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 9  AN ACT concerning school district finance; revising the definition of local
10    effort; affecting the determination of general state aid; authorizing
11    adoption of supplemental general fund budgets; amending K.S.A. 72-
12    6416 and K.S.A. 1996 Supp. 72-6410, 72-6431 and 72-6438 and re-
13    pealing the existing sections; also repealing K.S.A. 72-6434 and 72-
14    6435 and K.S.A. 1996 Supp. 72-6431a, 72-6433 and 72-6433a.
15
16  Be it enacted by the Legislature of the State of Kansas:
17    Section 1.  K.S.A. 1996 Supp. 72-6410 is hereby amended to read as
18  follows: 72-6410. (a) ``State financial aid'' means an amount equal to the
19  product obtained by multiplying base state aid per pupil by the adjusted
20  enrollment of a district.
21    (b)  ``Base state aid per pupil'' means an amount of state financial aid
22  per pupil. Subject to the other provisions of this subsection, the amount
23  of base state aid per pupil is $3,648. The amount of base state aid per
24  pupil is subject to reduction commensurate with any reduction under
25  K.S.A. 1996 Supp. 75-6704, and amendments thereto, in the amount of
26  the appropriation from the state general fund for general state aid. If the
27  amount of appropriations for general state aid is insufficient to pay in full
28  the amount each district is entitled to receive for any school year, the
29  amount of base state aid per pupil for such school year is subject to
30  reduction commensurate with the amount of the insufficiency.
31    (c)  ``Local effort'' means the sum of an amount equal to the proceeds
32  from the tax levied under authority of K.S.A. 72-6431, and amendments
33  thereto, and an amount equal to any unexpended and unencumbered
34  balance remaining in the general fund of the district, except amounts
35  received by the district and authorized to be expended for the purposes
36  specified in K.S.A. 72-6430, and amendments thereto, and an amount
37  equal to any unexpended and unencumbered balances remaining in the
38  program weighted funds of the district, except any amount in the voca-
39  tional education fund of the district if the district is operating an area
40  vocational school, and an amount equal to any remaining proceeds from
41  taxes levied under authority of K.S.A. 72-7056 and 72-7072, and amend-
42  ments thereto, prior to the repeal of such statutory sections, and an
43  amount equal to the amount deposited in the general fund in the current
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 1  school year from amounts received in such year by the district under the
 2  provisions of subsection (a) of K.S.A. 72-1046a, and amendments thereto,
 3  and an amount equal to the amount deposited in the general fund in the
 4  current school year from amounts received in such year by the district
 5  pursuant to contracts made and entered into under authority of K.S.A.
 6  72-6757, and amendments thereto, and an amount equal to the amount
 7  credited to the general fund in the current school year from amounts
 8  distributed in such year to the district under the provisions of articles 17
 9  and 34 of chapter 12 of Kansas Statutes Annotated and under the pro-
10  visions of articles 42 and 51 of chapter 79 of Kansas Statutes Annotated,
11  and an amount equal to the federal impact aid of a district.
12    (d)  ``Federal impact aid'' means an amount equal to the federally
13  qualified percentage of the amount of moneys a district receives in the
14  current school year under the provisions of title I of public law 874 and
15  congressional appropriations therefor, excluding amounts received for as-
16  sistance in cases of major disaster and amounts received under the low-
17  rent housing program. The amount of federal impact aid defined herein
18  as an amount equal to the federally qualified percentage of the amount
19  of moneys provided for the district under title I of public law 874 shall
20  be determined by the state board in accordance with terms and conditions
21  imposed under the provisions of the public law and rules and regulations
22  thereunder.
23    Sec. 2.  K.S.A. 72-6416 is hereby amended to read as follows: 72-
24  6416. (a) In each school year, the state board shall determine entitlement
25  of each district to general state aid for the school year as provided in this
26  section.
