163.031. State aid--amount, how determined--categorical add-on revenue, determination of amount--district apportionment, determination of--waiver of rules--deposits to teachers' fund and incidenta

State aid--amount, how determined--categorical add-on revenue,determination of amount--district apportionment, determinationof--waiver of rules--deposits to teachers' fund and incidentalfund, when.

163.031. 1. The department of elementary and secondary educationshall calculate and distribute to each school district qualified to receivestate aid under section 163.021 an amount determined by multiplying thedistrict's weighted average daily attendance by the state adequacy target,multiplying this product by the dollar value modifier for the district, andsubtracting from this product the district's local effort and, in years notgoverned under subsection 4 of this section, subtracting payments from theclassroom trust fund under section 163.043.

2. Other provisions of law to the contrary notwithstanding:

(1) For districts with an average daily attendance of more than threehundred fifty in the school year preceding the payment year:

(a) For the 2006-07 school year, the state revenue per weightedaverage daily attendance received by a district from the state aidcalculation under subsections 1 and 4 of this section, as applicable, andthe classroom trust fund under section 163.043 shall not be less than thestate revenue received by a district in the 2005-06 school year from thefoundation formula, line 14, gifted, remedial reading, exceptional pupilaid, fair share, and free textbook payment amounts multiplied by the sum ofone plus the product of one-third multiplied by the remainder of the dollarvalue modifier minus one, and dividing this product by the weighted averagedaily attendance computed for the 2005-06 school year;

(b) For the 2007-08 school year, the state revenue per weightedaverage daily attendance received by a district from the state aidcalculation under subsections 1 and 4 of this section, as applicable, andthe classroom trust fund under section 163.043 shall not be less than thestate revenue received by a district in the 2005-06 school year from thefoundation formula, line 14, gifted, remedial reading, exceptional pupilaid, fair share, and free textbook payment amounts multiplied by the sum ofone plus the product of two-thirds multiplied by the remainder of thedollar value modifier minus one, and dividing this product by the weightedaverage daily attendance computed for the 2005-06 school year;

(c) For the 2008-09 school year, the state revenue per weightedaverage daily attendance received by a district from the state aidcalculation under subsections 1 and 4 of this section, as applicable, andthe classroom trust fund under section 163.043 shall not be less than thestate revenue received by a district in the 2005-06 school year from thefoundation formula, line 14, gifted, remedial reading, exceptional pupilaid, fair share, and free textbook payment amounts multiplied by the dollarvalue modifier, and dividing this product by the weighted average dailyattendance computed for the 2005-06 school year;

(d) For each year subsequent to the 2008-09 school year, the amountshall be no less than that computed in paragraph (c) of this subdivision,multiplied by the weighted average daily attendance pursuant to section163.036, less any increase in revenue received from the classroom trustfund under section 163.043;

(2) For districts with an average daily attendance of three hundredfifty or less in the school year preceding the payment year:

(a) For the 2006-07 school year, the state revenue received by adistrict from the state aid calculation under subsections 1 and 4 of thissection, as applicable, and the classroom trust fund under section 163.043shall not be less than the greater of state revenue received by a districtin the 2004-05 or 2005-06 school year from the foundation formula, line 14,gifted, remedial reading, exceptional pupil aid, fair share, and freetextbook payment amounts multiplied by the sum of one plus the product ofone-third multiplied by the remainder of the dollar value modifier minusone;

(b) For the 2007-08 school year, the state revenue received by adistrict from the state aid calculation under subsections 1 and 4 of thissection, as applicable, and the classroom trust fund under section 163.043shall not be less than the greater of state revenue received by a districtin the 2004-05 or 2005-06 school year from the foundation formula, line 14,gifted, remedial reading, exceptional pupil aid, fair share, and freetextbook payment amounts multiplied by the sum of one plus the product oftwo-thirds multiplied by the remainder of the dollar value modifier minusone;

(c) For the 2008-09 school year, the state revenue received by adistrict from the state aid calculation under subsections 1 and 4 of thissection, as applicable, and the classroom trust fund under section 163.043shall not be less than the greater of state revenue received by a districtin the 2004-05 or 2005-06 school year from the foundation formula, line 14,gifted, remedial reading, exceptional pupil aid, fair share, and freetextbook payment amounts multiplied by the dollar value modifier;

(d) For each year subsequent to the 2008-09 school year, the amountshall be no less than that computed in paragraph (c) of this subdivision;

(3) The department of elementary and secondary education shall makean addition in the payment amount specified in subsection 1 of this sectionto assure compliance with the provisions contained in this subsection.

