SECOND REGULAR SESSION
HOUSE BILL NO. 979
93RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE WALLACE.
Pre-filed December 1, 2005 and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
3472L.01I
AN ACT
To repeal sections 160.415, 162.935, 163.011, 163.023, 163.031, and 165.016 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 six new sections relating to school funding,
with an emergency clause.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 160.415, 162.935, 163.011, 163.023, 163.031, and 165.016 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session, are repealed and six new sections enacted in lieu thereof, to be known as sections
160.415, 162.935, 163.011, 163.023, 163.031, and 165.016, to read as follows:
160.415. 1. For the purposes of calculation and distribution of state school aid under
section 163.031, RSMo, pupils enrolled in a charter school shall be included in the pupil
enrollment of the school district within which each pupil resides. Each charter school shall
report the names, addresses, and eligibility for free and reduced lunch, special education, or
limited English proficiency status, as well as eligibility for categorical aid, of pupils resident in
a school district who are enrolled in the charter school to the school district in which those pupils
reside. The charter school shall report the average daily attendance data, free and reduced lunch
count, special education pupil count, and limited English proficiency pupil count to the state
department of elementary and secondary education. Each charter school shall promptly notify
the state department of elementary and secondary education and the pupil's school district when
a student discontinues enrollment at a charter school.
2. Except as provided in subsections 3 and 4 of this section, the aid payments for charter
schools shall be as described in this subsection.
(1) A school district having one or more resident pupils attending a charter school shall
pay to the charter school an annual amount equal to the product of the charter school's weighted
average daily attendance and the state adequacy target, [multiplied by the dollar value modifier
for the district,] plus local tax revenues per weighted average daily attendance from the incidental
and teachers' funds in excess of the performance levy as defined in section 163.011, RSMo, plus
all other state aid attributable to such pupils.
(2) The district of residence of a pupil attending a charter school shall also pay to the
charter school any other federal or state aid that the district receives on account of such child.
(3) If the department overpays or underpays the amount due to the charter school, such
overpayment or underpayment shall be repaid by the public charter school or credited to the
public charter school in twelve equal payments in the next fiscal year.
(4) The amounts provided pursuant to this subsection shall be prorated for partial year
enrollment for a pupil.
(5) A school district shall pay the amounts due pursuant to this subsection as the
disbursal agent and no later than twenty days following the receipt of any such funds. The
department of elementary and secondary education shall pay the amounts due when it acts as the
disbursal agent within five days of the required due date.
3. A workplace charter school shall receive payment for each eligible pupil as provided
under subsection 2 of this section, except that if the student is not a resident of the district and
is participating in a voluntary interdistrict transfer program, the payment for such pupils shall be
the same as provided under section 162.1060, RSMo.
4. A charter school that has declared itself as a local educational agency shall receive
from the department of elementary and secondary education an annual amount equal to the
product of the charter school's weighted average daily attendance and the state adequacy target,
[multiplied by the dollar value modifier for the district,] plus local tax revenues per weighted
average daily attendance from the incidental and teachers funds in excess of the performance
levy as defined in section 163.011, RSMo, plus all other state aid attributable to such pupils. If
a charter school declares itself as a local education agency, the department of elementary and
secondary education shall, upon notice of the declaration, reduce the payment made to the school
district by the amount specified in this subsection and pay directly to the charter school the
annual amount reduced from the school district's payment.
5. If a school district fails to make timely payments of any amount for which it is the
disbursal agent, the state department of elementary and secondary education shall authorize
payment to the charter school of the amount due pursuant to subsection 2 of this section and shall
deduct the same amount from the next state school aid apportionment to the owing school
district. If a charter school is paid more or less than the amounts due pursuant to this section,
the amount of overpayment or underpayment shall be adjusted equally in the next twelve
payments by the school district or the department of elementary and secondary education, as
appropriate. Any dispute between the school district and a charter school as to the amount owing
to the charter school shall be resolved by the department of elementary and secondary education,
and the department's decision shall be the final administrative action for the purposes of review
pursuant to chapter 536, RSMo. During the period of dispute, the department of elementary and
secondary education shall make every administrative and statutory effort to allow the continued
education of children in their current public charter school setting.
6. The charter school and a local school board may agree by contract for services to be
provided by the school district to the charter school. The charter school may contract with any
other entity for services. Such services may include but are not limited to food service, custodial
service, maintenance, management assistance, curriculum assistance, media services and libraries
and shall be subject to negotiation between the charter school and the local school board or other
entity. Documented actual costs of such services shall be paid for by the charter school.
