1999 State of Wyoming 99LSO-0167


                             SENATE FILE NO. SF0039
                                        
                                        
School finance amendments.

Sponsored by: Select Committee on School Finance


                                     A BILL
                                        
                                       for

 1  AN ACT relating to public schools; modifying the public

 2  school reform legislation previously adopted by the

 3  legislature in response to the supreme court decision in

 4  Campbell County School District, et al., v. State of

 5  Wyoming, et al. as specified; and providing for effective

 6  dates.

 7

 8  Be It Enacted by the Legislature of the State of Wyoming:

 9

10                [Part I.  1999-2000 and Subsequent School Years]

11                                       

12                    A.  Funding Formula Adjustments-Generally

13     

14       Section 101.  W.S. 21-13-309(n) and (o) is amended to

15  read:

16

17  21-13-309.  Determination of amount to be included in

18  foundation program for each district.



Page  1



 1     

 2       (n)  For each district, the district total amount per

 3  ADM computed under subsection (m) of this section shall be

 4  adjusted as follows to result in a revised amount per ADM

 5  for each district.  Unless otherwise specified in this  

 6  subsection, the adjustments under this subsection shall be 

 7  determined as specified in the cost of education study, 

 8  dated April 1997, and the spreadsheet provided by the 

 9  consultant performing the study related thereto, both of 

10  which are on file in the legislative service office:

11     

12              (i)    Compute  for  each  district  the  total   amount 

13  expended on special education and on the transportation of 

14  school children, but excluding the amount actually expended 

15  by the district as transportation capital outlay for 

16  purchase or lease of school buses, for the 1996-1997 school 

17  year as computed under the provisions of W.S. 21-13-309(b) 

18  and  (e)  as  they otherwise existed prior  to  July  1,  1998,  and 

19  divide it by the total ADM for the district for the 

20  1998-1999 school year, as used in making the computation 

21  under subsection (m) of this section The amount shall be

22  adjusted for the transportation of school children as 

23  provided in W.S. 21-13-320;

24          



Page  2



 1               (ii)   Compute  the  total  statewide  amount  expended 

 2  on special education and on the transportation of school 

 3  children, but excluding the amount actually expended by the 

 4  district as transportation capital outlay for purchase or 

 5  lease of school buses, for the 1996-1997 school year as 

 6  computed under the provisions of W.S. 21-13-309(b) and (e) 

 7  as they otherwise existed prior to July 1, 1998, and divide 

 8  it by the total ADM for the state for the 1998-1999 school 

 9  year,  as  used  in  making the computation  under  subsection  (m)

10  of this section The amount shall be adjusted for special

11  education as provided in W.S. 21-13-321;

12          

13              (iii)   To  determine  the  revised  model  amount   per 

14  ADM,  from  the  district's model  amount  per  ADM  computed  under

15  subsection  (m)  of  this  section,  subtract  the  amount  computed

16  under paragraph (ii) of this subsection and add the amount 

17  computed  under  paragraph (i) of this  subsection.  The amount 

18  shall be adjusted for necessary small schools in each 

19  district subject to W.S. 21-13-319.  For the purposes of 

20  this paragraph, a "necessary small school" shall be as 

21  defined in W.S. 21-13-318;

22          

23           (iv)  The amount shall be adjusted for 

24  economically disadvantaged students in each district as 

25  provided in W.S. 21-13-322;



Page  3



 1          

 2           (v)  The amount shall be adjusted for limited 

 3  English proficient students in each district as provided in 

 4  W.S. 21-13-325;

 5          

 6           (vi)  The amount shall be adjusted for routine 

 7  maintenance as provided under W.S. 21-13-326;

 8          

 9           (vii)  The amount shall be adjusted for the 

10  seniority level of teachers in each district as provided in 

11  W.S. 21-13-323;

12          

13           (viii)  The amount shall be adjusted for extra 

14  compensation payments to teachers in each district as 

15  provided under W.S. 21-13-324; and

16          

17           (ix)  The amount shall be adjusted for isolation 

18  and maintenance payments as specified under W.S. 21-4-401.

19          

20       (o)  The revised model amount per ADM for each district

21  computed under subsection (n) of this section shall be

22  further adjusted for the following. Unless otherwise

23  specified in this subsection, the adjustments under this

24  subsection shall be determined as specified in the cost of

25  education study, dated April 1997, and the spreadsheet



Page  4



 1  provided by the consultant performing the study related

 2  thereto, both of which are on file in the legislative

 3  service office:

 4 

 5         (i)  The amount shall be adjusted for necessary 

 6  small  schools  in each  district  subject  to  W.S. 21-13-319.  

 7  For the purposes of this paragraph, a "necessary small 

 8  school" shall be as defined in W.S. 21-13-318 based on ADM 

 9  for the preceding school year at that school;

10

11           (ii)  The amount shall be adjusted for 

12  economically disadvantaged students in each district. For 

13  the purposes of this paragraph, an "economically 

14  disadvantaged   student"  means  a  student   who   has   qualified for 

15  free or reduced lunch under the federal lunch program.  To 

16  implement  and  administer  this  adjustment  and  for  the  purpose

17  of computing distributions to be made under W.S. 

18  21-13-313(c), the computation shall be based on the number 

19  of  economically  disadvantaged  students  identified  during   the

20  preceding school year;


21

22           (iii)  The amount shall be adjusted for seniority 

23  level  of teachers in each district  based  upon  the seniority 

24  level of teachers employed by the district as of July 1 of 

25  the school year for which the computation is made;



Page  5







 1          

 2               (iv)(i)   To  the  extent  specifically provided by

 3  this section, the amount shall be adjusted to provide for

 4  the effects of inflation;

 5          

 6             (v)(ii)   The amount, after theadjustments 

 7  adjustmentunder    paragraphs    (i)    through    (iv)paragraph 

 8  (o)(i) of this subsection have has been made, shall be

 9  further adjusted for regional cost of living differences.

10  The adjustment for regional cost of living differences shall

11  be based upon the Wyoming cost-of-living index, with the

12  medical component omitted and with the housing component

13  included but modified by excluding the price for rental of

14  shelter subcomponent, as computed by the division of

15  economic analysis, department of administration and

16  information under rules promulgated by it with respect to

17  the methodology under which the index shall be computed.

