An Act concerning school district finance; affecting the definitions of enrollment and ad- justed enrollment as applied to certain districts; amending K.S.A. 79-4801 and K.S.A. 1995 Supp. 72-6410, 72-6431, 72-6433 and 79-5105 and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1995 Supp. 72-6410 shall be and is hereby amended to read as follows: 72-6410. (a) ``State financial aid'' means an amount equal to the product obtained by multiplying base state aid per pupil by the adjusted enrollment of a district.

(b) ``Base state aid per pupil'' means an amount of state financial aid per pupil. Subject to the other provisions of this subsection, the amount of base state aid per pupil is $3,626 $3,648. The amount of base state aid per pupil is subject to reduction commensurate with any reduction under K.S.A. 1995 Supp. 75-6704, and amendments thereto, in the amount of the appropriation from the state general fund for general state aid. If the amount of appropriations for general state aid is insufficient to pay in full the amount each district is entitled to receive for any school year, the amount of base state aid per pupil for such school year is subject to reduction commensurate with the amount of the insufficiency.

(c) ``Local effort'' means the sum of an amount equal to the proceeds from the tax levied under authority of K.S.A. 72-6431, and amendments thereto, and an amount equal to any unexpended and unencumbered balance remaining in the general fund of the district, except amounts received by the district and authorized to be expended for the purposes specified in K.S.A. 72-6430, and amendments thereto, and an amount equal to any unexpended and unencumbered balances remaining in the program weighted funds of the district, except any amount in the voca- tional education fund of the district if the district is operating an area vocational school, and an amount equal to any remaining proceeds from taxes levied under authority of K.S.A. 72-7056 and 72-7072, and amend- ments thereto, prior to the repeal of such statutory sections, and an amount equal to the amount deposited in the general fund in the current school year from amounts received in such year by the district under the provisions of subsection (a) of K.S.A. 72-1046a, and amendments thereto, and an amount equal to the amount deposited in the general fund in the current school year from amounts received in such year by the district pursuant to contracts made and entered into under authority of K.S.A. 72-6757, and amendments thereto, and an amount equal to the amount credited to the general fund in the current school year from amounts distributed in such year to the district under the provisions of articles 17 and 34 of chapter 12 of Kansas Statutes Annotated and under the pro- visions of articles 42 and 51 of chapter 79 of Kansas Statutes Annotated, and an amount equal to the federal impact aid of a district.

(d) ``Federal impact aid'' means an amount equal to the federally qualified percentage of the amount of moneys a district receives in the current school year under the provisions of title I of public law 874 and congressional appropriations therefor, excluding amounts received for as- sistance in cases of major disaster and amounts received under the low- rent housing program. The amount of federal impact aid defined herein as an amount equal to the federally qualified percentage of the amount of moneys provided for the district under title I of public law 874 shall be determined by the state board in accordance with terms and conditions imposed under the provisions of the public law and rules and regulations thereunder.

Sec. 2. K.S.A. 1995 Supp. 72-6431 shall be and is hereby amended to read as follows: 72-6431. (a) The board of each district shall levy an ad valorem tax upon the taxable tangible property of the district in the school years specified in subsection (b) for the purpose of:

(1) Financing that portion of the district's general fund budget which is not financed from any other source provided by law;

(2) paying a portion of the costs of operating and maintaining public schools in partial fulfillment of the constitutional obligation of the legis- lature to finance the educational interests of the state; and

(3) paying a portion of the principal and interest on bonds issued by cities under authority of K.S.A. 12-1774, and amendments thereto, for the financing of redevelopment projects upon property located within the district.

(b) The tax required under subsection (a) shall be levied at a rate of 35 mills in the 1994-95 and 1995-96 school years 1996-97 school year, 33 mills in the 1997-98 school year and not exceeding 31 mills in the 1998- 99 school year.

(c) The proceeds from the tax levied by a district under authority of this section, except the proceeds of such tax levied for the purpose of paying a portion of the principal and interest on bonds issued by cities under authority of K.S.A. 12-1774, and amendments thereto, for the fi- nancing of redevelopment projects upon property located within the dis- trict, shall be deposited in the general fund of the district.

