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COMMITTEE REPORT
May 15, 2003
H. 4048
Introduced by Reps. J.R. Smith, Scarborough, Neilson, Cotty, Anthony, Bailey, Barfield, Cato, Ceips, Clark, Clemmons, Coates, Cooper, Davenport, Duncan, Edge, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hinson, Huggins, Keegan, Leach, Limehouse, Loftis, Lucas, McGee, Owens, Perry, Pinson, E.H. Pitts, Quinn, Rice, Sandifer, Simrill, Sinclair, Skelton, D.C. Smith, W.D. Smith, Stewart, Talley, Thompson, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Wilkins, Witherspoon, Young, Merrill, G.M. Smith, Chellis, Bingham, Bowers, Herbkersman and Littlejohn
S. Printed 5/15/03--H.
Read the first time April 23, 2003.
To whom was referred a Bill (H. 4048) to amend the Code of Laws of South Carolina, 1976, by adding Chapter 155 to Title 59 so as to enact the "S.M.A.R.T. (Streamlined Management and Accountable Resources for Teaching) Funding in Education Act", etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking all after the enacting clause and inserting:
/ SECTION 1. The General Assembly finds that:
(1) flexibility in the use of funding provides opportunities for fiscal efficiencies and maximum benefit to students;
(2) limiting the number of funding categories should reduce management and accounting requirements;
(3) programs established by statute or regulation must be continued to meet the needs of individual students or to compensate and reward teachers; and
(4) the State has a continuing responsibility to support the operations, infrastructure, and safety of schools.
SECTION 2. Title 59 of the 1976 Code is amended by adding:
Section 59-155-10. This chapter may be cited as the 'S.M.A.R.T. (Streamlined Management and Accounting Resources for Teaching) Funding in Education Act'.
Section 59-155-20. (A) There is established a fund management and accounting program, called 'S.M.A.R.T. Funding in Education', that, beginning July 1, 2004, must consolidate all program funding to the state's school districts and special schools for enhanced flexibility in their operations of grades K-12.
(B)(1) S.M.A.R.T. funding must be allocated in accordance with statutory and regulatory program funding requirements to each school district and must be spent in six general categories:
(a) quality teaching;
(b) instruction;
(c) technical assistance;
(d) operations, infrastructure, and safety;
(e) workforce education; and
(f) special needs.
(2) The programs designated within each general category are:
(a) quality teaching: critical teaching needs, National Board Certification-Incentive Reimbursement, National Board Certification-Salary Supplement, teacher salary supplement, school employer contributions, principal salary/fringe increase, fringe benefits employer contributions, retiree insurance, health/dental benefits, ADEPT;
(b) instruction: arts in education, advanced placement, gifted and talented, academic assistance K-3, academic assistance 4-12, excellence in middle schools, increase high school diploma requirements, alternative schools program, EAA reduce class size grades 1-3, K-5 competitive grants, four-year-old child development, school innovation funds, base student cost;
(c) technical assistance: EAA homework center grants, EAA retraining grants, EAA summer school/comprehensive remediation;
(d) operations, infrastructure, and safety: reallocation of EIA funds, school bus driver salary supplement and fringe, school lunch supervisor salary, school lunch program aid, State School Building Aid, Children's Education Endowment, school safety officers, technology funding from education license plates, attendance supervisor salary;
(e) workforce education: parenting/family literacy, career and technology education equipment, adult education, nursing program, School-to-Work Transition Act; and
(f) special needs: trainable and profoundly mentally disabled student services, handicapped transportation-bus driver aides, handicapped transportation-special needs students contract reimbursement, and preschool programs for children with disabilities.
(C)(1) Within the parameters of item (2), each school district must allocate S.M.A.R.T. funds among programs within the specified general categories and between general categories as it determines is most effective for the achievement of that individual local district's educational objectives pursuant to Chapter 139 of Title 59 and to ensure that students are equipped with a strong academic foundation.
(2) A local school district board of trustees may transfer up to one hundred percent of funds among programs designated within the same general category once the district has fulfilled the statutory and regulatory program requirements. A school district may transfer up to twenty percent of these funds from one general category to other general categories. A transfer may not deny an educator basic or supplementary compensation provided by statute. A transfer may not waive or reduce funds required for a program match in a district choosing to continue a federal program requiring matching funds.
(3) A school district with fifty percent or more of its schools earning an unsatisfactory absolute rating may utilize the provisions of this chapter pursuant to the requirements for flexibility in Section 59-181-1120 of the Education Accountability Act.
Section 59-155-30. (A) The General Assembly and the Governor, beginning with the annual general appropriations act for fiscal year 2004-2005, shall adjust the format of the general appropriations act to reflect the categories of this chapter.
(B) The State Department of Education must provide the details of transfers by local school districts to members of the General Assembly upon request. A school district may carry forward unexpended funds from the previous fiscal year into the next fiscal year to be used for the original purpose.
Section 59-155-40. (A) The State Board of Education must promulgate regulations or publish guidelines necessary to effectuate the provisions of this chapter including, but not limited to, a procedure for the review of all transfers authorized by this chapter.
(B) The State Department of Education shall adopt and implement an accounting procedure between the department and each local school district for oversight and management of transfers made pursuant to this chapter. A local school district shall utilize, throughout the year, the uniform accounting procedure to facilitate timely and consistent reporting.
Section 59-155-50. The State Department of Education shall review the utilization of the flexibility and transfer provisions of this chapter and report by district to the General Assembly the changes in the proportion of funds spent in each of the six categories, the benefit to students, and the fiscal efficiencies achieved before and after implementation of this chapter."
