MISSISSIPPI LEGISLATURE

2010 Regular Session

To: Education

By: Representative Brown

House Bill 1097

AN ACT TO AMEND SECTION 37-3-46, MISSISSIPPI CODE OF 1972, TO REQUIRE THE STATE DEPARTMENT OF EDUCATION TO PROVIDE TECHNICAL ASSISTANCE TO CERTAIN SCHOOLS NOT MEETING ADEQUATE PERFORMANCE OF ACCREDITATION STANDARDS; TO BRING FORWARD SECTION 37-18-1, MISSISSIPPI CODE OF 1972, WHICH REQUIRES THE DEPARTMENT TO ESTABLISH THE SUPERIOR-PERFORMING AND EXEMPLARY SCHOOLS PROGRAMS, FOR PURPOSES OF POSSIBLE AMENDMENTS; TO AMEND SECTION 37-18-3, MISSISSIPPI CODE OF 1972, TO REQUIRE SCHOOLS AT-RISK TO BE IDENTIFIED BY CRITERIA ESTABLISHED BY THE STATE BOARD OF EDUCATION, TO REVISE THE COMPOSITION AND THE QUALIFICATIONS OF MEMBERS OF EVALUATION TEAMS ASSIGNED TO SCHOOLS AT-RISK, TO AUTHORIZE EVALUATION TEAMS TO CONDUCT ON-SITE AUDITS, AND TO REMOVE THE REQUIREMENT THAT EVALUATION REPORTS IDENTIFY PERSONNEL IN NEED OF IMPROVEMENT; TO AMEND SECTION 37-18-5, MISSISSIPPI CODE OF 1972, TO DELETE THE PROVISION REQUIRING THE DEPARTMENT OF EDUCATION EVALUATION TEAM LEADERS TO ASSIST CERTAIN SCHOOL OFFICIALS IN THE DEVELOPMENT OF A SCHOOL IMPROVEMENT PLAN, TO REQUIRE CERTAIN ACTIONS TO BE TAKEN BY CERTAIN ENTITIES WITH REGARD TO THE DEVELOPMENT AND APPROVAL OF SCHOOL IMPROVEMENT ACTION PLANS OF SCHOOLS AT-RISK, AND TO REQUIRE A PRE-KINDERGARTEN DISTRICT WITH A SCHOOL AT-RISK TO ESTABLISH A COMMUNITY-BASED PREKINDERGARTEN THROUGH HIGHER EDUCATION COUNCIL; TO AMEND SECTION 37-18-7, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE STATE BOARD OF EDUCATION TO INITIATE THE CONSERVATORSHIP PROCESS WHEN A SCHOOL DISTRICT HAS A SCHOOL AT-RISK FOR TWO CONSECUTIVE FULL SCHOOL YEARS, TO REQUIRE ALL TEACHERS IN THOSE SCHOOLS TO FULLY PARTICIPATE IN PROFESSIONAL DEVELOPMENT, TO AUTHORIZE THE ASSIGNMENT OF MENTORS WHO HAVE DEMONSTRATED CERTAIN EXPERTISE TO TEACHERS AT THE SCHOOL AT-RISK, AND TO DELETE THE REQUIREMENTS OF CERTAIN PROCEDURES TO BE FOLLOWED BY SCHOOLS AT-RISK; TO AMEND SECTION 37-17-6, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE BOARD TO REQUEST THE GOVERNOR TO DECLARE A STATE OF EMERGENCY IN CERTAIN SCHOOL DISTRICTS, SUBJECT TO CERTAIN CONDITIONS; TO BRING FORWARD SECTIONS 37-151-7 AND 37-151-8, MISSISSIPPI CODE OF 1972, WHICH ARE PROVISIONS OF THE MISSISSIPPI ADEQUATE EDUCATION PROGRAM RELATING TO THE ALLOCATION OF THOSE FUNDS TO SCHOOL DISTRICTS FOR CERTAIN PURPOSES, FOR PURPOSES OF POSSIBLE AMENDMENTS; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 37-3-46, Mississippi Code of 1972, is amended as follows:

     37-3-46.  (1)  The State Department of Education, in regard to any school or school district not meeting adequate performance of accreditation standards, as defined by the State Board of Education, shall, subject to appropriation:

          (a)  Provide to local schools or school districts financial, training and other assistance to implement and maintain a state program of educational accountability and assessment of performance.

          (b)  Provide to local schools or school districts technical assistance and training in the development, implementation and administration of a personnel appraisal and compensation system for all school employees.

          (c)  Provide to local schools or school districts technical assistance in the development, implementation and administration of programs designed to keep children in school voluntarily and to prevent dropouts.

     (2)  Schools or school districts receiving assistance from the State Department of Education as outlined in Section 37-3-46(l) shall be required to implement any training, programs, and any other requirements as specified by the State Superintendent of Public Education.

     SECTION 2.  Section 37-18-1, Mississippi Code of 1972, is brought forward as follows:

     37-18-1.  (1)  The State Board of Education shall establish, design and implement a Superior-Performing Schools Program and an Exemplary Schools Program for identifying and rewarding public schools that improve.  The State Board of Education shall develop rules and regulations for the program, establish criteria and establish a process through which Superior-Performing and Exemplary Schools will be identified and rewarded.  Upon full implementation of the statewide testing program, Superior-Performing, Exemplary or School At-Risk designation shall be made by the State Board of Education in accordance with the following:

          (a)  A growth expectation will be established by testing students annually and, using a psychometrically approved formula, by tracking their progress.  This growth expectation will result in a composite score each year for each school.