(d) On June 1 of each year, the amount, if any, by which a district's local effort exceeds the amount of the district's state financial aid, as determined by the state board, shall be remitted to the state treasurer. Upon receipt of any such remittance, the state treasurer shall deposit the same in the state treasury to the credit of the state school district finance fund.

(e) No district shall proceed under K.S.A. 79-1964, 79-1964a or 79- 1964b, and amendments to such sections.

Sec. 3. K.S.A. 1995 Supp. 72-6433 is hereby amended to read as follows: 72-6433. (a) (1) The board of any district may adopt a local option budget in each school year for a period of time not to exceed four school years in an amount not to exceed the state prescribed percentage of the amount of state financial aid determined for the district in the school year if the board of the district determines that adoption of such a budget would be in the best interests of the district. No district may adopt a local option budget under authority of this subsection until a resolution au- thorizing adoption of such a budget is passed by the board and published once in a newspaper having general circulation in the district. The reso- lution shall be published in substantial compliance with the following form: Unified School District No. ______,

The board of education of the above-named school district shall be authorized to adopt a local option budget in each school year for a period of time not to exceed ______ years in an amount not to exceed ______% of the amount of state financial aid determined for the current school year. The local option budget authorized by this resolution may be adopted, unless a petition in opposition to the same, signed by not less than 5% of the qualified electors of the school district, is filed with the county election officer of the home county of the school district within 30 days after publication of this resolution. In the event a petition is filed, the county election officer shall submit the question of whether adoption of the local option budget shall be authorized to the electors of the school district at an election called for the purpose or at the next general election, as is specified by the board of education of the school district.

This is to certify that the above resolution was duly adopted by the board of education of Unified School District No. _______________________________________________________________________________ , [ru5,4] County, Kansas, on the [ru5,2] day of ____________, 19___.

All of the blanks in the resolution shall be appropriately filled. The blank preceding the word ``years'' shall be filled with a specific number, not to exceed the number 4, and the blank preceding the percentage symbol shall be filled with a specific number. No word shall be inserted in either of the blanks. The percentage specified in the resolution shall not exceed the state prescribed percentage. The resolution shall be pub- lished once in a newspaper having general circulation in the school dis- trict. If no petition as specified above is filed in accordance with the provisions of the resolution, the board may adopt a local option budget. If a petition is filed as provided in the resolution, the board may notify the county election officer of the date of an election to be held to submit the question of whether adoption of a local option budget shall be au- thorized. If the board fails to notify the county election officer within 30 days after a petition is filed, the resolution shall be deemed abandoned and no like resolution shall be adopted by the board within the nine months following publication of the resolution.

(2) If any district is authorized to adopt a local option budget, but the board of such district chooses, in any year, not to adopt such a budget, or chooses to adopt such budget in an amount less than the amount of the district prescribed percentage of the amount of state financial aid in any school year, such board of education may do so. If the board of any district refrains from adopting a local option budget in any one or more school years or refrains from budgeting the total amount authorized for any one or more school years, the authority of such district to adopt a local option budget shall not thereby be extended beyond the original period specified in the resolution authorizing adoption of such budget, nor shall the amount authorized to be budgeted in any succeeding school year be increased thereby.

(3) Whenever an initial resolution has been adopted under this sub- section, and such resolution specified a lesser percentage than the state prescribed percentage, the board of the district may adopt a second res- olution one or more subsequent resolutions under the same procedure as provided for the initial resolution and subject to the same conditions, and shall be authorized to increase the percentage as specified in any such second subsequent resolution for the remainder of the period of time specified in the initial resolution. Any percentage specified in a second subsequent resolution or in subsequent resolutions shall be limited so that the sum of the percentage authorized in the initial resolution and the percentage authorized in the second subsequent resolution or in subse- quent resolutions is not in excess of the state prescribed percentage in any school year.