18  The version of the index used shall be the average of the

19  six (6) consecutive semi-annual index reports completed by

20  January 1 prior to the school year for which it is to be

21  used.

22     

23                   B.  Technical Corrections and Base Funding

24     



Page  6



 1       Section 102.  (Base Funding)  W.S. 21-13-309(m)(intro)

 2  and (ii)(A) through (C) is amended to read:

 3     

 4       21-13-309.  Determination of amount to be included in

 5  foundation program for each district.

 6     

 7       (m)  In determining the amount to be included in the

 8  foundation   program   for  each  district  for  the   1998-1999 1999-

 9  2000 school yearand each school year thereafter, the state

10  superintendent shall first compute for each district a

11  district model amount per average daily membership (ADM) as

12  follows:

13     

14            (ii)  Multiply the district's average daily

15  membership (ADM) for each school level identified under

16  paragraph (m)(i) of this section by the following amount for

17  the appropriate prototypical school model level:

18          

19                 (A)  Elementary school - kindergarten through

20  grade five (5), five thousand nine hundred eighty-two 

21  dollars ($5,982.00) six thousand one hundred eighty-seven /u>

22  dollars ($6,187.00);

23               



Page  7



 1                 (B)  Middle school - grades six (6) through

 2          eight (8), six thousand ninety-two dollars ($6,092.00) six 

 3  thousand one hundred seventy-four dollars ($6,174.00);

 4               

 5                 (C)  High school - grades nine (9) through

 6  twelve (12), six thousand five hundred seventy-two dollars 

 7  ($6,572.00) six thousand six hundred fifty-one dollars 

 8  ($6,651.00).

 9               

10       Section 103.  (Tuition)

11     

12       (a)  W.S. 21-4-501(b) and by creating new subsections

13  (c) and (d), 21-4-502, 21-4-504, 21-4-505 and

14  21-13-102(a)(ii)(A) are amended to read:

15     

16       21-4-501.  Payment of tuition for children resident in

17  districts which maintain no high school; admission of such

18  children to high schools in other districts; duties of

19  admitting districts; tuition amount.

20     

21       (b)  The board of trustees of any school district

22  within  the  state which does maintain maintains  afour-year 

23  high school shall admit, upon payment of tuition, pupils of

24  districts which do not maintain a four-year high school.

25  Nothing in this section shall be construed to require a



Page  8



 1  district to admit nonresident pupils, when to do so would

 2  overcrowd the facilities of the admitting district or in any

 3  way work a definite hardship upon the educational program

 4  offered by the admitting district. The admitting district 

 5  shall:

 6          

 7           (i)  Include any pupil admitted under this section 

 8  among its average daily membership (ADM) for purposes of 

 9  computing the foundation program under W.S. 21-13-309; and

10          

11           (ii)  Account separately for the portion of the 

12  tuition received pursuant to this section which is related 

13  to school buildings and facilities, as determined by the 

14  district and reported to the state department, and deposit 

15  that portion in its debt service account. The remainder 

16  shall be reported as revenues for purposes of W.S. 

17  21-13-310(a)(ix).

18     

19      (c)  The amount of tuition assessed under this section 

20  shall be determined by dividing the total operating cost of 

21  the district for the previous year, plus the cost of bond 

22  redemption and interest for the previous year, by the total 

23  by the district's average daily membership for the previous 

24  year.

25     



Page  9



 1      (d)  Nonunified school districts shall be reimbursed 

 2  from the school foundation program account for tuition paid 

 3  under subsection (a) of this section as if the district's 

 4  total foundation program amount for that year as computed 

 5  under W.S. 21-13-309(p) was increased by the amount of the 

 6  tuition paid during the preceding year.

 7     

 8       21-4-502.  Attendance in another district when

 9  convenient or desirable; admission of pupils resident in

10  other districts; attendance for ADM computations specified.

11     

12       (a)  The board of trustees of every school district

13  within the state may pay tuition from the funds of the 

14  district for provide for the enrollment of any pupil

15  resident therein who in a school within another district if 

16  the  pupildesires  to  attend  theschool  in  another district 

17  when and if attendance in such other district  would be more

18  convenient or is desirable because of services available in

19  such other district. The district providing for the 

20  enrollment of the pupil in a school within another district 

21  shall not include the pupil within its average daily 

22  membership (ADM) for purposes of the foundation program 

23  under W.S. 21-13-309.

24     



Page  10



 1       (b)  Any district within the state may admit pupils

 2  resident in other districts of the state unless the

 3  admission overcrowds the classrooms of the admitting

 4  district. No district within the state shall be required to

 5  admit a pupil who has been suspended or expelled by the

 6  board of trustees or designated disciplinarian of any other

 7  district located in or outside the state. The cost of 

 8  tuition  for  a  pupil admitted pursuant  to  this  subsection  may 

 9  be paid by the district in which the pupil resides from the 

10  funds of the district and shall be at least the actual cost 

11  per pupil for operation of the admitting school for the 

12  preceding school year. No district shall be liable for 

13  payment unless it has previously given permission, in 

14  writing,  to  the enrollment of the pupil  The  district

15  admitting a pupil under this subsection shall not assess 

16  tuition payments upon the district wherein the pupil 

17  resides, but shall include the pupil within its average 

18  daily membership (ADM) for purposes of determining its 

19  foundation program amount under W.S. 21-13-309.

20     

21       21-4-504.  Cost of maintaining pupil attending school

22  outside district of residence.

23

24  Any school district paying tuition for a pupil may, in its 

25  discretion, pay all or any part of the board and room 



Page  11



 1  required  to  maintain the pupil  in  the  admitting  district  and 

 2  may pay all or part of the room and board of children with 

 3  disabilities  placed  outside the  district.  A  school district 

 4  admitting a pupil from a nonunified school district in the 

 5  state under W.S. 21-4-501 or providing for the enrollment of 

 6  a pupil in a school within a school district in another 

 7  state under W.S. 21-4-505 shall, in accordance with rules 

 8  and regulations of the state department, be reimbursed from 

 9  the school foundation program account for expenditures for 

10  maintaining that pupil in the admitting district for any 

11  length of time the pupil is required to reside in the 

12  admitting district.  Reimbursement under this subsection 

13  shall be subject to and reported in accordance with rule and 

14  regulation of the state department and shall be administered 

15  as if the district's total foundation program amount 

16  computed under W.S. 21-13-309(p) is increased by the amount 

17  of the expenditure for maintenance during the preceding 

18  year.

