hb0510i-Introduced Bill Text
FIRST REGULAR SESSION
HOUSE BILL NO. 510
90TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE FROELKER.
Read 1st time January 19, 1999, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
L1375.01I
AN ACT
To repeal section 163.011, as both versions appear in RSMo Supp. 1998, relating to school
finance, and to enact in lieu thereof one new section relating to the same subject.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 163.011, as both versions appear in RSMo Supp. 1998, is repealed and one
new section enacted in lieu thereof, to be known as section 163.011, to read as follows:
163.011. As used in this chapter unless the context requires otherwise:
(1) "Adjusted gross income":
(a) "District adjusted gross income per return" shall be the total Missouri individual adjusted
gross income in a school district divided by the total number of Missouri income tax returns filed
from the school district as reported by the state department of revenue for the second preceding
year;
(b) "State adjusted gross income per return" shall be the total Missouri individual adjusted gross
income divided by the total number of Missouri individual income tax returns, of those returns
designating school districts, as reported by the state department of revenue for the second
preceding year;
(c) "District income factor" shall be one plus thirty percent of the difference of the district
income ratio minus one, except that the district income factor applied to the portion of the
assessed valuation corresponding to any increase in assessed valuation above the assessed
valuation of a district as of December 31, 1994, shall not exceed a value of one;
(d) "District income ratio" shall be the ratio of the district adjusted gross income per return
divided by the state adjusted gross income per return;
(2) "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;
(3) "Average daily attendance" means 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 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)] (4) "Current operating costs", 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;
(5) "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;
[(4)] (6) "Eligible pupils" shall be the sum of the average daily attendance of the school term
plus the product of two times the average daily attendance for summer school;
[(5)] (7) "Equalized assessed valuation of the property of a school district" shall be determined
by multiplying the assessed valuation of the real property subclasses specified in section 137.115,
RSMo, times the percent of true value as adjusted by the department of elementary and secondary
education to an equivalent sales ratio of thirty-three and one-third percent and dividing by either
the percent of true value as determined by the state tax commission on or before March fifteenth
preceding the fiscal year in which the valuation will be effective as adjusted by the department of
elementary and secondary education to an equivalent sales ratio of thirty-three and one-third
percent or the average percent of true value for the highest three of the last four years as
determined and certified by the state tax commission, whichever is greater. To the equalized
locally assessed valuation of each district shall be added the assessed valuation of tangible
personal property. The assessed valuation of property which has previously been excluded from
the tax rolls, which is being contested as not being taxable and which increases the total assessed
valuation of the school district by fifty percent or more, shall not be included in the calculation of
equalized assessed valuation under this subdivision;
[(6)] (8) "Free and reduced lunch eligible 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)] (9) "Guaranteed tax base" means the amount of equalized assessed valuation per eligible
pupil guaranteed each school district by the state in the computation of state aid. To compute the
guaranteed tax base, school districts shall be ranked annually from lowest to highest according to
the amount of equalized assessed valuation per pupil. The guaranteed tax base shall be based
upon the amount of equalized assessed valuation per pupil of the school district in which the
ninety-fifth percentile of the state aggregate number of pupils falls during the third preceding
year and shall be equal to the state average equalized assessed valuation per eligible pupil for the
third preceding year times two and one hundred and sixty-seven thousandths. The average
equalized assessed valuation per pupil shall be the quotient of the total equalized assessed
valuation of the state divided by the number of eligible pupils;
[(8)] (10) "Membership" shall be the average of (1) 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 (2) 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;
[(9)] (11) "Operating levy for school purposes" means the sum of tax rates levied for teachers'
and incidental funds in the payment year and shall be, after all adjustments and equalization of
the operating levy, no less than the minimum value required in section 163.021 for eligibility for
increases in state aid as calculated pursuant to section 163.031 and no greater than a maximum
value of four dollars and sixty cents per one hundred dollars assessed valuation. To equalize the
operating levy, multiply the aggregate tax rates for teachers', incidental, and building funds by
either the percent of true value, as determined by the state tax commission on or before March
fifteenth preceding the fiscal year in which the evaluation will be effective as adjusted by the
department of elementary and secondary education to an equivalent sales ratio of thirty-three and
one-third percent, or the average percent of true value for the highest three of the last four years
as determined and certified by the state tax commission, whichever is greater, and divide by the
percent of true value as adjusted by the department of elementary and secondary education to an
