Ch. 189             1997 Session Laws of Kansas             1535

An Act concerning school districts; authorizing the adoption of local option budgets; pro-
viding a procedure for authorization to increase such budgets; revising the definition of
local effort; amending K.S.A. 72-6417 and K.S.A.1996 Supp. 72-6410, as amended by
section 2 of 1997 House Bill No. 2031, and 72-6433 and repealing the existing sections;
also repealing K.S.A. 1996 Supp. 72-6433a.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1996 Supp. 72-6433 is hereby amended to read as
follows: 72-6433. (a) (1) The board of any district may adopt a local option
budget in each school year, commencing with the 1997-98 school year, in
an amount not to exceed an amount equal to the district prescribed per-
centage of the amount of state financial aid determined for the district in
the school year. As used in this provision the term district prescribed
percentage means:

(A) For any district that was authorized to adopt and that adopted a
local option budget in the 1996-97 school year and to which the provisions
of section 2, and amendments thereto, do not apply in the current school
year, a percentage in the 1997-98 school year that is equal to the per-
centage specified in the resolution under which the district was authorized
to adopt a local option budget in the 1996-97 school year, in the 1998-99
school year, a percentage that is equal to 95% of the percentage specified
in the resolution under which the district was authorized to adopt a local
option budget in the 1996-97 school year, in the 1999-2000 school year,
a percentage that is equal to 90% of the percentage specified in the res-
olution under which the district was authorized to adopt a local option
budget in the 1996-97 school year, in the 2000-01 school year, a per-
centage that is equal to 85% of the percentage specified in the resolution
under which the district was authorized to adopt a local option budget in
the 1996-97 school year, in the 2001-02 school year and in each school
year thereafter, a percentage that is equal to 80% of the percentage spec-
ified in the resolution under which the district was authorized to adopt a
local option budget in the 1996-97 school year;

(B) for any district that was authorized to adopt and that adopted a
local option budget in the 1996-97 school year and to which the provisions
of section 2, and amendments thereto, apply in the current school year,
a percentage in the 1997-98 school year that is equal to the sum of the
percentage of the amount of state financial aid the district was authorized
to budget in the preceding school year and 20% of the percentage com-
puted for the district by the state board under the provisions of section
2, and amendments thereto, a percentage in the 1998-99 school year that
is equal to the sum of the percentage of the amount of state financial aid
the district was authorized to budget in the preceding school year and

1536             1997 Session Laws of Kansas             Ch. 189

40% of the percentage computed for the district by the state board under
the provisions of section 2, and amendments thereto, a percentage in the
1999-2000 school year that is equal to the sum of the percentage of the
amount of state financial aid the district was authorized to budget in the
preceding school year and 60% of the percentage computed for the district
by the state board under the provisions of section 2, and amendments
thereto, a percentage in the 2000-01 school year that is equal to the sum
of the percentage of the amount of state financial aid the district was
authorized to budget in the preceding school year and 80% of the per-
centage computed for the district by the state board under the provisions
of section 2, and amendments thereto, a percentage in the 2001-02 school
year and each school year thereafter that is equal to the sum of the per-
centage of the amount of state financial aid the district was authorized to
budget in the preceding school year and the percentage computed for the
district by the state board under the provisions of section 2, and amend-
ments thereto;

(C) for any district that was not authorized to adopt a local option
budget in the 1996-97 school year and to which the provisions of section
2, and amendments thereto, apply in the current school year, a percentage
in the 1997-98 school year that is equal to 20% of the percentage com-
puted for the district by the state board under the provisions of section
2, and amendments thereto, a percentage in the 1998-99 school year that
is equal to the sum of the percentage of the amount of state financial aid
the district was authorized to budget in the preceding school year and
40% of the percentage computed for the district by the state board under
the provisions of section 2, and amendments thereto, a percentage in the
1999-2000 school year that is equal to the sum of the percentage of the
amount of state financial aid the district was authorized to budget in the
preceding school year and 60% of the percentage computed for the district
by the state board under the provisions of section 2, and amendments
thereto, a percentage in the 2000-01 school year that is equal to the sum
of the percentage of the amount of state financial aid the district was
authorized to budget in the preceding school year and 80% of the per-
centage computed for the district by the state board under the provisions
of section 2, and amendments thereto, a percentage in the 2001-02 school
year and each school year thereafter that is equal to the sum of the per-
centage of the amount of state financial aid the district was authorized to
budget in the preceding school year and the percentage computed for the
district by the state board under the provisions of section 2, and amend-
ments thereto;