(4) The board of any district that has adopted a local option budget and levied a tax under authority of K.S.A. 72-6435, and amendments thereto, may initiate, at any time after the final levy is certified to the county clerk under any current authorization, procedures to renew its authority to adopt a local option budget subject to the conditions and in the manner specified in provision (1) of this subsection and, at four-year intervals thereafter, may in like manner and subject to like conditions renew such authorization for successive four-year periods.

(5) As used in this subsection:

(A) ``Authorized to adopt a local option budget'' means that a district has adopted a resolution under this subsection, has published the same, and either that the resolution was not protested or that it was protested and an election was held by which the adoption of a local option budget was approved.

(B) ``District prescribed percentage'' means the percentage specified in a resolution under which a district is authorized to adopt a local option budget. No such percentage shall exceed the state prescribed percentage.

(C) ``State prescribed percentage'' means 25%.

(b) (1) The board of any district to which the provisions of this sub- section apply may adopt a local option budget in the 1997-98 school year if the board of the district determines that adoption of such a budget would be in the best interests of the district. The adoption of a local option budget in the 1997-98 school year under authority of this subsection shall require a majority vote of the members of the board and shall require no other procedure, authorization or approval. The provisions of this sub- section apply to any district that is authorized to adopt and that adopts a local option budget in the 1996-97 school year and, in order to be authorized to adopt a local option budget in the 1997-98 school year, would be required by operation of this section prior to its amendment by this act to initiate procedures to renew its authority to adopt a local option budget, subject to the conditions and in the manner specified in subsection (a), after certifying to the county clerk the levy of a tax for the purpose of financing all or a portion of the local option budget adopted in the 1996-97 school year.

(2) The amount of a local option budget adopted by the board of a district in the 1997-98 school year under authority of this subsection shall not exceed an amount equal to 75% of the district prescribed percentage of the amount of state financial aid determined for the district in the school year. For the purposes of this provision, the term district prescribed per- centage means the percentage specified in the resolution under which a district is authorized to adopt a local option budget in the 1996-97 school year.

(3) To the extent the provisions of subsection (a) conflict with this subsection, the provisions of this subsection shall control.

(4) The provisions of this subsection shall expire on June 30, 1998.

(b) (c) (1) There is hereby established in every district that adopts a local option budget a fund which shall be called the supplemental general fund. The fund shall consist of all amounts deposited therein or credited thereto according to law.

(2) Subject to the limitation imposed under provision (3), amounts in the supplemental general fund may be expended for any purpose for which expenditures from the general fund are authorized or may be trans- ferred to the general fund of the district or to any program weighted fund or categorical fund of the district.

(3) Amounts in the supplemental general fund may not be expended nor transferred to the general fund of the district for the purpose of mak- ing payments under any lease-purchase agreement involving the acqui- sition of land or buildings which is entered into pursuant to the provisions of K.S.A. 72-8225, and amendments thereto.

(4) Any unexpended and unencumbered cash balance remaining in the supplemental general fund of a district at the conclusion of any school year in which a local option budget is adopted shall be disposed of as provided in this subsection. If the district did not receive supplemental general state aid in the school year and the district is authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the supplemental general fund shall be main- tained in such fund or transferred to the general fund of the district. If such a district is not authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the supplemental general fund shall be transferred to the general fund of the district. If the district received supplemental general state aid in the school year, transferred or expended the entire amount budgeted in the local option budget for the school year, and is authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the supplemental general fund shall be main- tained in such fund or transferred to the general fund of the district. If such a district is not authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the supplemental general fund shall be transferred to the general fund of the district. If the district received supplemental general state aid in the school year, did not transfer or expend the entire amount budgeted in the local option budget for the school year, and is not authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the supplemental general fund shall be transferred to the general fund of the district. If the district received supplemental general state aid in the school year, did not transfer or expend the entire amount budgeted in the local option budget for the school year, and is authorized to adopt a local option budget in the en- suing school year, the state board shall determine the ratio of the amount of supplemental general state aid received to the amount of the local option budget of the district for the school year and multiply the total amount of the cash balance remaining in the supplemental general fund by such ratio. An amount equal to the amount of the product shall be transferred to the general fund of the district. The amount remaining in the supplemental general fund may be maintained in such fund or trans- ferred to the general fund of the district.