          (b)  A determination will be made as to the percentage of students proficient in each school.  This measurement will define what a student must know in order to be deemed proficient at each grade level and will clearly show how well a student is performing.  The definition of proficiency shall be developed for each grade, based on a demonstrated range of performance in relation to content as reflected in the Mississippi Curriculum Frameworks.  This range of performance must be established through a formal procedure including educators, parents, community leaders and other stakeholders.

          (c)  A school has the following two (2) methods for designation as either a Superior-Performing or an Exemplary School, to be determined on an annual basis:

              (i)  A school exceeds its growth expectation by a percentage established by the State Board of Education; or

              (ii)  A school achieves the grade level proficiency standard established by the State Board of Education.

     Any school designated as a School At-Risk which exceeds its growth expectation by a percentage established by the State Board of Education shall no longer be considered a School At-Risk and shall be eligible for monetary awards under this section.

     (2)  Superior-Performing and Exemplary Schools may apply to the State Board of Education for monetary incentives to be used for selected school needs, as identified by a vote of all licensed and instructional personnel employed at the school.  These incentive funds may be used for specific school needs, including, but not limited to:

          (a)  Funding for professional development activities.  Staff participating in such activities will report to the school and school district about the benefits and lessons learned from such training;

          (b)  Technology needs;

          (c)  Sabbaticals for teachers or administrators, or both, to pursue additional professional development or educational enrichment;

          (d)  Paid professional leave;

          (e)  Training for parents, including, but not limited to, the following:

              (i)  Curriculum;

              (ii)  Chapter 1;

              (iii)  Special need students;

              (iv)  Student rights and responsibility;

              (v)  School and community relations;

              (vi)  Effective parenting.

All funds awarded under this subsection shall be subject to specific appropriation therefor by the Legislature.

     (3)  The State Board of Education shall provide special recognition to all schools receiving Superior-Performing or Exemplary designation and their school districts.  Examples of such recognition include, but are not limited to:  public announcements and events; special recognition of student progress and effort; certificates of recognition and plaques for teachers, principals, superintendents, support and classified personnel and parents; and media announcements utilizing the services of Mississippi Educational Television.

     SECTION 3.  Section 37-18-3, Mississippi Code of 1972, is amended as follows:

     37-18-3.  (1)  Upon full implementation of the statewide testing programs developed by the State Board of Education pursuant to Chapter 16, Title 37, Mississippi Code of 1972, not later than December 31, 2002, the board shall establish for those individual schools failing to meet accreditation standards established under this chapter for Schools At-Risk, a program of development to be complied with in order to receive state funds.  The Legislature shall, subject to the availability of funds, annually appropriate adequate funds to implement the provisions of this chapter.  The State Board of Education may, in its discretion, assess local school districts for the costs of implementing the provisions of this chapter.

     (2)  Following a thorough analysis of school data each year, the State Department of Education shall identify those schools that are deficient in educating students and are in need of improvement.  This analysis shall measure the individual school performance by determining if a school met its assigned yearly growth expectation and by determining what percentage of the students in the school are proficient.  A school shall be identified as a School At-Risk by criteria established by the State Board of Education.

     (3)  Within fifteen (15) days after a School At-Risk has been identified, written notice shall be sent by the State Board of Education by certified mail to both the school principal and the local board of education.  Within fifteen (15) days after notification the State Board of Education shall assign an evaluation team to the school.  The evaluation team * * * shall be independent of the school being evaluated and may include employees of the State Department of Education.  The team may include retired educators who have met certain standards and have completed all necessary training. * * *

     (4)  An approved evaluation team shall have the following powers and duties:

          (a)  The evaluation team may request any financial documentation that it deems necessary, and the School At-Risk, with the assistance and cooperation of the school district central office, shall submit such requested financial information to the evaluation team.

          (b)  The evaluation team shall analyze the School At-Risk data to determine probable areas of weakness before conducting an on-site audit.  The evaluation team may proceed to conduct an on-site audit and shall prepare an evaluation report.   * * * After completing the evaluation of the School At-Risk, the team shall prepare and adopt its school evaluation report, which shall be submitted to the State Superintendent of Public Education for approval within forty-five (45) calendar days. * * *

     (5)  Following the approval of the evaluation report by the State Superintendent of Public Education, a representative of the State Superintendent of Education and the evaluation team leader shall present the evaluation report to the principal of the School At-Risk and to the superintendent and school board members of the local school district.  Following this presentation, the evaluation report shall be presented to the community served by the School At-Risk at an advertised public meeting.

     SECTION 4.  Section 37-18-5, Mississippi Code of 1972, is amended as follows:

     37-18-5.  * * *

     (1)  The school improvement action plan shall be developed and approved by the principal of the School At-Risk, the superintendent of the local school district, the local school board and a majority of the teachers of the school, within a time period to be determined by the evaluation team.  If the plan is not approved, the State Board of Education may approve and implement the plan in the school.

     (2)  The State Department of Education shall provide technical assistance and shall assist in identifying funding to the School At-Risk in the implementation of the school improvement action plan, including the implementation of any recommended professional development plan, and the department may contract with the institutions of higher learning to provide such technical assistance.  The assistance team shall collaborate with school and school district employees in the implementation and monitoring of the school improvement action plan and the State Department of Education shall ensure that a report is issued monthly to the local school board and the local community-based advisory council.

     (3)  A school district that has been designated as failing as defined by the State Board of Education or a district with a School At-Risk shall * * * establish a community-based prekindergarten through higher education council comprised of a broad spectrum of the community, including economic developers, elected officials, civic leaders, business leaders, faith-based leaders, social services, nonprofit organizations, school attendance officers, law enforcement officials, health department officials, day care providers, librarians, parents and others with the knowledge and resources that can be leveraged to build strong communities.  The State Board of Education shall develop procedures for appointments to the council, which shall not be appointed solely by the school board.  The council will serve as a community-led group that is inclusive, accountable and required to publicly report progress to the community as a whole.