(D) for any district to which the provisions of section 2, and amend-
ments thereto, applied in the 1997-98 school year and to which the pro-
visions of section 2, and amendments thereto, do not apply in the current
school year, commencing with the 1998-99 school year, because an in-
crease in the amount budgeted by the district in its local option budget

Ch. 189             1997 Session Laws of Kansas             1537

as authorized by a resolution adopted under the provisions of subsection
(b) causes the actual amount per pupil budgeted by the district in the
preceding school year as determined for the district under provision (1)
of subsection (a) of section 2, and amendments thereto, to equal or exceed
the average amount per pupil of general fund budgets and local option
budgets computed by the state board under whichever of the provisions
(7) through (10) of subsection (a) of section 2, and amendments thereto,
is applicable to the district's enrollment group, a percentage that is equal
to the percentage of the amount of state financial aid the district was
authorized to budget in the preceding school year if the resolution au-
thorized the district to increase its local option budget on a continuous
and permanent basis. If the resolution that authorized the district to in-
crease its local option budget specified a definite period of time for which
the district would retain its authority to increase the local option budget
and such authority lapses at the conclusion of such period and is not
renewed, the term district prescribed percentage means a percentage that
is equal to the percentage of the amount of state financial aid the district
was authorized to budget in the preceding school year less the percentage
of increase that was authorized by the resolution unless the loss of the
percentage of increase that was authorized by the resolution would cause
the actual amount per pupil budgeted by the district to be less than the
average amount per pupil of general fund budgets and local option budg-
ets computed by the state board under whichever of the provisions (7)
through (10) of subsection (a) of section 2, and amendments thereto, is
applicable to the district's enrollment group, in which case, the term dis-
trict prescribed percentage means a percentage that is equal to the per-
centage of the amount of state financial aid the district was authorized to
budget in the preceding school year less the percentage of increase that
was authorized by the resolution plus a percentage which shall be com-
puted for the district by the state board in accordance with the provisions
of section 2, and amendments thereto, except that, in making the deter-
mination of the actual amount per pupil budgeted by the district in the
preceding school year, the state board shall exclude the percentage of
increase that was authorized by the resolution.

(2) (A) Subject to the provisions of subpart (B), the adoption of a local
option budget under authority of this subsection shall require a majority
vote of the members of the board and shall require no other procedure,
authorization or approval.

(B) In lieu of utilizing the authority granted by subpart (A) for adop-
tion of a local option budget, the board of a district may pass a resolution
authorizing adoption of such a budget and publish such resolution once
in a newspaper having general circulation in the district. The resolution
shall be published in substantial compliance with the following form:

1538             1997 Session Laws of Kansas             Ch. 189

Unified School District No. ____________,

The board of education of the above-named school district shall be authorized to adopt a
local option budget in each school year for a period of time not to exceed _________ years
in an amount not to exceed ______% of the amount of state financial aid determined for the
current school year. The local option budget authorized by this resolution may be adopted,
unless a petition in opposition to the same, signed by not less than 5% of the qualified electors
of the school district, is filed with the county election officer of the home county of the school
district within 30 days after publication of this resolution. In the event a petition is filed,
the county election officer shall submit the question of whether adoption of the local option
budget shall be authorized to the electors of the school district at an election called for the
purpose or at the next general election, as is specified by the board of education of the school
district.

This is to certify that the above resolution was duly adopted by the board of education of
Unified School District No. _________, _______________________________________________________________________________ County, Kansas, on the _________
day of ____________, 19___.

