CONCEPT DRAFT

SUMMARY

This bill is a concept draft pursuant to Joint Rule 208.

This bill proposes to amend the school funding formula by accomplishing the following:

1. The school funding formula would be changed so that it would, during periods of diminishing state fiscal resources, direct state subsidy to students in the classrooms rather than to subsidize the costs for school administrators and limit the amount of the state subsidy allocated to all school administrative units for allowable reimbursements under the school funding formula to the level of the previous school year's state subsidy allocation;

2. All costs for school administrators would be removed from the reimbursement formula for operating costs and program costs, and school administrator costs would be included in a separate category of the school funding formula and would be reimbursed at a lower rate of reimbursement under the school funding formula; and

3. The savings from reimbursing school administrator costs at a lower rate would be redistributed to other program costs and operating costs eligible for state subsidy under the school funding formula.