Bill Text: MS HB465 | 2015 | Regular Session | Introduced


Bill Title: Charter schools; revise manner of determining amount of local funding to be paid by school district to.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2015-02-03 - Died In Committee [HB465 Detail]

Download: Mississippi-2015-HB465-Introduced.html

MISSISSIPPI LEGISLATURE

2015 Regular Session

To: Education; Appropriations

By: Representative Moore

House Bill 465

AN ACT TO AMEND SECTION 37-28-55, MISSISSIPPI CODE OF 1972, TO REVISE THE METHOD FOR DETERMINING THE AMOUNT OF LOCAL EDUCATION FUNDING THAT A SCHOOL DISTRICT IN WHICH A CHARTER SCHOOL IS LOCATED MUST PAY TO THE CHARTER SCHOOL AND TO MODIFY THE TIMEFRAME  FOR THE MAKING OF THOSE PAYMENTS; TO AMEND SECTION 37-57-107, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 37-28-55, Mississippi Code of 1972, is amended as follows:

     37-28-55.  (1)  (a)  The State Department of Education shall make payments to charter schools for each student in average daily attendance at the charter school equal to the state share of the adequate education program payments for each student in average daily attendance at the school district in which the charter school is located.  In calculating the local contribution for purposes of determining the state share of the adequate education program payments, the department shall deduct the pro rata local contribution of the school district in which the student resides, to be determined as provided in Section 37-151-7(2)(a).

          (b)  Payments made pursuant to this subsection by the State Department of Education must be made at the same time and in the same manner as adequate education program payments are made to school districts under Sections 37-151-101 and 37-151-103.  Amounts payable to a charter school must be determined by the State Department of Education.  Amounts payable to a charter school in its first year of operation must be based on the projections of initial-year enrollment and federal school level funding set forth in the charter contract.  Such projections must be reconciled with the average daily attendance at the end of the school's first year of operation, and any necessary adjustments must be made to payments during the school's second year of operation.

     (2)  The school district in which a charter school is located shall pay directly to the charter school an amount for each student enrolled in the charter school equal to the ad valorem tax receipts and in-lieu payments received per pupil for the support of the local school district in which the student resides.  The pro rata ad valorem receipts and in-lieu receipts to be transferred to the charter school shall include all levies for the support of the local school district under Sections 37-57-1 (local contribution to the adequate education program) and 37-57-105 (school district operational levy) and may not include any taxes levied for the retirement of the local school district's bonded indebtedness or short-term notes or any taxes levied for the support of vocational-technical education programs.  * * *In no event may the payment exceed the pro rata amount of the local ad valorem payment for the local contribution to the adequate education program under Section 37‑57‑1 for the school district in which the student resides.  Payments made under this section by a school district to a charter school must be made before the expiration of three (3) business days after the funds are distributed to the school district by the tax collector. The amount of funds payable to the charter school by the school district must be based on the previous year's enrollment data and ad valorem tax receipts and in-lieu payments received by the local school district in which the student resides.  The pro rata amount must be calculated by dividing the school district's months one (1) through nine (9) average daily membership by the total amount of ad valorem tax receipts and in-lieu payments, as reported to the State Department of Education by the school district.  The school district shall pay an amount equal to this pro rata amount multiplied by the number of students enrolled in the charter school, based on the charter school's end of first month enrollment for the current school year.  The amount must be paid by the school district to the charter school before January 16 of the current fiscal year.  If the school district does not pay the required amount to the charter school before January 16, the State Department of Education shall reduce that school district's January transfer of adequate education program funds by the amount owed to the charter school and shall redirect that amount to the charter school.

     (3)  (a)  The State Department of Education shall direct the proportionate share of monies generated under federal and state categorical aid programs, including special education, vocational, gifted and alternative school programs, to charter schools serving students eligible for such aid.  The department shall ensure that charter schools with rapidly expanding enrollments are treated equitably in the calculation and disbursement of all federal and state categorical aid program dollars.  Each charter school that serves students who may be eligible to receive services provided through such programs shall comply with all reporting requirements to receive the aid.

          (b)  A charter school shall pay to a local school district any federal or state aid attributable to a student with a disability attending the charter school in proportion to the level of services for that student which the local school district provides directly or indirectly.

          (c)  Subject to the approval of the authorizer, a charter school and a local school district may negotiate and enter into a contract for the provision of and payment for special education services, including, but not necessarily limited to, a reasonable reserve not to exceed five percent (5%) of the local school district's total budget for providing special education services.  The reserve may be used by the local school district only to offset excess costs of providing services to students with disabilities enrolled in the charter school.

     (4)  (a)  The State Department of Education shall disburse state transportation funding to a charter school on the same basis and in the same manner as it is paid to school districts under the adequate education program.

