77th Legislative Session _ 2002

Committee: House Education
Thursday, January 31, 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
P    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 29 AND 30, 2002

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

          HB 1123: provide that students who graduate early be counted in a school district's average daily membership for the entire school term.

Presented By:    Representative Madsen

Proponents:    Dave Peters, Spearfish School
        Dianna Miller, ESD+5
        Hank Kosters, SD Associated School Boards
        Elaine Roberts, SD Education Association
Opponents:    Secretary Ray Christensen, Department of Education and Cultural Affairs

MOTION:     DO PASS HB 1123

Moved by:    Davis
Second by:    Bartling
Action:    Failed by roll call vote.(7-8-0-0)

Voting Yes:    Bartling, Begalka, Davis, Elliott, Kooistra, Van Norman, Wick

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

MOTION:     DEFER HB 1123 TO THE 36TH LEGISLATIVE DAY

Moved by:    Smidt
Second by:    Heineman
Action:    Prevailed by roll call vote.(9-6-0-0)

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

Voting No:    Bartling, Davis, Elliott, Kooistra, Van Norman, Wick

         HB 1094: revise the definition of average daily membership in the state aid to education formula.

Presented By:    Representative Begalka
Proponents:    Penelope Douglas, SD Coalition of Small Schools
Opponents:    Janelle Toman, Department of Education and Cultural Affairs

MOTION:     DEFER HB 1094 TO THE 36TH LEGISLATIVE DAY

Moved by:    Heineman
Second by:    Juhnke
Action:    Prevailed by roll call vote.(10-5-0-0)

Voting Yes:    Bartling, Davis, Garnos, Heineman, Juhnke, McCaulley, McCoy, Wick, Smidt, Eccarius
Voting No:    Begalka, Elliott, Kooistra, Monroe, Van Norman

         HB 1154: establish an alternative method for the calculation of average daily membership for school districts.

Presented By:    Representative Kooistra
Proponents:    Penelope Douglas, SD Coalition of Small Schools
        Clint Willard, Deubrook School District
        Larry Johnke, Irene School District
Opponents:    Janelle Toman, Department of Education and Cultural Affairs
        Representative Jaspers

MOTION:     AMEND HB 1154

1154ca
     On the printed bill, delete everything after the enacting clause and insert:

"
     Section 1. That chapter 13-13 be amended by adding thereto a NEW SECTION to read as follows:

     If a school district has an increase in average daily membership as defined in §  13-13-10.1 for each of the three previous school fiscal years, the average increase in average daily membership for the three-year period is the increased enrollment factor.

     Section 2. 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 increased enrollment factor plus 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 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. "

Moved by:    Heineman
Second by:    McCaulley
Action:    Was not acted on.

Representative Monroe invoked Rule 5-17. He was supported by one- fifth of the committee. HB 1154 will be delayed until February 5, 2002.

         HB 1199: revise certain provisions relating to the general fund levy of a school district.

Presented By:    Representative Richter
Proponents:    David Owen, SD Commerce and Industry
        Dan Nelson, Sioux Falls Chamber of Commerce
        Jim Hood, SD Retailers
        Bob Miller, SD Electric Utilities
        Bob Riter, National Federation of Independent Business
Opponents:    Paul Kinsman, Department of Revenue

MOTION:     ADJOURN

Moved by:    Garnos
Second by:    Begalka
Action:    Prevailed by voice vote.


Diane Mellan

____________________________

Committee Secretary
Scott Eccarius, Chair

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