CHAPTER 196
SENATE Substitute for HOUSE BILL No. 2094
An  Act concerning schools and school finance; amending K.S.A. 2001 Supp. 72-978, 72-
6407, 72-6426, 72-6430, 72-6433, 72-7108 and 72-8187 and repealing the existing
sections.

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

      Section  1. K.S.A. 2001 Supp. 72-978 is hereby amended to read as
follows: 72-978. (a) (1) In each school year, in accordance with appropri-
ations for special education and related services provided under this act,
each school district which has provided special education and related
services in compliance with the provisions of this act shall be entitled to
receive:

      (A) Reimbursement for actual travel allowances paid to special teach-
ers at not to exceed the rate specified under K.S.A. 75-3203, and amend-
ments thereto, for each mile actually traveled during the school year in
connection with duties in providing special education or related services
for exceptional children; such reimbursement shall be computed by the
state board by ascertaining the actual travel allowances paid to special
teachers by the school district for the school year and shall be in an
amount equal to 80% of such actual travel allowances;

      (B) reimbursement in an amount equal to 80% of the actual travel
expenses incurred for providing transportation for exceptional children to
special education or related services; such reimbursement shall not be
paid if such child has been counted in determining the transportation
weighting of the district under the provisions of the school district finance
and quality performance act;

      (C) reimbursement in an amount equal to 80% of the actual expenses
incurred for the maintenance of an exceptional child at some place other
than the residence of such child for the purpose of providing special
education or related services; such reimbursement shall not exceed $600
per exceptional child per school year; and

      (D) except for those school districts entitled to receive reimbursement
under subsection (b) or (c), after subtracting the amounts of reimburse-
ment under (A), (B) and (C) paragraphs (A), (B) and (C) of this subsection
(a) from the total amount appropriated for special education and related
services under this act, an amount which bears the same proportion to
the remaining amount appropriated as the number of full-time equivalent
special teachers who are qualified to provide special education or related
services to exceptional children and are employed by the school district
for approved special education or related services bears to the total num-
ber of such qualified full-time equivalent special teachers employed by
all school districts for approved special education or related services.

      (2) Each special teacher who is qualified to assist in the provision of
special education or related services to exceptional children shall be
counted as 2/5 full-time equivalent special teacher who is qualified to pro-
vide special education or related services to exceptional children.

      (b) Each school district which has paid amounts for the provision of
special education and related services under an interlocal agreement shall
be entitled to receive reimbursement under subsection (a)(1)(D). The
amount of such reimbursement for the district shall be the amount which
bears the same relation to the aggregate amount available for reimburse-
ment for the provision of special education and related services under the
interlocal agreement, as the amount paid by such district in the current
school year for provision of such special education and related services
bears to the aggregate of all amounts paid by all school districts in the
current school year who have entered into such interlocal agreement for
provision of such special education and related services.

      (c) Each contracting school district which has paid amounts for the
provision of special education and related services as a member of a co-
operative shall be entitled to receive reimbursement under subsection
(a)(1)(D). The amount of such reimbursement for the district shall be the
amount which bears the same relation to the aggregate amount available
for reimbursement for the provision of special education and related serv-
ices by the cooperative, as the amount paid by such district in the current
school year for provision of such special education and related services
bears to the aggregate of all amounts paid by all contracting school dis-
tricts in the current school year by such cooperative for provision of such
special education and related services.

      (b) (d)   No time spent by a special teacher in connection with duties
performed under a contract entered into by the Atchison juvenile cor-
rectional facility, the Beloit juvenile correctional facility, the Larned ju-
venile correctional facility, or the Topeka juvenile correctional facility and
a school district for the provision of special education services by such
state institution shall be counted in making computations under this sec-
tion.

