HB2183 - 451R - House Bill Summary

House of Representatives

HB 2183

small and rural school districts

Sponsors: Representative Gray

DP	Committee on Education
DP	Committee on Ways and Means
DP	Caucus and COW	HB 2183 was amended in the Senate.
X	As Transmitted to the Governor

HB 2183 provides a phase-down formula for school districts that grow beyond the student count limits for the small school adjustment.

History

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 if approved by the voters in the school district. The formula phases the maximum limit above the RCL that the district can budget based on the student count that is over the limits. If the district reaches a K-8 student count of 203 or a 9-12 student count of 198, the formula has phased back down to the RCL level.

For example, an elementary district with 130 students would be allowed to budget an additional 32.75% above the RCL: (a. 130 students – 125 student = 5; b. 5 * 0.45% = 2.25%; c. 35.0% - 2.25% = 32.75%). At 150 students the maximum would be 23.75% above the RCL; at 160 students the maximum would be 19.25%; at 190 students the maximum would be 5.75%; and at 200 the maximum would be 1.25%. 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.

Provisions

· Separates the RCL into elementary and secondary components to determine a unified school districts override limitation. A unified districts override limitation is the sum of the limit allowed for grade levels that qualify for the special override plus the 10% limit for the grade limits that do not qualify.

· Eliminates the current statutory provision that allows school districts that exceed the student count limits in the first year to adopt a budget in an amount greater than the general budget limit without an election.

· Provides a phase-down formula for school districts that exceed the student count limits. The formula allows the school district to adopt budgets in an amount greater than the general budget limit, subject to approval at an election. As the school district continues to grow, the amount the school district is allowed to exceed the budget without an election is reduced. By the time the district reaches a K-8 student count of 203 or a high school count of 198, the adjustment is reduced to zero.

1. The elementary (k-8) formula is calculated as follows:

a) Subtract 125 from the elementary student count

b) Multiply the difference in (a) by 0.45%

c) Subtract the product in (b) from 35%

d) Multiply the difference in (c) by the elementary RCL.

2. The high school (9-12) formula is calculated as follows:

a) Subtract 100 from the high school student count.

b) Multiply the difference in (a) by 0.65%

c) Subtract the product in (b) from 65%

d) Multiply the difference in (c) by the high school RCL.

· Requires that the election to approve the use of the formula shall be conducted in the same manner as traditional override elections except for as otherwise specified in the bill (regarding the ballot language).

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45th Legislature