     SECTION 5.  Section 37-18-7, Mississippi Code of 1972, is amended as follows:

     37-18-7.  (1)  As part of the school improvement action plan for a School At-Risk, a professional development plan shall be prepared for * * * school administrators, teachers or other employees * * *.  The State Department of Education shall assist the School At-Risk in identifying funds necessary to fully implement the school improvement action plan.

     (2)  (a)  * * * A professional development plan shall be developed for the principal, and the principal's full participation in the professional development plan shall be a condition of continued employment.  The plan shall provide professional training in the roles and behaviors of an instructional leader * * *.  The principal of a School At-Risk may be assigned mentors who have demonstrated expertise as an exemplary-performing principal.  Mentors shall make a personal time commitment to this process and may not be evaluators of the principals being mentored.  The local school administration shall continue to monitor and evaluate all school personnel during this period, evaluate their professional development plans and make personnel decisions as appropriate.

          (b)  At the end of the second year, if a school continues to be a School At-Risk and a principal has been at that school for three (3) or more years, the administration shall recommend and the local school board may dismiss the principal in a manner consistent with Section 37-9-59.  The State Board of Education may initiate the school district conservatorship process authorized under Section 37-17-6 when a school district has a School At-Risk for two (2) consecutive full school years.  If extenuating circumstances exist, such as the assignment of a principal at a School At-Risk for less than two (2) years, other options may be considered, subject to approval by the State Board of Education.

     (3)  * * * Teachers shall be required to participate in * * * professional development * * *All teachers' full participation in * * * professional development * * * shall be required.  * * * Additionally, * * * teachers also may be assigned * * * mentors who have demonstrated expertise as * * * high-performing teachers

 * * *

     (4)  * * * If more than fifty percent (50%) of the schools within the school district are designated as Schools At-Risk in any one (1) year, the State Board of Education may request that the Governor declare a state of emergency in that school district.  Upon the declaration of the state of emergency by the Governor, the State Board of Education may take all such action for dealing with school districts as is authorized under subsection (11) or (14) of Section 37-17-6, including the appointment of an interim conservator.

     (5)  The State Department of Education shall make a semiannual report to the State Board of Education identifying the number and names of schools classified as Schools At-Risk, which shall include a description of the deficiencies identified and the actions recommended and implemented.  The department shall also notify the State Board of Education of any School At-Risk which has successfully completed their improvement action plans and shall notify the Governor and the Legislature of such school's progress.

     (6)  The State Board of Education shall direct and provide comprehensive staff development training for school administrators and teachers on the * * * requirements of this chapter.  Any new assessment instruments to be used in conjunction with any evaluation required by this chapter shall be made available for review by teachers, administrators and other staff. * * *

     (7)  No later than July 1 of each year the State Board of Education shall report to the State Legislature and the public at large:

          (a)  An itemized accounting of the use of state funds to provide technical, legal and financial assistance to each School At-Risk, and to such schools which had been designated as Schools At-Risk within the previous three (3) years, if such schools received such assistance at any time during the previous three (3) years;

          (b)  An explanation of the problems sought to be addressed in each such school receiving this assistance and for which such expenditure of funds was undertaken;

          (c)  The actions taken in each school district to utilize the funds to address the problems identified in paragraph (b) immediately above;

          (d)  An evaluation of the impact of the effort to address the problems identified;

          (e)  An assessment of what further actions need to be undertaken to address these problems, if such problems have not been entirely alleviated; and

          (f)  An assessment of the impact which Chapter 421, Laws of 1999, and Chapter 610, Laws of 2000, are having on the educational goals which these statutes sought to address.

     SECTION 6.  Section 37-17-6, Mississippi Code of 1972, is amended as follows:

     37-17-6.  (1)  The State Board of Education, acting through the Commission on School Accreditation, shall establish and implement a permanent performance-based accreditation system, and all public elementary and secondary schools shall be accredited under this system.

     (2)  No later than June 30, 1995, the State Board of Education, acting through the Commission on School Accreditation, shall require school districts to provide school classroom space that is air-conditioned as a minimum requirement for accreditation.

     (3)  (a)  Beginning with the 1994-1995 school year, the State Board of Education, acting through the Commission on School Accreditation, shall require that school districts employ certified school librarians according to the following formula:

     Number of Students                Number of Certified

     Per School Library                School Librarians

     0 - 499 Students                  1/2 Full-time Equivalent

                                           Certified Librarian

     500 or More Students              1 Full-time Certified

                                           Librarian

          (b)  The State Board of Education, however, may increase the number of positions beyond the above requirements.

          (c)  The assignment of such school librarians to the particular schools shall be at the discretion of the local school district.  No individual shall be employed as a certified school librarian without appropriate training and certification as a school librarian by the State Department of Education.

          (d)  School librarians in such district shall spend at least fifty percent (50%) of direct work time in a school library and shall devote no more than one-fourth (1/4) of the workday to administrative activities which are library related.

          (e)  Nothing in this subsection shall prohibit any school district from employing more certified school librarians than are provided for in this section.

          (f)  Any additional mileage levied to fund school librarians required for accreditation under this subsection shall be included in the tax increase limitation set forth in Sections 37-57-105 and 37-57-107 and shall not be deemed a new program for purposes of the limitation.