19

20       21-4-505.  Payment of tuition for pupil attending

21  school in another state; admission of out-of-state pupils.

22     

23     (a)  Whenever it shall appear to the board of trustees

24  of any school district within the state that instruction for

25  any pupil residing in the district can be more



Page  12



 1  advantageously or economically furnished by a public school

 2  maintained by another state, the board of trustees of such

 3  Wyoming district may enter into an agreement for the

 4  instruction of such pupils at rates of tuition specified in

 5  the agreement. The Wyoming district shall be reimbursed for 

 6  the full amount of tuition assessed by the out of state 

 7  district from the school foundation program account 

 8  administered as if the district's total foundation program 

 9  amount computed under W.S. 21-13-309 for that year was 

10  increased by the amount of the tuition paid during the 

11  preceding year.  The district shall not include a pupil 

12  attending a school within an out of state school district 

13  within its average daily membership (ADM) for purposes of 

14  computing its foundation program amount under W.S. 

15  21-13-309.

16     

17     (b)  Any school district within the state may enter

18  into agreements to admit pupils from out of state at the

19  rate of tuition at least as high as the actual per pupil

20  cost of the Wyoming district computed as provided in W.S.

21  21-4-503  21-4-501(c).The  admitting   district shall:

22     

23           (i)  Include the admitted out of state pupil 

24  within its average daily membership (ADM) for purposes of 



Page  13



 1  computing its foundation program amount under W.S. 

 2  21-13-309; and

 3          

 4           (ii)  Account separately for the portion of the 

 5  tuition received pursuant to this subsection which is 

 6  related to school buildings and facilities, as determined by 

 7  the district and reported to the state department, and 

 8  deposit that portion in its debt service account. The 

 9  remainder shall be reported as revenues for purposes of W.S. 

10  21-13-310(a)(ix).

11          

12       21-13-102.  Maximum rate of school district tax;

13  recapture of excess; equalization of permissive levies.

14     

15       (a)  Except as otherwise provided by law, the maximum

16  rate of school district tax that may be levied for all

17  school purposes, exclusive of bond interest and redemption,

18  for any school district in any school year on each dollar of

19  assessed valuation within the school district is as follows:

20

21            (ii)  In any nonunified school district consisting

22  of kindergarten through grade eight (8):

23          

24                 (A)  Twenty (20) Twenty- five (25) mills shall

25  be levied for school purposes; and



Page  14



 1               

 2       Section 103.  (Tuition)

 3     

 4       (b)  W.S. 21-4-503 and 21-13-102(a)(ii)(C) are

 5  repealed.

 6     

 7       Section 104.  (Isolation and Maintenance Payments) W.S.

 8  21-4-401(a) and by creating new subsections (d) and (e) is

 9  amended to read:

10     

11       21-4-401.  Transportation or maintenance for isolated

12  pupils.

13     

14       (a)  The board of trustees of any school district

15  within the state shall provide transportation or maintenance

16  not to exceed seventy-five dollars ($75.00)  per month per 

17  pupil unless a greater maximum is established by the state 

18  superintendent, for isolated elementary or high school

19  pupils resident within the district, whenever it would be in

20  the best interests of the affected children to provide

21  transportation or maintenance than to establish a school to

22  serve these pupils,. In no case shall  sums and for those 

23  isolated pupils resident within the district who are 

24  attending a school in another district pursuant to W.S. 

25  21-4-502.  Amountspaid under this section shall be subject 



Page  15



 1  to subsections (d) and (e) of this section and shall not 

 2  exceed the actual costs incurred by parents or pupils.

 3     

 4      (d)  To receive transportation payments under this 

 5  section, the parent or legal guardian of any isolated pupil 

 6  eligible under this section shall file a transportation 

 7  reimbursement claim with the district on a form provided by 

 8  the district specifying the total round trip miles traveled 

 9  each day to and from the bus stop or the school, as 

10  applicable. The total round trip miles shall be multiplied 

11  by the applicable mileage rate prescribed under W.S. 

12  9-3-103(a)(iii) to compute the daily mileage reimbursement 

13  amount. Where combined transportation is provided for two 

14  (2) or more isolated pupils being transported to the same 

15  school, only one (1) reimbursement shall be made.

16     

17      (e)  Monthly maintenance payments may be paid under 

18  this section in lieu of transportation payments if the pupil 

19  resides at a location near the school rather than the 

20  isolated location. The amount paid shall be the lesser of 

21  the amount of maintenance payments claimed or the 

22  transportation payments that would have been payable under 

23  subsection (d) of this section. Monthly maintenance payments 

24  under this section shall reimburse the isolated student's 

25  parent or legal guardian for additional reasonable living 



Page  16



 1  expenses for only those months school is in session. A 

 2  district shall be reimbursed for the full amount of 

 3  isolation or maintenance payments it makes under this 

 4  section. Reimbursement shall be made as if the district's 

 5  total foundation program amount computed under W.S. 

 6  21-13-309(p) was increased by the amount of isolation or 

 7  maintenance payments made during the preceding year.

 8     

 9       Section 105.  (Teacher Extra Compensation

10  Adjustment)  W.S. 21-13-324 is created to read:

11     

12       21-13-324.  Teacher extra compensation adjustment to

13  district total amount per ADM.

14     

15       (a)  A district may pay extra compensation to a teacher

16  as necessary to employ teachers for providing educational

17  programs at locations which because of their unique

18  circumstances require additional pay. Extra compensation

19  under this section:

20          

21            (i)  Shall not reflect district preference for

22  higher salaries;

23          



Page  17



 1            (ii)  Shall be payment for performing regular

 2  duties and not be payment for performing any additional

 3  duties assigned to the teacher;

 4          

 5            (iii)  May be in the form of subsidized rent or

 6  other subsidized expenses, a cash bonus or a combination.