3. School districts that meet the requirements of section 163.021shall receive categorical add-on revenue as provided in this subsection.The categorical add-on for the district shall be the sum of: seventy-fivepercent of the district allowable transportation costs under section163.161; the career ladder entitlement for the district, as provided for insections 168.500 to 168.515, RSMo; the vocational education entitlement forthe district, as provided for in section 167.332, RSMo; and the districteducational and screening program entitlements as provided for in sections178.691 to 178.699, RSMo. The categorical add-on revenue amounts may beadjusted to accommodate available appropriations.

4. In the 2006-07 school year and each school year thereafter forfive years, those districts entitled to receive state aid under theprovisions of subsection 1 of this section shall receive state aid in anamount as provided in this subsection.

(1) For the 2006-07 school year, the amount shall be fifteen percentof the amount of state aid calculated for the district for the 2006-07school year under the provisions of subsection 1 of this section, pluseighty-five percent of the total amount of state revenue received by thedistrict for the 2005-06 school year from the foundation formula, line 14,gifted, remedial reading, exceptional pupil aid, fair share, and freetextbook payments less any amounts received under section 163.043.

(2) For the 2007-08 school year, the amount shall be thirty percentof the amount of state aid calculated for the district for the 2007-08school year under the provisions of subsection 1 of this section, plusseventy percent of the total amount of state revenue received by thedistrict for the 2005-06 school year from the foundation formula, line 14,gifted, remedial reading, exceptional pupil aid, fair share, and freetextbook payments less any amounts received under section 163.043.

(3) For the 2008-09 school year, the amount of state aid shall beforty-four percent of the amount of state aid calculated for the districtfor the 2008-09 school year under the provisions of subsection 1 of thissection plus fifty-six percent of the total amount of state revenuereceived by the district for the 2005-06 school year from the foundationformula, line 14, gifted, remedial reading, exceptional pupil aid, fairshare, and free textbook payments less any amounts received under section163.043.

(4) For the 2009-10 school year, the amount of state aid shall befifty-eight percent of the amount of state aid calculated for the districtfor the 2009-10 school year under the provisions of subsection 1 of thissection plus forty-two percent of the total amount of state revenuereceived by the district for the 2005-06 school year from the foundationformula, line 14, gifted, remedial reading, exceptional pupil aid, fairshare, and free textbook payments less any amounts received under section163.043.

(5) For the 2010-11 school year, the amount of state aid shall beseventy-two percent of the amount of state aid calculated for the districtfor the 2010-11 school year under the provisions of subsection 1 of thissection plus twenty-eight percent of the total amount of state revenuereceived by the district for the 2005-06 school year from the foundationformula, line 14, gifted, remedial reading, exceptional pupil aid, fairshare, and free textbook payments less any amounts received under section163.043.

(6) For the 2011-12 school year, the amount of state aid shall beeighty-six percent of the amount of state aid calculated for the districtfor the 2011-12 school year under the provisions of subsection 1 of thissection plus fourteen percent of the total amount of state revenue receivedby the district for the 2005-06 school year from the foundation formula,line 14, gifted, remedial reading, exceptional pupil aid, fair share, andfree textbook payments less any amounts received under section 163.043.

(7) (a) Notwithstanding subdivision (18) of section 163.011, thestate adequacy target may not be adjusted downward to accommodate availableappropriations in any year governed by this subsection.

(b) a. For the 2006-07 school year, if a school district experiencesa decrease in summer school average daily attendance of more than twentypercent from the district's 2005-06 summer school average daily attendance,an amount equal to the product of the percent reduction that is in excessof twenty percent of the district's summer school average daily attendancemultiplied by the funds generated by the district's summer school programin the 2005-06 school year shall be subtracted from the district's currentyear payment amount.

b. For the 2007-08 school year, if a school district experiences adecrease in summer school average daily attendance of more than thirtypercent from the district's 2005-06 summer school average daily attendance,an amount equal to the product of the percent reduction that is in excessof thirty percent of the district's summer school average daily attendancemultiplied by the funds generated by the district's summer school programin the 2005-06 school year shall be subtracted from the district's paymentamount.

c. For the 2008-09 school year, if a school district experiences adecrease in summer school average daily attendance of more than thirty-fivepercent from the district's 2005-06 summer school average daily attendance,an amount equal to the product of the percent reduction that is in excessof thirty-five percent of the district's summer school average dailyattendance multiplied by the funds generated by the district's summerschool program in the 2005-06 school year shall be subtracted from thedistrict's payment amount.

d. Notwithstanding the provisions of this paragraph, no suchreduction shall be made in the case of a district that is receiving apayment under section 163.044 or any district whose regular school termaverage daily attendance for the preceding year was three hundred fifty orless.

e. This paragraph shall not be construed to permit any reductionapplied under this paragraph to result in any district receiving acurrent-year payment that is less than the amount calculated for suchdistrict under subsection 2 of this section.

