Brief ⁽¹⁾

Senate Sub. for HB 2336 modifies the school finance formula and addresses other education policy matters. 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 $3,870 in 2001-02 and thereafter.
• 
  
  
• At-Risk Pupils. The at-risk pupil weighting is increased from 0.09 in the 2000-01 school year to 10.0 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.
• 
  
  
• Local Option Budget (LOB) Enhancement. The amount of state special education services categorical aid a school district receives during the current school year is converted to a pupil weighting for purposes of determining the State Financial Aid of a school district (the school district's general fund budget). This is accomplished by dividing the amount of state special education services aid the district receives by BSAPP and treating the result as an additional number of weighted pupils of the district. In turn, an amount equal to the amount attributable to the weighting is defined as "local effort" and, therefore, as a deduction in computing the general state aid entitlement of the district.
• 
  
  

The amount of state special education services aid the district receives is deposited to the school district general fund and then must be transferred to the district's special education fund. This procedure is aimed at increasing the size of a school district's general fund budget for purposes of the LOB calculation.

• Juvenile Detention Facilities. School districts receive state aid equal to the lesser of actual costs of educational services provided to children in juvenile detention facilities or two times BSAPP. Three additional facilities - Liberty Juvenile Services and Treatment (Wichita USD 259), King's Achievement Center (Goddard USD 265), and Clarence M. Kelly Transitional Living Center (Topeka) - are added to the listing of facilities that qualify for this program. The provision becomes effective upon publication in the Kansas Register.
• 
  
  

Other Education Policy Changes/Initiatives

• 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 evaluation must cover the costs of providing:

The State Board of Education will secure consultant services to conduct this evaluation. The consultant will 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, and amendments, the courses in foreign language, fine arts, and physical education required to qualify for a state scholarship under KSA 72-6810 through 72-6816, and amendments, and the courses included in the precollege curriculum prescribed by the Board of Regents under KSA 76-717, and amendments.

• School Efficiency Audit. The State Board of Education will provide for a school efficiency audit of expenditures of school districts to determine if the public school system could be operated in a more cost effective manner. The audit will focus on:
• 
  
  
  • financial management;
  • acquisition of goods and services;
  • operational efficiencies;
  • linkage of expenditures to performance;
  • effective deployment of licensed and classified personnel; and
  • facilities management.
  • 
    
    
    
    

The State Board will submit its report to the Governor and the Legislature at the beginning of the 2002 Session.

• 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.

• School District and Community College Board Contributions to Tax Sheltered Annuities. School district and community college governing boards are authorized to contribute an amount to match an employee's tax sheltered annuity. The employer's matching amount may not exceed the employee's contribution.
• 
  
  
  
  

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.
• 
  
  
  
  

Background

HB 2336, as introduced, proposed to increase the Local Option Budget (LOB) cap from 25.0 percent to 30.0 percent in the 2001-02 school year, to 33.0 percent in the 2002-03 school year, and to 35.0 percent in the 2003-04 school year. All LOB authority would then expire on June 30, 2004.

The House Education Committee amended the bill to do the following:

• Cap the LOB at 30.0 percent;

• Eliminate the expiration provision;
• 
  
  
• Require an election on an increase in LOB authority above the 25.0 percent threshold; and
• 
  
  
• Prohibit payment of supplemental general state aid beyond the district's entitlement at the level of a 25.0 percent LOB.

The bill was amended by the House Committee of the Whole to require, beginning July 1, 2001, that school districts collect financial data so that they are able to report income and expenditures in the following categories:

• Income received from all federal, state, and local sources whether of private or public origin;
• 
  
  
• Expenditures for direct instruction costs in each classroom;
• 
  
  
• Expenditures in each building for indirect instruction costs, for extracurricular activities, and for operating costs;
• 
  
  
• Expenditures for district-level administration and related administrative expenditures;
• 
  
  
• Expenditures from each of the special funds; and
• 
  
  
• All other expenditures.

These data would be reported to the State Department of Education by September 1 of each year.

These provisions were removed by the Senate Education Committee and replaced with the school finance provisions described in the brief. The provisions described in this brief reflect the second series of recommendations of the Senate Committee on Education pertaining to HB 2336. One of the Senate Education Committee actions has been to add to this bill the contents of HB 2094, as amended by the Senate Education Committee, relating to funding of educational services at juvenile detention facilities. The estimated added cost to the state for adding the three facilities contained in that measure is shown below.

Following is a summary of the fiscal components contained in the Senate Education Committee plan. They are the Governor's initial recommendation to the 2001 Legislature.

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