MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Education; Ways and Means

By: Representative Perkins

AN ACT TO AMEND SECTION 37-22-1, MISSISSIPPI CODE OF 1972, TO INCLUDE A PERCENTAGE OF CERTAIN LOCAL TAX REVENUES GENERATED BY GAMING IN THE DEFINITION OF "OTHER LOCAL REVENUE SOURCES" USED TO COMPUTE GRANTS UNDER THE MINIMUM EDUCATION PROGRAM; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 37-22-1, Mississippi Code of 1972, is amended as follows:

37-22-1. (1) There is * * * established a Mississippi School District Uniform Millage Assistance Grant Program. It is the intent of the Legislature that through this grant program, each student counted in average daily attendance in the public schools in Mississippi shall have equal access to funds generated by a uniform minimum school district ad valorem tax levy.

(2) For the purposes of this section the following terms shall have the following meanings unless context shall provide otherwise:

(a) "Average daily attendance" means the average daily attendance as calculated under the provisions of Section 37-19-1(1) for months one (1) through nine (9) for each school district and agricultural high school during the preceding fiscal year.

(b) "Uniform minimum school district ad valorem tax levy" means that amount of millage which the State Board of Education shall annually certify to the board of trustees of all school districts as the "uniform minimum school district ad valorem tax levy," on August 15 of each year. Until June 30, 1993, the State Board of Education shall determine the amount of the uniform minimum school district ad valorem tax levy by computing the statewide combined average millage levy for school district maintenance purposes as prescribed in Section 37-57-105 and minimum program contributions as prescribed in Section 37-57-1 for the preceding fiscal year, then subtracting four (4) mills from such statewide average millage levy. From and after July 1, 1993, the uniform minimum school district ad valorem tax levy shall be the amount of millage so certified by the State Board of Education for the 1993 fiscal year. Beginning with the 1993 fiscal year, the State Board of Education shall determine and certify an equivalent uniform minimum school district ad valorem tax levy for agricultural high school support and maintenance.

(c) "Maximum yield at the uniform minimum school district ad valorem tax levy" * * * means ad valorem tax dollars collectible in each school district if the district levies such required number of mills for the support of the school district as certified by the State Board of Education. It is calculated by: (i) subtracting the assessed value of exempt property owned by homeowners aged sixty-five (65) or older or disabled, as defined in Section 27-33-67(2), from the district's gross assessed value to arrive at the district's taxable assessed value; (ii) applying the required millage levy to the taxable assessed value to arrive at the base revenue; (iii) subtracting the 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), to arrive at the maximum collectible; and (iv) adding the district's homestead reimbursement revenue to arrive at the district's maximum yield at the uniform minimum school district ad valorem tax levy. The clerk of the board of supervisors shall list in his report of tax losses for homestead exemption, as defined in Section 27-33-35, the total assessed value in each school district. The homestead exemption tax losses used in this formula shall be losses for exemptions granted from taxes due and payable in the preceding year. Reimbursements used in this formula shall be amounts reimbursed to the school districts for said losses.

(d) "Individual student entitlement" means that amount of funds which results from dividing the aggregate amount of funds which would be generated by the levy of the uniform minimum school district ad valorem tax by the aggregate average daily attendance in all school districts and agricultural high schools located within the state.

(e) "District entitlement" means the total amount of funds which a school district or agricultural high school may be entitled to receive under the provisions of this section. Such amount shall be calculated by multiplying the individual student entitlement by the average daily attendance for the respective school district or agricultural high school.

(f) "Deficit funding allocation" means the amount of money needed by each school district or agricultural high school to insure the individual student entitlement for each pupil enrolled in such district or agricultural high school. The deficit funds for each school district or agricultural high school shall be calculated by subtracting the maximum yield of the uniform minimum school district ad valorem tax levy in such school district or agricultural high school from its district entitlement. In the event the millage levy of any school district or agricultural high school shall be less than the uniform minimum school district ad valorem tax levy or its equivalent, as the case may be, as certified by the State Board of Education for any fiscal year, yet generate funds in an amount equal to or greater than such school district's or agricultural high school's district entitlement, no deficit funding allocation shall be available to that respective school district or agricultural high school.

(g) "Other local revenue sources" means the sum of the following local revenues which are or may be available from the preceding fiscal year for expenditure by the school district: (i) interest on short- or long-term investments of surplus funds as prescribed in Section 37-59-23; (ii) sixteenth section school land expendable income as prescribed in Chapter 3, Title 29, Mississippi Code of 1972; (iii) Chickasaw School Fund appropriations by the Legislature as prescribed in Sections 29-3-137 and 29-3-139; (iv) TVA in lieu revenues as prescribed in Section 27-39-303; (v) national forest revenues as prescribed in 16 U.S.C.A. Section 500; (vi) Grand Gulf income as prescribed in Section 27-35-309; 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) the amount of any Emergency Fund Loss Assistance Program funds received annually under the provisions of Section 37-22-5; and (viii) fifty percent (50%) of the local tax revenue generated from legalized gaming which is required or authorized, through legislative enactment, to be allocated to a specified school district or expended for general educational purposes in the county or municipality in which the school district is situated.

(3) A state uniform millage assistance grant award shall be provided to each school district and agricultural high school requiring additional funds in order to provide their pupils the individual student entitlement. The amount of the grant provided each school district shall be calculated by subtracting other local revenue sources from its deficit funding allocation.

(4) The total state funds needed for the School District Uniform Millage Assistance Grant Program annually shall be the total of the amounts needed to award grants to school districts and agricultural high schools in the state as provided in subsection (3) of this section. If the total amount of funds annually appropriated for the School District Uniform Millage Assistance Grant Program exceeds the total amount determined by the basic formula, the excess funds shall be distributed proportionately to those school districts so entitled under the provisions of this section. The State Uniform Millage Assistance Grant Fund is hereby established in the State Treasury which shall be used to distribute the funds to school districts so entitled under the provisions of this section. Any such grant funds shall be transferred to the school district maintenance fund of such district or agricultural high school in the manner prescribed in Section 37-19-47 and shall be expended in the manner provided by law exclusively for classroom instructional purposes.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.