HB1124 - STATE AID - Stoll, Steve
HB1124 DISTRIBUTION OF STATE SCHOOL AID AND SCHOOL TAXES ON RAILROADS.
Sponsor: Stoll, Steve (103) Effective Date: 00/00/00
CoSponsor: LR Number: 3199-01
Last Action: This Bill is a Substitute - Check Primary Bill HB1337
Approved HCS HB 1337, 1225, 1235, 1211 & 1124
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
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Available Bill Summaries for HB1124
| Committee | Introduced |

Available Bill Text for HB1124
| Introduced |

Available Fiscal Notes for HB1124

BILL SUMMARIES

COMMITTEE

HCS HB 1337, 1225, 1235, 1211 & 1124 -- STATE AID

SPONSOR:   Morgan (Stoll)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Education
- Elementary and Secondary by a vote of 23 to 0.

Under current law, state assessed railroad and utility tax
revenues are retained at the county level and distributed to
the   school districts of that county.  In the 1996-97 school
year, current law requires these revenues to be distributed to
school districts throughout the state through the foundation
formula.  This bill repeals the provision that directs railroad
and utility tax revenues through the foundation formula and,
therefore, preserves the current method of distribution at the
county level.

The guaranteed tax base of a school district will be determined
by statistics from the third preceding year, instead of the
preceding year as current law dictates, and will not exceed the
state average equalized assessed valuation per pupil (which is
calculated by dividing the total equalized assessed valuation of
the state by the number of eligible pupils) for the third
preceding year multiplied by 2.167.

Any district which, due to reassessment, is required by the
Hancock Amendment to reduce its operating levy below the $2.75
minimum tax rate, will not be in violation of state law, thus
allowing the district to receive an increase in state aid.
Beginning in the 1997-98 school year, a school board no longer
has the power to levy the $2.75 minimum operating levy for
school purposes required by law on the basis that this rate
would not exceed the highest tax rate in effect since the 1980
tax year.

For the purposes of calculating state aid, the tax rate used to
determine a district's entitlement will be adjusted so that any
decrease in the entitlement due to a decrease in the tax rate
because of reassessment will equal the decrease in the deduction
for the assessed valuation of the district due to the change in
the tax rate because of reassessment.

The district income factor applied to the increased assessed
valuation above the assessed valuation of the district as of
December 31, 1994, will not exceed one.

The equalized assessed valuation of a school district will not
include any increased assessed valuation due to reassessment in
excess of the amount of increase allowed due to changes in the
Consumer Price Index.

Effective July 1, 1997, this bill repeals current law providing
that any school district required due to reassessment to reduce
its operating levy below $2.75 receives state aid calculated as
though the district's operating levy is $2.75.

FISCAL NOTE:  Estimated Net Effect on General Revenue Fund of
Unknown in FY 97, FY 98 & FY 99.

PROPONENTS:  Supporters say that the railroad and utilities
money will not be needed to fully fund the Foundation Formula as
had once been expected.  These funds should therefore remain at
the local level.  Local railroad and utilities revenue is
especially important to hold harmless districts.  This bill
would also stabilize the guaranteed tax base and make
adjustments to the formula that will help districts negatively
affected by reassessment.  Because the formula is sensitive to
local tax rates and assessed valuation, Hancock-mandated levy
decreases resulting from property reassessment will cause school
districts to lose state aid unless this bill passes.  This bill
can only help school districts.

Testifying for the bill were Representatives Stoll, Hendrickson,
Childers, Gibbons, Griesheimer, and Scheve; Missouri Council of
School Administrators; Missouri School Board Association;
Missouri Association of Secondary School Principals; Missouri
Association of Elementary School Principals; Missouri National
Education Association; Missouri State Teachers Association;
Cooperating School Districts of Greater St. Louis; Cooperating
School Districts of Greater Kansas City;  and Affton, Jefferson
City, Mehlville, and Washington School Districts.

OPPONENTS:  There was no opposition voiced to the committee.

Brian Cook, Research Analyst


INTRODUCED

HB 1337 -- State Aid

Sponsor:  Stoll

Under current law, state assessed railroad and utility tax
revenues are retained at the county level and distributed to
the   school districts of that county.  In the 1996-97 school
year, current law requires these revenues to be distributed to
school districts throughout the state through the foundation
formula.

This bill repeals the provision that directs railroad and
utility tax revenues through the foundation formula and,
therefore, preserves the current method of distribution at the
county level.

The guaranteed tax base of a school district will be determined
by statistics from the third preceding year, instead of the
preceding year as current law dictates, and will not exceed the
state average equalized assessed valuation per pupil (which is
calculated by dividing the total equalized assessed valuation of
the state by the number of eligible pupils) for the third
preceding year multiplied by 2.15.

Beginning in the 1997-98 school year, a school board no longer
has the power to levy the $2.75 minimum operating levy for
school purposes required by law; and any district which, due to
reassessment, is required by the Hancock Amendment to reduce its
operating levy below the $2.75 minimum tax rate, will not be in
violation of state law, thus allowing the district to receive an
increase in state aid.

Beginning in the 1996-97 school year, this bill provides a hold
harmless for school districts that, due to the Hancock Amendment
and reassessments, would face a reduction in state formula aid
and local property tax income.

The district income factor applied to assessed valuation
increases due to reassessment will not exceed one.

The equalized assessed valuation of a school district will not
include any increased assessed valuation due to reassessment in
excess of the amount of increase allowed due to changes in the
Consumer Price Index.


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Last Updated October 30, 1996 at 10:42 am