     (4)  On or before December 31, 2002, the State Board of Education shall implement the performance-based accreditation system for school districts and for individual schools which shall include the following:

          (a)  High expectations for students and high standards for all schools, with a focus on the basic curriculum;

          (b)  Strong accountability for results with appropriate local flexibility for local implementation;

          (c)  A process to implement accountability at both the school district level and the school level;

          (d)  Individual schools shall be held accountable for student growth and performance;

          (e)  Set annual performance standards for each of the schools of the state and measure the performance of each school against itself through the standard that has been set for it;

          (f)  A determination of which schools exceed their standards and a plan for providing recognition and rewards to such schools;

          (g)  A determination of which schools are failing to meet their standards and a determination of the appropriate role of the State Board of Education and the State Department of Education in providing assistance and initiating possible intervention.  A failing school or school district is a school or school district which fails to meet both the absolute student achievement standards and the rate of annual growth expectation standards as set by the State Board of Education for two (2) consecutive years.  The State Board of Education shall establish the level of benchmarks by which absolute student achievement and growth expectations shall be assessed.  In setting the benchmarks for schools and school districts, the State Board of Education may also take into account such factors as graduation rates, dropout rates, completion rates, the extent to which the school or school district employs qualified teachers in every classroom, and any other factors deemed appropriate by the State Board of Education;

          (h)  Development of a comprehensive student assessment system to implement these requirements; and

          (i)  The State Board of Education may, based on a written request that contains specific reasons for requesting a waiver from the school districts affected by Hurricane Katrina of 2005, hold harmless school districts from assignment of district and school level accountability ratings for the 2005-2006 school year.  The State Board of Education upon finding an extreme hardship in the school district may grant the request.  It is the intent of the Legislature that all school districts maintain the highest possible academic standards and instructional programs in all schools as required by law and the State Board of Education.

     The State Board of Education may continue to assign school district performance levels by using a number classification and may assign individual school performance levels by using a number classification to be consistent with school district performance levels.

     (5)  Nothing in this section shall be deemed to require a nonpublic school which receives no local, state or federal funds for support to become accredited by the State Board of Education.

     (6)  The State Board of Education shall create an accreditation audit unit under the Commission on School Accreditation to determine whether schools are complying with accreditation standards.

     (7)  The State Board of Education shall be specifically authorized and empowered to withhold adequate education program fund allocations, whichever is applicable, to any public school district for failure to timely report student, school personnel and fiscal data necessary to meet state and/or federal requirements.

     (8)  Deleted.

     (9)  (a)  Each local school district shall be required to develop and publish an annual report as prescribed by the State Board of Education.  By November 1 of each year, as prescribed by the State Board of Education, the report shall be published in a newspaper having general circulation in the county and posted on the school district's Web site in a printable format.  The public notice shall include information on the report's availability on the district's Web site, with the Web site address, and the location(s) in the school district where a copy of the report can be obtained.

          (b)  The State Board of Education shall establish, for those school districts failing to meet accreditation standards, a program of development to be complied with in order to receive state funds, except as otherwise provided in subsection (14) of this section when the Governor has declared a state of emergency in a school district or as otherwise provided in Section 206, Mississippi Constitution of 1890.  The state board, in establishing these standards, shall provide for notice to schools and sufficient time and aid to enable schools to attempt to meet these standards, unless procedures under subsection (14) of this section have been invoked.

     (10)  Beginning July 1, 1998, the State Board of Education shall be charged with the implementation of the program of development in each applicable school district as follows:

          (a)  Develop an impairment report for each district failing to meet accreditation standards in conjunction with school district officials;

          (b)  Notify any applicable school district failing to meet accreditation standards that it is on probation until corrective actions are taken or until the deficiencies have been removed.  The local school district shall develop a corrective action plan to improve its deficiencies.  For district academic deficiencies, the corrective action plan for each such school district shall be based upon a complete analysis of the following:  student test data, student grades, student attendance reports, student dropout data, existence and other relevant data.  The corrective action plan shall describe the specific measures to be taken by the particular school district and school to improve:  (i) instruction; (ii) curriculum; (iii) professional development; (iv) personnel and classroom organization; (v) student incentives for performance; (vi) process deficiencies; and (vii) reporting to the local school board, parents and the community.  The corrective action plan shall describe the specific individuals responsible for implementing each component of the recommendation and how each will be evaluated.  All corrective action plans shall be provided to the State Board of Education as may be required.  The decision of the State Board of Education establishing the probationary period of time shall be final;

          (c)  Offer, during the probationary period, technical assistance to the school district in making corrective actions.  Beginning July 1, 1998, subject to the availability of funds, the State Department of Education shall provide technical and/or financial assistance to all such school districts in order to implement each measure identified in that district's corrective action plan through professional development and on-site assistance.  Each such school district shall apply for and utilize all available federal funding in order to support its corrective action plan in addition to state funds made available under this paragraph;

          (d)  Assign department personnel or contract, in its discretion, with the institutions of higher learning or other appropriate private entities with experience in the academic, finance and other operational functions of schools to assist school districts;

          (e)  Provide for publication of public notice at least one time during the probationary period, in a newspaper published within the jurisdiction of the school district failing to meet accreditation standards, or if no newspaper is published therein, then in a newspaper having a general circulation therein.  The publication shall include the following:  declaration of school system's status as being on probation; all details relating to the impairment report; and other information as the State Board of Education deems appropriate.  Public notices issued under this section shall be subject to Section 13-3-31 and not contrary to other laws regarding newspaper publication.

     (11)  (a)  If the recommendations for corrective action are not taken by the local school district or if the deficiencies are not removed by the end of the probationary period, the Commission on School Accreditation shall conduct a hearing to allow such affected school district to present evidence or other reasons why its accreditation should not be withdrawn.  Subsequent to its consideration of the results of such hearing, the Commission on School Accreditation shall be authorized, with the approval of the State Board of Education, to withdraw the accreditation of a public school district, and issue a request to the Governor that a state of emergency be declared in that district.