All of the blanks in the resolution shall be appropriately filled. The blank
preceding the word ``years'' shall be filled with a specific number, and the
blank preceding the percentage symbol shall be filled with a specific num-
ber. No word shall be inserted in either of the blanks. The percentage
specified in the resolution shall not exceed the district prescribed per-
centage. The resolution shall be published once in a newspaper having
general circulation in the school district. If no petition as specified above
is filed in accordance with the provisions of the resolution, the board may
adopt a local option budget. If a petition is filed as provided in the reso-
lution, the board may notify the county election officer of the date of an
election to be held to submit the question of whether adoption of a local
option budget shall be authorized. If the board fails to notify the county
election officer within 30 days after a petition is filed, the resolution shall
be deemed abandoned and no like resolution shall be adopted by the board
within the nine months following publication of the resolution. If any
district is authorized to adopt a local option budget under this subpart,
but the board of such district chooses, in any school year, not to adopt
such a budget or chooses, in any school year, to adopt such budget in an
amount less than the amount of the district prescribed percentage of the
amount of state financial aid in any school year, such board of education
may so choose. If the board of any district refrains from adopting a local
option budget in any one or more school years or refrains from budgeting
the total amount authorized for any one or more school years, the au-
thority of such district to adopt a local option budget shall not be extended
by such refrainment beyond the period specified in the resolution au-
thorizing adoption of such budget, nor shall the amount authorized to be

Ch. 189             1997 Session Laws of Kansas             1539

budgeted in any succeeding school year be increased by such refrainment.
Whenever an initial resolution has been adopted under this subpart, and
such resolution specified a lesser percentage than the district prescribed
percentage, the board of the district may adopt one or more subsequent
resolutions under the same procedure as provided for the initial resolution
and subject to the same conditions, and shall be authorized to increase
the percentage as specified in any such subsequent resolution for the re-
mainder of the period of time specified in the initial resolution. Any per-
centage specified in a subsequent resolution or in subsequent resolutions
shall be limited so that the sum of the percentage authorized in the initial
resolution and the percentage authorized in the subsequent resolution or
in subsequent resolutions is not in excess of the district prescribed per-
centage in any school year. The board of any district that has been au-
thorized to adopt a local option budget under this subpart and levied a
tax under authority of K.S.A. 72-6435, and amendments thereto, may
initiate, at any time after the final levy is certified to the county clerk
under any current authorization, procedures to renew its authority to
adopt a local option budget in the manner specified in this subpart or
may utilize the authority granted by subpart (A). As used in this subpart,
the term ``authorized to adopt a local option budget'' means that a district
has adopted a resolution under this subpart, has published the same, and
either that the resolution was not protested or that it was protested and
an election was held by which the adoption of a local option budget was
approved.

(3) The provisions of this subsection are subject to the provisions of
subsections (b) and (c).

(b) (1) The board of any district may adopt that adopts a local option
budget under subsection (a) may increase the amount of such budget in
each school year for a period of time not to exceed four school years,
commencing with the 1997-98 school year, in an amount which together
with the percentage of the amount of state financial aid budgeted under
subsection (a) does not to exceed the state prescribed percentage of the
amount of state financial aid determined for the district in the school year
if the board of the district determines that adoption of an increase in such
a budget would be in the best interests of the district.

(2) No district may adopt increase a local option budget under au-
thority of this subsection until a:(A) A resolution authorizing adoption of
such a budget an increase is passed by the board and published once in
a newspaper having general circulation in the district; or (B) the question
of whether the board shall be authorized to increase the local option
budget has been submitted to and approved by the qualified electors of
the district at a special election called for the purpose. Any such election
shall be noticed, called and held in the manner provided by K.S.A. 10-
120, and amendments thereto, for the noticing, calling and holding of
elections upon the question of issuing bonds under the general bond law.

1540             1997 Session Laws of Kansas             Ch. 189

The notice of such election shall state the purpose for and time of the
election, and the ballot shall be designed with the question of whether the
board of education of the district shall be continuously and permanently
authorized to increase the local option budget of the district in each school
year by a percentage which together with the percentage of the amount
of state financial aid budgeted under subsection (a) does not exceed the
state prescribed percentage in any school year. If a majority of the qual-
ified electors voting at the election approve authorization of the board to
increase the local option budget, the board shall have such authority. If
a majority of the qualified electors voting at the election are opposed to
authorization of the board to increase the local option budget, the board
shall not have such authority and no like question shall be submitted to
the qualified electors of the district within the nine months following the
election. The resolution shall be published in substantial compliance with
the following form:
Unified School District No. ____________,

