SECOND REGULAR SESSION
HOUSE BILL NO. 1136
93RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES ERVIN (Sponsor), FLOOK, NANCE, BROWN (30), PHILLIPS,
SILVEY AND NOLTE (Co-sponsors).
Pre-filed December 14, 2005 and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
3979L.01I
AN ACT
To repeal section 163.031 as enacted by conference committee substitute for house committee
substitute for senate substitute for senate committee substitute for senate bill no. 287,
ninety-third general assembly, first regular session and to enact in lieu thereof one new
section relating to the removal of adjustments in state aid for schools based on summer
school and gifted program enrollment, with an emergency clause.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 163.031 as enacted by conference committee substitute for house
committee substitute for senate substitute for senate committee substitute for senate bill no. 287,
ninety-third general assembly, first regular session, RSMo, is repealed and one new section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. The department of elementary and secondary education shall calculate and
distribute to each school district qualified to receive state aid under section 163.021 an amount
determined by multiplying the district's weighted average daily attendance by the state adequacy
target, multiplying this product by the dollar value modifier for the district, and subtracting from
this product the district's local effort and, in years not governed under subsection 4 of this
section, subtracting payments from the classroom trust fund under section 163.043.
2. Other provisions of law to the contrary notwithstanding:
(1) For districts with an average daily attendance of more than three hundred fifty in the
school year preceding the payment year:
(a) For the 2006-07 school year, the state revenue per weighted average daily attendance
received by a district from the state aid calculation under subsections 1 and 4 of this section, as
applicable, and the classroom trust fund under section 163.043 shall not be less than the state
revenue received by a district in the 2005-06 school year from the foundation formula, line 14,
gifted, remedial reading, exceptional pupil aid, fair share, and free textbook payment amounts
multiplied by the sum of one plus the product of one-third multiplied by the remainder of the
dollar value modifier minus one, and dividing this product by the weighted average daily
attendance computed for the 2005-06 school year;
(b) For the 2007-08 school year, the state revenue per weighted average daily attendance
received by a district from the state aid calculation under subsections 1 and 4 of this section, as
applicable, and the classroom trust fund under section 163.043 shall not be less than the state
revenue received by a district in the 2005-06 school year from the foundation formula, line 14,
gifted, remedial reading, exceptional pupil aid, fair share, and free textbook payment amounts
multiplied by the sum of one plus the product of two-thirds multiplied by the remainder of the
dollar value modifier minus one, and dividing this product by the weighted average daily
attendance computed for the 2005-06 school year;
(c) For the 2008-09 school year, the state revenue per weighted average daily attendance
received by a district from the state aid calculation under subsections 1 and 4 of this section, as
applicable, and the classroom trust fund under section 163.043 shall not be less than the state
revenue received by a district in the 2005-06 school year from the foundation formula, line 14,
gifted, remedial reading, exceptional pupil aid, fair share, and free textbook payment amounts
multiplied by the dollar value modifier, and dividing this product by the weighted average daily
attendance computed for the 2005-06 school year;
(d) For each year subsequent to the 2008-09 school year, the amount shall be no less than
that computed in paragraph (c) of this subdivision, multiplied by the weighted average daily
attendance pursuant to section 163.036, less any increase in revenue received from the classroom
trust fund under section 163.043;
(2) For districts with an average daily attendance of three hundred fifty or less in the
school year preceding the payment year:
(a) For the 2006-07 school year, the state revenue received by a district from the state
aid calculation under subsections 1 and 4 of this section, as applicable, and the classroom trust
fund under section 163.043 shall not be less than the greater of state revenue received by a
district in the 2004-05 or 2005-06 school year from the foundation formula, line 14, gifted,
remedial reading, exceptional pupil aid, fair share, and free textbook payment amounts
multiplied by the sum of one plus the product of one-third multiplied by the remainder of the
dollar value modifier minus one;
(b) For the 2007-08 school year, the state revenue received by a district from the state
aid calculation under subsections 1 and 4 of this section, as applicable, and the classroom trust
fund under section 163.043 shall not be less than the greater of state revenue received by a
district in the 2004-05 or 2005-06 school year from the foundation formula, line 14, gifted,
remedial reading, exceptional pupil aid, fair share, and free textbook payment amounts
multiplied by the sum of one plus the product of two-thirds multiplied by the remainder of the
dollar value modifier minus one;
(c) For the 2008-09 school year, the state revenue received by a district from the state
aid calculation under subsections 1 and 4 of this section, as applicable, and the classroom trust
fund under section 163.043 shall not be less than the greater of state revenue received by a
district in the 2004-05 or 2005-06 school year from the foundation formula, line 14, gifted,
remedial reading, exceptional pupil aid, fair share, and free textbook payment amounts
multiplied by the dollar value modifier;
(d) For each year subsequent to the 2008-09 school year, the amount shall be no less than
that computed in paragraph (c) of this subdivision;
(3) The department of elementary and secondary education shall make an addition in the
payment amount specified in subsection 1 of this section to assure compliance with the
provisions contained in this subsection.
3. School districts that meet the requirements of section 163.021 shall receive categorical
add-on revenue as provided in this subsection. The categorical add-on for the district shall be
the sum of: seventy-five percent of the district allowable transportation costs under section
163.161; the career ladder entitlement for the district, as provided for in sections 168.500 to
168.515, RSMo; the vocational education entitlement for the district, as provided for in section
167.332, RSMo; and the district educational and screening program entitlements as provided for
in sections 178.691 to 178.699, RSMo. The categorical add-on revenue amounts may be
adjusted to accommodate available appropriations.