equivalent sales ratio of thirty-three and one-third percent, provided that for any district for which
the equivalent sales ratio is equal to or greater than thirty-three and one-third percent, the
equalized operating levy shall be the adjusted operating levy. For any county in which the
equivalent sales ratio is less than thirty-one and two-thirds percent, the state tax commission shall
conduct a second study in that county and shall use a sample consisting of the parcels used as a
sample in the original study combined with an equal number of newly selected parcels. If the
new ratio is higher than the original ratio provided by this subdivision, the new ratio shall be
used for the purposes of this subdivision and for determining equalized assessed valuation
pursuant to subdivision (5) of this section. For the purposes of calculating state aid pursuant to
section 163.031, for any district which has not enacted a voluntary tax rate rollback nor increased
the amount of a voluntary tax rate rollback from the previous year's amount, the tax rate used to
determine a district's entitlement shall be adjusted so that any decrease in the entitlement due to a
decrease in the tax rate resulting from the reassessment shall equal the decrease in the deduction
for the assessed valuation of the district as a result of the change in the tax rate due to reassessment. The tax rate adjustments required under this subdivision due to reassessment shall be
cumulative and shall be applied each year to determine the tax rate used to calculate the
entitlement; except that whenever the actual current operating levy [exceeds the tax rate
calculated pursuant to this subdivision for the purpose of determining the district's entitlement,
then the prior tax rate adjustments required under this subdivision due to reassessment shall be
eliminated and shall not be applied in determining the tax rate used to calculate the district
entitlement] is increased, the tax rate increase shall be added to the tax rate calculated
pursuant to this subdivision for the purpose of determining the district's entitlement;
[(10)] (12) "School purposes" pertains to teachers' and incidental funds;
[(11)] (13) "Teacher" means 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[;
(12) "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;
(13) "Current operating costs", 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.]
[163.011. As used in this chapter unless the context requires otherwise:
(1) "Adjusted gross income":
(a) "District adjusted gross income per return" shall be the total Missouri individual adjusted
gross income in a school district divided by the total number of Missouri income tax returns filed
from the school district as reported by the state department of revenue for the second preceding
year;
(b) "State adjusted gross income per return" shall be the total Missouri individual adjusted gross
income divided by the total number of Missouri individual income tax returns, of those returns
designating school districts, as reported by the state department of revenue for the second
preceding year;
(c) "District income factor" shall be one plus thirty percent of the difference of the district
income ratio minus one, except that the district income factor applied to the portion of the
assessed valuation corresponding to any increase in assessed valuation above the assessed
valuation of a district as of December 31, 1994, shall not exceed a value of one;
(d) "District income ratio" shall be the ratio of the district adjusted gross income per return
divided by the state adjusted gross income per return;
(2) "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;
(3) "Average daily attendance" means 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;
(4) "Current operating costs", 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;
(5) "District's target rate", the district's average percentage of pupils from fiscal years 2000 to
2005 scoring at or above the proficiency level on the statewide assessment system on either
mathematics or reading/communication arts plus one percentage point for each year after fiscal
year 2005 except that the district's target rate shall not exceed the statewide average percentage
from fiscal year 2000 to fiscal year 2005 scoring at or above the proficiency level on the
statewide assessment system on either mathematics or reading/communication arts;
(6) "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;
(7) "Eligible pupils" shall be the sum of the average daily attendance of the school term plus the
product of two times the average daily attendance for summer school;
(8) "Equalized assessed valuation of the property of a school district" shall be determined by
multiplying the assessed valuation of the real property subclasses specified in section 137.115,
RSMo, times the percent of true value as adjusted by the department of elementary and secondary
education to an equivalent sales ratio of thirty-three and one-third percent and dividing by either
the percent of true value as determined by the state tax commission on or before March fifteenth
preceding the fiscal year in which the valuation will be effective as adjusted by the department of
elementary and secondary education to an equivalent sales ratio of thirty-three and one-third
percent or the average percent of true value for the highest three of the last four years as
determined and certified by the state tax commission, whichever is greater. To the equalized
locally assessed valuation of each district shall be added the assessed valuation of tangible
personal property. The assessed valuation of property which has previously been excluded from
the tax rolls, which is being contested as not being taxable and which increases the total assessed
valuation of the school district by fifty percent or more, shall not be included in the calculation of
equalized assessed valuation under this subdivision;
(9) "Fiscal instructional ratio of efficiency", the quotient of the sum of the district's current