 7     

 8       (b)  If compensation is paid to the teacher for rental

 9  or other costs, the school district shall provide

10  information to the state department describing the

11  difference in the amount paid by the teacher and the average

12  comparable market rate within the county for rent or other

13  subsidized cost.

14     

15       (c)  Upon application by a district upon a form

16  prescribed and provided by the state department, the

17  department shall reimburse the district from the foundation

18  account for extra compensation paid pursuant to subsection

19  (a) of this section, administered as if the district's total

20  foundation program amount computed under W.S. 21-13-309(p)

21  was increased by the amount of extra compensation paid

22  during the preceding year. The department shall require the

23  district to document the need for extra compensation

24  payments.

25     



Page  18



 1       Section 106.  (1/2 K ADM)  W.S. 21-13-309 by creating a

 2  new subsection (s) is amended to read:

 3     

 4       21-13-309.  Determination of amount to be included in

 5  foundation program for each district.

 6

 7  (s)  For the purpose of all calculations required to be 

 8  made under this section and W.S. 21-15-105.1, 21-15-105.2 

 9  and 21-15-109, including calculations required under 

10  statutes referenced in this section or otherwise applicable 

11  in making computations under this section, the average daily 

12  membership for each district's kindergarten students shall 

13  be divided by two (2).  This includes calculations required 

14  to be made in this section in accordance with the cost of 

15  education study, dated April 1997, and the spreadsheet 

16  provided by the consultant performing the study related 

17  thereto, both of which are on file in the legislative 

18  service office.

19

20                  C.  School Finance Funding Formula Components

21     

22       Section 201.  (Transportation)  W.S. 21-13-320 is

23  created to read:

24     



Page  19



 1       21-13-320.  Student transportation; adjustment to

 2  school foundation program formula for transportation

 3  maintenance and operations expenditures and school bus

 4  purchases; district reporting requirements.

 5     

 6       (a)  The adjustment for the transportation of school

 7  children pursuant to W.S. 21-13-309(n)(i) shall be computed

 8  in accordance with this section.

 9     

10       (b)  The amount computed under W.S. 21-13-309(m)(iii)

11  for each district shall be reduced by the total statewide

12  expenditure for transportation, including capital outlay for

13  school buses, per ADM during the 1996-1997 school year.

14  There shall be an addition to the amount computed under W.S.

15  21-13-309(p) for each school district equal to one hundred

16  percent (100%) of the amount actually expended by the

17  district during the previous school year under subsection

18  (c) of this section and for:

19     

20            (i)  The maintenance and operation of

21  transportation routes for transporting school children to

22  and from school; and

23     

24            (ii)  The transportation of students to and from

25  student activities authorized by department of education



Page  20



 1  rules.  For the purpose of this paragraph, student

 2  activities means as defined in W.S. 21-13-319(b)(iv)(B)(I).

 3          

 4            (c)  In addition to subsection (b) of this section and

 5  subject to state standards and department rule and

 6  regulation, the transportation adjustment under this section

 7  for each district shall include one hundred percent (100%)

 8  of the expenditure for the purchase or lease of school buses

 9  and other vehicles used primarily for the purpose of

10  transporting students to and from school and to and from

11  school activities.  Amounts included within the adjustment

12  under this subsection shall be subject to the following:

13     

14            (i)  Reimbursement shall apply only to purchases

15  or lease arrangements entered into on or after March 1,

16  1998;

17          

18            (ii)  Buses and other vehicles used primarily for

19  student transportation, for which reimbursement is

20  authorized, shall not exceed state minimum standards for

21  vehicle specifications and equipment and shall be subject to

22  vehicle replacement schedules specified by department rule

23  and regulation;

24          



Page  21



 1            (iii)  The number of buses and other student

 2  transportation vehicles comprising a district's fleet shall

 3  not be increased above the fleet size existing as of

 4  February 10, 1999, except as necessary to provide safe and

 5  efficient transportation in accordance with department rule

 6  and regulation;

 7          

 8            (iv)  The adjustment for purchase and lease of

 9  buses and other student transportation vehicles authorized

10  for the adjustment under this subsection shall be equal to:

11

12                 (A)  One hundred percent (100%) of lease

13  payments during the preceding school year; plus

14

15                 (B)  Twenty percent (20%) of total purchases

16  during the preceding five (5) school years.  For the purpose

17  of this subparagraph, no purchases before March 1, 1998,

18  shall be included, and purchases from March 1, 1998, through

19  June 30, 1998, shall be counted as one (1) fiscal year.

20

21       (d)  The department of education shall adopt necessary

22  rules and regulations to implement and enforce state

23  standards established under this section and to administer

24  this section.  In addition, districts shall report

25  expenditures, purchases and lease arrangements for the



Page  22



 1  applicable reporting period as required by department rule

 2  and regulation.  The department shall annually review and

 3  conduct audits as necessary of information submitted under

 4  this section.

 5     

 6       Section 202.  (Small Schools Adjustment)

 7     

 8       (a)  (Small Schools-Student Activity Adjustment)  W.S.

 9  21-13-319(b)(intro) and by creating a new paragraph (iv) is

10  amended to read:

11     

12       21-13-319.  Small schools; adjustment to the school

13  foundation program formula.