          (b)  A charter school may enter into a contract with a school district or private provider to provide transportation to the school's students.

     SECTION 2.  Section 37-57-107, Mississippi Code of 1972, is amended as follows:

     37-57-107.  (1)  Beginning with the tax levy for the 1997 fiscal year and for each fiscal year thereafter, the aggregate receipts from taxes levied for school district purposes pursuant to Sections 37-57-105 and 37-57-1 shall not exceed the aggregate receipts from those sources during any one (1) of the immediately preceding three (3) fiscal years, as determined by the school board, plus an increase not to exceed seven percent (7%).  For the purpose of this limitation, the term "aggregate receipts" when used in connection with the amount of funds generated in a preceding fiscal year shall not include excess receipts required by law to be deposited into a special account.  However, the term "aggregate receipts" includes any receipts required by law to be paid to a charter school.  The additional revenue from the ad valorem tax on any newly constructed properties or any existing properties added to the tax rolls or any properties previously exempt which were not assessed in the next preceding year may be excluded from the seven percent (7%) increase limitation set forth herein.  Taxes levied for payment of principal of and interest on general obligation school bonds issued heretofore or hereafter shall be excluded from the seven percent (7%) increase limitation set forth herein.  Any additional millage levied to fund any new program mandated by the Legislature shall be excluded from the limitation for the first year of the levy and included within such limitation in any year thereafter.  For the purposes of this section, the term "new program" shall include, but shall not be limited to, (a) the Early Childhood Education Program required to commence with the 1986-1987 school year as provided by Section 37-21-7 and any additional millage levied and the revenue generated therefrom, which is excluded from the limitation for the first year of the levy, to support the mandated Early Childhood Education Program shall be specified on the minutes of the school board and of the governing body making such tax levy; (b) any additional millage levied and the revenue generated therefrom which shall be excluded from the limitation for the first year of the levy, for the purpose of generating additional local contribution funds required for the adequate education program for the 2003 fiscal year and for each fiscal year thereafter under Section 37-151-7(2); and (c) any additional millage levied and the revenue generated therefrom which shall be excluded from the limitation for the first year of the levy, for the purpose of support and maintenance of any agricultural high school which has been transferred to the control, operation and maintenance of the school board by the board of trustees of the community college district under provisions of Section 37-29-272.

     (2)  The seven percent (7%) increase limitation prescribed in this section may be increased an additional amount only when the school board has determined the need for additional revenues and has held an election on the question of raising the limitation prescribed in this section.  The limitation may be increased only if three-fifths (3/5) of those voting in the election shall vote for the proposed increase.  The resolution, notice and manner of holding the election shall be as prescribed by law for the holding of elections for the issuance of bonds by the respective school boards.  Revenues collected for the fiscal year in excess of the seven percent (7%) increase limitation pursuant to an election shall be included in the tax base for the purpose of determining aggregate receipts for which the seven percent (7%) increase limitation applies for subsequent fiscal years.

     (3)  Except as otherwise provided for excess revenues generated pursuant to an election, if revenues collected as the result of the taxes levied for the fiscal year pursuant to this section and Section 37-57-1 exceed the increase limitation, then it shall be the mandatory duty of the school board of the school district to deposit such excess receipts over and above the increase limitation into a special account and credit it to the fund for which the levy was made.  It will be the further duty of such board to hold said funds and invest the same as authorized by law.  Such excess funds shall be calculated in the budgets for the school districts for the purpose for which such levies were made, for the succeeding fiscal year.  Taxes imposed for the succeeding year shall be reduced by the amount of excess funds available.  Under no circumstances shall such excess funds be expended during the fiscal year in which such excess funds are collected.

     (4)  For the purposes of determining ad valorem tax receipts for a preceding fiscal year under this section, the term "fiscal year" means the fiscal year beginning October 1 and ending September 30.

     (5)  Beginning with the 2013-2014 school year, each school district in which a charter school is located shall pay to the charter school an amount for each student enrolled in the charter school * * *equal to the ad valorem taxes levied per pupil for the support of the school district in which the charter school is located.  The pro rata ad valorem taxes to be transferred to the charter school must include all levies for the support of the school district under Sections 37‑57‑1 (local contribution to the adequate education program) and 37‑57‑105 (school district operational levy) but may not include any taxes levied for the retirement of school district bonded indebtedness or short‑term notes or any taxes levied for the support of vocational‑technical education programs.  Payments made pursuant to this subsection by a school district to a charter school must be made before the expiration of three (3) business days after the funds are distributed to the school district in accordance with Section 37-28-55(2).

     SECTION 3.  This act shall take effect and be in force from and after July 1, 2015.


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