7. A charter school may enter into contracts with community partnerships and state
agencies acting in collaboration with such partnerships that provide services to children and their
families linked to the school.
8. A charter school shall be eligible for transportation state aid pursuant to section
163.161, RSMo, and shall be free to contract with the local district, or any other entity, for the
provision of transportation to the students of the charter school.
9. (1) The proportionate share of state and federal resources generated by students with
disabilities or staff serving them shall be paid in full to charter schools enrolling those students
by their school district where such enrollment is through a contract for services described in this
section. The proportionate share of money generated under other federal or state categorical aid
programs shall be directed to charter schools serving such students eligible for that aid.
(2) A charter school district shall provide the special services provided pursuant to
section 162.705, RSMo, and may provide the special services pursuant to a contract with a
school district or any provider of such services.
10. A charter school may not charge tuition, nor may it impose fees that a school district
is prohibited from imposing.
11. A charter school is authorized to incur debt in anticipation of receipt of funds. A
charter school may also borrow to finance facilities and other capital items. A school district
may incur bonded indebtedness or take other measures to provide for physical facilities and other
capital items for charter schools that it sponsors or contracts with. Upon the dissolution of a
charter school, any liabilities of the corporation will be satisfied through the procedures of
chapter 355, RSMo.
12. Charter schools shall not have the power to acquire property by eminent domain.
13. The governing body of a charter school is authorized to accept grants, gifts or
donations of any kind and to expend or use such grants, gifts or donations. A grant, gift or
donation may not be accepted by the governing body if it is subject to any condition contrary to
law applicable to the charter school or other public schools, or contrary to the terms of the
charter.
162.935. 1. Except as provided in subsection 3 of this section, each special district
formed under provisions of sections 162.670 to 162.999 shall receive an amount equal to the
district's weighted average daily attendance multiplied by the state adequacy target [multiplied
by the dollar value modifier] minus local effort minus payments from the classroom trust fund.
A student enrolled in classes or programs in both the special district and a component district or
a pupil enrolled in a local district who needs itinerant or temporary services provided by the
special district shall continue his enrollment in the local district for purposes of apportionment
of state aid on average daily attendance. The special district may include the pupil in classes
approved for special categorical aid. The district providing transportation may claim state
transportation aid.
2. Any special school district which is in a county of the first classification which has
a population greater than nine hundred thousand is entitled to apportionment of state aid even
though the tax rate levied by the special school district is less than that required by section
163.021, RSMo.
3. For the purposes of determining state aid pursuant to section 163.031, RSMo, the
weighted average daily attendance of a school district within any special school district which
is not in a county of the first classification which has a population greater than nine hundred
thousand shall reflect the average daily attendance of all pupils resident in the district and
educated by the district or by the special school district, or both. The department shall pay the
funds so calculated to the school district. The school district shall pay monthly to the special
school district the proportional amount of state aid based on the weighted average daily
attendance of students educated by the special school district to the total weighted average daily
attendance of students educated by the district and the special school district.
163.011. As used in this chapter unless the context requires otherwise:
(1) "Adjusted operating levy", the sum of tax rates for the current year for teachers' and
incidental funds for a school district as reported to the proper officer of each county pursuant to
section 164.011, RSMo;
(2) "Average daily attendance", the quotient or the sum of the quotients obtained by
dividing the total number of hours attended in a term by resident pupils between the ages of five
and twenty-one by the actual number of hours school was in session in that term. To the average
daily attendance of the following school term shall be added the full-time equivalent average
daily attendance of summer school students. "Full-time equivalent average daily attendance of
summer school students" shall be computed by dividing the total number of hours attended by
all summer school pupils by the number of hours required in section 160.011, RSMo, in the
school term. For purposes of determining average daily attendance under this subdivision, the
term "resident pupil" shall include all children between the ages of five and twenty-one who are
residents of the school district and who are attending kindergarten through grade twelve in such
district. If a child is attending school in a district other than the district of residence and the
child's parent is teaching in the school district or is a regular employee of the school district
which the child is attending, then such child shall be considered a resident pupil of the school
district which the child is attending for such period of time when the district of residence is not
otherwise liable for tuition. Average daily attendance for students below the age of five years
for which a school district may receive state aid based on such attendance shall be computed as