      Sec.  2. K.S.A. 2001 Supp. 72-6407 is hereby amended to read as
follows: 72-6407. (a) ``Pupil'' means any person who is regularly enrolled
in a district and attending kindergarten or any of the grades one through
12 maintained by the district or who is regularly enrolled in a district and
attending kindergarten or any of the grades one through 12 in another
district in accordance with an agreement entered into under authority of
K.S.A. 72-8233, and amendments thereto, or who is regularly enrolled in
a district and attending special education services provided for preschool-
aged exceptional children by the district. Except as otherwise provided
in this subsection, a pupil in attendance full time shall be counted as one
pupil. A pupil in attendance part time shall be counted as that proportion
of one pupil (to the nearest 1/10) that the pupil's attendance bears to full-
time attendance. A pupil attending kindergarten shall be counted as 1/2
pupil. A pupil enrolled in and attending an institution of postsecondary
education which is authorized under the laws of this state to award aca-
demic degrees shall be counted as one pupil if the pupil's postsecondary
education enrollment and attendance together with the pupil's attend-
ance in either of the grades 11 or 12 is at least 5/6 time, otherwise the
pupil shall be counted as that proportion of one pupil (to the nearest 1/10)
that the total time of the pupil's postsecondary education attendance and
attendance in grade 11 or 12, as applicable, bears to full-time attendance.
A pupil enrolled in and attending an area vocational school, area voca-
tional-technical school or approved vocational education program shall be
counted as one pupil if the pupil's vocational education enrollment and
attendance together with the pupil's attendance in any of grades nine
through 12 is at least 5/6 time, otherwise the pupil shall be counted as that
proportion of one pupil (to the nearest 1/10) that the total time of the
pupil's vocational education attendance and attendance in any of grades
nine through 12 bears to full-time attendance. A pupil enrolled in a dis-
trict and attending special education and related services, except special
education and related services for preschool-aged exceptional children,
provided for by the district shall be counted as one pupil. A pupil enrolled
in a district and attending special education and related services for pre-
school-aged exceptional children provided for by the district shall be
counted as 1/2 pupil. A preschool-aged at-risk pupil enrolled in a district
and receiving services under an approved at-risk pupil assistance plan
maintained by the district shall be counted as 1/2 pupil. A pupil in the
custody of the secretary of social and rehabilitation services and enrolled
in unified school district No. 259, Sedgwick county, Kansas, but housed,
maintained, and receiving educational services at the Judge James V. Rid-
del Boys Ranch, shall be counted as two pupils. A pupil residing at the
Flint Hills job corps center shall not be counted. A pupil confined in and
receiving educational services provided for by a district at a juvenile de-
tention facility shall not be counted. A pupil enrolled in a district but
housed, maintained, and receiving educational services at a state institu-
tion shall not be counted.

      (b) ``Preschool-aged exceptional children'' means exceptional chil-
dren, except gifted children, who have attained the age of three years but
are under the age of eligibility for attendance at kindergarten.

      (c) ``At-risk pupils'' means pupils who are eligible for free meals un-
der the national school lunch act and who are enrolled in a district which
maintains an approved at-risk pupil assistance plan.

      (d) ``Preschool-aged at-risk pupil'' means an at-risk pupil who has
attained the age of four years, is under the age of eligibility for attendance
at kindergarten, and has been selected by the state board in accordance
with guidelines consonant with guidelines governing the selection of pu-
pils for participation in head start programs. The state board shall select
not more than 3,756 preschool-aged at-risk pupils to be counted in the
2001-02 school year and not more than 5,500 preschool-aged at-risk pu-
pils to be counted in any school year thereafter.

      (e) ``Enrollment'' means, for districts scheduling the school days or
school hours of the school term on a trimestral or quarterly basis, the
number of pupils regularly enrolled in the district on September 20 plus
the number of pupils regularly enrolled in the district on February 20
less the number of pupils regularly enrolled on February 20 who were
counted in the enrollment of the district on September 20; and for dis-
tricts not hereinbefore specified, the number of pupils regularly enrolled
in the district on September 20. Notwithstanding the foregoing, if en-
rollment in a district in any school year has decreased from enrollment
in the preceding school year, enrollment of the district in the current
school year means whichever is the greater of (1) enrollment in the pre-
ceding school year minus enrollment in such school year of preschool-
aged at-risk pupils, if any such pupils were enrolled, plus enrollment in
the current school year of preschool-aged at-risk pupils, if any such pupils
are enrolled, or (2) the sum of enrollment in the current school year of
preschool-aged at-risk pupils, if any such pupils are enrolled and the av-
erage (mean) of the sum of (A) enrollment of the district in the current
school year minus enrollment in such school year of preschool-aged at-
risk pupils, if any such pupils are enrolled and (B) enrollment in the
preceding school year minus enrollment in such school year of preschool-
aged at-risk pupils, if any such pupils were enrolled and (C) enrollment
in the school year next preceding the preceding school year minus en-
rollment in such school year of preschool-aged at-risk pupils, if any such
pupils were enrolled.

      (f) ``Adjusted enrollment'' means enrollment adjusted by adding at-
risk pupil weighting, program weighting, low enrollment weighting, if any,
correlation weighting, if any, school facilities weighting, if any, ancillary
school facilities weighting, if any, special education and related services
weighting, and transportation weighting to enrollment.

      (g) ``At-risk pupil weighting'' means an addend component assigned
to enrollment of districts on the basis of enrollment of at-risk pupils.

      (h) ``Program weighting'' means an addend component assigned to
enrollment of districts on the basis of pupil attendance in educational
programs which differ in cost from regular educational programs.

      (i) ``Low enrollment weighting'' means an addend component as-
signed to enrollment of districts having under 1,725 enrollment on the
basis of costs attributable to maintenance of educational programs by such
districts in comparison with costs attributable to maintenance of educa-
tional programs by districts having 1,725 or over enrollment.