Sec. 4. K.S.A. 1995 Supp. 72-6433 shall be and is hereby amended to read as follows: 72-6433. (a) (1) The board of any district may adopt a local option budget in each school year for a period of time not to exceed four school years in an amount not to exceed the state prescribed per- centage of the amount of state financial aid determined for the district in the school year if the board of the district determines that adoption of such a budget would be in the best interests of the district. No district may adopt a local option budget under authority of this subsection until a resolution authorizing adoption of such a budget is passed by the board and published once in a newspaper having general circulation in the dis- trict. The resolution shall be published in substantial compliance with the following form: Unified School District No. ______,

The board of education of the above-named school district shall be authorized to adopt a local option budget in each school year for a period of time not to exceed ______ years in an amount not to exceed ______% of the amount of state financial aid determined for the current school year. The local option budget authorized by this resolution may be adopted, unless a petition in opposition to the same, signed by not less than 5% of the qualified electors of the school district, is filed with the county election officer of the home county of the school district within 30 days after publication of this resolution. In the event a petition is filed, the county election officer shall submit the question of whether adoption of the local option budget shall be authorized to the electors of the school district at an election called for the purpose or at the next general election, as is specified by the board of education of the school district.

This is to certify that the above resolution was duly adopted by the board of education of Unified School District No. ______, ____________ County, Kansas, on the ______ day of ______, 19___.

All of the blanks in the resolution shall be appropriately filled. The blank preceding the word ``years'' shall be filled with a specific number, not to exceed the number 4, and the blank preceding the percentage symbol shall be filled with a specific number. No word shall be inserted in either of the blanks. The percentage specified in the resolution shall not exceed the state prescribed percentage. The resolution shall be pub- lished once in a newspaper having general circulation in the school dis- trict. If no petition as specified above is filed in accordance with the provisions of the resolution, the board may adopt a local option budget. If a petition is filed as provided in the resolution, the board may notify the county election officer of the date of an election to be held to submit the question of whether adoption of a local option budget shall be au- thorized. If the board fails to notify the county election officer within 30 days after a petition is filed, the resolution shall be deemed abandoned and no like resolution shall be adopted by the board within the nine months following publication of the resolution.

(2) If any district is authorized to adopt a local option budget, but the board of such district chooses, in any year, not to adopt such a budget, or chooses to adopt such budget in an amount less than the amount of the district prescribed percentage of the amount of state financial aid in any school year, such board of education may do so. If the board of any district refrains from adopting a local option budget in any one or more school years or refrains from budgeting the total amount authorized for any one or more school years, the authority of such district to adopt a local option budget shall not thereby be extended beyond the original period specified in the resolution authorizing adoption of such budget, nor shall the amount authorized to be budgeted in any succeeding school year be increased thereby.

(3) Whenever an initial resolution has been adopted under this sub- section, and such resolution specified a lesser percentage than the state prescribed percentage, the board of the district may adopt a second res- olution one or more subsequent resolutions under the same procedure as provided for the initial resolution and subject to the same conditions, and shall be authorized to increase the percentage as specified in any such second subsequent resolution for the remainder of the period of time specified in the initial resolution. Any percentage specified in a second subsequent resolution or in subsequent resolutions shall be limited so that the sum of the percentage authorized in the initial resolution and the percentage authorized in the second subsequent resolution or in subse- quent resolutions is not in excess of the state prescribed percentage in any school year.

(4) The board of any district that has adopted a local option budget and levied a tax under authority of K.S.A. 72-6435, and amendments thereto, may initiate, at any time after the final levy is certified to the county clerk under any current authorization, procedures to renew its authority to adopt a local option budget subject to the conditions and in the manner specified in provision (1) of this subsection and, at four-year intervals thereafter, may in like manner and subject to like conditions renew such authorization for successive four-year periods.