regular school term attendance unless otherwise provided by law;
(3) "Current operating expenditures":
(a) For the fiscal year 2007 calculation, "current operating expenditures" shall be
calculated using data from fiscal year 2004 and shall be calculated as all expenditures for
instruction and support services except capital outlay and debt service expenditures minus the
revenue from federal categorical sources; food service; student activities; categorical payments
for transportation costs pursuant to section 163.161; state reimbursements for early childhood
special education; 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 payments from other districts;
(b) In every fiscal year subsequent to fiscal year 2007, current operating expenditures
shall be the amount in paragraph (a) plus any increases in state funding pursuant to sections
163.031 and 163.043 subsequent to fiscal year 2005, not to exceed five percent, per
recalculation, of the state revenue received by a district in the 2004-05 school year from the
foundation formula, line 14, gifted, remedial reading, exceptional pupil aid, fair share, and free
textbook payments for any district from the first preceding calculation of the state adequacy
target;
(4) "District's tax rate ceiling", the highest tax rate ceiling in effect subsequent to the
1980 tax year or any subsequent year. Such tax rate ceiling shall not contain any tax levy for
debt service;
(5) ["Dollar value modifier", an index of the relative purchasing power of a dollar,
calculated as one plus fifteen percent of the difference of the regional wage ratio minus one,
provided that the dollar value modifier shall not be applied at a rate less than 1.0:
(a) "County wage per job", the total county wage and salary disbursements divided by
the total county wage and salary employment for each county and the city of St. Louis as reported
by the Bureau of Economic Analysis of the United States Department of Commerce for the
fourth year preceding the payment year;
(b) "Regional wage per job":
a. The total Missouri wage and salary disbursements of the metropolitan area as defined
by the Office of Management and Budget divided by the total Missouri metropolitan wage and
salary employment for the metropolitan area for the county signified in the school district number
or the city of St. Louis, as reported by the Bureau of Economic Analysis of the United States
Department of Commerce for the fourth year preceding the payment year and recalculated upon
every decennial census to incorporate counties that are newly added to the description of
metropolitan areas; or if no such metropolitan area is established, then:
b. The total Missouri wage and salary disbursements of the micropolitan area as defined
by the Office of Management and Budget divided by the total Missouri micropolitan wage and
salary employment for the micropolitan area for the county signified in the school district
number, as reported by the Bureau of Economic Analysis of the United States Department of
Commerce for the fourth year preceding the payment year, if a micropolitan area for such county
has been established and recalculated upon every decennial census to incorporate counties that
are newly added to the description of micropolitan areas; or
c. If a county is not part of a metropolitan or micropolitan area as established by the
Office of Management and Budget, then the county wage per job, as defined in paragraph (a) of
this subdivision, shall be used for the school district, as signified by the school district number;
(c) "Regional wage ratio", the ratio of the regional wage per job divided by the state
median wage per job;
(d) "State median wage per job", the fifty-eighth highest county wage per job;
(6)] "Free and reduced lunch pupil count", the number of pupils eligible for free and
reduced lunch on the last Wednesday in January for the preceding school year who were enrolled
as students of the district, as approved by the department in accordance with applicable federal
regulations;
[(7)] (6) "Free and reduced lunch threshold" shall be calculated by dividing the total free
and reduced lunch pupil count of every performance district that falls entirely above the bottom
five percent and entirely below the top five percent of average daily attendance, when such
districts are rank-ordered based on their current operating expenditures per average daily
attendance, by the total average daily attendance of all included performance districts;
[(8)] (7) "Limited English proficiency pupil count", the number in the preceding school
year of pupils aged three through twenty-one enrolled or preparing to enroll in an elementary
school or secondary school who were not born in the United States or whose native language is
a language other than English or are Native American or Alaskan native, or a native resident of
the outlying areas, and come from an environment where a language other than English has had
a significant impact on such individuals' level of English language proficiency, or are migratory,
whose native language is a language other than English, and who come from an environment
where a language other than English is dominant; and have difficulties in speaking, reading,
writing, or understanding the English language sufficient to deny such individuals the ability to
meet the state's proficient level of achievement on state assessments described in Public Law
107-10, the ability to achieve successfully in classrooms where the language of instruction is
English, or the opportunity to participate fully in society;
[(9)] (8) "Limited English proficiency threshold" shall be calculated by dividing the total
limited English proficiency pupil count of every performance district that falls entirely above the
bottom five percent and entirely below the top five percent of average daily attendance, when
such districts are rank-ordered based on their current operating expenditures per average daily
attendance, by the total average daily attendance of all included performance districts;
[(10)] (9) "Local effort":