14     

15       (b)  The adjustment for necessary small schools shall

16  be computed as provided under W.S. 21-13-309(o)(i) subject 

17  to the following follows:

18     

19           (iv)  There shall be an adjustment for student 

20  activities as provided by this paragraph subject to the 

21  following:

22               

23                (A)  This adjustment shall be computed by 

24  adding to the amount computed under W.S. 21-13-309(p) one 

25  hundred percent (100%) of the actual expenditures for 



Page  23



 1  student activities at the school for the preceding school 

 2  year reduced by the amount included within the model for 

 3  student activities. For the purpose of computing the 

 4  adjustment in this paragraph, the number of student 

 5  activities for a school shall not exceed the number of 

 6  activities provided at the school during the 1998-1999 

 7  school year;

 8               

 9          (B)  For purposes of this paragraph:

10                    

11           (I)  "Student activities" means athletic 

12  and nonathletic activities sanctioned by the Wyoming high 

13  school activities association and school sponsored athletic 

14  and nonathletic activities in grades preceding high school 

15  which directly correspond to those high school activities 

16  sanctioned by the Wyoming high school activities 

17  association, exclusive of transportation costs for such 

18  activities which are funded under W.S. 21-13-320;

19                    

20      (II)  "The amount included within the 

21  model for student activities" shall be computed using the 

22  amount for student activities contained within each 

23  prototypical school model, as adjusted by the amount for 

24  student activities contained within necessary small school 



Page  24



 1  prototypical model, the regional cost adjustment and the 

 2  external cost adjustment, if any. 

 3     

 4       (b)  (Small School Adjustment-Funding After School

 5  Closure)  W.S. 21-13-318(b) by creating a new paragraph

 6  (vii) and (c) by creating a new paragraph (vii) is amended

 7  to read:

 8     

 9       21-13-318.  Small schools; qualifications and

10  limitations on necessity.

11     

12       (b)  A school is a necessary small elementary school if

13  it is qualified under subsection (f) of this section or if

14  it meets the following qualifications:

15     

16      (vii)  The school functions in a substantially 

17      similar capacity during the year for which the foundation 

18      program amount is being calculated as it did during the 

19      preceding year. This paragraph does not apply to any school 

20     which is a one (1) teacher school.

21     

22       (c)  A school is a necessary small high school if it is

23  qualified under subsection (f) of this section or if it

24  meets the following qualifications:

25



Page  25



 1      (vii)  The school functions in a substantially 

 2  similar capacity during the year for which the foundation 

 3  program amount is being calculated as it did during the 

 4  preceding year.

 5     

 6       (c)  (Small Schools-Utilities and School Lunch

 7  Adjustment)  W.S. 21-13-319(b)(intro), (ii) and (iii) is

 8  amended to read:

 9     

10       21-13-319.  Small schools; adjustment to the school

11  foundation program formula.

12     

13       (b)  The adjustment for necessary small schools shall

14  be computed as provided under W.S. 21-13-309(o)(i) 

15  21-13-309(n)(iii) subject to the following:

16     

17       (ii)  There shall be an adjustment for utilities

18  as provided in this paragraph.  This adjustment shall be

19  computed  by  increasing the small  school  adjustment  by adding 

20  to the amount computed under W.S. 21-13-309(p) one hundred 

21  percent (100%) ofthe actual cost expenditures for utilities

22  at the schoolduring the preceding school year.  As used in

23  this paragraph, "utilities" means electricity plus natural

24  gas, propane or any other power source used to provide

25  heating to a school building.  This adjustment applies to a



Page  26



 1  necessary small school located on a school area with another

 2  school only if that other school is also a necessary small

 3  school;

 4

 5            (iii)  There shall be an adjustment for food

 6  service participating in the national school lunch program

 7  as  provided  in  this  paragraph.  as follows:

 8          

 9               (A)  No necessarysmall school shall be

10  eligible for this adjustment unless:

11               

12                     (I)  Middle and high schoolstudents are

13  charged at least one dollar and ninety cents ($1.90) for

14   each lunch. an amount no less than the free lunch  rate as 

15  determined under federal regulation issued by the United 

16  States Department of Agriculture under the National School 

17  Lunch Act, 42 U.S.C.  1751 et seq.;

18                    

19                     (II)  Elementary students are charged 

20  for each lunch at least eighty-four percent (84%) of the 

21  rate specified under subdivision (I) of this subparagraph 

22  for each reimbursable lunch; and

23                    

24                     (III)  The rates assessed under this 

25  paragraph shall be not less than the rate specified under 



Page  27



 1  subdivision (I) of this subparagraph after the value of any 

 2  prepayment discount has been deducted from the rate the 

 3  district established for the reimbursable lunch.

 4                     

 5             (B)  For the 1998-1999 school year, The

 6  adjustment shall be computed by adding to the amount 

 7  computed under W.S. 21-13-309(p)an amount equal to the

 8  difference  between  the  actual cost of  expenditures for

 9  providing food service and the revenues received from

10  charges for lunches.  Payments for this difference in excess

11  of one dollar ($1.00) per lunch shall not be made, unless

12  the state superintendent finds that failure to provide full

13  payment for the difference will significantly affect the

14  ability of the school district to provide adequate

15  educational services to students.

16     

17       Section 203.  (Routine Maintenance)  W.S. 21-13-326 is

18  created to read:

19

20       21-13-326.  Routine maintenance; adjustment to

21  foundation program formula.

22

23  For the 1999-2000 school year, there shall be no adjustment

24  to the amount in W.S. 21-13-309(m)(iii) for routine

25  maintenance.



Page  28



 1

 2       Section 204.  (Economically Disadvantaged Youth)  W.S.

 3  21-13-322 is created to read:

 4     

 5       21-13-322.  Economically disadvantaged students;

 6  adjustment to foundation program formula.

 7     

 8       (a)  As used in this section, "economically

 9  disadvantaged student" means a student who has qualified for

10  free or reduced priced lunch under the national school lunch

11  program as established under 42 U.S.C.  1751 et seq.

12     

13       (b)  The adjustment for economically disadvantaged

14  students pursuant to W.S. 21-13-309(n)(iv) shall be computed

15  for each district which has a significant concentration

16  level of identified economically disadvantaged students at

17  any school within the district determined as follows:

18     

19            (i)  Divide the number of identified economically

20  disadvantaged students enrolled in each school within the

21  district for the previous school year by the average daily

22  membership for that school for that year;

23          

24            (ii)  Divide the number of identified economically

25  disadvantaged students within the state for the preceding



Page  29



 1  school year by the total state average daily membership for

 2  that year;

 3          

 4            (iii)  If the concentration level for any school

 5  within a district, as computed under paragraph (b)(i) of

 6  this section, is at least one hundred fifty percent (150%)

 7  of the statewide concentration level computed under

 8  paragraph (b)(ii) of this section, the district qualifies

 9  for an adjustment under this section.

