House Bill 1094

AN ACT TO AMEND SECTION 37-61-33, MISSISSIPPI CODE OF 1972, TO REVISE THE ALLOCATION OF CLASSROOM SUPPLY FUNDS UNDER THE EDUCATION ENHANCEMENT FUND FOR FULL-TIME AND PART-TIME TEACHERS; TO REQUIRE ANY FUNDS REMAINING UNEXPENDED ON MARCH 31 OF THE FISCAL YEAR IN WHICH THEY ARE RECEIVED TO BE RETURNED TO THE STATE DEPARTMENT OF EDUCATION FOR ALLOCATION TO OTHER SCHOOL DISTRICTS; TO REQUIRE EACH LOCAL SCHOOL BOARD TO SUBMIT ITS REQUESTS FOR CLASSROOM SUPPLY FUNDS FROM THE EDUCATION ENHANCEMENT FUND BY MARCH 1; TO REQUIRE THE STATE DEPARTMENT OF EDUCATION TO SUBMIT AN ANNUAL REPORT TO THE LEGISLATURE ON THE ALLOCATION OF FUNDS TO SCHOOL DISTRICTS AND THE EXPENDITURE OF THOSE FUNDS BY SCHOOL DISTRICTS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 37-61-33, Mississippi Code of 1972, is amended as follows:

37-61-33. (1) There is created within the State Treasury a special fund to be designated the "Education Enhancement Fund" into which shall be deposited all the revenues collected under Sections 27-65-75(7) and (8) and 27-67-31(a) and (b).

(2) Of the amount deposited into the Education Enhancement Fund, Sixteen Million Dollars ($16,000,000.00) shall be appropriated each fiscal year to the State Department of Education to be distributed to all school districts. The money shall be distributed to all school districts in the proportion that the average daily attendance of each school district bears to the average daily attendance of all school districts within the state for the following purposes:

(a) Purchasing, erecting, repairing, equipping, remodeling and enlarging school buildings and related facilities, including gymnasiums, auditoriums, lunchrooms, vocational training buildings, libraries, teachers' homes, school barns, transportation vehicles (which shall include new and used transportation vehicles) and garages for transportation vehicles, and purchasing land for those purposes.

(b) Establishing and equipping school athletic fields and necessary facilities connected therewith, and purchasing land for those purposes.

(c) Providing necessary water, light, heating, air conditioning and sewerage facilities for school buildings, and purchasing land for those purposes.

(d) As a pledge to pay all or a portion of the debt service on debt issued by the school district under Sections 37-59-1 through 37-59-45, 37-59-101 through 37-59-115, 37-7-351 through 37-7-359, 37-41-89 through 37-41-99, 37-7-301, 37-7-302 and 37-41-81, or debt issued by boards of supervisors for agricultural high schools under Section 37-27-65, if the pledge is accomplished under a written contract or resolution approved and spread upon the minutes of an official meeting of the district's school board or board of supervisors. The annual grant to the district in any later year during the term of the resolution or contract shall not be reduced below an amount equal to the district's grant amount for the year in which the contract or resolution was adopted. The intent of this provision is to allow school districts to irrevocably pledge a certain, constant stream of revenue as security for long-term obligations issued under the code sections enumerated in this paragraph or as otherwise allowed by law. It is the intent of the Legislature that the provisions of this paragraph shall be cumulative and supplemental to any existing funding programs or other authority conferred upon school districts or school boards. Debt of a district secured by a pledge of sales tax revenue under this paragraph shall not be subject to any debt limitation contained in the foregoing enumerated code sections.

(3) The remainder of the money deposited into the Education Enhancement Fund shall be appropriated as follows:

(a) To the State Department of Education as follows:

(i) Sixteen and sixty-one one-hundredths percent (16.61%) to the cost of the adequate education program determined under Section 37-151-7; of the funds generated by the percentage set forth in this section for the support of the adequate education program, one and one hundred seventy-eight one-thousandths percent (1.178%) of the funds shall be appropriated to be used by the State Department of Education for the purchase of textbooks to be loaned under Sections 37-43-1 through 37-43-59 to approved nonpublic schools, as described in Section 37-43-1. The funds to be distributed to each nonpublic school shall be in the proportion that the average daily attendance of each nonpublic school bears to the total average daily attendance of all nonpublic schools;

