Current Status Introducing Body:Senate Bill Number:755 Primary Sponsor:Bryan Committee Number:04 Type of Legislation:GB Subject:Students, financial effort per pupil Residing Body:Senate Current Committee:Education Computer Document Number:JIC/5905SD.93 Introduced Date:19930505 Last History Body:Senate Last History Date:19930505 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Bryan Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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755 Senate 19930505 Introduced, read first time, 04
referred to Committee
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TO AMEND SECTION 59-21-1030, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LEVEL OF FINANCIAL EFFORT PER PUPIL REQUIRED OF EACH SCHOOL DISTRICT FOR NONCAPITAL PROGRAMS, SO AS TO REVISE THIS REQUIRED LOCAL FINANCIAL EFFORT PER PUPIL AND THE MANNER IN WHICH IT IS DETERMINED, TO PROVIDE PENALTIES FOR NONCOMPLIANCE, AND TO FURTHER PROVIDE FOR WAIVERS FROM THIS REQUIREMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-21-1030 of the 1976 Code as added by Act 612 of 1990, is amended to read:
"Section 59-21-1030. (A) Except as provided in this section, school district boards of trustees or any other appropriate governing body of a school district shall maintain at least the level of per pupil financial effort established as provided in fiscal year 1983-84. Beginning in 1985-86, local financial effort for noncapital programs must be adjusted for an inflation factor estimated by the Division of Research and Statistical Services.
(B) Thereafter, school district boards of trustees or other governing bodies of school districts shall maintain at least the level of financial effort per pupil for noncapital programs as in the prior year adjusted for an inflation factor estimated by the Division of Research and Statistical Services. The county auditor shall establish a millage rate so that the level of financial effort per pupil for noncapital programs adjusted for an inflation factor estimated by the Division of Research and Statistical Services is maintained as a minimum effort. No school district which has not complied with this section may receive funds from the South Carolina Education Improvement Act of 1984 Fund. School district boards of trustees may apply for a waiver to the State Board of Education from the requirements of this section if:
(1) the district has experienced a loss in revenue because of reduction in assessed valuation of property or has had a significant increase in one hundred thirty-five average daily membership;
(2) the district has experienced insignificant growth in revenue collections from the previous year;
(3) the district has demonstrated for one year that it has achieved operating efficiencies and all education requirements are being met;
(4) a midyear revenue shortfall results in a reduction of funds appropriated in accordance with Chapter 20 of Title 59 (The Education Finance Act). A decline in the measured academic achievement of the students must immediately cause the State Board of Education to void all waivers provided under this section and make the district ineligible to apply for any waivers under this section for two consecutive years. If the decline in student achievement occurs, the district shall revert to the minimum effort requirement, adjusted for the prior years inflation factor. Waiver (4) does not apply to funds needed to meet the Minimum Salary Schedule for teachers in South Carolina. A school district is eligible for an annual renewal of the waiver provided the district meets one of the above criteria and meets the minimum effort requirement of the previous year and at least the minimum required effort of the Education Finance Act.
(C) (1) Beginning in Fiscal Year 1994-95, the base formula for use in calculating the level of local financial effort per pupil for noncapital programs to be maintained as a minimum as required in this section must be reconstituted to include definitive revenues, 135-day average daily membership, and inflation adjustment data from standard base formula years as prescribed in this section. The reconstituted base formula shall remain constant for a five-year period, at the end of which, and at five-year intervals thereafter, the base must be adjusted and again reconstituted. As a standard rule, the definitive data to be used for each reconstituted base must be comprised of the audited revenues and definitive 135-day average daily membership from the second preceding year of the year in which the base is being reconstituted to be adjusted by the inflation factors established by the General Assembly in the annual general appropriations acts for each of the two years succeeding that second preceding year.