      (j) ``School facilities weighting'' means an addend component as-
signed to enrollment of districts on the basis of costs attributable to com-
mencing operation of new school facilities. School facilities weighting may
be assigned to enrollment of a district only if the district has adopted a
local option budget and budgeted therein the total amount authorized for
the school year. School facilities weighting may be assigned to enrollment
of the district only in the school year in which operation of a new school
facility is commenced and in the next succeeding school year.

      (k) ``Transportation weighting'' means an addend component as-
signed to enrollment of districts on the basis of costs attributable to the
provision or furnishing of transportation.

      (l) ``Correlation weighting'' means an addend component assigned to
enrollment of districts having 1,725 or over enrollment on the basis of
costs attributable to maintenance of educational programs by such dis-
tricts as a correlate to low enrollment weighting assigned to enrollment
of districts having under 1,725 enrollment.

      (m) ``Ancillary school facilities weighting'' means an addend compo-
nent assigned to enrollment of districts to which the provisions of K.S.A.
2001 Supp. 72-6441, and amendments thereto, apply on the basis of costs
attributable to commencing operation of new school facilities. Ancillary
school facilities weighting may be assigned to enrollment of a district only
if the district has levied a tax under authority of K.S.A. 2001 Supp. 72-
6441, and amendments thereto, and remitted the proceeds from such tax
to the state treasurer. Ancillary school facilities weighting is in addition
to assignment of school facilities weighting to enrollment of any district
eligible for such weighting.

      (n) ``Juvenile detention facility'' means any community juvenile cor-
rections center or facility,:

      (1) Any secure public or private facility which is used for the lawful
custody of accused or adjudicated juvenile offenders and which shall not
be a jail;

      (2) any level VI treatment facility licensed by Kansas department of
health and environment which is a psychiatric residential treatment fa-
cility for individuals under the age of 21 which conforms with the regu-
lations of the centers for medicare/medicaid services and the joint com-
mission on accreditation of health care organizations governing such
facilities; and

      (3) the Forbes Juvenile Attention Facility, the Sappa Valley Youth
Ranch of Oberlin, Salvation Army/Koch Center Youth Services, the Clar-
ence M. Kelley Youth Center, the Clarence M. Kelley Transitional Living
Center, Trego County Secure Care Center, St. Francis Academy at At-
chison, St. Francis Academy at Ellsworth, St. Francis Academy at Salina,
St. Francis Center at Salina, King's Achievement Center, and Liberty
Juvenile Services and Treatment.

      (o) ``Special education and related services weighting'' means an ad-
dend component assigned to enrollment of districts on the basis of costs
attributable to provision of special education and related services for pu-
pils determined to be exceptional children.

      Sec.  3. K.S.A. 2001 Supp. 72-6426 is hereby amended to read as
follows: 72-6426. (a) There is hereby established in every district a fund
which shall be called the contingency reserve fund, which. Such fund
shall consist of all moneys deposited therein or transferred thereto ac-
cording to law. The fund shall be maintained for payment of expenses of
a district attributable to financial contingencies which were not antici-
pated at the time of adoption of the general fund budget as determined
by the board. Except as otherwise provided in subsection (b), at no time
in any school year shall the amount maintained in the fund exceed an
amount equal to 4% of the general fund budget of the district for the
school year.

      (b) In any school year, if the amount in the contingency reserve fund
of a district is in excess of the amount authorized under subsection (a) to
be maintained in the fund, and if such excess amount is the result of a
reduction in the general fund budget of the district for the school year
because of a decrease in enrollment, the district may maintain the excess
amount in the fund until depletion of such excess amount by expenditure
from the fund for the purposes thereof.

      Sec.  4. K.S.A. 2001 Supp. 72-6430 is hereby amended to read as
follows: 72-6430. Expenditures of a district for the following purposes are
not operating expenses:

      (a) Payments to another district in an adjustment of rights as provided
in K.S.A. 72-6776, and amendments thereto, or upon transfer of territory
as provided in K.S.A. 72-7105, 72-7106 or 72-7107, and amendments to
such sections, if paid from any fund other than the general fund.

      (b) Payments to another district under K.S.A. 72-7105a, and amend-
ments thereto.

      (c) The maintenance of student activities which are reimbursed.

      (d) Expenditures from any lawfully authorized fund of a district other
than its general fund.

      (e) The provision of educational services for pupils residing at the
Flint Hills job corps center or for pupils confined in a juvenile detention
facility for which the district is reimbursed by a grant of state moneys as
provided in K.S.A. 2001 Supp. 72-8187, and amendments thereto. As
used in this subsection, the term juvenile detention facility means any
community juvenile corrections center or facility, the Forbes Juvenile
Attention Facility, the Sappa Valley Youth Ranch of Oberlin, Salvation
Army/Koch Center Youth Services, the Clarence M. Kelley Youth Center,
the Clarence M. Kelley Transitional Living Center, Trego County Secure
Care Center, St. Francis Academy at Atchison, St. Francis Academy at
Ellsworth, St. Francis Academy at Salina, St. Francis Center at Salina,
King's Achievement Center, and Liberty Juvenile Services and Treatment
shall have the meaning ascribed thereto by K.S.A. 72-6407, and amend-
ments thereto.