(a) For the fiscal year 2007 calculation, "local effort" shall be computed as the equalized
assessed valuation of the property of a school district in calendar year 2004 divided by one
hundred and multiplied by the performance levy less the percentage retained by the county
assessor and collector plus one hundred percent of the amount received in fiscal year 2005 for
school purposes from intangible taxes, fines, escheats, payments in lieu of taxes and receipts
from state-assessed railroad and utility tax, one hundred percent of the amount received for
school purposes pursuant to the merchants' and manufacturers' taxes under sections 150.010 to
150.370, RSMo, one hundred percent of the amounts received for school purposes from federal
properties under sections 12.070 and 12.080, RSMo, except when such amounts are used in the
calculation of federal impact aid pursuant to P.L. 81-874, fifty percent of Proposition C revenues
received for school purposes from the school district trust fund under section 163.087, and one
hundred percent of any local earnings or income taxes received by the district for school
purposes. Under this paragraph, for a special district established under sections 162.815 to
162.940, RSMo, in a county with a charter form of government and with more than one million
inhabitants, a tax levy of zero shall be utilized in lieu of the performance levy for the special
school district;
(b) In every year subsequent to fiscal year 2007, "local effort" shall be the amount
calculated under paragraph (a) of this subdivision plus any increase in the amount received for
school purposes from fines. If a district's assessed valuation has decreased subsequent to the
calculation outlined in paragraph (a) of this subdivision, the district's local effort shall be
calculated using the district's current assessed valuation in lieu of the assessed valuation utilized
in calculation outlined in paragraph (a) of this subdivision;
[(11)] (10) "Membership" shall be the average of:
(a) The number of resident full-time students and the full-time equivalent number of
part-time students who were enrolled in the public schools of the district on the last Wednesday
in September of the previous year and who were in attendance one day or more during the
preceding ten school days; and
(b) The number of resident full-time students and the full-time equivalent number of
part-time students who were enrolled in the public schools of the district on the last Wednesday
in January of the previous year and who were in attendance one day or more during the preceding
ten school days, plus the full-time equivalent number of summer school pupils.
"Full-time equivalent number of part-time students" is determined by dividing the total number
of hours for which all part-time students are enrolled by the number of hours in the school term.
"Full-time equivalent number of summer school pupils" is determined by dividing the total
number of hours for which all summer school pupils were enrolled by the number of hours
required pursuant to section 160.011, RSMo, in the school term. Only students eligible to be
counted for average daily attendance shall be counted for membership;
[(12)] (11) "Operating levy for school purposes", the sum of tax rates levied for teachers'
and incidental funds plus the operating levy or sales tax equivalent pursuant to section 162.1100,
RSMo, of any transitional school district containing the school district, in the payment year, not
including any equalized operating levy for school purposes levied by a special school district in
which the district is located;
[(13)] (12) "Performance district", any district that has met all performance standards and
indicators as established by the department of elementary and secondary education for purposes
of accreditation under section 161.092, RSMo, and as reported on the final annual performance
report for that district each year;
[(14)] (13) "Performance levy", three dollars and [forty-three] thirty-five cents;
[(15)] (14) "School purposes" pertains to teachers' and incidental funds;
[(16)] (15) "Special education pupil count", the number of public school students with
a current individualized education program and receiving services from the resident district as
of December first of the preceding school year, except for special education services provided
through a school district established under sections 162.815 to 162.940, RSMo, in a county with
a charter form of government and with more than one million inhabitants, in which case the sum
of the students in each district within the county exceeding the special education threshold of
each respective district within the county shall be counted within the special district and not in
the district of residence for purposes of distributing the state aid derived from the special
education pupil count;
[(17)] (16) "Special education threshold" shall be calculated by dividing the total special
education pupil count of every performance district that falls entirely above the bottom five
percent and entirely below the top five percent of average daily attendance, when such districts
are rank- ordered based on their current operating expenditures per average daily attendance, by
the total average daily attendance of all included performance districts;
[(18)] (17) "State adequacy target", the sum of the current operating expenditures of
every performance district that falls entirely above the bottom five percent and entirely below
the top five percent of average daily attendance, when such districts are rank-ordered based on
their current operating expenditures per average daily attendance, divided by the total average
daily attendance of all included performance districts. The department of elementary and
secondary education shall first calculate the state adequacy target for fiscal year 2007 and
recalculate the state adequacy target every two years using the most current available data. The
recalculation shall never result in a decrease from the previous state adequacy target amount.