The board of education of the above-named school district shall be authorized to adopt
a local option budget in each school year for a period of time not to exceed _______________________________________________________________________________
years in an amount not to exceed ______% of the amount of state financial aid determined
for the current school year. The local option budget authorized by this resolution may be
adopted, unless a petition in opposition to the same, signed by not less than 5% of the
qualified electors of the school district, is filed with the county election officer of the home
county of the school district within 30 days after publication of this resolution. In the event
a petition is filed, the county election officer shall submit the question of whether adoption
of the local option budget shall be authorized to the electors of the school district at an
election called for the purpose or at the next general election, as is specified by the board
of education of the school district.

This is to certify that the above resolution was duly adopted by the board of education of
Unified School District No. _________, ____________ County, Kansas, on the _______________________________________________________________________________
day of ____________, 19___.

All of the blanks in the resolution shall be appropriately filled. The
blank preceding the word ``years'' shall be filled with a specific number,
not to exceed the number 4, and the blank preceding the percentage
symbol shall be filled with a specific number. No word shall be inserted
in either of the blanks. The percentage specified in the resolution shall
not exceed the state prescribed percentage. The

(3) (A) Subject to the provisions of subpart (B), a resolution author-
izing an increase in the local option budget of a district shall state that
the board of education of the district shall be authorized to increase the
local option budget of the district in each school year in an amount not
to exceed ______% of the amount of state financial aid determined for the

Ch. 189             1997 Session Laws of Kansas             1541

current school year and that the percentage of increase may be reduced
so that the sum of the percentage of the amount of state financial aid
budgeted under subsection (a) and the percentage of increase specified in
the resolution does not exceed the state prescribed percentage in any
school year. The blank preceding the percentage symbol shall be filled
with a specific number. No word shall be inserted in the blank. The res-
olution shall specify a definite period of time for which the board shall be
authorized to increase the local option budget and such period of time
shall be expressed by the specific number of school years for which the
board shall retain its authority to increase the local option budget. No
word shall be used to express the number of years for which the board
shall be authorized to increase the local option budget.

(B) In lieu of the requirements of subpart (A) and at the discretion of
the board, a resolution authorizing an increase in the local option budget
of a district may state that the board of education of the district shall be
continuously and permanently authorized to increase the local option
budget of the district in each school year by a percentage which together
with the percentage of the amount of state financial aid budgeted under
subsection (a) does not exceed the state prescribed percentage in any
school year.

(4) A resolution authorizing an increase in the local option budget of
a district shall be published once in a newspaper having general circu-
lation in the school district state that the amount of the local option budget
may be increased as authorized by the resolution unless a petition in
opposition to such increase, signed by not less than 5% of the qualified
electors of the school district, is filed with the county election officer of
the home county of the school district within 30 days after publication. If
no petition as specified above is filed in accordance with the provisions
of the resolution, the board may adopt a is authorized to increase the local
option budget of the district. If a petition is filed as provided in the res-
olution, the board may notify the county election officer of the date of an
election to be held to submit the question of whether adoption of a the
board shall be authorized to increase the local option budget shall be
authorized of the district. If the board fails to notify the county election
officer within 30 days after a petition is filed, the resolution shall be
deemed abandoned and no like resolution shall be adopted by the board
within the nine months following publication of the resolution.

(5) The requirements of provision (2) do not apply to any district that
is continuously and permanently authorized to increase the local option
budget of the district. An increase in the amount of a local option budget
by such a district shall require a majority vote of the members of the
board and shall require no other procedure, authorization or approval.

(2) (6) If any district is authorized to adopt increase a local option
budget, but the board of such district chooses, in any school year, not to
adopt or increase such a budget, or chooses, in any school year, to adopt

1542             1997 Session Laws of Kansas             Ch. 189

or increase such budget in an amount less than the amount of the district
prescribed percentage of the amount of state financial aid in any school
year authorized, such board of education may do so choose. If the board
of any district refrains from adopting or increasing a local option budget
in any one or more school years or refrains from budgeting the total
amount authorized for any one or more school years, the authority of such
district to adopt a local option budget shall not thereby be extended be-
yond the original period specified in the resolution authorizing adoption
of such budget, nor shall the amount authorized to be budgeted in any
succeeding school year shall not be increased thereby by such refrain-
ment, nor shall the authority of the district to increase its local option
budget be extended by such refrainment beyond the period of time spec-
ified in the resolution authorizing an increase in the local option budget
if the resolution specified such a period of time.