          (b)  If the State Board of Education and the Commission on School Accreditation determine that an extreme emergency situation exists in a school district which jeopardizes the safety, security or educational interests of the children enrolled in the schools in that district and such emergency situation is believed to be related to a serious violation or violations of accreditation standards or state or federal law, or when a school district meets the State Board of Education's definition of a failing school district for two (2) consecutive full school years, or when a school district has a School At-Risk for two (2) consecutive full school years, or when more than fifty percent (50%) of the schools within the district are designated as Schools At-Risk in any one (1) year, the State Board of Education may request the Governor to declare a state of emergency in that school district.  For purposes of this paragraph, such declarations of a state of emergency shall not be limited to those instances when a school district's impairments are related to a lack of financial resources, but also shall include serious failure to meet minimum academic standards, as evidenced by a continued pattern of poor student performance.

          (c)  Whenever the Governor declares a state of emergency in a school district in response to a request made under paragraph (a) or (b) of this subsection, the State Board of Education may take one or more of the following actions:

              (i)  Declare a state of emergency, under which some or all of state funds can be escrowed except as otherwise provided in Section 206, Constitution of 1890, until the board determines corrective actions are being taken or the deficiencies have been removed, or that the needs of students warrant the release of funds.  Such funds may be released from escrow for any program which the board determines to have been restored to standard even though the state of emergency may not as yet be terminated for the district as a whole;

              (ii)  Override any decision of the local school board or superintendent of education, or both, concerning the management and operation of the school district, or initiate and make decisions concerning the management and operation of the school district;

              (iii)  Assign an interim conservator, or in its discretion, contract with a private entity with experience in the academic, finance and other operational functions of schools and school districts, who will have those powers and duties prescribed in subsection (14) of this section;

              (iv)  Grant transfers to students who attend this school district so that they may attend other accredited schools or districts in a manner which is not in violation of state or federal law;

              (v)  For states of emergency declared under paragraph (a) only, if the accreditation deficiencies are related to the fact that the school district is too small, with too few resources, to meet the required standards and if another school district is willing to accept those students, abolish that district and assign that territory to another school district or districts.  If the school district has proposed a voluntary consolidation with another school district or districts, then if the State Board of Education finds that it is in the best interest of the pupils of the district for such consolidation to proceed, the voluntary consolidation shall have priority over any such assignment of territory by the State Board of Education;

              (vi)  For states of emergency declared under paragraph (b) only, reduce local supplements paid to school district employees, including, but not limited to, instructional personnel, assistant teachers and extracurricular activities personnel, if the district's impairment is related to a lack of financial resources, but only to an extent which will result in the salaries being comparable to districts similarly situated, as determined by the State Board of Education;

              (vii)  For states of emergency declared under paragraph (b) only, the State Board of Education may take such action as prescribed in Section 37-17-13.

          (d)  At such time as satisfactory corrective action has been taken in a school district in which a state of emergency has been declared, the State Board of Education may request the Governor to declare that the state of emergency no longer exists in the district.

          (e)  Not later than July 1 of each year, the State Department of Education shall develop an itemized accounting of the expenditures associated with the management of the conservator process with regard to each school district in which a conservator has been appointed, and an assessment as to the extent to which the conservator has achieved, or failed to achieve, the goals for which the conservator was appointed to guide the local school district.

          (f)  There is established a Mississippi Recovery School District within the State Department of Education under the management and supervision of a Deputy Superintendent who is appointed by the State Superintendent of Public Education.  The Mississippi Recovery School District shall provide leadership, management and oversight of all school districts that are subject to state conservatorship, as defined in Title 37, Chapters 17 and 18, Mississippi Code of 1972, and shall have all the authority granted under these two (2) chapters.  The Mississippi Department of Education, with the approval of the State Board of Education, shall develop policies for the operation and management of the Mississippi Recovery School District.  The Deputy State Superintendent responsible for the Mississippi Recovery School District shall be authorized to oversee the administration of the Mississippi Recovery School District, supervise conservators assigned by the State Board of Education to a local school district, hear appeals from school districts under conservatorship that would normally be filed by students, parents or employees and heard by a local school board, which hearings on appeal shall be conducted in a prompt and timely manner in the school district from which the appeal originated in order to ensure * * * the ability of appellants, other parties and witnesses to appeal without undue burden of travel costs or loss of time from work, and perform other related duties as assigned by the State Superintendent of Public Education.

     (12)  Upon the declaration of a state of emergency in a school district under subsection (11) of this section, the Commission on School Accreditation shall be responsible for public notice at least once a week for at least three (3) consecutive weeks in a newspaper published within the jurisdiction of the school district failing to meet accreditation standards, or if no newspaper is published therein, then in a newspaper having a general circulation therein.  The size of such notice shall be no smaller than one-fourth (1/4) of a standard newspaper page and shall be printed in bold print.  If a conservator has been appointed for the school district, such notice shall begin as follows:  "By authority of Section 37-17-6, Mississippi Code of 1972, as amended, adopted by the Mississippi Legislature during the 1991 Regular Session, this school district (name of school district) is hereby placed under the jurisdiction of the State Department of Education acting through its appointed conservator (name of conservator)."

     The notice also shall include, in the discretion of the State Board of Education, any or all details relating to the school district's emergency status, including the declaration of a state of emergency in the school district and a description of the district's impairment deficiencies, conditions of any conservatorship and corrective actions recommended and being taken.  Public notices issued under this section shall be subject to Section 13-3-31 and not contrary to other laws regarding newspaper publication.

