MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Education
By: Senator(s) DeBar, McLendon, Blount, Parker, Simmons (13th), Butler, Norwood
AN ACT TO AMEND SECTION 37-151-7, MISSISSIPPI CODE OF 1972, TO REVISE THE MISSISSIPPI ADEQUATE EDUCATION PROGRAM FUNDING FORMULA TO PROVIDE THAT FOR EACH FISCAL YEAR BETWEEN THE RECALCULATION OF THE BASE STUDENT COST, THE BASE STUDENT COST SHALL BE INCREASED BY AN AMOUNT EQUAL TO 25% OF THE BASE STUDENT COST FOR THE PREVIOUS FISCAL YEAR, MULTIPLIED BY THE 20-YEAR AVERAGE ANNUAL RATE OF INFLATION ROUNDED UP TO THE NEAREST TENTH OF A PERCENT FOR THE STATE OF MISSISSIPPI AS DETERMINED BY THE STATE ECONOMIST, PLUS ANY ADJUSTMENTS FOR ADDITIONAL STATE REQUIREMENTS SUCH AS, BUT NOT LIMITED TO, TEACHER PAY RAISES AND HEALTH INSURANCE PREMIUM INCREASES; TO PROVIDE THAT THE STATE DEPARTMENT OF EDUCATION SHALL CERTIFY TO EACH SCHOOL DISTRICT THAT 28 MILLS, LESS THE ESTIMATED AMOUNT OF THE YIELD OF THE SCHOOL AD VALOREM TAX REDUCTION FUND GRANTS AS DETERMINED BY THE STATE DEPARTMENT OF EDUCATION, SHALL BE THE MILLAGE RATE REQUIRED TO PROVIDE THE DISTRICT REQUIRED LOCAL EFFORT FOR THAT YEAR, OR 29.5% OF THE BASIC ADEQUATE EDUCATION PROGRAM COST FOR SUCH SCHOOL DISTRICT, WHICHEVER IS A LESSER AMOUNT; TO REQUIRE 90% OF STATE CONTRIBUTIONS TO THE ADEQUATE EDUCATION PROGRAM FUNDS BE SPENT ON TEACHER SALARIES, CLASSROOM RESOURCES, ADD-ON PROGRAM COSTS AND EXPENSES OTHER THAN SALARIES FOR SUPERINTENDENTS, ASSISTANT SUPERINTENDENTS, PRINCIPALS, AND ASSISTANT PRINCIPALS, OR EQUIVALENT HEADS OF DISTRICT OR SCHOOL IN CHARTER SCHOOLS; TO PROVIDE THAT IF ANY CHARTER STUDENT RETURNS TO THE SCHOOL DISTRICT IN WHICH THE PUBLIC CHARTER SCHOOL IS LOCATED, THE CHARTER SCHOOL SHALL RETURN A PRORATED SHARE OF ADEQUATE EDUCATION PROGRAM PAYMENTS FOR THE STUDENT; TO PROVIDE THAT THE METHODOLOGY FOR THE REQUIRED STATE EFFORT IN SUPPORT OF THE ADEQUATE EDUCATION PROGRAM SHALL BE DETERMINED BY SUBTRACTING THE SUM OF THE REQUIRED LOCAL TAX EFFORT AND THE OTHER LOCAL REVENUE SOURCES IN AN AMOUNT NOT TO EXCEED 29.5% OF THE TOTAL PROJECTED ADEQUATE EDUCATION PROGRAM COST FROM THE TOTAL PROJECTED ADEQUATE EDUCATION PROGRAM COST; TO DELETE CERTAIN OUTDATED LANGUAGE; TO PROVIDE THAT IN FISCAL YEAR 2025, SUBJECT TO APPROPRIATIONS, NO SCHOOL DISTRICT SHALL RECEIVE LESS THAN A DISTRICT RECEIVED IN SAID STATE CONTRIBUTION IN FISCAL YEAR 2024; TO AMEND SECTION 37-57-1, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. 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. Effective with fiscal year 2011, the State
Department of Education shall determine the percentage change from the prior
year of each year of each school district's average of months two (2) and three
(3) average daily attendance (ADA) for the three (3) immediately preceding school
years of the year for which funds are being appropriated. For any school district
that experiences a positive growth in the average of months two (2) and three
(3) ADA each year of the three (3) years, the average percentage growth over
the three-year period shall be multiplied times the school district's average
of months two (2) and three (3) ADA for the year immediately preceding the year
for which MAEP funds are being appropriated. The resulting amount shall be
added to the school district's average of months two (2) and three (3) ADA for
the year immediately preceding the year for which MAEP funds are being appropriated
to arrive at the ADA to be used in determining a school district's MAEP
allocation. Otherwise, months two (2) and three (3) ADA for the year
immediately preceding the year for which MAEP funds are being appropriated will
be used in determining a school district's MAEP allocation. * * * The district's average