(3) (7) Whenever an initial resolution has been adopted under this
subsection, and such resolution specified a lesser percentage which to-
gether with the percentage of the amount of state financial aid budgeted
under subsection (a) is less than the state prescribed percentage, the
board of the district may adopt one or more subsequent resolutions under
the same procedure as provided for the initial resolution and subject to
the same conditions, and shall be authorized to increase the percentage
as specified in any such subsequent resolution for. If the initial resolution
specified a definite period of time for which the district is authorized to
increase its local option budget, the authority to increase such budget by
the percentage specified in any subsequent resolution shall be limited to
the remainder of the period of time specified in the initial resolution. Any
percentage specified in a subsequent resolution or in subsequent reso-
lutions shall be limited so that the sum of the percentage authorized in
the initial resolution and the percentage authorized in the subsequent
resolution or in subsequent resolutions together with the percentage of
the amount of state financial aid budgeted under subsection (a) is not in
excess of the state prescribed percentage in any school year.

(4) (8) (A) Subject to the provisions of subpart (B), the board of any
district that has adopted a local option budget under subsection (a), has
been authorized to increase such budget under a resolution which speci-
fied a definite period of time for retention of such authorization, and has
levied a tax under authority of K.S.A. 72-6435, and amendments thereto,
may initiate, at any time after the final levy is certified to the county clerk
under any current authorization, procedures to renew its the authority to
adopt a increase the local option budget subject to the conditions and in
the manner specified in provision (1) provisions (2) and (3) of this sub-
section and, at four-year intervals thereafter, may in like manner and
subject to like conditions renew such authorization for successive four-
year periods.

(B) The provisions of subpart (A) do not apply to the board of any

Ch. 189             1997 Session Laws of Kansas             1543

district that is continuously and permanently authorized to increase the
local option budget of the district.

(5) (9) As used in this subsection:

(A) ``Authorized to adopt increase a local option budget'' means either
that a district has held a special election under provision (2)(B) by which
authority of the board to increase a local option budget was approved, or
that a district has adopted a resolution under this subsection provision
(2) (A), has published the same, and either that the resolution was not
protested or that it was protested and an election was held by which the
adoption of authority of the board to increase a local option budget was
approved.

(B) ``District prescribed percentage'' means the percentage specified
in a resolution under which a district is authorized to adopt a local option
budget. No such percentage shall exceed the state prescribed percentage.

(C) ``State prescribed percentage'' means 25%.

(b) (1) The board of any district to which the provisions of this sub-
section apply may adopt a local option budget in the 1997-98 school year
if the board of the district determines that adoption of such a budget
would be in the best interests of the district. The adoption of a local option
budget in the 1997-98 school year under authority of this subsection shall
require a majority vote of the members of the board and shall require no
other procedure, authorization or approval. The provisions of this sub-
section apply to any district that is authorized to adopt and that adopts a
local option budget in the 1996-97 school year and, in order to be au-
thorized to adopt a local option budget in the 1997-98 school year, would
be required by operation of this section prior to its amendment by this
act to initiate procedures to renew its authority to adopt a local option
budget, subject to the conditions and in the manner specified in subsec-
tion (a), after certifying to the county clerk the levy of a tax for the purpose
of financing all or a portion of the local option budget adopted in the
1996-97 school year.

(2) The amount of a local option budget adopted by the board of a
district in the 1997-98 school year under authority of this subsection shall
not exceed an amount equal to the district prescribed percentage of the
amount of state financial aid determined for the district in the school
year. For the purposes of this provision, the term district prescribed per-
centage means the percentage specified in the resolution under which a
district is authorized to adopt a local option budget in the 1996-97 school
year.

(3) To the extent the provisions of subsection (a) conflict with this
subsection, the provisions of this subsection shall control.

(4) The provisions of this subsection shall expire on June 30, 1998.