10     

11       (c)  Upon qualification under subsection (b) of this

12  section, the district shall receive for each school within

13  the district that qualifies under paragraph (b)(ii) of this

14  section an adjustment computed by multiplying the number of

15  identified economically disadvantaged students attending the

16  eligible school for the preceding school year times five

17  hundred dollars ($500.00).

18     

19       Section 205.  (Limited English Speaking)  W.S.

20  21-13-325 is created to read:

21     

22       21-13-325.  Limited English proficient students;

23  adjustment to foundation program formula.

24     



Page  30



 1       (a)  For purposes of this section, "limited English

 2  proficient student" means a student identified with limited

 3  English proficiency under state identification and

 4  assessment procedures prescribed by rule and regulation of

 5  the state department.

 6     

 7       (b)  The adjustment for limited English proficient

 8  students as provided under W.S. 21-13-309(n)(v) shall be

 9  computed for each district with a concentration level of

10  identified limited English proficient students attending any

11  school in the district, equal to or greater than five

12  percent (5%) of the total average daily membership for that

13  school.  Computations under this section shall be based upon

14  identified limited English proficient student numbers and

15  average daily membership counts for the preceding school

16  year.

17     

18       (c)  The amount of the adjustment for limited English

19  proficient students shall be computed as follows:

20          

21            (i)  Multiply the amount under W.S.

22  21-13-309(m)(ii) for the grade level for each identified

23  student by fifteen percent (15%);

24          



Page  31



 1            (ii)  For each eligible school within a district,

 2  multiply the number of identified limited English proficient

 3  students attending the eligible school for the preceding

 4  school year times the amount determined under paragraph

 5  (c)(i) of this section.

 6          

 7       Section 206.  (Teacher Seniority)  W.S. 21-13-323 is

 8  created to read:

 9

10       21-13-323.  Teacher seniority; adjustment to foundation

11  program formula.

12

13       (a)  As used in this section, "teacher" means any

14  person employed by a school district as part of its teaching

15  or professional staff for whom certification is required as

16  a condition of employment as a certified professional

17  employee, excluding certified and noncertified

18  administrative staff.

19

20  (b)  The adjustment for the seniority level of teachers

21  pursuant to W.S. 21-13-309(n)(vii) shall be computed for

22  each district by multiplying the total number of years of

23  service of all teachers employed by the district during the

24  prior school year by the statewide value for one (1) year of

25  seniority, determined as specified in the spreadsheets



Page  32



 1  accompanying the February 1998 teacher seniority adjustment

 2  report provided by the consultant performing the cost of

 3  education study, which is on file with the legislative

 4  service office.  The adjustment computation under this

 5  subsection shall be subject to the following:

 6

 7            (i)  Except as otherwise specified by paragraph

 8  (iv) of this subsection, the determination of seniority for

 9  each teacher shall be based on the date of employment with

10  the district;

11

12            (ii)  The total years of teacher service for a

13  district for any school year shall not include any first

14  year teacher employed by the district.  A first year teacher

15  is not included within a district's total years of teacher

16  service until completion of the initial year of employment.

17  Thereafter, that teacher shall be assigned one (1) year of

18  service for each year of district employment;

19

20  (iii)  The total years of teacher service for a

21  district for any school year shall not include more than

22  twenty (20) years of service for any one (1) teacher;

23

24            (iv)  In accordance with W.S. 21-7-104(b), the

25  years of service for any teacher shall include all prior



Page  33



 1  years of employment as a teacher by any Wyoming school

 2  district;

 3

 4            (v)  The statewide value of one (1) year of

 5  seniority shall be based upon school year 1996-1997 teacher

 6  salary information, which value shall serve as the base year

 7  for computations under this section.

 8

 9       Section 207.  (Special Education)  W.S. 21-13-321 is

10  created to read:

11     

12       21-13-321.  Special education; adjustment to foundation

13  program formula.

14     

15       (a)  As used in this section:

16          

17            (i)  "General fund operating expenditures" means

18  those expenditures of the district from the general fund for

19  operation of the district as reported to the department of

20  education under rules promulgated by the department;

21          

22            (ii)  "Special education programs and services"

23  means programs and services for students with disabilities

24  as identified under the federal Individuals with

25  Disabilities Education Act, 20 U.S.C.  1400 et seq.



Page  34



 1     

 2       (b)  The adjustment for special education pursuant to

 3  W.S. 21-13-309(n)(ii) shall be computed as follows:

 4     

 5            (i)  The amount computed under W.S.

 6  21-13-309(m)(iii) shall be reduced by the total statewide

 7  expenditure for special education per ADM during the 1996-

 8  1997 school year;

 9          

10            (ii)  The adjustment shall be an addition to the

11  amount computed under W.S. 21-13-309(p) equal to one hundred

12  percent (100%) of the amount actually expended by the

13  district during the previous school year for special

14  education programs and services, subject to the following

15  computations by the state department:

16               

17                 (A)  For the school year preceding the school

18  year for which the adjustment is made, divide the total

19  district expenditures for special education programs and

20  services by the total general fund operating expenditures of

21  the district;

22               

23                 (B)  For the school year preceding the school

24  year for which computations are made under subparagraph (A)

25  of this paragraph, divide the total district expenditures



Page  35



 1  for special education programs and services by the total

 2  general fund expenditures of the district;

 3          

 4            (iii)  If the ratio computed under subparagraph

 5  (ii)(A) of this subsection is greater than one hundred ten

 6  percent (110%) of the ratio computed under subparagraph

 7  (ii)(B) of this subsection, the department shall review

 8  district expenditures for special education programs and

 9  services for the year at issue, prior to the department's

10  making the adjustment under this section for that school

11  year.  The district shall provide the department written

12  documentation regarding the increase in the rates of

13  expenditures for special education programs and services for

14  that school year;

15          

16            (iv)  The department shall reduce the amount of

17  the adjustment by an amount equal to the excess over one

18  hundred ten percent (110%) as computed under paragraph (iii)

19  of this subsection unless the department finds those excess

20  expenditures were necessary to providing essential special

21  education services.