SECTION 3. Upon approval by the Governor this act takes effect July 1, 2003. /
Renumber sections to conform.
Amend title to conform.
ROBERT W. HARRELL, JR. for Committee.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 155 TO TITLE 59 SO AS TO ENACT THE "S.M.A.R.T. (STREAMLINED MANAGEMENT AND ACCOUNTABLE RESOURCES FOR TEACHING) FUNDING IN EDUCATION ACT", TO PROVIDE FOR THE CONSOLIDATION OF STATE SOURCES OF FUNDING FOR K-12 INTO A SINGLE SOURCE FOR ALLOCATION BY EACH LOCAL SCHOOL DISTRICT INTO AREAS IT DETERMINES BEST ACHIEVE ITS OBJECTIVES AND ENHANCE ITS ACCOUNTABILITY, TO PROVIDE THAT THE FUNDING BE MADE BASED ON SIX GENERAL CATEGORIES FOR WHICH THE FUNDS MUST BE USED, AND TO DESCRIBE THAT THE MONIES WHICH FORM THE POOL OF MONIES IN EACH GENERAL CATEGORY MAY BE TRANSFERRED WITH ONE HUNDRED PERCENT FLEXIBILITY AMONG PROGRAMS WITHIN THAT CATEGORY, TO PROVIDE FOR SOME FLEXIBILITY IN DISTRIBUTION OF FUNDING ACROSS CATEGORIES, AND TO PROVIDE THAT THE S.M.A.R.T. FUNDING PROGRAM WILL BE FUNDED BEGINNING JULY 1, 2004.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 59 of the 1976 Code is amended by adding:
Section 59-155-10. This chapter may be cited as the 'S.M.A.R.T. (Streamlined Management and Accountable Resources for Teaching) Funding in Education Act'.
Section 59-155-20. (A) There is established a funding program, called 'S.M.A.R.T. Funding in Education', that, beginning July 1, 2004, must consolidate all current sources of state funding of the state's school districts for enhanced flexibility in their operations of grades K-12.
(B)(1) S.M.A.R.T. funding must be allocated to each school district in six general categories:
(a) quality teaching;
(b) instruction;
(c) technical assistance;
(d) operations, infrastructure, and safety;
(e) workforce education; and
(f) special needs.
(2) The programs designated within each general category are:
(a) quality teaching: critical teaching needs, National Board Certification-Incentive Reimbursement, National Board Certification-Salary Supplement, Teacher of the Year awards, Professional Development on Standards, teacher salary increase, school employer contributions, competitive teacher grants, teacher supplies, principal salary/fringe increase, fringe benefits employer contributions, retiree insurance, health/dental benefits, National Board Certification salary supplement, ADEPT, Principal Executive Institute, teacher supplies stipend;
(b) instruction: arts in education, advanced placement courses, advance placement singleton, gifted and talented academic, gifted and talented artistic, Juniors Scholars Program, Governor's Institute of Reading, academic assistance K-3, academic assistance 4-12, academic assistance Reading Recovery, statewide systemic initiative in mathematics and science, excellence in middle schools, EAA summer school/comprehensive remediation, increase high school diploma requirements, alternative schools program, refurbishment of K-8 science kits, EAA modified school year/day grant, EAA reduce class size grades 1-3, early childhood program, K-5 competitive grants, EAA homework center grants, four-year-old child development;
(c) technical assistance: EAA teacher specialist, EAA principal specialist, EAA homework center grants, EAA retraining grants, EAA Palmetto Gold and Silver awards, EAA principal/teacher specialists on site;
(d) operations, infrastructure, and safety: school innovation funds, reallocation of EIA funds, bus driver salary supplement and fringe, school lunch supervisor salary, school lunch program aid, school bus driver salary, EAA bus driver salary and fringe, State School Building Aid, Children's Education Endowment, State School Facilities Bond Act, school safety officers, home schooling, education license plates, attendance supervisor salary;
(e) workforce education: parenting/family literacy, networking program, career and technology education equipment, adult education remedial, nursing program, School-to-Work Transition Act, basic adult education, workforce initiative-adult education, literacy-adult education, vehicle title transfer fee-adult education, technology professional development/school technology initiative, Tech Prep and vocational equipment; and
(f) special needs: trainable and profoundly mentally disabled student services, handicapped transportation-bus driver aides, handicapped transportation-special needs students contract reimbursement, and preschool programs for children with disabilities.
(C)(1) Within the parameters of item (2), each school district must allocate the expenditure of the S.M.A.R.T. Funds among programs within the specified general categories and between general categories as it determines is most effective for the achievement of that individual local district's educational objectives and the basic core mission of K-12 education.
(2) A school district may transfer up to one hundred percent of funds between programs designated within the same general category. A school district may transfer up to twenty percent of funds from one general category to other general categories.
Section 59-155-30. (A) The General Assembly and the Governor, beginning with the annual general appropriations act for fiscal year 2004-2005, shall adjust the format of the general appropriations act to reflect the provisions of this chapter.
(B) The local school district must provide the details of its transfers to members of the General Assembly upon request. The school district may carry forward unexpended funds from the previous fiscal year into the next fiscal year to be used for the same purpose.
Section 59-155-40. (A) The State Board of Education may promulgate regulations necessary to effectuate the provisions of this chapter including, but not limited to, a procedure for the review of all transfers authorized by this chapter.
(B) The State Department of Education shall adopt and implement an accounting network between the department and each local school district for oversight and management of transfers made pursuant to this chapter. A local school district shall utilize, throughout the year, the uniform accounting standard so established so as to facilitate timely and consistent reporting and audit results."
SECTION 2. Upon approval by the Governor this act takes effect July 1, 2004.
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