      (f) Programs financed in part or in whole by federal funds which may
be expended although not included in the budget of the district, excepting
funds received under the provisions of title I of public law 874 (but not
including in such exception amounts received for assistance in cases of
major disaster and amounts received under the low-rent housing pro-
gram), to the extent of the federal funds to be provided.

      Sec.  5. K.S.A. 2001 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, commencing with the 1997-98 school year,
in an amount not to exceed an amount equal to the district prescribed
percentage of the amount of state financial aid determined for the district
in the school year. As used in this provision the term section, ``district
prescribed percentage'' means:

      (A) For any district that was authorized to adopt and that adopted a
local option budget in the 1996-97 school year and to which the provisions
of K.S.A. 2001 Supp. 72-6444, and amendments thereto, do not apply in
the current school year, a percentage in the 1997-98 school year that is
equal to the percentage specified in the resolution under which the dis-
trict was authorized to adopt a local option budget in the 1996-97 school
year, in the 1998-99 school year, a percentage that is equal to 95% of the
percentage specified in the resolution under which the district was au-
thorized to adopt a local option budget in the 1996-97 school year, in the
1999-2000 school year, a percentage that is equal to 90% of the percent-
age specified in the resolution under which the district was authorized to
adopt a local option budget in the 1996-97 school year, in the 2000-01
school year, a percentage that is equal to 85% of the percentage specified
in the resolution under which the district was authorized to adopt a local
option budget in the 1996-97 school year, in the 2001-02 school year and
in each school year thereafter, a percentage that is equal to 80% of the
percentage specified in the resolution under which the district was au-
thorized to adopt a local option budget in the 1996-97 school year;

      (B) for any district that was authorized to adopt and that adopted a
local option budget in the 1996-97 school year and to which the provisions
of K.S.A. 2001 Supp. 72-6444, and amendments thereto, apply in the
current school year, a percentage in the 1997-98 school year that is equal
to the sum of the percentage of the amount of state financial aid the
district was authorized to budget in the preceding school year and 20%
of the percentage computed for the district by the state board under the
provisions of K.S.A. 2001 Supp. 72-6444, and amendments thereto, a
percentage in the 1998-99 school year that is equal to the sum of the
percentage of the amount of state financial aid the district was authorized
to budget in the preceding school year and 40% of the percentage com-
puted for the district by the state board under the provisions of K.S.A.
2001 Supp. 72-6444, and amendments thereto, a percentage in the 1999-
2000 school year that is equal to the sum of the percentage of the amount
of state financial aid the district was authorized to budget in the preceding
school year and 60% of the percentage computed for the district by the
state board under the provisions of K.S.A. 2001 Supp. 72-6444, and
amendments thereto, a percentage in the 2000-01 school year that is
equal to the sum of the percentage of the amount of state financial aid
the district was authorized to budget in the preceding school year and
80% of the percentage computed for the district by the state board under
the provisions of K.S.A. 2001 Supp. 72-6444, and amendments thereto,
a percentage in the 2001-02 school year and each school year thereafter
that is equal to the sum of the percentage of the amount of state financial
aid the district was authorized to budget in the preceding school year and
the percentage computed for the district by the state board under the
provisions of K.S.A. 2001 Supp. 72-6444, and amendments thereto;

      (C) for any district that was not authorized to adopt a local option
budget in the 1996-97 school year and to which the provisions of K.S.A.
2001 Supp. 72-6444, and amendments thereto, apply in the current
school year, a percentage in the 1997-98 school year that is equal to 20%
of the percentage computed for the district by the state board under the
provisions of K.S.A. 2001 Supp. 72-6444, and amendments thereto, a
percentage in the 1998-99 school year that is equal to the sum of the
percentage of the amount of state financial aid the district was authorized
to budget in the preceding school year and 40% of the percentage com-
puted for the district by the state board under the provisions of K.S.A.
2001 Supp. 72-6444, and amendments thereto, a percentage in the 1999-
2000 school year that is equal to the sum of the percentage of the amount
of state financial aid the district was authorized to budget in the preceding
school year and 60% of the percentage computed for the district by the
state board under the provisions of K.S.A. 2001 Supp. 72-6444, and
amendments thereto, a percentage in the 2000-01 school year that is
equal to the sum of the percentage of the amount of state financial aid
the district was authorized to budget in the preceding school year and
80% of the percentage computed for the district by the state board under
the provisions of K.S.A. 2001 Supp. 72-6444, and amendments thereto,
a percentage in the 2001-02 school year and each school year thereafter
that is equal to the sum of the percentage of the amount of state financial
aid the district was authorized to budget in the preceding school year and
the percentage computed for the district by the state board under the
provisions of K.S.A. 2001 Supp. 72-6444, and amendments thereto;