4. In the 2006-07 school year and each school year thereafter for five years, those
districts entitled to receive state aid under the provisions of subsection 1 of this section shall
receive state aid in an amount as provided in this subsection.
(1) For the 2006-07 school year, the amount shall be fifteen percent of the amount of
state aid calculated for the district for the 2006-07 school year under the provisions of subsection
1 of this section, plus eighty-five percent of the total amount of state revenue received by the
district for the 2005-06 school year from the foundation formula, line 14, gifted, remedial
reading, exceptional pupil aid, fair share, and free textbook payments less any amounts received
under section 163.043.
(2) For the 2007-08 school year, the amount shall be thirty percent of the amount of state
aid calculated for the district for the 2007-08 school year under the provisions of subsection 1
of this section, plus seventy percent of the total amount of state revenue received by the district
for the 2005-06 school year from the foundation formula, line 14, gifted, remedial reading,
exceptional pupil aid, fair share, and free textbook payments less any amounts received under
section 163.043.
(3) For the 2008-09 school year, the amount of state aid shall be forty-four percent of the
amount of state aid calculated for the district for the 2008-09 school year under the provisions
of subsection 1 of this section plus fifty-six percent of the total amount of state revenue received
by the district for the 2005-06 school year from the foundation formula, line 14, gifted, remedial
reading, exceptional pupil aid, fair share, and free textbook payments less any amounts received
under section 163.043.
(4) For the 2009-10 school year, the amount of state aid shall be fifty-eight percent of
the amount of state aid calculated for the district for the 2009-10 school year under the provisions
of subsection 1 of this section plus forty-two percent of the total amount of state revenue
received by the district for the 2005-06 school year from the foundation formula, line 14, gifted,
remedial reading, exceptional pupil aid, fair share, and free textbook payments less any amounts
received under section 163.043.
(5) For the 2010-11 school year, the amount of state aid shall be seventy-two percent of
the amount of state aid calculated for the district for the 2010-11 school year under the provisions
of subsection 1 of this section plus twenty-eight percent of the total amount of state revenue
received by the district for the 2005-06 school year from the foundation formula, line 14, gifted,
remedial reading, exceptional pupil aid, fair share, and free textbook payments less any amounts
received under section 163.043.
(6) For the 2011-12 school year, the amount of state aid shall be eighty-six percent of
the amount of state aid calculated for the district for the 2011-12 school year under the provisions
of subsection 1 of this section plus fourteen percent of the total amount of state revenue received
by the district for the 2005-06 school year from the foundation formula, line 14, gifted, remedial
reading, exceptional pupil aid, fair share, and free textbook payments less any amounts received
under section 163.043.
(7) [(a)] Notwithstanding subdivision (18) of section 163.011, the state adequacy target
may not be adjusted downward to accommodate available appropriations in any year governed
by this subsection.
[(b) If a school district experiences a decrease in summer school average daily attendance
of more than fifteen percent from the district's 2005-06 summer school average daily attendance
in any year governed by this subsection, an amount equal to the product of the percent reduction
in the district's summer school average daily attendance multiplied by the funds generated by the
district's summer school program in the 2005-06 school year shall be subtracted from the
district's current year payment amount.
(c) If a school district experiences a decrease in its gifted program enrollment of more
than twenty percent from its 2005-06 gifted program enrollment in any year governed by this
subsection, an amount equal to the product of the percent reduction in the district's gifted
program enrollment multiplied by the funds generated by the district's gifted program in the
2005-06 school year shall be subtracted from the district's current year payment amount.]
5. For any school district meeting the eligibility criteria for state aid as established in
section 163.021, but which is considered an option district under section 163.042 and therefore
receives no state aid, 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 as provided in section 163.042.
6. (1) No less than seventy-five percent of the state revenue received under the
provisions of subsections 1, 2, and 4 of this section shall be placed in the teachers' fund, and the
remaining percent of such moneys shall be placed in the incidental fund. No less than
seventy-five percent of one-half of the funds received from the school district trust fund
distributed under section 163.087 shall be placed in the teachers' fund. One hundred percent of
revenue received under the provisions of section 163.161 shall be placed in the incidental fund.
One hundred percent of revenue received under the provisions of sections 168.500 to 168.515,
RSMo, shall be placed in the teachers' fund.
(2) A school district shall spend for certificated compensation and tuition expenditures
each year:
(a) An amount equal to at least seventy-five percent of the state revenue received under
the provisions of subsections 1, 2, and 4 of this section;
(b) An amount equal to at least seventy-five percent of one-half of the funds received
from the school district trust fund distributed under section 163.087 during the preceding school
year; and
(c) Beginning in fiscal year 2008, as much as was spent per the second preceding year's
weighted average daily attendance for certificated compensation and tuition expenditures the
previous year from revenue produced by local and county tax sources in the teachers' fund, plus
the amount of the incidental fund to teachers' fund transfer calculated to be local and county tax
sources by dividing local and county tax sources in the incidental fund by total revenue in the
incidental fund.
In the event a district fails to comply with this provision, the amount by which the district fails
to spend funds as provided herein shall be deducted from the district's state revenue received
under the provisions of subsections 1, 2, and 4 of this section for the following year, provided
that the state board of education may exempt a school district from this provision if the state
board of education determines that circumstances warrant such exemption.
7. If a school district's annual audit discloses that students were inappropriately identified
as eligible for free and reduced lunch, special education, or limited English proficiency and the
district does not resolve the audit finding, the department of elementary and secondary education
shall require that the amount of aid paid pursuant to the weighting for free and reduced lunch,
special education, or limited English proficiency in the weighted average daily attendance 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 such 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 prevent inequities in the provision
state aid for public 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, 2006, or upon its passage and approval, whichever later occurs.
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