Should a recalculation result in an increase in the state adequacy target amount, fifty percent of
that increase shall be included in the state adequacy target amount in the year of recalculation,
and fifty percent of that increase shall be included in the state adequacy target amount in the
subsequent year. The state adequacy target may be adjusted to accommodate available
appropriations;
[(19)] (18) "Teacher", any teacher, teacher-secretary, substitute teacher, supervisor,
principal, supervising principal, superintendent or assistant superintendent, school nurse, social
worker, counselor or librarian who shall, regularly, teach or be employed for no higher than
grade twelve more than one-half time in the public schools and who is certified under the laws
governing the certification of teachers in Missouri;
[(20)] (19) "Weighted average daily attendance", the average daily attendance plus the
product of twenty-five hundredths multiplied by the free and reduced lunch pupil count that
exceeds the free and reduced lunch threshold, plus the product of seventy-five hundredths
multiplied by the number of special education pupil count that exceeds the special education
threshold, and plus the product of six-tenths multiplied by the number of limited English
proficiency pupil count that exceeds the limited English proficiency threshold. For special
districts established under sections 162.815 to 162.940, RSMo, in a county with a charter form
of government and with more than one million inhabitants, weighted average daily attendance
shall be the average daily attendance plus the product of twenty-five hundredths multiplied by
the free and reduced lunch pupil count that exceeds the free and reduced lunch threshold, plus
the product of seventy-five hundredths multiplied by the sum of the special education pupil count
that exceeds the threshold for each county district, plus the product of six-tenths multiplied by
the limited English proficiency pupil count that exceeds the limited English proficiency
threshold. None of the districts comprising a special district established under sections 162.815
to 162.940, RSMo, in a county with a charter form of government and with more than one
million inhabitants, shall use any special education pupil count in calculating their weighted
average daily attendance.
163.023. 1. Commencing September 1, 1997, a school district that has an operating levy
for school purposes as defined in section 163.011, of less than the minimum value required by
section 163.021, shall be classified as unaccredited by the state board of education and shall be
deemed to be an unclassified school district for all purposes under force of law, pursuant to the
authority of the state board of education to classify school districts pursuant to section 161.092,
RSMo, except that no school district shall be classified as unaccredited or deemed to be an
unclassified school district pursuant to this section if such district is ineligible to receive state
aid under section 163.031, exclusive of categorical add-ons, because the district's local effort is
greater than its weighted average daily attendance multiplied by the state adequacy target
[multiplied by the dollar value modifier]. No school district, except a district which is ineligible
to receive state aid under section 163.031, exclusive of categorical add-ons, because the district's
local effort is greater than its weighted average daily attendance multiplied by the state adequacy
target [multiplied by the dollar value modifier], may be classified or reclassified as accredited
until such district has an operating levy for school purposes which is equal to or greater than the
minimum value required by section 163.021. Beginning July 1, 1998, the state board of
education shall consider the results for a school district from the statewide assessment system
developed pursuant to the provisions of section 160.518, RSMo, when classifying a school
district as authorized by subdivision (9) of section 161.092, RSMo. Further, the state board of
education shall consider the condition and adequacy of facilities of a school district when
determining such classification.
2. For any school district classified unaccredited for any school year, the state board of
education shall conduct procedures to classify said school district for the first school year
following.
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] 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 dollar value modifier], and dividing this product by the weighted
average daily attendance computed for the 2005-06 school year;
[(d)] (b) For each year subsequent to the [2008-09] 2006-07 school year, the amount
shall be no less than that computed in paragraph [(c)] (a) 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] 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 dollar value modifier];
[(d)] (b) For each year subsequent to the [2008-09] 2006-07 school year, the amount
shall be no less than that computed in paragraph [(c)] (a) 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)] (17) 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.
165.016. 1. A school district shall expend as a percentage of current operating cost, for
tuition, teacher retirement and compensation of certificated staff, a percentage that is for the
1994-95 and 1995-96 school years no less than three percentage points less than the base school
year certificated salary percentage and for the 1996-97 school year, no less than two percentage
points less than the base school year certificated salary percentage. A school district may
exclude transportation and school safety and security expenditures from the current operating
cost calculation of the base year and the year or years for which the compliance percentage is
calculated. The base school year certificated salary percentage shall be the two-year average
percentage of the 1991-92 and 1992-93 school years except as otherwise established by the state
board under subsection 4 of this section; except that, for any school district experiencing, over
a period of three consecutive years, an average yearly increase in average daily attendance of at
least three percent, the base school year certificated salary percentage may be the two-year
average percentage of the last two years of such period of three consecutive years, at the
discretion of the school district.