      (D) for any district to which the provisions of K.S.A. 2001 Supp. 72-
6444, and amendments thereto, applied in the 1997-98 school year and
to which the provisions of K.S.A. 2001 Supp. 72-6444, and amendments
thereto, do not apply in the current school year, commencing with the
1998-99 school year, because an increase in the amount budgeted by the
district in its local option budget as authorized by a resolution adopted
under the provisions of subsection (b) causes the actual amount per pupil
budgeted by the district in the preceding school year as determined for
the district under provision (1) of subsection (a) of K.S.A. 2001 Supp. 72-
6444, and amendments thereto, to equal or exceed the average amount
per pupil of general fund budgets and local option budgets computed by
the state board under whichever of the provisions (7) through (10) of
subsection (a) of K.S.A. 2001 Supp. 72-6444, and amendments thereto,
is applicable to the district's enrollment group, a percentage that is equal
to the percentage of the amount of state financial aid the district was
authorized to budget in the preceding school year if the resolution au-
thorized the district to increase its local option budget on a continuous
and permanent basis. If the resolution that authorized the district to in-
crease its local option budget specified a definite period of time for which
the district would retain its authority to increase the local option budget
and such authority lapses at the conclusion of such period and is not
renewed, the term district prescribed percentage means a percentage that
is equal to the percentage of the amount of state financial aid the district
was authorized to budget in the preceding school year less the percentage
of increase that was authorized by the resolution unless the loss of the
percentage of increase that was authorized by the resolution would cause
the actual amount per pupil budgeted by the district to be less than the
average amount per pupil of general fund budgets and local option budg-
ets computed by the state board under whichever of the provisions (7)
through (10) of subsection (a) of K.S.A. 2001 Supp. 72-6444, and amend-
ments thereto, is applicable to the district's enrollment group, in which
case, the term district prescribed percentage means a percentage that is
equal to the percentage of the amount of state financial aid the district
was authorized to budget in the preceding school year less the percentage
of increase that was authorized by the resolution plus a percentage which
shall be computed for the district by the state board in accordance with
the provisions of K.S.A. 2001 Supp. 72-6444, and amendments thereto,
except that, in making the determination of the actual amount per pupil
budgeted by the district in the preceding school year, the state board shall
exclude the percentage of increase that was authorized by the resolution.

      (2)  (A) Subject to the provisions of subpart (B), the adoption of a
local option budget 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.

      (B) In lieu of utilizing the authority granted by subpart (A) for adop-
tion of a local option budget, the board of a district may pass a resolution
authorizing adoption of such a budget and publish such resolution once
in a newspaper having general circulation in the district. The resolution
shall be published in substantial compliance with the following form:

Unified School District No. ______,

________ County, Kansas.
RESOLUTION
Be It Resolved that:

      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.

CERTIFICATE
      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__.

____________________
Clerk of the board of education.
      All of the blanks in the resolution shall be appropriately filled. The
blank preceding the word ``years'' shall be filled with a specific number,
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 district pre-
scribed percentage. The resolution shall be published once in a news-
paper having general circulation in the school district. 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 authorized. 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. If any district is authorized to adopt a local option budget
under this subpart, but the board of such district chooses, in any school
year, not to adopt such a budget or chooses, in any school year, 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 so choose. 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 be extended by such refrainment beyond the period specified
in the resolution authorizing adoption of such budget, nor shall the
amount authorized to be budgeted in any succeeding school year be in-
creased by such refrainment. Whenever an initial resolution has been
adopted under this subpart, and such resolution specified a lesser per-
centage than the district prescribed percentage, the board of the district
may adopt 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 subsequent resolution for the remainder of the period of time spec-
ified in the initial resolution. Any percentage specified in a 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 subsequent resolution or in subsequent resolutions is
not in excess of the district prescribed percentage in any school year. The
board of any district that has been authorized to adopt a local option
budget under this subpart 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, pro-
cedures to renew its authority to adopt a local option budget in the man-
ner specified in this subpart or may utilize the authority granted by sub-
part (A). As used in this subpart, the term ``authorized to adopt a local
option budget'' means that a district has adopted a resolution under this
subpart, 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.

      (3) The provisions of this subsection are subject to the provisions of
subsections (b) and (c).

      (b) The provisions of this subsection (b) shall be subject to the pro-
visions of section 7, and amendments thereto.

      (1) The board of any district that adopts a local option budget under
subsection (a) may increase the amount of such budget in each school
year, commencing with the 1997-98 school year, in an amount which
together with the percentage of the amount of state financial aid budgeted
under subsection (a) does not 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 an increase in such budget
would be in the best interests of the district.