daily attendance shall be computed and currently maintained in accordance with
regulations promulgated by the State Board of Education. The district's
average daily attendance shall include any student enrolled in a Dual
Enrollment-Dual Credit Program as defined and provided in Section 37-15-38(19).
The State Department of Education shall make payments for Dual Enrollment-Dual
Credit Programs to the home school in which the student is enrolled, in accordance
with regulations promulgated by the State Board of Education. The community
college providing services to students in a Dual Enrollment-Dual Credit Program
shall require payment from the home school district for services provided to
such students at a rate of one hundred percent (100%) of ADA. All MAEP/state
funding shall cease upon completion of high school graduation requirements.
(b) Determination of base student cost. Effective with fiscal year 2011 and every fourth fiscal year thereafter, the State Board of Education, on or before August 1, with adjusted estimate no later than January 2, shall 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 a successful school district: (i) instructional cost; (ii) administrative cost; (iii) operation and maintenance of plant; and (iv) ancillary support cost. For purposes of these calculations, the Department of Education shall utilize financial data from the second preceding year of the year for which funds are being appropriated.
For the instructional cost component, the Department of Education shall select districts that have been identified as instructionally successful and have a ratio of a number of teachers per one thousand (1,000) students that is between one (1) standard deviation above the mean and two (2) standard deviations below the mean of the statewide average of teachers per one thousand (1,000) students. The instructional cost component shall be calculated by dividing the latest available months one (1) through nine (9) ADA into the instructional expenditures of these selected districts. For the purpose of this calculation, the Department of Education shall use the following funds, functions and objects:
Fund 1120 Functions 1110-1199 Objects 100-999, Functions
1210, 1220, 2150-2159 Objects 210 and 215;
Fund 1130 All Functions, Object Code 210 and 215;
Fund 2001 Functions 1110-1199 Objects 100-999;
Fund 2070 Functions 1110-1199 Objects 100-999;
Fund 2420 Functions 1110-1199 Objects 100-999;
Fund 2711 All Functions, Object Code 210 and 215.
Prior to the calculation of the instructional cost component, there shall be subtracted from the above expenditures any revenue received for Chickasaw Cession payments, Master Teacher Certification payments and the district's portion of state revenue received from the MAEP at-risk allocation.
For the administrative cost component, the Department of Education shall select districts that have been identified as instructionally successful and have a ratio of an administrative staff to nonadministrative staff between one (1) standard deviation above the mean and two (2) standard deviations below the mean of the statewide average administrative staff to nonadministrative staff. The administrative cost component shall be calculated by dividing the latest available months one (1) through nine (9) ADA of the selected districts into the administrative expenditures of these selected districts. For the purpose of this calculation, the Department of Education shall use the following funds, functions and objects:
Fund 1120 Functions 2300-2599, Functions 2800-2899,
Objects 100-999;
Fund 2711 Functions 2300-2599, Functions 2800-2899,
Objects 100-999.
