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February 9, 2005
Introduced by Reps. J.R. Smith, Cotty, Chellis, Scarborough, Bales, Brady, Cato, Ceips, Clark, Hamilton, Harrell, Haskins, Leach, Neilson, Perry, D.C. Smith, G.R. Smith, Townsend, Tripp, Vaughn, Walker, Coates, Owens, E.H. Pitts, Littlejohn, Rice, Witherspoon, Hinson, Mahaffey, Duncan, Huggins, Frye, Toole, Hagood, Loftis, Talley, White, Thompson, Bailey, Edge and Clemmons
S. Printed 2/9/05--H.
Read the first time January 11, 2005.
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 ACCOUNTING 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 AND SPECIAL SCHOOLS 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, 2005.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
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. Chapter 20, Title 59 is amended by adding:
Section 59-20-90. Of the funds appropriated to the State Department of Education in the annual general appropriations bill, the monies must be allocated to the following categories:
(1) quality teaching;
(3) technical assistance;
(4) operations, infrastructure, and safety;
(5) workforce education; and
(6) special needs.
No later than January 1, the department must report to the General Assembly on the amounts allocated to each category and subcategory, and the appropriateness of those allocations.
SECTION 3. 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, 2006, 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 expended by school districts in the following expenditure functions, subfunctions, and detail functions and in accordance with statutory and regulatory program requirements:
(i) face-to-face teaching;
(A) instructional teachers;
(C) instructional paraprofessionals, teacher assistants, clerical -- salaries;
(ii) classroom materials;
(A) pupil-use technology and software;
(B) instructional materials, supplies, trips;
(b) instructional support;
(i) pupil support;
(A) guidance and counseling;
(B) library and media;
(D) student health and services;
(ii) teacher support;
(A) curriculum development;
(B) inservice and staff training;
(iii) program support
(A) program development;
(B) therapists, psychologists, and evaluations;
(i) noninstructional pupil services;
(B) food service;
(ii) facilities - building upkeep, utilities, and maintenance;
(iii) business services;
(A) data processing;
(B) business operations;
(d) other commitments;
(i) debt service;
(ii) capital outlays - capital projects;
(iii) out-of-district obligations and contracts;
(A) parochial, private/charter school pass-throughs;
(B) retiree benefits and other;
(C) school management contracts;
(iv) legal obligations - litigation and settlements;
(v) undesignated reserve;
(i) school leadership;
(A) principals and assistant principals - salaries;
(B) office of the principal;
(ii) program management - deputies, senior administrators, research and program evaluators;
(iii) leadership services;
(A) superintendent and school board;
(2) The State Department of Education shall:
(a) provide the Governor's Office and the General Assembly with a summarized report of district expenditures from the previous fiscal year by March 15 of the following year;
(b) maintain and keep the expenditure database current and provide the school districts with updates required to meet the reporting requirements; and
(c) provide the Governor's Office and the General Assembly with a report depicting the previously completed fiscal year's allocations to school districts by appropriation category by January 1.
(3) All school districts and special schools of this State may transfer up to twenty percent of funds between programs if the funds are used for direct classroom instruction. Grant funds must be used only for the purposes of the grant and are not considered S.M.A.R.T. funds that may be transferred among programs. Technical assistance funds allocated to an individual school may not be reduced or reallocated within the school district and must be expended by the receiving school only according to the guidelines governing the funds.
(4) A local school district board of trustees may transfer up to one hundred percent of funds among programs designated with 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 of 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.
(C) 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 59-18-1120 of the Education Accountability Act.
Section 59-155-30. (A) The State Board of Education must promulgate regulations or publish guidelines necessary to effectuate the provisions of 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 4. Chapter 20, Title 59 of the 1976 Code is amended by adding:
Section 59-20-100. There is created a S.M.A.R.T. Funding Study Committee, whose nine members are appointed: three each by the Governor, the Speaker of the House, and the President Pro Tempore of the Senate, and to serve without compensation except for the mileage, per diem, and subsistence allowed by law for members of state commissions, committees, or boards. The committee, in conjunction with and with the cooperation of the Education Oversight Committee and the State Department of Education, shall study the effectiveness and appropriateness of the allocation of, and flexibility in, funding in the S.M.A.R.T. Funding Act. The report must be made by July 1, 2007, at which time the committee shall dissolve.
SECTION 5. Upon approval by the Governor, this act takes effect July 1, 2006.
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