      (2) No district may increase a local option budget under authority of
this subsection until: (A) A resolution authorizing such an increase is
passed by the board and published once in a newspaper having general
circulation in the district; or (B) the question of whether the board shall
be authorized to increase the local option budget has been submitted to
and approved by the qualified electors of the district at a special election
called for the purpose. Any such election shall be noticed, called and held
in the manner provided by K.S.A. 10-120, and amendments thereto, for
the noticing, calling and holding of elections upon the question of issuing
bonds under the general bond law. The notice of such election shall state
the purpose for and time of the election, and the ballot shall be designed
with the question of whether the board of education of the district shall
be continuously and permanently authorized to increase the local option
budget of the district in each school year by a percentage which together
with the percentage of the amount of state financial aid budgeted under
subsection (a) does not exceed the state prescribed percentage in any
school year. If a majority of the qualified electors voting at the election
approve authorization of the board to increase the local option budget,
the board shall have such authority. If a majority of the qualified electors
voting at the election are opposed to authorization of the board to increase
the local option budget, the board shall not have such authority and no
like question shall be submitted to the qualified electors of the district
within the nine months following the election.

      (3)  (A) Subject to the provisions of subpart (B), a resolution author-
izing an increase in the local option budget of a district shall state that
the board of education of the district shall be authorized to increase the
local option budget of the district in each school year in an amount not
to exceed ______% of the amount of state financial aid determined for
the current school year and that the percentage of increase may be re-
duced so that the sum of the percentage of the amount of state financial
aid budgeted under subsection (a) and the percentage of increase spec-
ified in the resolution does not exceed the state prescribed percentage in
any school year. The blank preceding the percentage symbol shall be filled
with a specific number. No word shall be inserted in the blank. The
resolution shall specify a definite period of time for which the board shall
be authorized to increase the local option budget and such period of time
shall be expressed by the specific number of school years for which the
board shall retain its authority to increase the local option budget. No
word shall be used to express the number of years for which the board
shall be authorized to increase the local option budget.

      (B) In lieu of the requirements of subpart (A) and at the discretion
of the board, a resolution authorizing an increase in the local option
budget of a district may state that the board of education of the district
shall be continuously and permanently authorized to increase the local
option budget of the district in each school year by a percentage which
together with the percentage of the amount of state financial aid budgeted
under subsection (a) does not exceed the state prescribed percentage in
any school year.

      (4) A resolution authorizing an increase in the local option budget of
a district shall state that the amount of the local option budget may be
increased as authorized by the resolution unless a petition in opposition
to such increase, 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. If no petition
is filed in accordance with the provisions of the resolution, the board is
authorized to increase the local option budget of the district. 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 the board shall be authorized to increase the local option
budget of the district. 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.

      (5) The requirements of provision (2) do not apply to any district that
is continuously and permanently authorized to increase the local option
budget of the district. An increase in the amount of a local option budget
by such a district shall require a majority vote of the members of the
board and shall require no other procedure, authorization or approval.

      (6) If any district is authorized to increase a local option budget, but
the board of such district chooses, in any school year, not to adopt or
increase such budget or chooses, in any school year, to adopt or increase
such budget in an amount less than the amount authorized, such board
of education may so choose. If the board of any district refrains from
adopting or increasing 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 amount authorized to be budgeted in any suc-
ceeding school year shall not be increased by such refrainment, nor shall
the authority of the district to increase its local option budget be extended
by such refrainment beyond the period of time specified in the resolution
authorizing an increase in the local option budget if the resolution spec-
ified such a period of time.

      (7) Whenever an initial resolution has been adopted under this sub-
section, and such resolution specified a percentage which together with
the percentage of the amount of state financial aid budgeted under sub-
section (a) is less than the state prescribed percentage, the board of the
district may adopt one or more subsequent resolutions under the same
procedure as provided for the initial resolution and shall be authorized
to increase the percentage as specified in any such subsequent resolution.
If the initial resolution specified a definite period of time for which the
district is authorized to increase its local option budget, the authority to
increase such budget by the percentage specified in any subsequent res-
olution shall be limited to the remainder of the period of time specified
in the initial resolution. Any percentage specified in a subsequent reso-
lution or in subsequent resolutions shall be limited so that the sum of the
percentage authorized in the initial resolution and the percentage au-
thorized in the subsequent resolution or in subsequent resolutions to-
gether with the percentage of the amount of state financial aid budgeted
under subsection (a) is not in excess of the state prescribed percentage
in any school year.

      (8)  (A) Subject to the provisions of subpart (B), the board of any
district that has adopted a local option budget under subsection (a), has
been authorized to increase such budget under a resolution which spec-
ified a definite period of time for retention of such authorization, and has
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 the authority to
increase the local option budget subject to the conditions and in the
manner specified in provisions (2) and (3) of this subsection.

      (B) The provisions of subpart (A) do not apply to the board of any
district that is continuously and permanently authorized to increase the
local option budget of the district.