22     

23       (c)  The adjustment provided under this section shall

24  apply to school years 1999-2000, 2000-2001 and 2001-2002

25  only.



Page  36



 1     

 2       Section 208. (Additional small schools adjustment to

 3  remove 1/4 mile and other limits - eligibility for the

 4  adjustment - transition) W.S. 21-13-327 is created to read:

 5

 6       21-13-327.  Additional adjustment for small schools.

 7

 8       (a)  There shall be an adjustment for small schools as

 9  provided in this section which shall be additional and not

10  in lieu of the adjustment under W.S. 21-13-309(n)(iii).  The

11  adjustment shall be added to the amount computed under W.S.

12  21-13-309(p) for each district.  The adjustment for each

13  district shall be equal to:

14

15  (i)  For the 1999-2000 school year, one-third

16  (1/3) of the difference between the amount computed under

17  subsection (b) of this section and the amount otherwise

18  computed under W.S. 21-13-309(p) for that school year for

19  the district;

20

21            (ii)  For the 2000-2001 school year, two-thirds

22  (2/3) of the difference between the amount computed under

23  subsection (b) of this section and the amount otherwise

24  computed under W.S. 21-13-309(p) for that school year for

25  the district;



Page  37



 1

 2            (iii)  For the 2001-2002 school year and each

 3  school year thereafter, one hundred percent (100%) of the

 4  difference between the amount computed under subsection (b)

 5  of this section and the amount otherwise computed under W.S.

 6  21-13-309(p) for that school year for the district.

 7

 8       (b)  For the purpose of implementing this section, the

 9  state superintendent shall annually recompute the amount for

10  each district under W.S. 21-13-309(p) with the adjustment

11  for small schools under W.S. 21-13-318 and 21-13-319

12  computed subject to the following:

13

14            (i)  A school is a necessary small elementary

15  school if:

16

17                 (A)  The school was established as an

18  elementary, middle or junior high school on or after July 1,

19  1998, it qualifies under W.S. 21-13-318(f); or

20

21                 (B)  If the school was established before

22  July 1, 1998, the school was designated by the district as

23  an elementary, middle or junior high school before July 1,

24  1998, and:

25



Page  38



 1                      (I)  There was a total of two hundred

 2  (200) or fewer ADM in kindergarten through grade eight (8)

 3  enrolled in the school during the preceding school year;

 4

 5                      (II)  The average ADM enrolled in

 6  kindergarten through grade eight (8) within the school for

 7  the current school year and the two (2) preceding school

 8  years was two hundred (200) or fewer ADM; and

 9

10  (III)  The school is not a charter

11  school, established under W.S. 21-3-201 through 21-3-207.

12  The school is not an alternative school established under

13  W.S. 21-13-318(a)(i). The school has not been disqualified

14  as a necessary small school under W.S. 21-13-318(d), for

15  change of grade configuration, or W.S. 21-13-318(e) for loss

16  of ADM.

17

18            (ii)  A school is a necessary small high school

19  if:

20

21                 (A)  The school was established as a high

22  school on or after July 1, 1998, it qualifies under W.S.

23  21-13-318(f); or

24



Page  39



 1                 (B)  If the school was established before

 2  July 1, 1998, the school was designated by the district as a

 3  high school before July 1, 1998, and:

 4

 5                      (I)  There was a total of four hundred

 6  (400) or fewer ADM in grades nine (9) through grade twelve

 7  (12) enrolled in the school;

 8

 9                      (II)  The average ADM enrolled in grades

10  nine (9) through twelve (12) within the high school for the

11  current school year and the two (2) preceding school years

12  was four hundred (400) or fewer ADM;

13

14                      (III)  The school is not a charter

15  school, established under W.S. 21-3-201 through 21-3-207.

16  The school is not an alternative school established under

17  W.S. 21-13-318(a)(i). The school has not been disqualified

18  as a necessary small school under W.S. 21-13-318(d), for

19  change of grade configuration, or W.S. 21-13-318(e) for loss

20  of ADM.

21

22       Section 209.  (Allow districts to keep 50% of

23  investment earnings) W.S. 21-13-310(a)(xi) is amended to

24  read:

25



Page  40



 1       21-13-310.  Annual computation of district revenues.

 2

 3       (a)  To ensure revenues available to each district are

 4  uniformly sufficient to enable compliance with the uniform

 5  standards for educational programs prescribed under W.S.

 6  21-9-101 and 21-9-102 and to secure state board

 7  accreditation of educational programs under W.S.

 8  21-2-304(a)(ii), the revenues specified under this

 9  subsection shall be deemed state revenues and shall be

10  considered in determining the amount to be distributed to

11  each district under W.S. 21-13-311. A district shall make an

12  annual computation of the following revenues:

13

14            (xi)  Fifty percent (50%) of i nterest, capital

15  gains and any other earnings on funds held by the district

16  earned during the previous school year, excluding interest

17  earnings on the separate major building and facility repair

18  and replacement account established under W.S. 21-15-109;

19

20                        [Part II.  1998-1999 School Year]

21                                       

22       Section 301. (Teacher Seniority - 1998-1999 School

23  Year) W.S. 21-13-309(o)(iii) is amended to read:

24



Page  41



 1       21-13-309.  Determination of amount to be included in

 2  foundation program for each district.

 3

 4       (o)  The revised model amount per ADM for each district

 5  computed under subsection (n) of this section shall be

 6  further adjusted for the following. Unless otherwise

 7  specified in this subsection, the adjustments under this

 8  subsection shall be determined as specified in the cost of

 9  education study, dated April 1997, and the spreadsheet

10  provided by the consultant performing the study related

11  thereto, both of which are on file in the legislative

12  service office:

13

14            (iii)  In making computations for funding for the 

15  1998-1999 school year the amount shall be adjusted for

16  seniority level of teachers in each district based upon the

17  seniority level of teachers employed by the district as of

18   July  1  of the 1997-1998 school year; for which  the 

19  computation is made;

20

21       Section 302.  (Transitional payments due to estimates)

22     

23       (a)  The legislature finds that to ensure an orderly

24  transition to the new school finance system and that

25  educational goods and services can be continuously provided



Page  42



 1  to students, relief should be provided to school districts

 2  where:

 3

 4            (i)  The school district budgeted in good faith

 5  for the 1998-1999 school year based upon funding estimates

 6  provided by the department of education during the spring of

 7  1998; and

 8

 9  (ii)  Through no fault of the district, the actual

10  funding authorized under law for the 1998-1999 school year

11  as computed in August 1998 was calculated to be

12  significantly less than the amount estimated in the spring

13  of 1998.

