small and rural school
districts
HB 2183 provides a phase-down formula for school districts that grow beyond the student count limits for the small school adjustment.
Current law provides a small school adjustment for school districts with K-8 student counts of 125 and under and 9-12 student counts of 100 and under. The small school adjustment allows the district to exceed the revenue control limit (RCL) and the general budget limit. School districts that grow above the student count limits may budget outside the RCL for one year without having to hold an override election.
HB 2183 establishes a formula that allows districts that grow over the limits to continue to budget outside the RCL for an unlimited period of time without holding an override election. However, the formula phases the maximum limit above the RCL that the district can budget for as the district grows. If the district reaches a K-8 student count of 205 or a 9-12 student count of 200, the adjustment is reduced to zero.
For example, an elementary district with 130 students would be allowed to budget an additional 37.5% above the RCL: (a. 130 students – 125 student = 5; b. 5 * 0.5% = 2.5%; c. 40.0% - 2.5% = 37.5%). At 150 students the maximum would be 28.5% above the RCL; at 160 students the maximum would be 22.5%; at 190 students the maximum would be 7.5%; and at 200 the maximum would be 0%. The formula works the same way for high school students except for the higher limits are used.
In addition, current law contains special override provisions to exceed the 10% limitation if the district’s student count is less than 154 for k-8 or 176 for 9-12. Under HB 2183 a unified school districts override limit would be computed as the special override amount allowed for the grade levels that qualifies plus the 10% limit for the grade levels that do not qualify for the special override.