(5) As used in this subsection:

(A) ``Authorized to adopt a local option budget'' means that a district has adopted a resolution under this subsection, has published the same, and either that the resolution was not protested or that it was protested and an election was held by which the adoption of a local option budget was approved.

(B) ``District prescribed percentage'' means the percentage specified in a resolution under which a district is authorized to adopt a local option budget. No such percentage shall exceed the state prescribed percentage.

(C) ``State prescribed percentage'' means 25%.

(b) (1) The board of any district to which the provisions of this sub- section apply may adopt a local option budget in the 1997-98 school year if the board of the district determines that adoption of such a budget would be in the best interests of the district. The adoption of a local option budget in the 1997-98 school year under authority of this subsection shall require a majority vote of the members of the board and shall require no other procedure, authorization or approval. The provisions of this sub- section apply to any district that is authorized to adopt and that adopts a local option budget in the 1996-97 school year and, in order to be authorized to adopt a local option budget in the 1997-98 school year, would be required by operation of this section prior to its amendment by this act to initiate procedures to renew its authority to adopt a local option budget, subject to the conditions and in the manner specified in subsection (a), after certifying to the county clerk the levy of a tax for the purpose of financing all or a portion of the local option budget adopted in the 1996-97 school year.

(2) The amount of a local option budget adopted by the board of a district in the 1997-98 school year under authority of this subsection shall not exceed an amount equal to the district prescribed percentage of the amount of state financial aid determined for the district in the school year. For the purposes of this provision, the term district prescribed percentage means the percentage specified in the resolution under which a district is authorized to adopt a local option budget in the 1996-97 school year.

(3) To the extent the provisions of subsection (a) conflict with this subsection, the provisions of this subsection shall control.

(4) The provisions of this subsection shall expire on June 30, 1998.

(b) (c) There is hereby established in every district that adopts a local option budget a fund which shall be called the supplemental general fund. The fund shall consist of all amounts deposited therein or credited thereto according to law. Amounts in the supplemental general fund may be ex- pended for any purpose for which expenditures from the general fund are authorized or may be transferred to the general fund of the district or to any program weighted fund or categorical fund of the district. Any unexpended and unencumbered cash balance remaining in the supple- mental general fund of a district at the conclusion of any school year in which a local option budget is adopted shall be disposed of as provided in this subsection. If the district did not receive supplemental general state aid in the school year and the district is authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the supplemental general fund shall be maintained in such fund or transferred to the general fund of the district. If such a district is not authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the sup- plemental general fund shall be transferred to the general fund of the district. If the district received supplemental general state aid in the school year, transferred or expended the entire amount budgeted in the local option budget for the school year, and is authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the supplemental general fund shall be maintained in such fund or transferred to the general fund of the district. If such a district is not authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the sup- plemental general fund shall be transferred to the general fund of the district. If the district received supplemental general state aid in the school year, did not transfer or expend the entire amount budgeted in the local option budget for the school year, and is not authorized to adopt a local option budget in the ensuing school year, the total amount of the cash balance remaining in the supplemental general fund shall be trans- ferred to the general fund of the district. If the district received supple- mental general state aid in the school year, did not transfer or expend the entire amount budgeted in the local option budget for the school year, and is authorized to adopt a local option budget in the ensuing school year, the state board shall determine the ratio of the amount of supple- mental general state aid received to the amount of the local option budget of the district for the school year and multiply the total amount of the cash balance remaining in the supplemental general fund by such ratio. An amount equal to the amount of the product shall be transferred to the general fund of the district. The amount remaining in the supplemental general fund may be maintained in such fund or transferred to the general fund of the district.