27    (b)  The state board shall determine the amount of the district's local
28  effort for the school year. If the amount of the district's local effort is
29  greater than the amount of state financial aid determined for the district
30  for the school year, the district shall not be entitled to general state aid.
31  If the amount of the district's local effort is less than the amount of state
32  financial aid determined for the district for the school year, the state board
33  shall, subtract the amount of the district's local effort from the amount
34  of state financial aid determined for the district for the school year and
35  compute an amount equal to 2/3 of the amount of the remainder.  The
36  remainder computed amount is the amount of general state aid the district
37  is entitled to receive for the current school year.
38    (c)  The provisions of this section shall take effect and be in force
39  from and after July 1, 1992.
40    Sec. 3.  K.S.A. 1996 Supp. 72-6431 is hereby amended to read as
41  follows: 72-6431. (a) The board of each district shall is authorized to levy
42  an ad valorem tax upon the taxable tangible property of the district in the
43  each school years specified in subsection (b) year for the purpose of:
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 1    (1)  Financing that portion of the district's general fund budget which
 2  is not financed from any other source provided by law; and
 3    (2)  paying a portion of the costs of operating and maintaining public
 4  schools in partial fulfillment of the constitutional obligation of the legis-
 5  lature to finance the educational interests of the state; and
 6    (3)(2)  paying a portion of the principal and interest on bonds issued
 7  by cities under authority of K.S.A. 12-1774, and amendments thereto, for
 8  the financing of redevelopment projects upon property located within the
 9  district.
10    (b)  The tax required under subsection (a) shall be levied at a rate of
11  35 mills in the 1996-97 school year, 33 mills in the 1997-98 school year
12  and not exceeding 31 mills in the 1998-99 school year.
13    (c)(b)  The proceeds from the tax levied by a district under authority
14  of this section, except the proceeds of such tax levied for the purpose of
15  paying a portion of the principal and interest on bonds issued by cities
16  under authority of K.S.A. 12-1774, and amendments thereto, for the fi-
17  nancing of redevelopment projects upon property located within the dis-
18  trict, shall be deposited in the general fund of the district.
19    (d)  On June 1 of each year, the amount, if any, by which a district's
20  local effort exceeds the amount of the district's state financial aid, as
21  determined by the state board, shall be remitted to the state treasurer.
22  Upon receipt of any such remittance, the state treasurer shall deposit the
23  same in the state treasury to the credit of the state school district finance
24  fund.
25    (e)(c)  No district shall proceed under K.S.A. 79-1964, 79-1964a or
26  79-1964b, and amendments to such sections.
27    New Sec. 4.  (a) The board of any district may adopt a supplemental
28  general fund budget in each school year in an amount not to exceed 25%
29  of the amount of state financial aid determined for the district in the
30  school year if the board of the district determines that the amount budg-
31  eted for operating expenses in the general fund of the district is insuffi-
32  cient for such purposes and that adoption of a supplemental general fund
33  budget would be in the best interests of the pupils of the district. The
34  adoption of a supplemental general fund budget shall require a majority
35  vote of the members of the board and shall require no other procedure,
36  authorization or approval.
37    (b)  There is hereby established in every district that adopts a supple-
38  mental general fund budget a fund which shall be called the supplemental
39  general fund.  The fund shall consist of all amounts deposited therein or
40  credited thereto according to law. Amounts in the supplemental general
41  fund may be expended for any purpose for which expenditures from the
42  general fund are authorized or may be transferred to the general fund of
43  the district or to any program weighted fund or categorical fund of the
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 1  district.