For the plant and maintenance cost component, the Department of Education shall select districts that have been identified as instructionally successful and have a ratio of plant and maintenance expenditures per one hundred thousand (100,000) square feet of building space and a ratio of maintenance workers per one hundred thousand (100,000) square feet of building space that are both between one (1) standard deviation above the mean and two (2) standard deviations below the mean of the statewide average. The plant and maintenance cost component shall be calculated by dividing the latest available months one (1) through nine (9) ADA of the selected districts into the plant and maintenance expenditures of these selected districts. For the purpose of this calculation, the Department of Education shall use the following funds, functions and objects:
Fund 1120 Functions 2600-2699, Objects 100-699
and Objects 800-999;
Fund 2711 Functions 2600-2699, Objects 100-699
and Objects 800-999;
Fund 2430 Functions 2600-2699, Objects 100-699
and Objects 800-999.
For the ancillary support cost component, the Department of Education shall select districts that have been identified as instructionally successful and have a ratio of a number of librarians, media specialists, guidance counselors and psychologists per one thousand (1,000) students that is between one (1) standard deviation above the mean and two (2) standard deviations below the mean of the statewide average of librarians, media specialists, guidance counselors and psychologists per one thousand (1,000) students. The ancillary cost component shall be calculated by dividing the latest available months one (1) through nine (9) ADA into the ancillary expenditures instructional expenditures of these selected districts. For the purpose of this calculation, the Department of Education shall use the following funds, functions and objects:
Fund 1120 Functions 2110-2129, Objects 100-999;
Fund 1120 Functions 2140-2149, Objects 100-999;
Fund 1120 Functions 2220-2229, Objects 100-999;
Fund 2001 Functions 2100-2129, Objects 100-999;
Fund 2001 Functions 2140-2149, Objects 100-999;
Fund 2001 Functions 2220-2229, Objects 100-999.
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, and any estimated adjustments for additional state requirements as
determined by the State Board of Education. * * *
For each of the fiscal years
between the recalculation of the base student cost under the provisions of this
paragraph (b), the base student cost shall be increased by an amount equal to * * * twenty-five percent (25%)
of the base student cost for the previous fiscal year, multiplied by the * * * twenty-year average annual change
in the rate of inflation rounded up to the nearest tenth of a percent
for the State of Mississippi as determined by the State Economist, plus any
adjustments for additional state requirements such as, but not limited to,
teacher pay raises and health insurance premium increases.
(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%), and multiply that product by the number of pupils participating in the federal free school lunch program in such school district, which yields the total adjustment for at-risk pupil programs for such school district.
(e) Add-on program cost. The amount to be allocated to school districts in addition to the adequate education program cost for add-on programs for each school district shall be computed as follows:
(i) Transportation cost shall be the amount allocated to such school district for the operational support of the district transportation system from state funds.
(ii) Vocational or technical education program cost shall be the amount allocated to such school district from state funds for the operational support of such programs.
(iii) Special education program cost shall be the amount allocated to such school district from state funds for the operational support of such programs.
(iv) Gifted education program cost shall be the amount allocated to such school district from state funds for the operational support of such programs.
(v) Alternative school program cost shall be the amount allocated to such school district from state funds for the operational support of such programs.
(vi) Extended school year programs shall be the amount allocated to school districts for those programs authorized by law which extend beyond the normal school year.
(vii) University-based programs shall be the amount allocated to school districts for those university-based programs for handicapped children as defined and provided for in Section 37-23-131 et seq., Mississippi Code of 1972.
(viii) Bus driver training programs shall be the amount provided for those driver training programs as provided for in Section 37-41-1, Mississippi Code of 1972.
