Brief ⁽¹⁾

HB 2064 modifies the school finance formula, addresses other education policy matters, contains appropriations, and increases certain taxes in connection therewith. The bill also amends a law regarding closure of school buildings in the Shawnee Mission (USD 512) school district. The main provisions are described below:

School Formula Changes

• Base State Aid Per Pupil (BSAPP). BSAPP is increased from $3,820 in the 2000-01 school year to $3,930 in 2001-02 and to $4,060 in 2002-03 and thereafter.
• 
  
  
• Correlation Weight. Correlation weight is applied to all school districts having enrollments of 1,690 and over. (The weight currently applies to all districts with enrollments of 1,725 and over.) This change increases the weight's percentage from 6.3211 to 7.5855.
• 
  
  
• "Success in School State Aid"--Extended Learning Time and Eye Examinations. Each year school districts will receive $44 per FTE pupil. These funds are to be used for extended learning time. In order to qualify for this aid, a school district must submit an approvable plan to the State Board of Education. The district's plan may be for any of the following purposes:
• 
  
  

The plan may schedule the extended learning time before or after regular school hours, on weekends, or during the summer months. The plan must include intensive interventions for K-3 pupils needing assistance in achieving mastery of basic reading, writing, and mathematics skills.

In order to assist districts to establish and maintain an extended learning time plan, each pupil who needs assistance to master basic reading, writing, and mathematics skills is encouraged to obtain an eye examination by an optometrist or ophthalmologist to determine if the pupil suffers from conditions which impair the ability to read. The expense of such examination, if not reimbursed through Medicaid, Healthwave, private insurance, or other governmental or private program is the responsibility of the pupil's parent.

• At-Risk Pupils. The at-risk pupil weighting is increased from 0.09 in the 2000-01 school year to 0.11 in 2001-02 and thereafter. An amount equal to 0.01 will be used by the district for achieving mastery of basic reading skills by completion of the third grade in accordance with standards established by the State Board of Education. A school district must include information in its at-risk pupil assistance plan as the State Board of Education requires about the district's remediation strategies and its results in achieving the State Board's third grade reading mastery standards. A school district's report must include information documenting remediation strategies and improvement made by pupils who performed below the expected standard on the State Board's second grade diagnostic reading test. A school district whose third grade pupils substantially meet the State Board standards for mastery of third grade reading skills, upon request, may be released by the Board from the requirement to dedicate a specific portion of the at-risk weight to this reading initiative.
• 
  
  
  
  
• Four Year Old At-Risk Pupils. The four year old at-risk pupil competitive grant program is expanded by 436 pupils--from 2,230 in the 2000-01 school year to 2,666 in 2001-02 and thereafter.
• 
  
  
  
  

Other Education Policy Changes/Initiatives

• National Board for Professional Teaching Standards Certification Initiative. The law is amended to increase from $1,000 to $5,000 the amount of incentive bonuses paid to teachers who have earned certification by the National Professional Teaching Standards Board. In addition, the school district will receive $3,000 per year for each such teacher in support of staff development programs in schools in which the national board certified teachers are located. Districts receive money under this program in the form of grants. The portion of the grant attributable to reimbursement of the district for payment of incentive bonuses to teachers is deposited in the school district's general fund and the remainder is deposited in the school district's inservice education fund.
• 
  
  
• Exemplary School Recognition Award Program. Public schools that meet the building standard of excellence based on State Board of Education criteria under the Quality Performance Accreditation (QPA) system in consideration of attainment or significant and continuous progress of pupils toward advanced or proficient performance or substantial increase in the high school graduation rate are entitled to the exemplary school recognition award. Subject to available appropriations, the amount of this award may not exceed $50 per pupil in attendance at the exemplary school. The reward a district receives is deposited in the district's general fund and is credited to the account of the exemplary school. The funds may be spent whether or not they were budgeted. The exemplary school's site council determines the purposes for which the award is spent.
• 
  
  
• Alternative Teacher Compensation Plan/Rewarding Outstanding Teachers. School district boards are authorized to establish and maintain an alternative teacher compensation plan and apply for a grant of state moneys to finance all or a portion of the amount budgeted for maintenance of the plan. An "alternative teacher compensation plan" is one that includes components of peer mentoring and peer evaluation and that bases pay increases or differential pay rates on the demonstration of excellence or significant improvement in skills, knowledge, and performance.
• 
  
  

In order to be eligible to receive this state grant, a school board must submit to the State Board of Education an application which includes a description of the plan. A grant recipient school district must submit reports to the State Board as it requires.

The State Board of Education will adopt rules and regulations for the administration of this program and will:

A state grant may not exceed the amount spent by the school district in the maintenance of a plan. The grant money a district receives must be deposited in the school district general fund and is treated as a reimbursement for purposes of the school finance law.