Sec. 5. K.S.A. 79-4801 is hereby amended to read as follows: 79- 4801. There is hereby created the state gaming revenues fund in the state treasury. All moneys credited to such fund shall be expended or trans- ferred only for the purposes and in the manner provided by this act and all expenditures from the state gaming revenues fund shall be made in accordance with appropriation acts. All moneys credited to such fund shall be allocated and credited monthly to the funds and in the amounts spec- ified by this act except that the total of the amounts credited to such funds in any one fiscal year pursuant to this act shall not exceed $50,000,000. All amounts credited to such fund in any one fiscal year which are in excess of $50,000,000 shall be transferred and credited to the state general fund on July 15 following such fiscal year July 15, 1996, and June 25, 1997, and each year thereafter on June 25.

Sec. 6. K.S.A. 1995 Supp. 79-5105 is hereby amended to read as follows: 79-5105. (a) A tax is hereby levied upon every motor vehicle, as the same is defined by K.S.A. 79-5101, and amendments thereto, in an amount which shall be determined in the manner hereinafter prescribed, except that: (1) (A) For 1995, the tax on any motorcycle shall not be less than $6 and the tax on any other motor vehicle shall not be less than $12; and (B) the tax on each motor vehicle the age of which is 15 years or older shall not be more than $12; and (2) for 1996, and each year there- after: (A) The tax on any motorcycle shall not be less than $12 and the tax on any other motor vehicle shall not be less than $24, except as oth- erwise provided by clause (B) and (C); (B) the tax on any motorcycle the model year of which is 1980 or earlier shall be $6 and the tax on any other motor vehicle the model year of which is 1980 or earlier shall be $12; and (C) if the tax on any motorcycle in 1995 was more than $6 but less than $12, the tax shall be determined for 1996 and each year thereafter in the manner hereinafter prescribed but shall not be less than $6, and if the tax on any other motor vehicle in 1995 was more than $12 but less than $24, the tax shall be determined for 1996 and each year thereafter in the manner hereinafter prescribed but shall not be less than $12.

(b) The amount of such tax on a motor vehicle shall be computed by: (1) Determining the amount representing the midpoint of the values in- cluded within the class in which such motor vehicle is classified under K.S.A. 79-5102 or 79-5103, and amendments thereto, except that the midpoint of class 20 shall be $21,000 plus $2,000 for each $2,000 or portion thereof by which the trade-in value of the vehicle exceeds $22,000; (2) if the model year of the motor vehicle is a year other than the year for which the tax is levied, by reducing such midpoint amount by an amount equal to 16% in 1995, and all years prior thereto, and 15% in 1996, and all years thereafter, of the remaining balance for each year of difference between the model year of the motor vehicle and the year for which the tax is levied if the model year of the motor vehicle is 1981 or a later year or (B) the remaining balance for each year of difference between the year 1980 and the year for which the tax is levied if the model year of the motor vehicle is 1980 or any year prior thereto; (3) by multiplying the amount determined after application of clause (2) above by 30% during calendar year 1995, 28.5% during the calendar year 1996, 26.5% during the calendar year 1997, 24.5% during the calendar year 1998, 22.5% during the calendar year 1999, and 20% during all calendar years thereafter, which shall constitute the taxable value of the motor vehicle; and (4) by multiplying the taxable value of the motor vehicle produced under clause (3) above by the county average tax rate.

(c) The ``county average tax rate'' means the total amount of general property taxes levied within the county by the state, county and all other taxing subdivisions levying such taxes within such county in the second calendar year before the calendar year in which the owner's full registra- tion year begins divided by the total assessed tangible valuation of prop- erty within such county as of November 1 of such second calendar year before the calendar year in which the owner's full registration year begins as certified by the secretary of revenue, except that: (1) As of November 1, 1994, such rate shall be computed without regard to 11.429% of the general property taxes levied by school districts pursuant to K.S.A. 1995 Supp. 72-6431, and amendments thereto; (2) as of November 1, 1995, such rate shall be computed without regard to 31.429% of the general property taxes levied by school districts pursuant to K.S.A. 1995 Supp. 72-6431, and amendments thereto; (3) as of November 1, 1996, such rate shall be computed without regard to 54.286% of the general property taxes levied by school districts pursuant to K.S.A. 1995 Supp. 72-6431, and amendments thereto; (4) as of November 1, 1997, such rate shall be computed without regard to 77.143% 75.75% of the general property taxes levied by school districts pursuant to K.S.A. 1995 Supp. 72-6431, and amendments thereto; and (5) as of November 1, 1998, and such date in all years thereafter, such rate shall be computed without regard to the general property taxes levied by school districts pursuant to K.S.A. 1995 Supp. 72-6431, and amendments thereto.