     Upon termination of the state of emergency in a school district, the Commission on School Accreditation shall cause notice to be published in the school district in the same manner provided in this section, to include any or all details relating to the corrective action taken in the school district which resulted in the termination of the state of emergency.

     (13)  The State Board of Education or the Commission on School Accreditation shall have the authority to require school districts to produce the necessary reports, correspondence, financial statements, and any other documents and information necessary to fulfill the requirements of this section.

     Nothing in this section shall be construed to grant any individual, corporation, board or conservator the authority to levy taxes except in accordance with presently existing statutory provisions.

     (14)  (a)  Whenever the Governor declares a state of emergency in a school district in response to a request made under subsection (11) of this section, the State Board of Education, in its discretion, may assign an interim conservator to the school district, or in its discretion, may contract with an appropriate private entity with experience in the academic, finance and other operational functions of schools and school districts, who will be responsible for the administration, management and operation of the school district, including, but not limited to, the following activities:

              (i)  Approving or disapproving all financial obligations of the district, including, but not limited to, the employment, termination, nonrenewal and reassignment of all licensed and nonlicensed personnel, contractual agreements and purchase orders, and approving or disapproving all claim dockets and the issuance of checks; in approving or disapproving employment contracts of superintendents, assistant superintendents or principals, the interim conservator shall not be required to comply with the time limitations prescribed in Sections 37-9-15 and 37-9-105;

              (ii)  Supervising the day-to-day activities of the district's staff, including reassigning the duties and responsibilities of personnel in a manner which, in the determination of the conservator, will best suit the needs of the district;

              (iii)  Reviewing the district's total financial obligations and operations and making recommendations to the district for cost savings, including, but not limited to, reassigning the duties and responsibilities of staff;

              (iv)  Attending all meetings of the district's school board and administrative staff;

              (v)  Approving or disapproving all athletic, band and other extracurricular activities and any matters related to those activities;

              (vi)  Maintaining a detailed account of recommendations made to the district and actions taken in response to those recommendations;

              (vii)  Reporting periodically to the State Board of Education on the progress or lack of progress being made in the district to improve the district's impairments during the state of emergency; and

              (viii)  Appointing a parent advisory committee, comprised of parents of students in the school district, which may make recommendations to the conservator concerning the administration, management and operation of the school district.

     Except when, in the determination of the State Board of Education, the school district's impairment is related to a lack of financial resources, the cost of the salary of the conservator and any other actual and necessary costs related to the conservatorship paid by the State Department of Education shall be reimbursed by the local school district from funds other than adequate education program funds.  The department shall submit an itemized statement to the superintendent of the local school district for reimbursement purposes, and any unpaid balance may be withheld from the district's adequate education program funds.

     At such time as the Governor, pursuant to the request of the State Board of Education, declares that the state of emergency no longer exists in a school district, the powers and responsibilities of the interim conservator assigned to such district shall cease.

          (b)  In order to provide loans to school districts under a state of emergency which have impairments related to a lack of financial resources, the School District Emergency Assistance Fund is created as a special fund in the State Treasury into which monies may be transferred or appropriated by the Legislature from any available public education funds.

     The State Board of Education may loan monies from the School District Emergency Assistance Fund to a school district that is under a state of emergency in such amounts, as determined by the board, which are necessary to correct the district's impairments related to a lack of financial resources.  The loans shall be evidenced by an agreement between the school district and the State Board of Education and shall be repayable in principal, without necessity of interest, to the State General Fund or the Education Enhancement Fund, depending on the source of funding for such loan, by the school district from any allowable funds that are available.  The total amount loaned to the district shall be due and payable within five (5) years after the impairments related to a lack of financial resources are corrected.  If a school district fails to make payments on the loan in accordance with the terms of the agreement between the district and the State Board of Education, the State Department of Education, in accordance with rules and regulations established by the State Board of Education, may withhold that district's adequate education program funds in an amount and manner that will effectuate repayment consistent with the terms of the agreement; such funds withheld by the department shall be deposited into the State General Fund or the Education Enhancement Fund, as the case may be.

     The State Board of Education shall develop a protocol that will outline the performance standards and requisite time line deemed necessary for extreme emergency measures.  If the State Board of Education determines that an extreme emergency exists, simultaneous with the powers exercised in this subsection, it shall take immediate action against all parties responsible for the affected school districts having been determined to be in an extreme emergency.  Such action shall include, but not be limited to, initiating civil actions to recover funds and criminal actions to account for criminal activity.  Any funds recovered by the State Auditor or the State Board of Education from the surety bonds of school officials or from any civil action brought under this subsection shall be applied toward the repayment of any loan made to a school district hereunder.

     (15)  In the event a majority of the membership of the school board of any school district resigns from office, the State Board of Education shall be authorized to assign an interim conservator, who shall be responsible for the administration, management and operation of the school district until such time as new board members are selected or the Governor declares a state of emergency in that school district under subsection (11), whichever occurs first.  In such case, the State Board of Education, acting through the interim conservator, shall have all powers which were held by the previously existing school board, and may take such action as prescribed in Section 37-17-13 and/or one or more of the actions authorized in this section.