(c) To the extent the provisions of the foregoing subsections conflict
with this subsection, this subsection shall control. Any district that is au-
thorized to adopt a local option budget in the 1997-98 school year under

1544             1997 Session Laws of Kansas             Ch. 189

a resolution which authorized the adoption of such budget in accordance
with the provisions of this section prior to its amendment by this act may
continue to operate under such resolution for the period of time specified
in the resolution or may abandon the resolution and operate under the
provisions of this section as amended by this act. Any such district shall
operate under the provisions of this section as amended by this act after
the period of time specified in the resolution has expired.

(b) (d)(1) There is hereby established in every district that adopts a
local option budget a fund which shall be called the supplemental general
fund. The fund shall consist of all amounts deposited therein or credited
thereto according to law.

(2) Subject to the limitation imposed under provision (3), amounts in
the supplemental general fund may be expended for any purpose for
which expenditures from the general fund are authorized or may be trans-
ferred to the general fund of the district or to any program weighted fund
or categorical fund of the district.

(3) Amounts in the supplemental general fund may not be expended
nor transferred to the general fund of the district for the purpose of mak-
ing payments under any lease-purchase agreement involving the acqui-
sition of land or buildings which is entered into pursuant to the provisions
of K.S.A. 72-8225, and amendments thereto.

(4) Any unexpended and unencumbered cash balance remaining in
the supplemental general fund of a district at the conclusion of any school
year in which a local option budget is adopted shall be disposed of as
provided in this subsection. If the district did not receive supplemental
general state aid in the school year and the board of the district is au-
thorized determines that it will be necessary to adopt a local option budget
in the ensuing school year, the total amount of the cash balance remaining
in the supplemental general fund shall be maintained in such fund or
transferred to the general fund of the district. If the board of such a
district is determines that it will not authorized be necessary to adopt a
local option budget in the ensuing school year, the total amount of the
cash balance remaining in the supplemental general fund shall be trans-
ferred to the general fund of the district. If the district received supple-
mental general state aid in the school year, transferred or expended the
entire amount budgeted in the local option budget for the school year,
and is authorized determines that it will be necessary to adopt a local
option budget in the ensuing school year, the total amount of the cash
balance remaining in the supplemental general fund shall be maintained
in such fund or transferred to the general fund of the district. If such a
district is determines that it will not authorized be necessary to adopt a
local option budget in the ensuing school year, the total amount of the
cash balance remaining in the supplemental general fund shall be trans-
ferred to the general fund of the district. If the district received supple-
mental general state aid in the school year, did not transfer or expend the

Ch. 189             1997 Session Laws of Kansas             1545

entire amount budgeted in the local option budget for the school year,
and is determines that it will not authorized be necessary to adopt a local
option budget in the ensuing school year, the total amount of the cash
balance remaining in the supplemental general fund shall be transferred
to the general fund of the district. If the district received supplemental
general state aid in the school year, did not transfer or expend the entire
amount budgeted in the local option budget for the school year, and is
authorized determines that it will be necessary to adopt a local option
budget in the ensuing school year, the state board shall determine the
ratio of the amount of supplemental general state aid received to the
amount of the local option budget of the district for the school year and
multiply the total amount of the cash balance remaining in the supple-
mental general fund by such ratio. An amount equal to the amount of the
product shall be transferred to the general fund of the district. The
amount remaining in the supplemental general fund may be maintained
in such fund or transferred to the general fund of the district.

New Sec. 2. (a) In each school year, commencing with the 1997-98
school year, the state board shall compute a district prescribed percentage
for the purpose of determining the amount of a local option budget the
board of a district to which the provisions of this section apply may adopt
for the school year. The district prescribed percentage for each district
to which the provisions of this section apply shall be computed by the
state board as provided in this section. The state board shall:

(1) Determine the actual amount per pupil for the preceding school
year of the general fund budget and the local option budget, if any, of
each district;

(2) compute the average amount per pupil for the preceding school
year of general fund budgets and local option budgets of districts with
75-125 enrollment in such school year;

(3) compute the average amount per pupil for the preceding school
year of general fund budgets and local option budgets of districts with
200-399 enrollment in such school year;