• School Finance Study. The State Board of Education is directed to provide for a professional evaluation of school district finance to determine the per pupil cost of a suitable education for Kansas children. This evaluation must include a thorough study of the current school finance law with the objective of addressing any inherent inadequacies and inequities. Also, this evaluation must address:
• 
  
  
  • The funding needed to provide a suitable education in typical K-12 schools of various sizes and locations;
  • 
    
    
  • The additional support needed for special education, at-risk, limited English proficient pupils, and pupils impacted by other special circumstances;
  • 
    
    
  • The funding adjustments necessary to ensure comparable purchasing power for all districts, regardless of size or location; and
  • 
    
    
  • An appropriate annual adjustment for inflation.

The evaluation must cover the costs of providing:

The State Board of Education would secure consultant services to conduct this evaluation. The consultant would report findings and recommendations to the Governor and the Legislature at the beginning of the 2002 Legislative Session.

For the purpose of this legislation, the term "suitable education" means a curricular program consisting of the subjects and courses required under KSA 72-1101, 72-1103, and 72-1117, as amended, the courses in foreign language, fine arts, and physical education required to qualify for a state scholarship under KSA 72-6810 through 72-6816, as amended, and the courses included in the precollege curriculum prescribed by the Board of Regents under KSA 76-717, as amended.

• Compulsory School Attendance Requirement--Extension. The bill permits a school district to adopt a policy that extends the school term for pupils in need of remediation or for disciplinary purposes.
• 
  
  

A school district board may adopt a disciplinary policy or school improvement plan which includes additional school time for pupils who are in need of remedial education or who are subject to disciplinary measures imposed under the district's disciplinary policy. Any school day or school hour scheduled for a pupil under such a policy may be scheduled on weekends, before or after regular school hours, and during the summer months. Inexcusable absence from school on any school day or during any school hour by a pupil for whom additional school days or school hours have been scheduled under the policy is counted as an inexcusable absence from school for the purposes of enforcing the compulsory school attendance law.

Appropriations

• The bill includes the following State General Fund appropriations to the State Department of Education to fund the enhancements contained in the bill.
• 
  
  

Taxes

• Uniform Property Tax Levy. The uniform school district property tax rate of 20 mills and the $20,000 residential exemption are continued for 2001 and 2002.
• 
  
  
• Sales and Compensating Use Taxes. The state sales and compensating use taxes are increased from 4.9 to 5.0 percent on June 1, 2001, and then to 5.1 percent on June 1, 2002. Demand transfers from the State General Fund to the Local Ad Valorem Tax Reduction Fund, City and County Revenue Sharing Fund, and State Highway Fund are adjusted for the next five fiscal years so that the full amount attributable to the sales and use tax increases accrues to the benefit of the State General Fund.
• 
  
  
• Liquor Excise Tax. The liquor drink (excise) tax is increased from 10 to 12 percent, effective June 1, 2001.
• 
  
  
• Liquor Enforcement Tax. The liquor enforcement tax is increased from 8 to 10 percent, effective June 1, 2001.
• 
  
  
• Liquor Gallonage Taxes. Gallonage taxes on beer are increased from 18 to 25 cents per gallon; fortified wine from 75 cents to $1.05 per gallon; light wine from 30 to 42 cents per gallon; and alcohol and spirits from $2.50 to $3.00 per gallon, all effective June 1, 2001.
• 
  
  
• Cigarette Tax. The cigarette tax is increased from 24 to 34 cents per pack, effective June 1, 2001.
• 
  
  
• Tobacco Products Tax. The tobacco products tax is increased from 10 to 14 percent, effective June 1, 2001.
• 
  
  
• Carbonated Beverage Tax. A new tax is imposed on carbonated beverages equating to a rate of 20 cents per gallon, effective June 1, 2001.

• Food Sales Tax Refund. The food sales tax refund is increased as follows:
• 
  
  

There is a special law pertaining to the closure of school buildings in Shawnee Mission (USD 512). In that district, the board must take into account various specified matters and then makes a tentative determination that a school building should be closed to enhance the quality of education and to improve the school system of the district. This is followed by a procedure which involves a public hearing and a decision by the school board which may be overturned through a protest petition election procedure. This procedure applies in the board member district in which the building is located. The amendment makes the protest petition and election procedure districtwide, rather than being limited to the area of the board member district.

Background

Provisions of HB 2064, as reported without recommendation by the House Taxation Committee, incorporated the Senate Education Committee's first school finance plan as contained in HB 2051.

Following is a comparison of the increases contained in the first Senate Education Committee plan (and as contained in HB 2064) as compared to the Governor's initial recommendation to the 2001 Legislature.

The Shawnee Mission school closing law amendment was added by the House Committee of the Whole.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi