MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Education; Appropriations

By: Senator(s) Kirby, White (29th), Smith, Little, Nunnelee, Harvey, Ferris

AN ACT TO AMEND SECTIONS 37-151-5 AND 37-151-7, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN DEFINITIONS UNDER THE MISSISSIPPI ADEQUATE EDUCATION PROGRAM FUNDING FORMULA BASED ON A BASE STUDENT COST FUNDING LEVEL, TO CLARIFY THE INSTRUCTIONAL COST COMPONENT OF THE BASE STUDENT COST, TO CLARIFY THE ADJUSTMENT FOR AT-RISK PUPILS, TO PROVIDE AN ADJUSTMENT FOR ADD-ON PROGRAM COSTS, TO PROVIDE A MILLAGE REQUIREMENT FOR AGRICULTURAL HIGH SCHOOLS AND TO CLARIFY THE REQUIRED STATE EFFORT; AND FOR RELATED PURPOSES. 

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

SECTION 1. Section 37-151-5, Mississippi Code of 1972, is amended as follows:

37-151-5. As used in Sections 37-151-3, 37-151-1 and 37-15-7:

(a) "Adequate program" or "adequate education program" or "Mississippi Adequate Education Program (M.A.E.P.)" shall mean the program proposed to establish adequate current operation funding levels necessary for the programs of such school district to meet at least Level III of the accreditation system as established by the State Board of Education, acting through the Mississippi Commission on School Accreditation, regardless of the school district's geographic location.

(b) "Educational programs or elements of programs not included in the adequate education program" shall mean:

(i) "Capital outlay" shall mean those funds used for the constructing, improving, equipping, renovating or major repairing of school buildings or other school facilities, purchase of buses, or the cost of acquisition of land whereon to construct or establish such school facilities.

(ii) "Pilot programs" shall mean programs of a pilot or experimental nature usually designed for special purposes and for a specified period of time other than those included in the adequate education program.

(iii) "Adult education" shall mean public education dealing primarily with students above eighteen (18) years of age not enrolled as full-time public school students and not classified as students of technical schools, colleges or universities of the state.

(iv) "Food service programs" shall mean those programs dealing directly with the nutritional welfare of the student, such as the school lunch and school breakfast programs.

(v) "Extended school year programs" shall mean those programs authorized by law which extend beyond the normal school year.

(vi) "University-based programs" shall mean those university-based programs for handicapped children as defined and provided for in Section 37-23-131 et seq., Mississippi Code of 1972.

(vii) "Bus driver training" programs shall mean those driver training programs as provided for in Section 37-41-1, Mississippi Code of 1972.

(c) "Base student" shall mean that student classification that represents the most economically educated pupil in a school system meeting Level III accreditation, as determined by the State Board of Education in conjunction with the Commission on School Accreditation.

(d) "Base student cost" shall mean the funding level necessary for providing an adequate education program for one (1) base student.

(e) "Add-on program costs" shall mean those items which are included in the adequate education program costs and are outside of the base student cost calculation:

(i) "Transportation" shall mean transportation to and from public schools for the students of Mississippi's public schools provided for under law and funded from state and local funds.

(ii) "Vocational or technical education program" shall mean a secondary vocational or technical program approved by the State Department of Education and provided for from state and local funds.

(iii) "Special education program" shall mean a program for exceptional children as defined and authorized by Sections 37-23-1 through 37-23-9, Mississippi Code of 1972, and approved by the State Department of Education and provided from state and local funds.

(iv) "Gifted education program" shall mean those programs for the instruction of intellectually or academically gifted children as defined and provided for in Section 37-23-175 et seq., Mississippi Code of 1972.

(v) "Alternative school program" shall mean those programs for certain compulsory-school-age students as defined and provided for in Sections 37-13-92 and 37-19-22, Mississippi Code of 1972.

(f) "Teacher" shall include any full-time employee of a local school who is required by law to obtain a teacher's license from the State Board of Education and who is assigned to an instructional area of work as defined by the State Department of Education.

(g) "Principal" shall mean the head of an attendance center or division thereof.

(h) "Superintendent" shall mean the head of a school district.

(i) "School district" shall mean any type of school district in the State of Mississippi, and shall include agricultural high schools.

(j) "Minimum school term" shall mean a term of at least one hundred eighty (180) days of school in which both teachers and pupils are in regular attendance for scheduled classroom instruction for not less than sixty percent (60%) of the normal school day. It is the intent of the Legislature that any tax levies generated to produce additional local funds required by any school district to operate school terms in excess of one hundred seventy-five (175) days shall not be construed to constitute a new program for the purposes of exemption from the limitation on tax revenues as allowed under Sections 27-39-321 and 37-57-107, Mississippi Code of 1972, for new programs mandated by the Legislature.

(k) The term "transportation density" shall mean the number of transported children in average daily attendance per square mile of area served in a school district, as determined by the State Department of Education.

(l) The term "transported children" shall mean children being transported to school who live within legal limits for transportation and who are otherwise qualified for being transported to school at public expense as fixed by Mississippi state law.

(m) The term "year of teaching experience" shall mean nine (9) months of actual teaching in the public or private schools of this or some other state. In no case shall more than one (1) year of teaching experience be given for all services in one (1) calendar or school year. In determining a teacher's experience, no deduction shall be made because of the temporary absence of the teacher because of illness or other good cause, and the teacher shall be given credit therefor. The State Board of Education shall fix a number of days, not to exceed twenty-five (25) consecutive school days, during which a teacher may not be under contract of employment during any school year and still be considered to have been in full-time employment for a regular scholastic term. If a full-time school administrator returns to actual teaching in the public schools, the term "year of teaching experience" shall include the period of time he or she served as a school administrator.

(n) The term "average daily attendance" shall be the figure which results when the total aggregate attendance during the period or months counted is divided by the number of days during the period or months counted upon which both teachers and pupils are in regular attendance for scheduled classroom instruction less the average daily attendance for self-contained special education classes and reduced by the average daily attendance for the alternative school program provided for in Section 37-19-22, Mississippi Code of 1972.

(o) The term "local supplement" shall mean the amount paid to an individual teacher over and above the adequate education program salary schedule for regular teaching duties.

(p) The term "aggregate amount of support from ad valorem taxation" shall mean the amounts produced by the district's total tax levies for operations.

(q) The term "adequate education program funds" shall mean all funds, both state and local, constituting the requirements for meeting the cost of the adequate program as provided for in Section 37-151-7.

(r) "Department" shall mean the State Department of Education.

(s) "Commission" shall mean the Mississippi Commission on School Accreditation created under Section 37-17-3, Mississippi Code of 1972.

SECTION 2. Section 37-151-7, Mississippi Code of 1972, is amended as follows:

37-151-7. The annual allocation to each school district for the operation of the adequate education program shall be determined as follows:

(1) Computation of the basic amount to be included for current operation in the adequate education program. The following procedure shall be followed in determining the annual allocation to each school district:

(a) Determination of average daily attendance. During months two (2) and three (3) of the current school year, the average daily attendance of a school district shall be computed, or the average daily attendance for the prior school year shall be used, whichever is greater. The district's average daily attendance shall be computed and currently maintained in accordance with regulations promulgated by the State Board of Education.

(b) Determination of base student cost. The State Board of Education, on or before July 1, shall annually submit to the Legislative Budget Office and the Governor a proposed base student cost adequate to provide the following cost components of educating a pupil in an average school district meeting Level III accreditation standards required by the Commission on School Accreditation: (i) Instructional Cost; (ii) Administrative Cost; (iii) Operation and Maintenance of Plant; and (iv) Ancillary Support Cost. The department shall utilize a statistical methodology which considers such factors as, but not limited to, (i) school size; (ii) assessed valuation per pupil; (iii) the percentage of students receiving free lunch; (iv) the local district maintenance tax levy; (v) other local school district revenues; and (vi) the district's accreditation level, in the selection of the representative Mississippi school districts for which cost information shall be obtained for each of the above listed cost areas.