(2) The reconstituted base beginning in fiscal year 1994-95 which shall remain constant in the formula for the five-year period 1994-95 through 1998-99 must be comprised of the audited revenues and 135-day average daily membership for fiscal year 1992-93 adjusted by the inflation factors for fiscal year 1993-94 and fiscal year 1994-95 as established by the General Assembly in the respective annual general appropriations acts. The resulting per pupil amount multiplied by the fiscal year 1994-95 135-day average daily membership constitutes the school district's required minimum level of local financial effort for noncapital programs to be maintained in fiscal year 1994-95.
(D) For each of the intervening years within each five-year period in which the reconstituted base remains constant, school boards of trustees or other governing bodies of school districts shall maintain a local financial effort per pupil for noncapital programs which is equal to that maintained in the immediate prior year adjusted by the inflation factor of the immediate current year as established by the General Assembly in the annual general appropriations act.
(E) In fiscal year 1999-2000, and at five fiscal year intervals thereafter, the base formula must be adjusted and reconstituted, using the audited revenues, definitive 135-day average daily membership and inflation factor data of the standard rule base formula years as prescribed under subsection (C)(1).
(F) For purposes of this section `noncapital programs' is defined as those education programs funded by current, earned operating revenues and `audited revenues' is defined as the sum of those specific general fund revenue accounts as prescribed by regulation of the State Board of Education and as reported in the district's annual audit report. Annually, the State Department of Education shall notify each school district of the minimum effort required to be maintained in accordance with this section and shall monitor school district compliance with the provisions of this section. Except as otherwise permitted, this section requires and ensures a maintenance of a minimum local financial effort which at least keeps pace with inflation. For the purpose of this section, the county auditor shall determine a millage rate that shall generate revenue to the extent that is needed in order for the district to meet its minimum required local financial effort as prescribed herein.
(G) Any school district failing to comply with the requirements in this section shall have its total Education Improvement Act allocation reduced in proportion to the ratio that its local financial effort falls below that which is required in this section.
(H) (1) In consideration of extenuating circumstances that may affect the local school district's tax base or limit the district's ability to maintain its minimum required local financial effort per pupil, local boards of trustees or other governing bodies of school districts may apply to the State Board of Education for a waiver requesting relief from the requirements of this section for a given year, if:
(a) the school district can demonstrate that it has experienced a loss in revenue because of reduction in assessed valuation of property;
(b) the school district can demonstrate that it has experienced an increase in the 135-day average daily membership that is greater than that experienced statewide;
(c) the school district can demonstrate that it has experienced insignificant growth in earned revenues from the prior year which could have resulted from assessed valuation of property that has not kept pace with inflation factors, or from reduced tax collection rates. A school district is ineligible for this waiver if there is a decrease in operational millage from the previous year, unless the reduction was due to reassessment;
(d) a state revenue shortfall results in a reduction of funds appropriated in accordance with Chapter 20 of this title under the Education Finance Act. This waiver does not apply to funds needed to meet the minimum salary schedule for teachers in South Carolina;
(e) the school district can demonstrate that the local revenues earned are in excess of the level to meet expenditures of the defined minimum program and the operational fund balance of the general fund has accumulated in excess of that which would be necessary to carry out the operations or the district; or
(f) the school district can demonstrate that local revenues previously budgeted to support a particular initiative that are locked into the base formula used for determining the required local financial effort are no longer needed for the initiative and that the related funds are not being redirected to other initiatives.
(2) A school district board of trustees or other governing body of a school district may reapply for a waiver to the State Board of Education on an annual basis provided that any one of the waiver criteria provided in this section can be demonstrated by the district, and the school district can demonstrate that it meets at least the minimum required effort of the Education Finance Act.
(3) For the purposes of this section, if a district's inability to maintain its minimum required local effort is a direct result of any one of the waiver criteria provided in this section, the superintendent of the local school district shall inform the local board of trustees of such conditions and shall ensure that the local board of trustees has full knowledge of the waiver provisions and that at its discretion may apply for a waiver as an alternative to effecting a tax mills increase."
SECTION 2. This act takes effect July 1, 1994.