or reading is less than
sixty-five percent.
9. If a school district's annual audit discloses that students were inappropriately identified
as eligible for free or reduced-price lunch and the district does not resolve the audit finding, the
department of elementary and secondary education shall require that the amount of line 14 aid
paid on the inappropriately identified pupils be repaid by the district in the next school year and
shall additionally impose a penalty of one hundred percent of the line 14 aid paid on such pupils,
which penalty shall also be paid within the next school year. Such amounts may be repaid by
the district through the withholding of the amount of state aid.
Section B. Because immediate action is necessary to provide an adjustment in state aid
for hold-harmless schools section A of this act is deemed necessary for the immediate
preservation of the public health, welfare, peace, and safety, and is hereby declared to be an
emergency act within the meaning of the constitution, and section A of this act shall be in full
force and effect on July 1, 2004, or upon its passage and approval, whichever later occurs.