2. Beginning with the 1997-98 school year, a school district shall:
(1) Expend, as a percentage of current operating cost, as determined in subsection 1 of
this section, for tuition, teacher retirement and compensation of certificated staff, a percentage
that is no less than two percentage points less than the base school year certificated salary
percentage; or
(2) For any year in which no payment of a penalty is required for the district under
subsection 6 of this section, have an unrestricted fund balance in the combined incidental and
teachers' funds on June thirtieth which is equal to or less than ten percent of the combined
expenditures for the year from those funds.
3. Beginning with the 1999-00 school year:
(1) As used in this subsection, "fiscal instructional ratio of efficiency" or "FIRE" means
the quotient of the sum of the district's current operating costs, which for this section shall mean
all expenditures for instruction and support services, excluding capital outlay and debt service
expenditures less the revenue from federal categorical sources, food service, student activities,
and payments from other districts, for all kindergarten through grade twelve direct instructional
and direct pupil support service functions plus the costs of improvement of instruction and the
cost of purchased services and supplies for operation of the facilities housing those programs,
and excluding student activities, divided by the sum of the district's current operating cost, as
defined in this subdivision, for kindergarten through grade twelve, plus all tuition revenue
received from other districts minus all noncapital transportation and school safety and security
costs;
(2) A school district shall show compliance with this section in school year 1998-99 and
thereafter by the method described in subsections 1 and 2 of this section, or by maintaining or
increasing its fiscal instructional ratio of efficiency compared to its FIRE for the 1997-98 base
year.
4. (1) The state board of education may exempt a school district from the requirements
of this section upon receiving a request for an exemption by a school district. The request shall
show the reason or reasons for the noncompliance, and the exemption shall apply for only one
school year. Requests for exemptions under this subdivision may be resubmitted in succeeding
years.
(2) A school district may request of the state board a one-time, permanent revision of the
base school year certificated salary percentage. The request shall show the reason or reasons for
the revision.
5. Any school district requesting an exemption or revision under subsection 4 of this
section must notify the certified staff of the district in writing of the district's intent. Prior to
granting an exemption or revision, the state board shall consider comments from certified staff
of the district. The state board decision shall be final.
6. Any school district which is determined by the department to be in violation of the
requirements of subsection 1 or 2 of this section, or both, shall compensate the building-level
administrative staff and nonadministrative certificated staff during the year following the notice
of violation by an additional amount which is equal to one hundred ten percent of the amount
necessary to bring the district into compliance with this section for the year of violation. In any
year in which a penalty is paid, the district shall pay the penalty specified in this subsection in
addition to the amount required under this section for the current school year.
7. Any additional transfers from the teachers' or incidental fund to the capital projects
fund beyond the transfers authorized by state law and state board policy in effect on January 1,
1996, shall be considered expenditures from the teachers' or incidental fund for the purpose of
determining compliance with the provisions of subsections 1, 2 and 3 of this section.
8. The provisions of this section shall not apply to any district wherein the local effort
is greater than its weighted average daily attendance multiplied by the state adequacy target
[multiplied by the dollar value modifier] under section 163.031, RSMo.
9. The provisions of subsections 1 to 8 of this section shall not apply to any district that
has unrestricted fund balances in the combined incidental and teacher funds on June thirtieth of
the preceding year which are equal to or less than seventeen percent of the combined expenditure
for the preceding year from these funds in any year in which state funds distributed pursuant to
subsections 1 and 2 of section 163.031, RSMo, are no more than ninety-six percent of such state
funds distributed in fiscal year 2002.
10. The provisions of subsections 1 to 8 of this section shall not apply to any district
which meets the following criteria:
(1) With ten percent or more of its assessed valuation that is owned by one person or
corporation as commercial or personal property who is delinquent in a property tax payment;
(2) With unrestricted fund balances in the combined incidental and teacher funds on June
thirtieth of the preceding year which are equal to or less than one-half of the local property tax
revenue for the previous year; and
(3) In any year in which state funds distributed pursuant to subsections 1 and 2 of section
163.031, RSMo, are no more than ninety-six percent of such state funds distributed in fiscal year
2002.
11. The provisions of this section shall terminate on June 30, 2007.
Section B. Because immediate action is necessary to ensure fair and adequate school
funding, 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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