      (9) As used in this subsection:

      (A) ``Authorized to increase a local option budget'' means either that
a district has held a special election under provision (2)(B) by which au-
thority of the board to increase a local option budget was approved, or
that a district has adopted a resolution under provision (2) (A), has pub-
lished the same, and either that the resolution was not protested or that
it was protested and an election was held by which the authority of the
board to increase a local option budget was approved.

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

      (c) To the extent the provisions of the foregoing subsections conflict
with this subsection, this subsection shall control. Any district that is au-
thorized to adopt a local option budget in the 1997-98 school year under
a resolution which authorized the adoption of such budget in accordance
with the provisions of this section prior to its amendment by this act may
continue to operate under such resolution for the period of time specified
in the resolution or may abandon the resolution and operate under the
provisions of this section as amended by this act. Any such district shall
operate under the provisions of this section as amended by this act after
the period of time specified in the resolution has expired.

      (d)(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
making payments under any lease-purchase agreement involving the ac-
quisition of land or buildings which is entered into pursuant to the pro-
visions 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 board of the district deter-
mines that it will be necessary to adopt a local option budget in the en-
suing school year, the total amount of the cash balance remaining in the
supplemental general fund shall be maintained in such fund or trans-
ferred to the general fund of the district. If the board of such a district
determines that it will not be necessary 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 determines that it will be
necessary 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 determines that it will not be necessary
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 determines that it will not be necessary 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
determines that it will be necessary to adopt a local option budget in the
ensuing 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
transferred to the general fund of the district.

      Sec.  6. K.S.A. 2001 Supp. 72-8187 is hereby amended to read as
follows: 72-8187. (a) In each school year, to the extent that appropriations
are available, each school district which has provided educational services
for pupils residing at the Flint Hills job corps center or for pupils confined
in a juvenile detention facility is eligible to receive a grant of state moneys
in an amount to be determined by the state board of education.

      (b) In order to be eligible for a grant of state moneys provided for by
this section, each school district which has provided educational services
for pupils residing at the Flint Hills job corps center or for pupils confined
in a juvenile detention facility shall submit to the state board of education
an application for a grant and shall certify the amount expended, and not
reimbursed or otherwise financed, in the school year for the services
provided. The application and certification shall be prepared in such form
and manner as the state board shall require and shall be submitted at a
time to be determined and specified by the state board. Approval by the
state board of applications for grants of state moneys is prerequisite to
the award of grants.

      (c) Each school district which is awarded a grant under this section
shall make such periodic and special reports of statistical and financial
information to the state board as it may request.

      (d) All moneys received by a school district under authority of this
section shall be deposited in the general fund of the school district and
shall be considered reimbursement of the district for the purpose of the
school district finance and quality performance act.

      (e) The state board of education shall approve applications of school
districts for grants, determine the amount of grants and be responsible
for payment of grants to school districts. In determining the amount of a
grant which a school district is eligible to receive, the state board shall
compute the amount of state financial aid the district would have received
on the basis of enrollment of pupils residing at the Flint Hills job corps
center or confined in a juvenile detention facility if such pupils had been
counted as two pupils under the school district finance and quality per-
formance act and compare such computed amount to the amount certi-
fied by the district under subsection (b). The amount of the grant the
district is eligible to receive shall be an amount equal to the lesser of the
amount computed under this subsection or the amount certified under
subsection (b). If the amount of appropriations for the payment of grants
under this section is insufficient to pay in full the amount each school
district is determined to be eligible to receive for the school year, the
state board shall prorate the amount appropriated among all school dis-
tricts which are eligible to receive grants of state moneys in proportion
to the amount each school district is determined to be eligible to receive.

      (f) As used in this section:

      (1) ``Enrollment'' means the number of pupils who are residing at the
Flint Hills job corps center or who are confined in a juvenile detention
facility and for whom a school district is providing educational services
on September 20, on November 20, or on April 20 of a school year,
whichever is the greatest number of pupils; and

      (2) ``juvenile detention facility'' means any community juvenile cor-
rections center or facility, the Forbes Juvenile Attention Facility, the
Sappa Valley Youth Ranch of Oberlin, Salvation Army/Koch Center Youth
Services, the Clarence M. Kelley Youth Center, the Clarence M. Kelley
Transitional Living Center, Trego County Secure Care Center, St. Fran-
cis Academy at Atchison, St. Francis Academy at Ellsworth, St. Francis
Academy at Salina, St. Francis Center at Salina, King's Achievement Cen-
ter, and Liberty Juvenile Services and Treatment shall have the meaning
ascribed thereto by K.S.A. 72-6407, and amendments thereto.

      New Sec.  7. (a) As used in this section, ``school district'' means a
school district which was the sponsoring school district of a special edu-
cation cooperative during school year 2001-2002.

      (b) For a school district which adopts a local option budget in an
amount which equals the state prescribed percentage for school year
2002-2003, the maximum amount of a local option budget of such school
district for school year 2002-2003, shall be determined by the state board
as follows:

      (1) Determine the amount of the local option budget of the school
district under K.S.A. 72-6433, and amendments thereto, for school year
2001-2002, and subtract the amount of the local option budget of such
district under K.S.A. 72-6433, and amendments thereto, for school year
2002-2003.