operating costs 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, excluding student
activities, divided by the sum of the district's current operating cost for kindergarten through
grade twelve, plus all tuition revenue received from other districts minus all noncapital transportation costs;
(10) "Free and reduced lunch eligible 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;
(11) "Guaranteed tax base" means the amount of equalized assessed valuation per eligible pupil
guaranteed each school district by the state in the computation of state aid. To compute the
guaranteed tax base, school districts shall be ranked annually from lowest to highest according to
the amount of equalized assessed valuation per pupil. The guaranteed tax base shall be based
upon the amount of equalized assessed valuation per pupil of the school district in which the
ninety-fifth percentile of the state aggregate number of pupils falls during the third preceding
year and shall be equal to the state average equalized assessed valuation per eligible pupil for the
third preceding year times two and one hundred and sixty-seven thousandths; except that, for the
purposes of line 14(b) the guaranteed tax base shall be no greater than the guaranteed tax base
used for the 1998-99 payment year. The average equalized assessed valuation per pupil shall be
the quotient of the total equalized assessed valuation of the state divided by the number of
eligible pupils;
(12) "Membership" shall be the average of (1) 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 (2) 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;
(13) "Operating levy for school purposes" for districts making transfers pursuant to subsection 4
of section 165.011, RSMo, based upon amounts multiplied by the guaranteed tax base, or making
payments or expenditures related to obligations made pursuant to section 177.088, RSMo, or any
combination of such transfers, payments or expenditures, means 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, and, for other districts, means the sum of tax rates levied for incidental, teachers', debt
service and capital projects funds plus the operating levy or sales tax equivalent pursuant to
section 162.1100, RSMo, of any transitional school district containing the school district, with no
more than eighteen cents of the sum levied in the debt service and capital projects funds. Any
portion of the operating levy for school purposes levied in the debt service and capital projects
funds in excess of a sum of ten cents must be authorized by a vote of the people, after August 28,
1998, approving an increase in the operating levy, or a full waiver of the rollback pursuant to
section 164.013, RSMo, with a tax rate ceiling in excess of the minimum tax rate or an issuance
of general obligation bond. The operating levy shall be, after all adjustments and equalization of
the operating levy, no greater than a maximum value of four dollars and ninety- five cents per
one hundred dollars assessed valuation, except that the operating levy shall be no greater than a
maximum value of four dollars and seventy cents per one hundred dollars assessed valuation for
the purposes of line 2 of subsection 6 of section 163.031. To equalize the operating levy,
multiply the aggregate tax rates for teachers' and incidental funds by either the percent of true
value, as determined by the state tax commission on or before March fifteenth preceding the
fiscal year in which the evaluation will be effective as adjusted by the department of elementary
and secondary education to an equivalent sales ratio of thirty-three and one-third percent, or the
average percent of true value for the highest three of the last four years as determined and
certified by the state tax commission, whichever is greater, and divide by the percent of true
value as adjusted by the department of elementary and secondary education to an equivalent sales
ratio of thirty-three and one-third percent, provided that for any district for which the equivalent
sales ratio is equal to or greater than thirty-three and one-third percent, the equalized operating
levy shall be the adjusted operating levy. For any county in which the equivalent sales ratio is
less than thirty-one and two-thirds percent, the state tax commission shall conduct a second study
in that county and shall use a sample at least twice as large as the one originally used. If the new
ratio is higher than the original ratio provided by this subdivision, the new ratio shall be used for
the purposes of this subdivision and for determining equalized assessed valuation pursuant to
subdivision (8) of this section. For the purposes of calculating state aid pursuant to section
163.031, for any district which has not enacted a voluntary tax rate rollback nor increased the
amount of a voluntary tax rate rollback from the previous year's amount, the tax rate used to
determine a district's entitlement shall be adjusted so that any decrease in the entitlement due to a
decrease in the tax rate resulting from the reassessment shall equal the decrease in the deduction
for the assessed valuation of the district as a result of the change in the tax rate due to reassessment. The tax rate adjustments required under this subdivision due to reassessment shall be
cumulative and shall be applied each year to determine the tax rate used to calculate the
entitlement; except that whenever the actual current operating levy exceeds the tax rate calculated pursuant to this subdivision for the purpose of determining the district's entitlement, then
the prior tax rate adjustments required under this subdivision due to reassessment shall be
eliminated and shall not be applied in determining the tax rate used to calculate the district
entitlement;
(14) "School purposes" pertains to teachers' and incidental funds;
(15) "Teacher" means 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.]
Missouri House of
Representatives