(4) compute the average amount per pupil for the preceding school
year of general fund budgets and local option budgets of districts with
1,800 or over enrollment in such school year;

(5) compute an average amount per pupil for the preceding school
year of general fund budgets and local option budgets of districts with
100-299.9 enrollment in such school year by preparing a schedule based
upon an accepted mathematical formula and deriving an amount for each
such district from a linear transition between the average amount per
pupil computed under (2) and the average amount per pupil computed
under (3);

(6) compute an average amount per pupil for the preceding school
year of general fund budgets and local option budgets of districts with

1546             1997 Session Laws of Kansas             Ch. 189

300-1,799.9 enrollment in such school year by preparing a schedule based
upon an accepted mathematical formula and deriving an amount for each
such district from a linear transition between the average amount per
pupil computed under (3) and the average amount per pupil computed
under (4);

(7) for districts with 0-99.9 enrollment, compare the amount deter-
mined for the district under (1) to the average amount computed under
(2). If the amount determined under (1) is equal to or greater than the
average amount computed under (2), the provisions of this section do not
apply to the district. If the amount determined under (1) is less than the
average amount computed under (2), subtract the amount determined
under (1) from the amount computed under (2), multiply the remainder
by enrollment of the district in the preceding school year, and divide the
product by the amount of state financial aid determined for the district
in the preceding school year. The quotient is the district prescribed per-
centage of the district;

(8) for districts with 100-299.9 enrollment, compare the amount de-
termined for the district under (1) to the average amount computed under
(5). If the amount determined under (1) is equal to or greater than the
average amount computed under (5), the provisions of this section do not
apply to the district. If the amount determined under (1) is less than the
average amount computed under (5), subtract the amount determined
under (1) from the amount computed under (5), multiply the remainder
by enrollment of the district in the preceding school year, and divide the
product by the amount of state financial aid determined for the district
in the preceding school year. The quotient is the district prescribed per-
centage of the district;

(9) for districts with 300-1,799.9 enrollment, compare the amount
determined for the district under (1) to the average amount computed
under (6). If the amount determined under (1) is equal to or greater than
the average amount computed under (6), the provisions of this section
do not apply to the district. If the amount determined under (1) is less
than the average amount computed under (6), subtract the amount de-
termined under (1) from the amount computed under (6), multiply the
remainder by enrollment of the district in the preceding school year, and
divide the product by the amount of state financial aid determined for
the district in the preceding school year. The quotient is the district pre-
scribed percentage of the district;

(10) for districts with 1,800 or over enrollment, compare the amount
determined for the district under (1) to the average amount computed
under (4). If the amount determined under (1) is equal to or greater than
the average amount computed under (4), the provisions of this section
do not apply to the district. If the amount determined under (1) is less
than the average amount computed under (4), subtract the amount de-
termined under (1) from the amount computed under (4), multiply the

Ch. 189             1997 Session Laws of Kansas             1547

remainder by enrollment of the district in the preceding school year, and
divide the product by the amount of state financial aid determined for
the district in the preceding school year. The quotient is the district pre-
scribed percentage of the district.

(b) The provisions of this section apply to any district that budgeted
an amount per pupil in the preceding school year, as determined under
provision (1) of subsection (a), that was less than the average amount per
pupil of general fund budgets and local option budgets computed by the
state board under whichever of the provisions (7) through (10) of sub-
section (a) is applicable to the district's enrollment group.

Sec. 3. K.S.A. 1996 Supp. 72-6410, as amended by section 2 of 1997
House Bill No. 2031, is hereby amended to read as follows: 72-6410. (a)
``State financial aid'' means an amount equal to the product obtained by
multiplying base state aid per pupil by the adjusted enrollment of a dis-
trict.

(b) ``Base state aid per pupil'' means an amount of state financial aid
per pupil. Subject to the other provisions of this subsection, the amount
of base state aid per pupil is $3,670. The amount of base state aid per
pupil is subject to reduction commensurate with any reduction under
K.S.A. 1996 Supp. 75-6704, and amendments thereto, in the amount of
the appropriation from the state general fund for general state aid. If the
amount of appropriations for general state aid is insufficient to pay in full
the amount each district is entitled to receive for any school year, the
amount of base state aid per pupil for such school year is subject to
reduction commensurate with the amount of the insufficiency.