 2    (c) (1)  In each school year, each district that has adopted a supple-
 3  mental general fund budget is eligible for entitlement to an amount of
 4  supplemental general state aid. Entitlement of a district to supplemental
 5  general state aid shall be determined by the state board as provided in
 6  this subsection. The state board shall:
 7    (A)  Determine the amount of the assessed valuation per pupil in the
 8  preceding school year of each district in the state;
 9    (B)  rank the districts from low to high on the basis of the amounts of
10  assessed valuation per pupil determined under (A);
11    (C)  identify the amount of the assessed valuation per pupil located
12  at the 75th percentile of the amounts ranked under (B);
13    (D)  divide the assessed valuation per pupil of the district in the pre-
14  ceding school year by the amount identified under (C);
15    (E)  subtract the ratio obtained under (D) from 1.0. If the resulting
16  ratio equals or exceeds 1.0, the eligibility of the district for entitlement
17  to supplemental general state aid shall lapse. If the resulting ratio is less
18  than 1.0, the district is entitled to receive supplemental general state aid
19  in an amount which shall be determined by the state board by multiplying
20  the amount of the supplemental general fund budget of the district by
21  such ratio. The product is the amount of supplemental general state aid
22  the district is entitled to receive for the school year.
23    (2)  If the amount of appropriations for supplemental general state
24  aid is less than the amount each district is entitled to receive for the school
25  year, the state board shall prorate the amount appropriated among the
26  districts in proportion to the amount each district is entitled to receive.
27    (3)  Payments of supplemental general state aid shall be distributed
28  to districts at a time to be determined by the state board. The state board
29  shall certify to the director of accounts and reports the amount due each
30  district, and the director of accounts and reports shall draw a warrant on
31  the state treasurer payable to the treasurer of the district. Upon receipt
32  of the warrant, the treasurer of the district shall credit the amount thereof
33  to the supplemental general state fund of the district.
34    (d) (1)  In each school year, the board of every district that has
35  adopted a supplemental general fund budget may levy an ad valorem tax
36  on the taxable tangible property of the district for the purpose of financing
37  that portion of the district's supplemental general fund budget which is
38  not financed from any other source provided by law and for the purpose
39  of paying a portion of the principal and interest on bonds issued by cities
40  under authority of K.S.A. 12-1774, and amendments thereto, for the fi-
41  nancing of redevelopment projects upon property located within the dis-
42  trict.
43    (2)  The proceeds from the tax levied by a district under authority of
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 1  this section, except the proceeds of such tax levied for the purpose of
 2  paying a portion of the principal and interest on bonds issued by cities
 3  under authority of K.S.A. 12-1774, and amendments thereto, for the fi-
 4  nancing of redevelopment projects upon property located within the dis-
 5  trict, shall be deposited in the supplemental general fund of the district.
 6    (3)  No district shall proceed under K.S.A. 79-1964, 79-1964a or 79-
 7  1964b, and amendments to such sections.
 8    Sec. 5.  K.S.A. 1996 Supp. 72-6438 is hereby amended to read as
 9  follows: 72-6438. (a) The state school district finance fund, established by
10  K.S.A. 1991 Supp. 72-7081 prior to its repeal by this act, is hereby con-
11  tinued in existence and shall consist of (1) all moneys credited to such
12  fund under K.S.A. 72-6418 and 72-6431, and amendments thereto, and
13    (2) all amounts transferred to such fund.
14    (b)  The state school district finance fund shall be used for the purpose
15  of school district finance and for no other governmental purpose. It is the
16  intent of the legislature that the fund shall remain intact and inviolate for
17  such purpose, and moneys in the fund shall not be subject to the provi-
18  sions of K.S.A. 75-3722, 75-3725a and 75-3726a, and amendments
19  thereto.
20    (c)  Amounts in the state school district finance fund shall be allocated
21  and distributed to school districts as a portion of general state aid enti-
22  tlements provided for under this act.
23    Sec. 6.  K.S.A. 72-6416, 72-6434 and 72-6435 and K.S.A. 1996 Supp.
24  72-6410, 72-6431, 72-6431a, 72-6433, 72-6433a and 72-6438 are hereby
25  repealed.
26    Sec. 7.  This act shall take effect and be in force from and after its
27  publication in the statute book.