14

15       (b)  For the 1998-1999 school year only, school

16  districts shall be entitled to funding as provided in this

17  section.  This funding shall be in addition to all other

18  funding available to the district in accordance with law.

19  Funding provided under this section shall be included in

20  calculating total revenue for the district during the 1998-

21  1999 school year when determining the district's eligibility

22  for "hold harmless" payments during the 1999-2000 school

23  year as provided under 1997 Special Session Laws, Chapter 3,

24  Section 306, as amended.

25



Page  43



 1  (c)  If the total revenue calculated for the district

 2  used in estimates of the department of education as of April

 3  30, 1998, is at least five percent (5%) greater than the

 4  amount of revenue calculated by the department of education

 5  as of August 11, 1998, the district shall be entitled to an

 6  amount equal to the excess over five percent (5%).  This

 7  amount shall be made available to the district as if the

 8  total revenue available to the district under W.S.

 9  21-13-309(p) had been increased by this amount.  To the

10  extent payments are required from the department to the

11  district due to this additional funding, payments shall be

12  made during the remainder of the school year proportionally

13  under W.S. 21-13-313.

14

15       (d)  As used in subsection (c) of this section, "total

16  revenue" means the amount of revenue for the district

17  calculated under W.S. 21-13-309(p) plus payments for prior

18  bus purchases under 1998 Special Session Laws, Chapter 2,

19  Section 101 and "hold harmless" payments under 1997 Special

20  Session Laws, Chapter 3, Section 306, as amended.

21

22              [Part III.  Reports, Studies, Student Assessment and

23                                   Technology]

24                                       

25       Section 401.  (Special Education Adjustment)



Page  44



 1     

 2       (a)  The state superintendent shall on or before

 3  October 1, 2002, report to the joint education interim

 4  committee on the special education adjustment provided under

 5  W.S. 21-13-321.  The report shall include a review of the

 6  adjustment for the three (3) preceding school years and any

 7  recommendations for modification of the adjustment.

 8     

 9       (b)  The joint education interim committee shall report

10  any recommendations on the special education adjustment to

11  the legislature for consideration by the 2003 legislature.

12                                       

13             [Part IV.  Public Education-Refinements and Conforming

14                                   Amendments]

15                                       

16       Section 501.  W.S. 21-2-203(e)(intro) and 21-13-313(e)

17  are amended to read:

18

19       21-2-203.  School district data collection; division

20  established; duties and responsibilities specified.

21

22     (e) On and after July 1, 1999 2000,  the following

23  shall apply:

24



Page  45



 1       21-13-313.  Distribution of funds from foundation

 2  account; property tax and cash reserve adjustment;

 3  regulations.

 4

 5    (e)   Not  later  than  October 1  January  31  of each fiscal

 6  year, the department shall compute the amount by which each

 7  district's operating balance and cash reserves at the end of

 8  the preceding fiscal year exceed fifteen percent (15%) of

 9  the total foundation program amount computed under W.S.

10  21-13-309 for the preceding fiscal year. In making this

11  calculation, the entire operating balance and cash reserves

12  for each district for the fiscal year ending June 30, 1997,

13  as computed by the department, shall be separately accounted

14  for and excluded, until it has been completely expended by

15  the district. Except as otherwise provided in 1997 Special

16  Session Laws, chapter 3, section 306(e), as amended, that

17  excess shall be deemed to be a state revenue under W.S.

18  21-13-310(a) for the purpose of determining distributions

19  under W.S. 21-13-311 and amounts to be rebated under W.S.

20  21-13-102.  The department shall promulgate rules, including

21  reporting requirements and procedures for districts, to

22  implement this subsection.  As used in this section,

23  "operating balance and cash reserves" means those financial

24  resources of the district which are not encumbered by the

25  district board of trustees for expenditure to meet an



Page  46



 1  existing legal obligation or otherwise restricted by law or

 2  regulation for expenditure on specific educational programs.

 3  For purposes of this subsection, any balance within a

 4  district's separate account established under W.S.

 5  21-15-109(e) for major building and facility repair and

 6  replacement shall be deemed restricted by law for

 7  expenditure as provided by W.S. 21-15-109(e) and shall not

 8  be considered an operating balance and cash reserve under

 9  this section.

10     

11       Section 502.  (Fees for participation in activities)

12  W.S. 21-4-506 is created to read:

13

14       21-4-506.  Participation in activities by students not

15  enrolled in the district; limitation on fees.

16

17       (a)  Any school age child who is a resident of a school

18  district, who is not under suspension or expulsion by a

19  Wyoming school district and who is not enrolled as a full-

20  time student in the district in which he resides shall be

21  permitted by the district to participate in any activities

22  which are sanctioned by the Wyoming high school activities

23  association and which are offered by the district under the

24  same terms and conditions as full-time students of the

25  district subject to the following:



Page  47



 1

 2            (i)  The district may require the student to pay

 3  any fees for participation which are required by the Wyoming

 4  high school activities association;

 5

 6            (ii)  The district may charge that student an

 7  additional fee for participating, but that fee shall be no

 8  more than any fee for participating charged to full-time

 9  students of the district.  The district shall not require

10  that student to pay tuition or to pay any other fees or

11  charges as a condition of participation.

12

13                           [Part V.  Effective Dates]

14                                       

15       Section 601.  This act is effective July 1, 1999,

16  except that sections 301 and 302 of this act are effective

17  immediately upon completion of all acts necessary for a bill

18  to become law as provided by Article 4, Section 8 of the

19  Wyoming Constitution.

20     

21                                      (END)

                                        

Page  48