Bill No.: HB0115                     Drafter:  DRN

LSO No.:   07LSO-0209                 Effective Date:

Enrolled Act No.:    HEA0086

Chapter No.:

Prime Sponsor:       Joint Education Interim Committee

Catch Title:         School finance-amendments.

Subject:   Refinement of the education resource block grant funding model for school districts.

Summary/Major Elements:

· Continues work initiated from the 2006 recalibration of the block grant funding model by:

1. Continuing the at-risk study of refining model components supporting at-risk students based upon continued review of district at-risk programs structure, content and delivery, program effectiveness and including a review of alternative schools as one component of total district at-risk program strategies;

2. Imposes a moratorium on new alternative school recognized under the model during this review period;

3. Continues off-model funding of summer school/extended day programs through school year 2007-2008 and requires determination as to future program funding either through block grant model or off-model as a categorical program.  Funding for 2007-2008 summer school program at $9 million within Department of Education budget;

4. Requires identical determination for future funding of instructional facilitators, within the block grant or outside the model as a categorical program.  Funding for 2007-2008 instructional facilitator program at $16 million within Department of Education budget;

5. Establishes task force to assist in the development of recommendations for operating and funding distance education (virtual) programs as extensions of public education programs.

· Directs the following technical corrections to the block grant model:

1. Corrects the model component error for "student activities" within Attachment "A" to the 2006 recalibration legislation (2006 Laws, Chapter 37).  The correction applies retroactively to school year 2006-2007 as well as to school year 2007-2008;

2. Clarifies the model health insurance component by ensuring adjustment for state group health plan is applied to school districts, as intended in model recalibration;

3. Both corrections included in school foundation program account budget, with the activities correction at $1.07 million per year or $2.14 million for the biennium and $14.8 million for the health insurance adjustment for school year 2007-2008 to be commensurate with state group health adjustment for the same period;

4. In addition and contained in the budget bill, NOT 2007 HB0115, is a 3.8% external cost adjustment for school year 2007-2008, adding an additional $28.7 million.

· Appropriates the following from the school foundation program account:

1. $200,000 to the Department of Education for the at-risk study;

2. $50,000 to the Department for the Distance Education Task Force.

· Requires completion of studies in sufficient time to develop and report recommendations to the Legislature at the 2008 Budget Session.