(ii) Seven and ninety-seven one-hundredths percent (7.97%) to assist the funding of transportation operations and maintenance under Section 37-19-23; and

(iii) Nine and sixty-one one-hundredths percent (9.61%) for classroom supplies, instructional materials and equipment, including computers and computer software, to be distributed to all school districts in the proportion that the average daily attendance of each school district bears to the average daily attendance of all school districts within the state. Classroom supply funds shall not be expended for administrative purposes. Local school districts shall allocate classroom supply funds equally among all classroom teachers in the school district; however, a classroom teacher who teaches only on a part-time basis shall be allocated funds totaling one-half (1/2) of the amount allocated to each classroom teacher who teaches full time. For purposes of this subparagraph, "teacher" means any employee of the school board of a school district who is required by law to obtain a teacher's license from the State Department of Education and who is assigned to an instructional area of work as defined by the department, but shall not include a federally funded teacher. Two (2) or more teachers may agree to pool their classroom supply funds for the benefit of a school within the district. It is the intent of the Legislature that all classroom teachers, whether full time or part time, shall be involved in the development of a spending plan that addresses individual classroom needs and supports the overall goals of the school regarding supplies, instructional materials, equipment, computers or computer software under the provisions of this subparagraph, including the type, quantity and quality of those supplies, materials and equipment. This plan shall be submitted in writing to the school principal for approval. Classroom supply funds allocated under this subparagraph shall supplement, not replace, other local and state funds available for the same purposes. School districts that have not fully expended the funds received under this subparagraph by March 31 in the fiscal year in which they are received must return all unexpended funds to the State Department of Education to be reallocated to other school districts. Any individual teacher or group of teachers with an approved spending plan that has not been fully funded need not expend the funds allocated under this subparagraph in the year in which the funds are received. The funds may be carried forward for expenditure in any later school year in which the plan is fully funded. However, beginning July 1, 2006, any funds allocated under this subparagraph that are not reserved in an approved spending plan but remain unspent on March 31 of the fiscal year in which the funds were allotted must be returned to the State Department of Education to be reallocated to other school districts. The State Board of Education shall develop and promulgate rules and regulations for the administration of this subparagraph consistent with the above criteria, with particular emphasis on:

1. Allowing the individual teachers to expend funds as they deem appropriate;

2. Requiring local school boards to submit their requests for funds administered under this subparagraph which reflect the developed spending plan by March 1 of each year; and

3. Requiring the State Department to submit an annual report to the Legislature outlining the amount of funds allocated to each district, the amount of those allocated funds expended by each district and the amount of any unexpended funds returned to the State Department of Education;

(b) Twenty-two and nine one-hundredths percent (22.09%) to the Board of Trustees of State Institutions of Higher Learning for the purpose of supporting institutions of higher learning; and

(c) Fourteen and forty-one one-hundredths percent (14.41%) to the State Board for Community and Junior Colleges for the purpose of providing support to community and junior colleges.

(4) The amount remaining in the Education Enhancement Fund after funds are distributed as provided in subsections (2) and (3) of this section shall be disbursed as follows:

(a) Twenty-five Million Dollars ($25,000,000.00) shall be deposited into the Working Cash-Stabilization Reserve Fund created under Section 27-103-203(1), until the balance in such fund reaches the maximum balance of seven and one-half percent (7-1/2%) of the General Fund appropriations in the appropriate fiscal year. After the maximum balance in the Working Cash-Stabilization Reserve Fund is reached, such money shall remain in the Education Enhancement Fund to be appropriated in the manner provided for in paragraph (b) of this subsection.

(b) The remainder shall be appropriated for other educational needs.

(5) None of the funds appropriated pursuant to subsection (3)(a) of this section shall be used to reduce the state's General Fund appropriation for the categories listed in an amount below the following amounts:

(a) For subsection (3)(a)(ii) of this section, Thirty-six Million Seven Hundred Thousand Dollars ($36,700,000.00);

(b) For the aggregate of minimum program allotments in the 1997 fiscal year, formerly provided for in Chapter 19, Title 37, Mississippi Code of 1972, as amended, excluding those funds for transportation as provided for in subsection (5)(a) in this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 2010.