     (16)  (a)  If the Governor declares a state of emergency in a school district, the State Board of Education may take all such action pertaining to that school district as is authorized under subsection (11) or (14) of Section 37-17-6, including the appointment of an interim conservator.  The State Board of Education shall also have the authority to issue a written request with documentation to the Governor asking that the office of the superintendent of such school district be subject to recall.  If the Governor declares that the office of the superintendent of such school district is subject to recall, the local school board or the county election commission, as the case may be, shall take the following action:

          (i)  If the office of superintendent is an elected office, in those years in which there is no general election, the name shall be submitted by the State Board of Education to the county election commission, and the county election commission shall submit the question at a special election to the voters eligible to vote for the office of superintendent within the county, and such special election shall be held within sixty (60) days from notification by the State Board of Education.  The ballot shall read substantially as follows:

"Shall County Superintendent of Education ________ (here the name of the superintendent shall be inserted) of the ____________ (here the title of the school district shall be inserted) be retained in office?  Yes _______  No _______"

If a majority of those voting on the question votes against retaining the superintendent in office, a vacancy shall exist which shall be filled in the manner provided by law; otherwise, the superintendent shall remain in office for the term of such office, and at the expiration of such term shall be eligible for qualification and election to another term or terms.

          (ii)  If the office of superintendent is an appointive office, the name of the superintendent shall be submitted by the president of the local school board at the next regular meeting of the school board for retention in office or dismissal from office.  If a majority of the school board voting on the question vote against retaining the superintendent in office, a vacancy shall exist which shall be filled as provided by law, otherwise the superintendent shall remain in office for the duration of his employment contract.

     (b)  The State Board of Education may issue a written request with documentation to the Governor asking that the membership of the school board of such school district shall be subject to recall.  Whenever the Governor declares that the membership of the school board is subject to recall, the county election commission or the local governing authorities, as the case may be, shall take the following action:

          (i)  If the members of the local school board are elected to office, in those years in which the specific member's office is not up for election, the name of the school board member shall be submitted by the State Board of Education to the county election commission, and the county election commission at a special election shall submit the question to the voters eligible to vote for the particular member's office within the county or school district, as the case may be, and such special election shall be held within sixty (60) days from notification by the State Board of Education.  The ballot shall read substantially as follows:

"Members of the ______________ (here the title of the school district shall be inserted) School Board who are not up for election this year are subject to recall because of the school district's failure to meet critical accountability standards as defined in the letter of notification to the Governor from the State Board of Education.  Shall the member of the school board representing this area, ____________ (here the name of the school board member holding the office shall be inserted), be retained in office?  Yes _______  No _______"

     If a majority of those voting on the question vote against retaining the member of the school board in office, a vacancy in that board member's office shall exist which shall be filled in the manner provided by law; otherwise, the school board member shall remain in office for the term of such office, and at the expiration of the term of office, the member shall be eligible for qualification and election to another term or terms of office.  However, if a majority of the school board members are recalled in the special election, the Governor shall authorize the board of supervisors of the county in which the school district is situated to appoint members to fill the offices of the members recalled.  The board of supervisors shall make such appointments in the manner provided by law for filling vacancies on the school board, and the appointed members shall serve until the office is filled at the next regular special election or general election.

              (ii)  If the local school board is an appointed school board, the name of all school board members shall be submitted as a collective board by the president of the municipal or county governing authority, as the case may be, at the next regular meeting of the governing authority for retention in office or dismissal from office.  If a majority of the governing authority voting on the question vote against retaining the board in office, a vacancy shall exist in each school board member's office, which shall be filled as provided by law; otherwise, the members of the appointed school board shall remain in office for the duration of their term of appointment, and such members may be reappointed.

              (iii)  If the local school board is comprised of both elected and appointed members, the elected members shall be subject to recall in the manner provided in subparagraph (i) of this subsection, and the appointed members shall be subject to recall in the manner provided in subparagraph (ii).

     (17)  Beginning with the school district audits conducted for the 1997-1998 fiscal year, the State Board of Education, acting through the Commission on School Accreditation, shall require each school district to comply with standards established by the State Department of Audit for the verification of fixed assets and the auditing of fixed assets records as a minimum requirement for accreditation.

     (18)  Before December 1, 1999, the State Board of Education shall recommend a program to the Education Committees of the House of Representatives and the Senate for identifying and rewarding public schools that improve or are high performing.  The program shall be described by the board in a written report, which shall include criteria and a process through which improving schools and high-performing schools will be identified and rewarded.

     The State Superintendent of Education and the State Board of Education also shall develop a comprehensive accountability plan to ensure that local school boards, superintendents, principals and teachers are held accountable for student achievement.  A written report on the accountability plan shall be submitted to the Education Committees of both houses of the Legislature before December 1, 1999, with any necessary legislative recommendations.

     (19)  Before January 1, 2008, the State Board of Education shall evaluate and submit a recommendation to the Education Committees of the House of Representatives and the Senate on inclusion of graduation rate and dropout rate in the school level accountability system.

     (20)  If a local school district is determined as failing and placed into conservatorship for reasons authorized by the provisions of this section, the conservator appointed to the district shall, within forty-five (45) days after being appointed, present a detailed and structured corrective action plan to move the local school district out of conservatorship status to the local school board and local superintendent of education if they have not been removed by the conservator, or if the board and superintendent have been removed, to the local governing authority of the municipality or county in which the school district under conservatorship is located.  A copy of the conservator's corrective action plan shall also be filed with the State Board of Education.

     SECTION 7.  Section 37-151-7, Mississippi Code of 1972, is brought forward 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.  In any fiscal year prior to 2010 in which the MAEP formula is not fully funded, for those districts that do not demonstrate a three-year positive growth in months two (2) and three (3) ADA, months one (1) through nine (9) ADA of the second preceding year for which funds are being appropriated or months two (2) and three (3) ADA of the preceding year for which funds are being appropriated, whichever is greater, shall be used to calculate the 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.

          (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 1-9 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 1-9 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 1-9 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 1-9 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.  Provided, however, that the base student cost in fiscal year 1998 shall be Two Thousand Six Hundred Sixty-four Dollars ($2,664.00).