      (2) If the difference obtained under paragraph (1) is one or more,
multiply the difference by 2/3 and add the product to the maximum
amount of the local option budget of the school district under K.S.A. 72-
6433, and amendments thereto. The sum shall be the maximum amount
of the local option budget of the district for school year 2002-2003.

      (3) If the difference obtained under paragraph (1) is zero or less, the
maximum amount of the local option budget of the district for school year
2002-2003, shall be the maximum amount allowed under K.S.A. 72-6433,
and amendments thereto.

      (c) For a school district which adopts a local option budget in an
amount which equals the state prescribed percentage for school year
2003-2004, the maximum amount of a local option budget of such school
district for school year 2003-2004, shall be determined by the state board
as follows:

      (1) Determine the amount of the local option budget of the school
district under K.S.A. 72-6433, and amendments thereto, for school year
2001-2002, and subtract the amount of the local option budget of such
district under K.S.A. 72-6433, and amendments thereto, for school year
2003-2004.

      (2) If the difference obtained under paragraph (1) is one or more,
multiply the difference by 1/3 and add the product to the maximum
amount of the local option budget of the school district under K.S.A. 72-
6433, and amendments thereto. The sum shall be the maximum amount
of the local option budget of the district for school year 2003-2004.

      (3) If the difference obtained under paragraph (1) is zero or less, the
maximum amount of the local option budget of the district for school year
2003-2004, shall be the maximum amount allowed under K.S.A. 72-6433,
and amendments thereto.

      (d) For a school district which adopts a local option budget in an
amount which equals the district prescribed percentage for school year
2002-2003, the maximum amount of a local option budget of such school
district for school year 2002-2003, shall be determined by the state board
as follows:

      (1) Determine the amount of the local option budget of the school
district under K.S.A. 72-6433, and amendments thereto, for school year
2001-2002, and subtract the amount of the local option budget of such
district under K.S.A. 72-6433, and amendments thereto, for school year
2002-2003.

      (2) If the difference obtained under paragraph (1) is one or more,
multiply the difference by 1/3 and add the product to the maximum
amount of the local option budget of the school district under K.S.A. 72-
6433, and amendments thereto. The sum shall be the maximum amount
of the local option budget of the district for school year 2002-2003.

      (3) If the difference obtained under paragraph (1) is zero or less, the
maximum amount of the local option budget of the district for school year
2002-2003, shall be the maximum amount allowed under K.S.A. 72-6433,
and amendments thereto.

      Sec.  8. K.S.A. 2001 Supp. 72-7108 is hereby amended to read as
follows: 72-7108. (a) Transfers of territory from one unified district to
another unified district shall be made only as follows: (a)

      (1) Upon the written agreement of any two boards approved by the
state board of education,; or (b)

      (2) upon order of the state board after petition therefor by one board
and a public hearing thereon conducted by the state board of education.

      (b) The effective date of any such transfer shall be the date of ap-
proval thereof or order therefor issued by the state board of education or
the July 1 following.

      (c) Notice of the public hearing on such a petition shall be given by
publication by the state board of education for two consecutive weeks in
a newspaper of general circulation in the unified district from which ter-
ritory is to be transferred, the last publication to be not more than 10 nor
less than three days prior to the date of the hearing. The notice shall state
the time and place of the hearing and shall give a summary description
of the territory proposed to be transferred.

      (d) Prior to issuing an order, the state board shall consider the fol-
lowing:

      (1) City boundaries and the area within three miles surrounding any
city with more than one district in the area;

      (2) available capacity of districts involved in the territory transfer to
serve existing or additional students;

      (3) condition and age of buildings and physical plant;

      (4) overall costs including renovation of existing buildings versus con-
struction;

      (5) cost of bussing;

      (6) food service;

      (7) administration and teachers;

      (8) areas of interest including access and distances for parents to
travel to participate in student activities;

      (9) matters of commerce, including regular shopping areas, meeting
places, community activities and youth activities;

      (10) districts that are landlocked with changing demographics that
cause declining enrollment; and

      (11) effect on students living in the area.

      The foregoing shall not be deemed to limit the factors which the state
board of education may consider.

      (e) Within 90 days after receiving an agreement or, if a public hearing
is held, within 90 days after the hearing, the state board of education shall
issue its order either approving or disapproving such transfer petition or
agreement, or approving the same with such amendments as it deems
appropriate.

      (f) Whenever a petition for transfer of territory has been denied by
the state board of education, no petition for transfer of substantially the
same territory shall be received or considered by the state board of ed-
ucation for a period of two years.

      Sec.  9. K.S.A. 2001 Supp. 72-978, 72-6407, 72-6426, 72-6430, 72-
6433, 72-7108 and 72-8187 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 29, 2002.
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