The sum of the items listed above (i) transportation, (ii) vocational or technical education, (iii) special education, (iv) gifted education, (v) alternative school, (vi) extended school year, (vii) university-based, and (viii) bus driver training 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)), and the adjustment to the base student cost for at-risk pupils (paragraph (d)) for each school district. In any year in which the MAEP is not fully funded, the Legislature shall direct the Department of Education in the K-12 appropriation bill as to how to allocate MAEP funds to school districts for that year.
(g) The State Auditor shall annually verify the State Board of Education's estimated calculations for the Mississippi Adequate Education Program that are submitted each year to the Legislative Budget Office on August 1 and the final calculation that is submitted on January 2.
(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) The State
Department of Education shall certify to each school district that twenty-eight
(28) mills, less the estimated amount of the yield of the School Ad Valorem Tax
Reduction Fund grants as determined by the State Department of Education, is
the millage rate required to provide the district required local effort for
that year, or * * * twenty-nine and one-half percent (29.5%) of the
basic adequate education program cost for such school district as determined
under paragraph (c), whichever is a lesser amount. In the case of an
agricultural high school, the millage requirement shall be set at a level which
generates an equitable amount per pupil to be determined by the State Board of
Education. The local contribution amount for school districts in which there
is located one or more charter schools will be calculated using the following
methodology: using the adequate education program twenty-eight (28) mill
value, or the * * * twenty-nine and one-half percent (29.5%) cap
amount (whichever is less) for each school district in which a charter school is
located, an average per pupil amount will be calculated. This average per
pupil amount will be multiplied times the number of students attending the
charter school in that school district. The sum becomes the charter school's
local contribution to the adequate education program.
(b) The State Department of Education shall determine the following from the annual assessment information submitted to the department by the tax assessors of the various counties: (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:
One hundred percent (100%) of Grand Gulf income as prescribed in Section 27-35-309.
One hundred percent (100%) of any fees in lieu of taxes as prescribed in Section 27-31-104.
(3) Computation of the required state effort in support of the adequate education program.
(a) 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-nine
and one-half percent (29.5%) 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.
(b) * * * [Deleted]
(c) If the school board of any school district shall determine that it is not economically feasible or practicable to operate any school within the district for the full one hundred eighty (180) days required for a school term of a scholastic year as required in Section 37-13-63, Mississippi Code of 1972, due to an enemy attack, a man-made, technological or natural disaster in which the Governor has declared a disaster emergency under the laws of this state or the President of the United States has declared an emergency or major disaster to exist in this state, said school board may notify the State Department of Education of such disaster and submit a plan for altering the school term. If the State Board of Education finds such disaster to be the cause of the school not operating for the contemplated school term and that such school was in a school district covered by the Governor's or President's disaster declaration, it may permit said school board to operate the schools in its district for less than one hundred eighty (180) days and, in such case, the State Department of Education shall not reduce the state contributions to the adequate education program allotment for such district, because of the failure to operate said schools for one hundred eighty (180) days.
(d) Provided, however, that in fiscal year 2025, subject to appropriations, no school district shall receive less than a district received in said state contribution in fiscal year 2024, including the amount provided for the fiscal year 2024 teacher and assistant teacher pay raise separate from the adequate education program.
(4) * * *
Ninety percent (90%) of state
contributions to the adequate education program funds must be spent on teacher
salaries, classroom resources, add-on program cost and expenses other than
salaries for superintendents, assistant superintendents, principals
and assistant principals, or equivalent heads of district or school in charter
schools.
(5) The State Department of Education shall make payments to charter schools for each student in average daily attendance at the charter school equal to the state share of the adequate education program payments for each student in average daily attendance at the school district in which the public charter school is located. In calculating the local contribution for purposes of determining the state share of the adequate education program payments, the department shall deduct the pro rata local contribution of the school district in which the student resides as determined in subsection (2)(a) of this section. If any charter student returns to the school district in which the public charter school is located, the charter school shall return a prorated share of adequate education program payments for the student as determined by the department. A charter school that fails to return a payment within forty-five (45) days shall be subject to an additional five percent (5%) penalty of the payment due to the school district. The Department of Education shall ensure that the payment and penalty from this subsection is directed to the school district where the student returned.