     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 forty percent (40%) of the base student cost for the previous fiscal year, multiplied by the latest annual rate of inflation 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-seven percent (27%) 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.

          (b)  The State Department 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:

     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-seven percent (27%) 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)  Provided, however, that in fiscal year 1998 and in the fiscal year in which 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 eight percent (8%) in excess of the amount received by said district from state funds for the fiscal year immediately preceding.  For purposes of this paragraph (b), state funds shall include minimum program funds less the add-on programs, State Uniform Millage Assistance Grant Funds, Education Enhancement Funds appropriated for Uniform Millage Assistance Grants and state textbook allocations, and State General Funds allocated for textbooks.

          (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.

     (4)  The Interim School District Capital Expenditure 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 through 37-151-7, Mississippi Code of 1972, until such time as the said adequate education program is fully funded by the Legislature.  The following percentages of the total state cost of increased allocations of funds under the adequate education program funding formula shall be appropriated by the Legislature into the Interim School District Capital Expenditure Fund to be distributed to all school districts under the formula:  Nine and two-tenths percent (9.2%) shall be appropriated in fiscal year 1998, twenty percent (20%) shall be appropriated in fiscal year 1999, forty percent (40%) shall be appropriated in fiscal year 2000, sixty percent (60%) shall be appropriated in fiscal year 2001, eighty percent (80%) shall be appropriated in fiscal year 2002, and one hundred percent (100%) shall be appropriated in fiscal year 2003 into the State Adequate Education Program Fund.  Until July 1, 2002, such money shall be used by school districts 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, school barns and garages for transportation vehicles, school athletic fields and necessary facilities connected therewith, and purchasing land therefor.  Any such capital improvement project by a school district shall be approved by the State Board of Education, and based on an approved long-range plan.  The State Board of Education shall promulgate minimum requirements for the approval of school district capital expenditure plans.

          (b)  Providing necessary water, light, heating, air conditioning, and sewerage facilities for school buildings, and purchasing land therefor.

          (c)  Paying debt service on existing capital improvement debt of the district or refinancing outstanding debt of a district if such refinancing will result in an interest cost savings to the district.

          (d)  From and after October 1, 1997, through June 30, 1998, pursuant to a school district capital expenditure plan approved by the State Department of Education, a school district may pledge such funds until July 1, 2002, plus funds provided for in paragraph (e) of this subsection (4) that are not otherwise permanently pledged under such paragraph (e) 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, Mississippi Code of 1972, or debt issued by boards of supervisors for agricultural high schools pursuant to Section 37-27-65, Mississippi Code of 1972, or lease-purchase contracts entered into pursuant to Section 31-7-13, Mississippi Code of 1972, or to retire or refinance outstanding debt of a district, if such pledge is accomplished pursuant to 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.  It is the intent of this provision to allow school districts to irrevocably pledge their Interim School District Capital Expenditure Fund allotments as a constant stream of revenue to secure a debt issued under the foregoing code sections.  To allow school districts to make such an irrevocable pledge, the state shall take all action necessary to ensure that the amount of a district's Interim School District Capital Expenditure Fund allotments shall not be reduced below the amount certified by the department or the district's total allotment under the Interim Capital Expenditure Fund if fully funded, so long as such debt remains outstanding.

          (e)  [Repealed]

          (f)  [Repealed]

          (g)  The State Board of Education may authorize the school district to expend not more than twenty percent (20%) of its annual allotment of such funds or Twenty Thousand Dollars ($20,000.00), whichever is greater, for technology needs of the school district, including computers, software, telecommunications, cable television, interactive video, film, low-power television, satellite communications, microwave communications, technology-based equipment installation and maintenance, and the training of staff in the use of such technology-based instruction.  Any such technology expenditure shall be reflected in the local district technology plan approved by the State Board of Education under Section 37-151-17, Mississippi Code of 1972.

          (h)  To the extent a school district has not utilized twenty percent (20%) of its annual allotment for technology purposes under paragraph (g), a school district may expend not more than twenty percent (20%) of its annual allotment or Twenty Thousand Dollars ($20,000.00), whichever is greater, for instructional purposes.  The State Board of Education may authorize a school district to expend more than said twenty percent (20%) of its annual allotment for instructional purposes if it determines that such expenditures are needed for accreditation purposes.

          (i)  The State Department of Education or the State Board of Education may require that any project commenced under this section with an estimated project cost of not less than Five Million Dollars ($5,000,000.00) shall be done only pursuant to program management of the process with respect to design and construction.  Any individuals, partnerships, companies or other entities acting as a program manager on behalf of a local school district and performing program management services for projects covered under this subsection shall be approved by the State Department of Education.

     Any interest accruing on any unexpended balance in the Interim School District Capital Expenditure Fund shall be invested by the State Treasurer and placed to the credit of each school district participating in such fund in its proportionate share.

     The provisions of this subsection (4) shall be cumulative and supplemental to any existing funding programs or other authority conferred upon school districts or school boards.

     SECTION 8.  Section 37-151-8, Mississippi Code of 1972, is brought forward as follows:

     37-151-8.  The State Board of Education shall adopt rules and regulations that:

          (a)  Require school districts that receive allocations of Mississippi Adequate Education Program at-risk funds, as prescribed by Section 37-151-7(1)(d), to specifically target the expenditure of those funds to implement effective programs, as determined by the State Department of Education, to serve at-risk students; and

          (b)  Provide the methods by which school districts will be expected to account for all expenditures of at-risk funds and how school districts will be held accountable for the expenditure of at-risk funds.

     SECTION 9.  This act shall take effect and be in force from and after July 1, 2010.