New Sec. 7. (a) For the purposes of the school district finance and quality performance act in the 1997-98 school year, and notwithstanding any provision of the act to the contrary, the terms ``enrollment'' and ``ad- justed enrollment'' shall be determined by the state board of education as provided in this subsection for the unified school districts to which the provisions of this section apply. If enrollment of a school district on Sep- tember 20, 1997, is greater than enrollment of the district on September 20, 1996, enrollment of the district shall be as determined on September 20, 1997. If adjusted enrollment of a school district on September 20, 1997, is greater than adjusted enrollment of the district on September 20, 1996, adjusted enrollment of the district shall be as determined on September 20, 1997. If enrollment of a school district on September 20, 1996, is greater than enrollment of the district on September 20, 1997, the September 20, 1997 enrollment shall be subtracted from the enroll- ment of the district on September 20, 1996, the difference shall be mul- tiplied by 90%, the product shall be added to the September 20, 1997 enrollment, the sum shall be deemed enrollment of the district. If ad- justed enrollment of a school district on September 20, 1996, is greater than adjusted enrollment of the district on September 20, 1997, the Sep- tember 20, 1997 adjusted enrollment shall be subtracted from the ad- justed enrollment of the district on September 20, 1996, the difference shall be multiplied by 90%, the product shall be added to the September 20, 1997 adjusted enrollment, the sum shall be deemed adjusted enroll- ment of the district.

(b) The provisions of this section apply to:

(1) U.S.D. No. 465, Cowley county;

(2) U.S.D. No. 470, Cowley county.

(c) The provisions of this section shall expire on July 1, 1998.

New Sec. 8. (a) For the purposes of the school district finance and quality performance act in the 1997-98 school year, and notwithstanding any provision of the act to the contrary, the terms ``enrollment'' and ``ad- justed enrollment'' shall be determined by the state board of education as provided in this subsection for the unified school districts to which the provisions of this section apply. If enrollment of a school district on Sep- tember 20, 1997, is greater than enrollment of the district on September 20, 1996, enrollment of the district shall be as determined on September 20, 1997. If adjusted enrollment of a school district on September 20, 1997, is greater than adjusted enrollment of the district on September 20, 1996, adjusted enrollment of the district shall be as determined on September 20, 1997. If enrollment of a school district on September 20, 1996, is greater than enrollment of the district on September 20, 1997, the September 20, 1997 enrollment shall be subtracted from the enroll- ment of the district on September 20, 1996, the difference shall be mul- tiplied by 90%, the product shall be added to the September 20, 1997 enrollment, the sum shall be deemed enrollment of the district. If ad- justed enrollment of a school district on September 20, 1996, is greater than adjusted enrollment of the district on September 20, 1997, the Sep- tember 20, 1997 adjusted enrollment shall be subtracted from the ad- justed enrollment of the district on September 20, 1996, the difference shall be multiplied by 90%, the product shall be added to the September 20, 1997 adjusted enrollment, the sum shall be deemed adjusted enroll- ment of the district.

(b) The provisions of this section apply to:

(1) U.S.D. No. 345, Shawnee county;

(2) U.S.D. No. 372, Shawnee county;

(3) U.S.D. No. 437, Shawnee county;

(4) U.S.D. No. 450, Shawnee county;

(5) U.S.D. No. 501, Shawnee county.

(c) The provisions of this section shall expire on July 1, 1998.

Sec. 9. K.S.A. 79-4801 and K.S.A. 1995 Supp. 72-6410, 72-6431, 72- 6433 and 79-5105 are hereby repealed.

Sec. 10. This act shall take effect and be in force from and after its publication in the statute book.

Approved May 17, 1996.