SECTION 2. Section 37-57-1, Mississippi Code of 1972, is amended as follows:
37-57-1. (1) (a) The boards of supervisors of the counties shall levy and collect all taxes for and on behalf of all school districts which were within the county school system or designated as special municipal separate school districts prior to July 1, 1986. Such taxes shall be collected by the county tax collector at the same time and in the same manner as county taxes are collected by him, and the same penalties for delinquency shall be applicable.
The governing authorities of the municipalities shall levy and collect all taxes for and on behalf of all school districts which were designated as municipal separate school districts prior to July 1, 1986. Such taxes shall be collected by the municipal tax collector at the same time and in the same manner as municipal taxes are collected by him, and the same penalties for delinquency shall be applicable.
Except as otherwise provided in Section 19-9-171, the county or municipal tax collector, as the case may be, shall pay such tax collections, except for taxes collected for the payment of the principal of and interest on school bonds or notes and except for taxes collected to defray collection costs, into the school depository and report to the school board of the appropriate school district at the same time and in the same manner as the tax collector makes his payments and reports of other taxes collected by him.
Provided, however, the State Board of Education shall determine the appropriate levying authority for any school district created or reorganized after July 1, 1987.
(b) For the purposes of this chapter and any other laws pertaining to taxes levied or bonds or notes issued for and on behalf of school districts, the term "levying authority" means the board of supervisors of the county or the governing authorities of the municipality, whichever levies taxes for and on behalf of the particular school district as provided in paragraphs (a) and (b) of this subsection.
(2) The levying authority
for the school district shall, at the same time and in the same manner as other
taxes are levied by the levying authority, levy a tax of not less than twenty-eight
(28) mills for the then current fiscal year, less the estimated amount of the
yield of the School Ad Valorem Tax Reduction Fund grant to the school district
as determined by the State Department of Education or * * * twenty-nine
and one-half percent (29.5%) of the basic adequate education program cost
for such school district, whichever is a lesser amount, upon all of the taxable
property of the school district, as required under Section 37-151-7(2)(a).
However, in no case shall the minimum local ad valorem tax effort for any
school district be equal to an amount that would require a millage rate
exceeding fifty-five (55) mills in that school district. Provided, however,
that if a levying authority is levying in excess of fifty-five (55) mills on
July 1, 1997, the levying authority may levy an additional amount not exceeding
three (3) mills in the aggregate for the period beginning July 1, 1997, and
ending June 30, 2003, subject to the limitation on increased receipts from ad
valorem taxes prescribed in Sections 37-57-105 and 37-57-107. Nothing in this
subsection shall be construed to require any school district that is levying
more than fifty-five (55) mills pursuant to Sections 37-57-1 and 37-57-105 to
decrease its millage rate to fifty-five (55) mills or less. In making such
levy, the levying authority shall levy an additional amount sufficient to cover
anticipated delinquencies and costs of collection so that the net amount of money
to be produced by such levy shall be equal to the amount which the school
district is required to contribute as its said minimum local ad valorem tax
effort. The tax so levied shall be collected by the tax collector at the same
time and in the same manner as other ad valorem taxes are collected by him.
The amount of taxes so collected as a result of such levy shall be paid into
the district maintenance fund of the school district by the tax collector at
the same time and in the same manner as reports and payments of other ad
valorem taxes are made by said tax collector, except that the amount collected
to defray costs of collection may be paid into the county general fund. The
levying authority shall have the power and authority to direct and cause warrants
to be issued against such fund for the purpose of refunding any amount of taxes
erroneously or illegally paid into such fund where such refund has been approved
in the manner provided by law.
SECTION 3. This act shall take effect and be in force from and after July 1, 2024, and shall stand repealed on June 30, 2024.