House Education Minutes 01/29/2002 10:00 AM

77^th Legislative Session _ 2002

Committee: House Education

Tuesday, January 29, 2002

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Bartling
P    Begalka
P    Davis
P    Elliott
P    Garnos
P    Heineman
P    Juhnke
P    Kooistra
P    McCaulley
P    McCoy
P    Monroe
E    Van Norman
P    Wick
P    Smidt, Vice-Chair
P    Eccarius, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Scott Eccarius, Chair

MOTION:     TO APPROVE THE MINUTES OF JANUARY 24, 2002

Moved by:    Kooistra
Second by:    Smidt
Action:    Prevailed by voice vote.

Representative Smidt and Representative Garnos presented reports form the sub-committees.

HB 1004: provide for a refund of tuition for certain teachers.

Presented By:    Representative Wick
Proponents:    Elaine Roberts, SD Education Association
        Gene Enck, SD Associated School Boards
        Carol Stonefield, SD Board of Regents

MOTION:     AMEND HB 1004

On page 2, line 2 of the printed bill, delete " forgivable " and insert "tuition reimbursement".

On page 2 , line 3, delete " loan " .

On page 2 , line 4, delete " forgivable loans " and insert "tuition reimbursements".

On page 2 , line 5, delete everything after " teachers. " .

On page 2 , line 6, delete " deposited in the fund. " .

Moved by:    McCoy
Second by:    Davis
Action:    Prevailed by voice vote.

MOTION:     AMEND HB 1004

On page 1, line 7 of the printed bill, after " actual " delete " tuition " and insert "qualified higher education expenses as defined in subdivision 13-63-1(13)".

Moved by:    Smidt
Second by:    Monroe
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1004 AS AMENDED

Moved by:    McCaulley
Second by:    Smidt
Action:    Prevailed by roll call vote.(12-2-1-0)

Voting Yes:    Bartling, Davis, Elliott, Garnos, Heineman, Juhnke, McCaulley, McCoy, Monroe, Wick, Smidt, Eccarius

Voting No:    Begalka, Kooistra

Excused:    Van Norman

         HB 1177: provide for additional exclusions from the excess fund balance penalty in the state aid to education formula.

Presented By:    Representative Koistinen
Opponents:    Stacey Krusemark, Department of Education and Cultural Affairs

MOTION:     DO PASS HB 1177

Moved by:    Kooistra
Second by:    Bartling
Action:    Failed by roll call vote.(6-8-1-0)

Voting Yes:    Bartling, Begalka, Davis, Elliott, Kooistra, Smidt

Voting No:    Garnos, Heineman, Juhnke, McCaulley, McCoy, Monroe, Wick, Eccarius

Excused:    Van Norman

MOTION:     DEFER HB 1177 TO THE 36^TH LEGISLATIVE DAY

Moved by:    McCaulley
Second by:    McCoy
Action:    Prevailed by roll call vote.(8-6-1-0)

Voting Yes:    Garnos, Heineman, Juhnke, McCaulley, McCoy, Monroe, Wick, Eccarius

Voting No:    Bartling, Begalka, Davis, Elliott, Kooistra, Smidt

Excused:    Van Norman

         HB 1232: provide for certain grants to school districts and to make an appropriation therefor.

Presented By:    Representative Garnos
Opponents:    Bob Stevens, SDEA
        Ray Christensen, Secretary of Department of Education and Cultural Affairs

MOTION:     AMEND HB 1232

On page 1, line 12 of the printed bill, delete everything after " . " and insert "The school district that benefits from the remote technology shall award the teacher a one thousand five hundred dollar entitlement.".

On page 1 , delete line 13 .

Moved by:    Davis
Second by:    Elliott
Action:    Was not acted on.

MOTION:     AMEND THE AMENDMENT

On the previous amendment (1232cb), delete "district" and insert "districts".

Moved by:    Smidt
Second by:    Bartling
Action:    Prevailed by voice vote.

MOTION:     AMEND HB 1232

On page 1, line 12 of the printed bill, delete everything after " . " and insert "The school districts that benefit from the remote technology shall award the teacher a one thousand five hundred dollar entitlement.".

On page 1 , delete line 13 .

Moved by:    Davis
Second by:    Elliott
Action:    Failed by voice vote.

MOTION:     AMEND HB 1232

On page 1, line 5 of the printed bill, after " obligated " insert "not to exceed a maximum of three hundred thousand dollars,".

Moved by:    Wick
Second by:    Smidt
Action:    Prevailed by voice vote.

MOTION:     DO PASS HB 1232 AS AMENDED

Moved by:    Kooistra
Second by:    Smidt
Action:    Was not acted on.

MOTION:     SUBSTITUTE MOTION DEFER HB 1232 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Davis
Second by:    Heineman
Action:    Prevailed by roll call vote.(8-6-1-0)

Voting Yes:    Bartling, Begalka, Davis, Heineman, Juhnke, McCoy, Wick, Eccarius

Voting No:    Elliott, Garnos, Kooistra, McCaulley, Monroe, Smidt

Excused:    Van Norman

         HB 1155: revise the distribution of state aid to education.

