Launch the media gallery 1 playerHouse Bill 2741 Summary
Bill 2741
The overall impact of HB 2741 appears to keep education funding very close to total K‐12 spending for all sources for 2014‐15. Because many districts would have reduced funding under the formula changes in the bill, a two‐ year hold harmless provision is included at an estimated cost of over $250 million per year. Districts are guaranteed no less than 2014‐15 total funding – but only after subtracting “excess” cash balances ($60 million) and reductions for savings from a new state health insurance plan ($80 million) and prohibiting general state aid spending on food service ($27.6 million) and extracurricular activities ($64.3 million). THESE ARE ESTIMATES ONLY. Districts could replace state aid or increase spending through a new mill levy described below.
Foundation System Based On Enrollment
Provides enrollment aid based on the number of students in a district: $8,490 for districts less than 400; $7,269 for districts between 400 and 999; $6,137 for districts between 1,000, and 1,999; and $5,763 for districts over 2,000. No “linear transition;” funding does not change gradually between enrollment groups. Provides estimated $2.83 billion compared to $1.75 million in base aid only and $300 million in enrollment weightings under previous formula.
Creates low income state aid based on the poverty rate of children 5‐17 in district multiplied by enrollment, multiplied by $3,099. Previous formula counted each free lunch eligible student for at‐risk weighting. Provides estimated $337 million compared to $400 million in at‐risk and high at‐risk weighting under previous formula.
Created bilingual aid based on number of students receiving bilingual services, multiplied by $425.
Previous formula used the number of contract hours of students receiving instruction from a bilingual teacher. Provides an estimated $20.8 million, compared to $40.5 million under previous formula.
No separate or additional funding is provided for career technical education. Previous formula provided $32 million in vocational weighting based on the full‐time equivalent enrollment of students in approved CTE programs and courses.
Uses same formula as previous law except amended based on Legislative Post Audit analysis of drafting error. The change reduces state transportation weighting by approximately 15 percent Provides an estimated $86.6 million compared to $101.8 million under previous formula.
The bill repeals the virtual school law. No special weightings or aid is provided. Virtual students are counted the same as regular students.
The special education funding system is not changed.
Full‐time kindergarten students are counted as one student. No change in made in funding for pre‐K students.
Funding Equity
Raises the statewide mill levy from 20 to 35 mills and eliminates current authority for local option budget, cost of living weighting, ancillary weighting and declining enrollment weighting. Gives districts authority to adopt a local mill for up to five years, subject to public vote, with no limit and no equalization. Purpose of the levy revenue must be described and presented to voters. Revenue cannot be used for instruction unless the course is offered to every other district electronically.
Maintains current capital outlay system as amended by the 2016 Legislature to comply with the Kansas Supreme Court order on equity, with one exception: district wealth is based on three factors: assessed valuation per pupil; mean federal adjusted gross income, and average appraise value of single family homes. Current law only used assessed valuation per pupil. The same level of funding is projected.
Does not include new facilities weighting or similar feature.
Maintains current equalization formula for bond and interest (under block grant bill). Requires approval of Legislature’s Joint Committee on State Building Construction, which shall consider and authorize up to 100 percent of eligible funding for classroom attendance centers; up to 50 percent for facilities used for transportation or non‐ classroom space used daily for classes and extracurricular activities; and 0 percent for athletic facilities and administration and support buildings. Creates a joint committee to study state bonding for capital outlay and improvements.
Success Grants: beginning in 2018‐19, the State Board shall disburse grants based on district graduation rates, percentage of students completing national CTE certificates or enrolling for third consecutive semester in postsecondary programs, and college remediation rates. Grant money shall be distributed to specified teachers and building‐ level administrators. No amount of money is authorized in the bill.
The bill deducts from state aid one‐third of the amount of the July 1 2014, cash balance in certain funds calculated to have been in excess of 15 percent of 2014‐15 operating expenditures.
Funding is based on the average daily enrollment of districts for the previous September 20 through March 20, or the immediately prior year’s average enrollment, or a three‐year average.
Efficiency
Beginning Jan. 1, 2018, requires all districts to participate in a state‐administered school district health care benefits program with a high deductible health plan and health savings account, as proposed in the state efficiency study by Alvarez and Marsal. Allows districts to offer supplemental health coverage to employees participating in state school plan. Creates USD efficiency incentive program for employees who submit proposals for efficient operation of school districts to the State Board; with 10 percent of any realized savings provided to the employees.
Maintains the flexibility for transferring money among most school district funds as provided in the current block grant law.
Prohibits districts from using general state aid for extracurricular activities (but allows funding of co‐curricular activities). Prohibits districts from spending general state aid for food service or related activities. Such expenditures could be made from the local district mill levy (no limit, no equalization, require public vote, five‐year maximum without renewal), or from fees or other local revenues.
Creates Kansas Education Freedom Act, open to students who are or have been enrolled in a public school or who are eligible to be enrolled and under six years old. Such students may open an account funded by 70 percent of the general state aid the student would receive if they were attending their resident school districts. The remaining 30% appears to remain with the school district. Such funds may be used for the educational expenses of an accreditation or non‐accredited non‐public school, including home schools. There are no requirements for academic testing or other assessment or performance accountability measures.