(c) ``Local effort'' means the sum of an amount equal to the proceeds
from the tax levied under authority of K.S.A. 72-6431, and amendments
thereto, and an amount equal to any unexpended and unencumbered
balance remaining in the general fund of the district, except amounts
received by the district and authorized to be expended for the purposes
specified in K.S.A. 72-6430, and amendments thereto, and an amount
equal to any unexpended and unencumbered balances remaining in the
program weighted funds of the district, except any amount in the voca-
tional education fund of the district if the district is operating an area
vocational school, and an amount equal to any remaining proceeds from
taxes levied under authority of K.S.A. 72-7056 and 72-7072, and amend-
ments thereto, prior to the repeal of such statutory sections, and an
amount equal to the amount deposited in the general fund in the current
school year from amounts received in such year by the district under the
provisions of subsection (a) of K.S.A. 72-1046a, and amendments thereto,
and an amount equal to the amount deposited in the general fund in the
current school year from amounts received in such year by the district
pursuant to contracts made and entered into under authority of K.S.A.
72-6757, and amendments thereto, and an amount equal to the amount

1548             1997 Session Laws of Kansas             Ch. 189

credited to the general fund in the current school year from amounts
distributed in such year to the district under the provisions of articles 17
and 34 of chapter 12 of Kansas Statutes Annotated and under the pro-
visions of articles 42 and 51 of chapter 79 of Kansas Statutes Annotated,
and (1) for districts other than the district created by K.S.A. 72-5333a,
and amendments thereto, an amount equal to 75% of the federal impact
aid of a district and (2) for the district created by K.S.A. 72-5333a, and
amendments thereto, an amount equal to the federal impact aid of the
district.

(d) ``Federal impact aid'' means an amount equal to the federally
qualified percentage of the amount of moneys a district receives in the
current school year under the provisions of title I of public law 874 and
congressional appropriations therefor, excluding amounts received for as-
sistance in cases of major disaster and amounts received under the low-
rent housing program. The amount of federal impact aid defined herein
as an amount equal to the federally qualified percentage of the amount
of moneys provided for the district under title I of public law 874 shall
be determined by the state board in accordance with terms and conditions
imposed under the provisions of the public law and rules and regulations
thereunder.

Sec. 4. K.S.A. 72-6417 is hereby amended to read as follows: 72-
6417. (a) The distribution of general state aid under this act shall be made
in accordance with appropriation acts each year as provided in this sec-
tion.

(b) (1) In the months of July through May of each school year, the
state board shall determine the amount of general state aid which will be
required by each district to maintain operations in each such month. In
making such determination, the state board shall take into consideration
the district's access to local effort sources and the obligations of the gen-
eral fund which must be satisfied during the month. The amount deter-
mined by the state board under this provision is the amount of general
state aid which will be distributed to the district in the months of July
through May;

(2) in the month of June of each school year, payment shall be made
of the full amount of the general state aid entitlement determined for the
school year, less the sum of the monthly payments made in the months
of July through May.

(c) Payments of general state aid shall be distributed to districts once
each month at a time to be determined by the state board. The state
board shall certify to the director of accounts and reports the amount due
as general state aid to each district in each of the months of July through
June. Such certification, and the amount of general state aid payable from
the state general fund, shall be approved by the director of the budget.
The director of accounts and reports shall draw warrants on the state

Ch. 189             1997 Session Laws of Kansas             1549

treasurer payable to the district treasurer of each district entitled to pay-
ment of general state aid, pursuant to vouchers approved by the state
board. Upon receipt of such warrant, each district treasurer shall deposit
the amount of general state aid in the general fund, except that, an amount
equal to the amount of federal impact aid not included in the local effort
of a district may be disposed of as provided in subsection (a) of K.S.A.
72-6427, and amendments thereto.

(d) The provisions of this section shall take effect and be in force
from and after July 1, 1992.

Sec. 5. K.S.A. 72-6417 and K.S.A. 1996 Supp. 72-6410, as amended
by section 2 of 1997 House Bill No. 2031, 72-6433 and 72-6433a are
hereby repealed.

Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 15, 1997.