Presented By:    Representative Kooistra
Proponents:    Larry Johnke, SD Coalition of Small Schools
        Penelope Douglas, SD Coalition of Small Schools
        Shayne McIntosh, Sully Buttes-Agar School District
Opponents:    Dianna Miller, ESD+5
        Lona Lewis, SD Education Association
        Ray Christensen, Secretary of Department of Education and Cultural Affairs

MOTION:     AMEND HB 1155

On the printed bill, delete everything after the enacting clause and insert:

" Section 1. That § 13-13-10.1 be amended to read as follows:

13-13-10.1. Terms used in this chapter mean:

(1) "Average daily membership," the average number of resident and nonresident kindergarten through twelfth grade pupils enrolled in all schools operated by the school district during the previous regular school year, minus average number of pupils for whom the district receives tuition, except pupils described in subdivision (1A) and pupils for whom tuition is being paid pursuant to § 13-28-42 and plus the average number of pupils for whom the district pays tuition;

(1A) Nonresident students who are in the care and custody of the Department of Social Services, the Unified Judicial System, the Department of Corrections, or other state agencies and are attending a public school may be included in the average daily membership of the receiving district when enrolled in the receiving district. When counting a student who meets these criteria in its general enrollment average daily membership, the receiving district may begin the enrollment on the first day of attendance. The district of residence prior to the custodial transfer may not include students who meet these criteria in its general enrollment average daily membership after the student ceases to attend school in the resident district;

(2) "Adjusted average daily membership," calculated as follows:

(a) For districts with an average daily membership of two hundred or less, multiply 1.2 times the average daily membership;

(b) For districts with an average daily membership of less than six hundred, but greater than two hundred, raise the average daily membership to the 0.8293 power and multiply the result times 2.98;

(c) For districts with an average daily membership of six hundred or more, multiply 1.0 times their average daily membership;

(3) "Index factor," is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less;

(3A) "Enrollment adjustment," is one-half of the negative of the annual percent change in the statewide general enrollment average daily membership for the year before the year immediately preceding the year of adjustment;

(4) "Per student allocation," for the period January 1, 1997, to June 30, 1997, inclusive, is $1,675. For school fiscal year 1998, beginning on July 1, 1997, the per student allocation shall be $3,350 increased by the index factor. Each school fiscal year thereafter, the per student allocation shall be the previous fiscal year's per student allocation increased by the

index factor, plus the enrollment adjustment;

(5) "Local need," the per student allocation multiplied by the adjusted average daily membership;

(6) "Local effort," the amount of ad valorem taxes generated in a school fiscal year by applying the levies established pursuant to § 10-12-42;

(7) "General fund balance," the unreserved fund balance of the general fund, less general fund exclusions plus, beginning with transfers made in fiscal year 2001, any transfers out of the general fund for the previous school fiscal year;

(8) "General fund balance percentage," is a school district's general fund balance divided by the school district's total general fund expenditures for the previous school fiscal year, the quotient expressed as a percent;

(9) "General fund base percentage," is the general fund balance percentage as of June 30, 2000. However, the general fund base percentage can never increase and can never be less than ~~twenty~~ thirty percent;

(10) "Allowable general fund balance," the fund base percentage multiplied by the district's general fund expenditures in the previous school fiscal year;

(11) "Imputed interest rate," the average prime rate for the preceding fiscal year minus 2.5 percentage points;

(12) "General fund exclusions," revenue a school district has received from the imposition of the excess tax levy pursuant to § 10-12-43; revenue a school district has received from gifts, contributions, grants, or donations; revenue a school district has received under the provisions of § § 13-6-92 to 13-6-96, inclusive; and any revenue in the general fund set aside for a noninsurable judgment.

Section 2. That § 13-13-73.2 be amended to read as follows:

13-13-73.2. A school district's state aid for general education as calculated pursuant to § 13-13-73 shall be reduced by the following calculation:

(1) Subtract the allowable general fund balance from the general fund balance. If the result is less than zero, (1) equals zero;

(2) Determine the lower of the general fund base percentage or the general fund balance percentage;

(3) Subtract ~~twenty~~ thirty percent ~~(0.2)~~ (0.3) from the result of (2). If the result is less than zero, (3) equals zero;

(4) Multiply the result of (3) by the district's general fund expenditures in the previous school fiscal year;

(5) Multiply the result of (4) by the imputed interest rate;

(6) Add the result of (1) and the result of (5). "

Moved by:    Kooistra
Second by:    Davis
Action:    Failed by roll call vote.(7-7-1-0)

Voting Yes:    Bartling, Begalka, Davis, Elliott, Kooistra, McCoy, Monroe

Voting No:    Garnos, Heineman, Juhnke, McCaulley, Wick, Smidt, Eccarius

Excused:    Van Norman

MOTION:     DEFER HB 1155 TO THE 36^TH LEGISLATIVE DAY

Moved by:    Smidt
Second by:    Juhnke
Action:    Prevailed by roll call vote.(9-5-1-0)

Voting Yes:    Garnos, Heineman, Juhnke, McCaulley, McCoy, Monroe, Wick, Smidt, Eccarius

Voting No:    Bartling, Begalka, Davis, Elliott, Kooistra

Excused:    Van Norman

MOTION:     ADJOURN

Moved by:    Smidt
Second by:    Wick
Action:    Prevailed by voice vote.

____________________________

Committee Secretary

Scott Eccarius, Chair

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