HCS HB 1711 -- STATE SCHOOL AID

SPONSOR:  Green, 73 (Graham)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Budget by
a vote of 26 to 2.

This substitute adds a definition of "district equalized assessed
valuation" to the definitions that are used in interpreting the
state school funding formula.  The definition averages a
district's assessed valuation from the first and second preceding
years.  The substitute also revises the definition of "guaranteed
tax base" to encompass the average of the third and fourth
preceding years, instead of basing the amount on only the third
preceding year, as in current law.

The substitute contains an emergency clause.

FISCAL NOTE:  Cost to General Revenue Fund of $175,000,000 in FY
2003, Unknown in FY 2004 and FY 2005.  Estimated Net Effect on
State School Moneys Fund of $0 in FY 2003, FY 2004, and FY 2005.

PROPONENTS:  Supporters say that averaging the guaranteed tax
base over a reassessment and a non-reassessment year will spread
the need for new funds for the school foundation formula more
evenly over a two-year period, eliminating the peak that occurs
every other year because of the two-year reassessment cycle.
Averaging a district's assessed valuation, which is usually the
largest deduction of local funding in the formula, over two years
will provide smoother budgeting for districts.  Over a two-year
period, districts should be evenly affected; however, during the
first year, districts with below-average levies would receive
less of an increase in new funds, while during the second year,
districts with above-average levies would receive less of an
increase.

Testifying for the bill in the Budget Committee was
Representative Graham.  In a hearing before the Appropriations-
Education Committee, representatives of Missouri School Boards
Association, Cooperating School Districts of Greater Kansas City,
and Cooperating School Districts of Greater St. Louis spoke on
behalf of several education organizations.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:02 am