For the instructional cost component, the department shall determine the instructional cost of each of the representative school districts selected above, excluding instructional cost of self-contained special education programs and vocational education programs, and the average daily attendance in the selected school districts. The instructional cost is then totalled and divided by the total average daily attendance for the selected school districts to yield the instructional cost component. For the administrative cost component, the department shall determine the administrative cost of each of the representative school districts selected above, excluding administrative cost of self-contained special education programs and vocational education programs, and the average daily attendance in the selected school districts. The administrative cost is then totalled and divided by the total average daily attendance for the selected school districts to yield the administrative cost component. For the plant and maintenance cost component, the department shall determine the plant and maintenance cost of each of the representative school districts selected above, excluding plant and maintenance cost of self-contained special education programs and vocational education programs, and the average daily attendance in the selected school districts. The plant and maintenance cost is then totalled and divided by the total average daily attendance for the selected school districts to yield the plant and maintenance cost component. For the ancillary support cost component, the department shall determine the ancillary support cost of each of the representative school districts selected above, excluding ancillary support cost of self-contained special education programs and vocational education programs, and the average daily attendance in the selected school districts. The ancillary support cost is then totalled and divided by the total average daily attendance for the selected school districts to yield the ancillary support cost component. The total base cost for each year shall be the sum of the instructional cost component, administrative cost component, plant and maintenance cost component and ancillary support cost component.

(c) Determination of the basic adequate education program cost. The basic amount for current operation to be included in the Mississippi Adequate Education Program for each school district shall be computed as follows:

Multiply the average daily attendance of the district by the base student cost as established by the Legislature, which yields the total base program cost for each school district.

(d) Adjustment to the base student cost for at-risk pupils. The amount to be included for at-risk pupil programs for each school district shall be computed as follows:

Multiply the base student cost for the appropriate fiscal year as determined under paragraph (b) by five percent (5%) in Fiscal Year 1995; by six percent (6%) in Fiscal Year 1996; and by seven percent (7%) in Fiscal Year 1997 and fiscal years thereafter, and multiply that product by the number of pupils participating in the federal free school lunch program in such school district in the immediately preceding fiscal year, which yields the total adjustment for at-risk pupil programs for such school district.

(e) Adjustment to the adequate education program for add-on program cost. The amount to be included for add-on program cost for each school district shall be computed as follows:

(i) Transportation cost shall be the amount expended in the second preceding year in such school district for the operational support of the district transportation system from state and local funds plus the change in support reflected in the allocation of immediately preceding and current fiscal year state funds.

(ii) Vocational or technical education program cost shall be the amount expended in the second preceding fiscal year in such school district from state and local funds for the operational support of such programs plus the change in support reflected in the allocation of immediately preceding and current fiscal year state funds.

(iii) Special education program cost shall be the amount expended in the second preceding fiscal year in such school district from state and local funds for the operational support of such programs plus the change in support reflected in the allocation of immediately preceding and current fiscal year state funds.

(iv) Gifted education program cost shall be the amount provided in the second preceding fiscal year in such school district from state funds for the operational support of such programs plus the change in support reflected in the allocation of immediately preceding and current fiscal year state funds.

(v) Alternative school program cost shall be the amount provided in the second preceding fiscal year in such school district from state funds for the operational support of such programs plus the change reflected in the allocation of immediately preceding and current fiscal year state funds.

The sum of the items listed above (i) transportation, (ii) vocational or technical education, (iii) special education, (iv) gifted education and (v) alternative school shall yield the add-on cost for each school district.

(f) Total projected adequate education program cost. The total Mississippi Adequate Education Program Cost shall be the sum of the total basic adequate education program cost (paragraph (c)), the adjustment to the base student cost for at-risk pupils (paragraph (d)) and the add-on cost (paragraph (e)) for each school district.