(c) If a school district experiences a decrease in its gifted programenrollment of more than twenty percent from its 2005-06 gifted programenrollment in any year governed by this subsection, an amount equal to theproduct of the percent reduction in the district's gifted programenrollment multiplied by the funds generated by the district's giftedprogram in the 2005-06 school year shall be subtracted from the district'scurrent year payment amount.

5. For any school district meeting the eligibility criteria for stateaid as established in section 163.021, but which is considered an optiondistrict under section 163.042 and therefore receives no state aid, thecommissioner of education shall present a plan to the superintendent of theschool district for the waiver of rules and the duration of said waivers,in order to promote flexibility in the operations of the district and toenhance and encourage efficiency in the delivery of instructional servicesas provided in section 163.042.

6. (1) No less than seventy-five percent of the state revenuereceived under the provisions of subsections 1, 2, and 4 of this sectionshall be placed in the teachers' fund, and the remaining percent of suchmoneys shall be placed in the incidental fund. No less than seventy-fivepercent of one-half of the funds received from the school district trustfund distributed under section 163.087 shall be placed in the teachers'fund. One hundred percent of revenue received under the provisions ofsection 163.161 shall be placed in the incidental fund. One hundredpercent of revenue received under the provisions of sections 168.500 to168.515, RSMo, shall be placed in the teachers' fund.

(2) A school district shall spend for certificated compensation andtuition expenditures each year:

(a) An amount equal to at least seventy-five percent of the staterevenue received under the provisions of subsections 1, 2, and 4 of thissection;

(b) An amount equal to at least seventy-five percent of one-half ofthe funds received from the school district trust fund distributed undersection 163.087 during the preceding school year; and

(c) Beginning in fiscal year 2008, as much as was spent per thesecond preceding year's weighted average daily attendance for certificatedcompensation and tuition expenditures the previous year from revenueproduced by local and county tax sources in the teachers' fund, plus theamount of the incidental fund to teachers' fund transfer calculated to belocal and county tax sources by dividing local and county tax sources inthe incidental fund by total revenue in the incidental fund. In the eventa district fails to comply with this provision, the amount by which thedistrict fails to spend funds as provided herein shall be deducted from thedistrict's state revenue received under the provisions of subsections 1, 2,and 4 of this section for the following year, provided that the state boardof education may exempt a school district from this provision if the stateboard of education determines that circumstances warrant such exemption.

7. If a school district's annual audit discloses that students wereinappropriately identified as eligible for free and reduced lunch, specialeducation, or limited English proficiency and the district does not resolvethe audit finding, the department of elementary and secondary educationshall require that the amount of aid paid pursuant to the weighting forfree and reduced lunch, special education, or limited English proficiencyin the weighted average daily attendance on the inappropriately identifiedpupils be repaid by the district in the next school year and shalladditionally impose a penalty of one hundred percent of such aid paid onsuch pupils, which penalty shall also be paid within the next school year.Such amounts may be repaid by the district through the withholding of theamount of state aid.

(L. 1963 p. 200 § 4-3 and p. 335 § 161.031, A.L. 1965 p. 284, A.L. 1965 2d Ex. Sess. p. 894, A.L. 1967 p. 246, A.L. 1967 1st Ex. Sess. p. 881, A.L. 1969 p. 268, A.L. 1975 H.B. 945, A.L. 1976 S.B. 524, A.L. 1977 H.B. 131, A.L. 1982 Adopted by Initiative, Proposition C, November 2, 1982, A.L. 1984 H.B. 856 & 1358, A.L. 1985 H.B. 463, A.L. 1986 S.B. 707, A.L. 1993 S.B. 380, A.L. 1996 S.B. 795, et al., A.L. 1997 H.B. 641 & 593, A.L. 1998 S.B. 781, A.L. 2000 S.B. 944, A.L. 2004 S.B. 968 and S.B. 969, A.L. 2005 S.B. 287, A.L. 2006 S.B. 894, A.L. 2009 S.B. 291)

(Source: RSMo 1959 §§ 161.031, 161.061)

Effective 7-13-09