Senate Bill 2406

AN ACT TO ESTABLISH AND PROVIDE FOR THE MEMBERSHIP OF THE MISSISSIPPI K-12 STUDENT PERFORMANCE AND EFFICIENCY COMMISSION TO DEVELOP LEGISLATIVE RECOMMENDATIONS REGARDING STANDARDS FOR THE COST-EFFECTIVE EXPENDITURE OF FUNDS APPROPRIATED FOR THE OPERATION OF PUBLIC SCHOOLS; TO DIRECT THE COMMISSION TO STUDY THE MAEP FORMULA AND THE EDUCATIONAL PROGRAMS AND SERVICES NECESSARY TO PREPARE STUDENTS TO ACHIEVE PASSING SCORES ON ASSESSMENT EXAMINATIONS; TO AUTHORIZE THE STATE BOARD OF EDUCATION AND THE STATE DEPARTMENT OF EDUCATION TO DEVELOP AND IMPLEMENT A FINANCIAL ACCOUNTABILITY RATING SYSTEM AND STUDENT ACHIEVEMENT INDICATORS AS PART OF THE PERFORMANCE-BASED ACCREDITATION SYSTEM FOR SCHOOLS AND SCHOOL DISTRICTS; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) There is hereby established the Mississippi K-12 Student Performance and Efficiency Commission (commission). The commission shall study and make recommendations to the Legislature regarding opportunities to make more efficient use of taxpayer money. The commission shall particularly study and review the following areas:

(a) Opportunities for school districts to be operated in a cost-effective manner;

(b) Variances in per-pupil and administrative expenditures among school districts with comparable enrollment, demographics and outcomes on statewide assessments;

(c) The method by which MAEP budgets are calculated and recommendations for potential revisions to those calculations as the commission deems appropriate; and

(d) The educational programs and services necessary to achieve the state's educational goals and to prepare students to achieve passing scores on statewide assessment examinations.

(2) The Mississippi K-12 Student Performance and Efficiency Commission shall be composed of:

(a) The Chairmen of the Senate and House Education Committees who shall serve as Co-Chairs;

(b) The Chairmen of the Senate and House Appropriations Committees;

(d) The Chairman of the State Board of Education;

(e) The Governor or his designee; and

(f) Three (3) members to be appointed by the Governor, including one (1) member of a local school board, one (1) classroom teacher and one (1) school business official.

Appointments shall be made within thirty (30) days after passage of this act, and within fifteen (15) days thereafter on a day to be designated by the co-chairmen, the commission shall meet and organize by selecting a vice chairman who shall also serve as secretary and shall be responsible for keeping all records of the commission. A majority of the members of the commission shall constitute a quorum, and for the adoption of rules and reports, an affirmative vote of a majority of the commission shall be required. All members shall be notified in writing or electronically of all meetings at least five (5) days prior to the date on which a meeting is to be held.

(3) Before finalizing its recommendations, the commission shall conduct public hearings in regions of the state and shall solicit input from the public who may offer comments or further recommendations for the commission's consideration.

(4) The commission shall file its report on or before December 1, 2016. The report shall be made to the Legislature, the Governor and the State Board of Education and shall include any necessary recommendations for legislation. The commission may decide to continue in existence for a period not to exceed four (4) years and make additional recommendations to the Legislature in order to receive additional information.

(5) The commission is authorized to apply for grants and to accept funds from any public or private source, to be expended in implementing its duties under this section. The commission is empowered to utilize staff employed by the State Department of Education and any other staff assistance made available to it.

(6) Members of the commission who are not legislators shall be reimbursed as authorized by Section 25-3-41, Mississippi Code of 1972, for mileage and actual expense incurred in the performance of their duties. No commission member may incur travel or other expenses unless previously authorized by vote of the commission. Legislative members of the commission shall be paid from the contingent expense funds of their respective houses in the same amounts as provided for committee meetings when the Legislature is not in session.

SECTION 2. School district financial accountability. (1) The performance-based accreditation system implemented by the State Department of Education to assess the effectiveness of Mississippi's K-12 education delivery system may include a fiscal accountability component to inform the public what is being received in return for funds invested in education. Pursuant to this section and the recommendations of the Mississippi K-12 Student Performance and Efficiency Commission, the State Board of Education may authorize the development and the State Department of Education shall implement a financial accountability rating system for schools and school districts that:

(a) Distinguish among schools and school districts as applicable, based on levels of financial performance; and

(b) Include procedures to provide additional transparency to public education finance, and enable the State Board of Education and school district administrators to provide meaningful financial oversight and improvement. The system must include uniform indicators adopted by the State Board of Education by which to measure the financial management performance of a school or school district. The system may not include an indicator or any other performance measure that requires a school or school district to spend a minimum specified percentage of district operating funds for instructional purposes, or lowers the financial management performance rating of a school or school district for failure to spend a minimum specified percentage of district operating funds for instructional purposes.

(2) The State Department of Education may identify schools and school districts that use resource allocation practices that contribute to high academic achievement and cost-effective operations. In identifying schools and school districts under this section, the State Department of Education shall:

(a) Evaluate existing academic accountability and financial data by integrating the data;

(b) Rank the results of the evaluation under paragraph (a) to identify the relative performance of schools and school districts; and

(3) In reviewing resources allocation practices of schools and school districts under this section, the State Department of Education may ensure resources are being used for the instruction of students by evaluating:

(a) The operating cost for each student;

(b) The operating cost for each program; and

(4) The State Department of Education may develop a review process to anticipate the future financial solvency of each school and school district. The review process shall analyze:

(a) District revenues and expenditures for the preceding school year; and

(b) Projected district revenues and expenditures for the current school year and the following two (2) school years.

(5) The State Department of Education may consult school district financial officers and public finance experts in developing the review process under this section.

(6) Performance indicators for student achievement. The performance-based accreditation system implemented by the State Board of Education and the State Department of Education to assess the effectiveness of Mississippi's K-12 education delivery system may include a performance indicator system for student achievement. The State Department of Education may adopt a set of indicators of the quality of learning and student achievement. The State Department of Education biennially may review the indicators for the consideration of appropriate revisions.

Performance on the student achievement indicators adopted under this section shall be compared to state-established standards. The indicators must be based on information that is disaggregated by race, ethnicity and socioeconomic status.

Indicators of student achievement adopted under this section must include:

(a) The results of assessment instruments required under Section 37-16-1 et seq., including the results of assessment

instruments required for graduation retaken by a student, aggregated across grade levels by subject area, including:

(i) The percentage of students who performed satisfactorily on the assessment instruments, aggregated across grade levels by subject area;

(ii) For students who did not perform satisfactorily, the percentage of students who met the standard for annual improvement, as determined by the State Department of Education on the assessment instruments, aggregated across grade levels by subject area;

(iii) For the college readiness performance standard, the percentage of students who performed satisfactorily on the assessment instruments, aggregated across grade levels by subject area;

(iv) For students who did not perform satisfactorily, the percentage of students who met the standard for annual improvement, as determined by the State Board of Education on the assessment instruments, aggregated across grade levels by subject area; and

(b) Dropout rates, including dropout rates and district completion rates for grade levels 9 through 12, computed in accordance with standards and definitions adopted by the

National Center for Education Statistics of the United States Department of Education.

SECTION 3. This act shall take effect and be in force from and after July 1, 2016.