(2) Computation of the required local revenue in support of the adequate education program. The amount that each district shall provide toward the cost of the adequate education program shall be calculated as follows:

(a) Twenty-eight (28) mills is the millage rate required to provide the district required local effort for that year, or a lesser millage rate as authorized under hereinafter: any school district levying less than a twenty-eight (28) mill ad valorem school district levy on July 1, 1994, shall only be required to increase its ad valorem levy in four (4) mill annual increments in order to attain the twenty-eight (28) mills required. In the case of an agricultural high school the millage requirement shall be set at a level which generates an amount per pupil equivalent to the average at twenty-eight (28) mills of all school districts located within the county in which the agricultural high school is located.

(b) The State Board of Education shall determine (i) the total assessed valuation of nonexempt property for school purposes in each school district; (ii) assessed value of exempt property owned by homeowners aged sixty-five (65) or older or disabled as defined in Section 27-33-67(2), Mississippi Code of 1972; (iii) the school district's tax loss from exemptions provided to applicants under the age of sixty-five (65) and not disabled as defined in Section 27-33-67(1), Mississippi Code of 1972; and (iv) the school district's homestead reimbursement revenues.

(c) The amount of the total adequate education program funding which shall be contributed by each school district shall be the sum of the ad valorem receipts generated by the millage required under this subsection plus the following local revenue sources for the appropriate fiscal year which are or may be available for current expenditure by the school district:

(i) Fifty percent (50%) of interest on short- or long-term investments of surplus funds as prescribed in Section 37-59-23, Mississippi Code of 1972;

(ii) Fifty percent (50%) of sixteenth section school land or lieu land expendable income as prescribed in Chapter 3, Title 29, Mississippi Code of 1972;

(iii) Fifty percent (50%) of Chickasaw School Fund appropriations by the Legislature as prescribed in Sections 29-3-137 and 29-3-139, Mississippi Code of 1972;

(iv) Fifty percent (50%) of TVA in lieu revenues as prescribed in Section 27-39-303;

(v) Fifty percent (50%) of national forest revenues as prescribed in 16 U.S.C.A. Section 500;

(vi) Fifty percent (50%) of Grand Gulf income as prescribed in Section 27-35-309, Mississippi Code of 1972. However, no funds held in escrow to the benefit of any school district due to federal litigation concerning the distribution of Grand Gulf revenues shall be considered as "other local revenue sources" under the provisions of this paragraph;

(vii) One hundred percent (100%) of all refunds of severance taxes made by the state which are distributed to school districts.

(3) Computation of the required state effort in support of the adequate education program.

The required state effort in support of the adequate education program shall be determined by subtracting the sum of the required local tax effort as set forth in subsection (2)(a) of this section and the other local revenue sources as set forth in subsection (2)(c) of this section in an amount not to exceed twenty-five percent (25%) of the total projected adequate education program cost as set forth in subsection (1)(f) of this section from the total projected adequate education program cost as set forth in subsection (1)(f) of this section.

Provided, however, that when the adequate education program is fully funded by the Legislature, any increase in the said state contribution to any district calculated under this section shall be not less than five percent (5%) in excess of the amount received by said district from state funds for the fiscal year immediately preceding the first year of full funding of the adequate education program.

(4) The State Adequate Education Program Fund is hereby established in the State Treasury which shall be used to distribute any funds specifically appropriated by the Legislature to such fund, to school districts entitled to increased allocations of state funds under the adequate education program funding formula prescribed in Sections 37-151-3, 37-151-5 and 37-151-7 of this article, as compared to estimated allocations of state education funds. If the Legislature provides less funds than the total state funds needed for support of such increased allocations under the adequate education program, the State Department of Education shall reduce all elements of the cost of the adequate education program proportionately. Any such adequate education program funds shall be transferred to the school district maintenance fund of such district in the manner prescribed in Section 37-19-47, Mississippi Code of 1972, and shall be expended in the manner provided by law.

SECTION 3. This act shall take effect and be in force from and after July 1, 1997.