1999 State of Wyoming 99LSO-0167


                   SENATE FILE NO. SF0039   [SUBSTITUTE NO. 1]
                                        
                                        
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



Page  1



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

 2  foundation program for each district.

 3     

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

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

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

 7  for each district.  Unless otherwise specified in this 

 8 subsection, the adjustments under this subsection shall be 

 9 determined as specified in the cost of education study, 

10 dated April 1997, and the spreadsheet provided by the 

11 consultant performing the study related thereto, both of 

12 which are on file in the legislative service office:

13     

14         (i)    Compute   for   each   district   the   total   amount

15 expended on special education and on the transportation of 

16 school children, but excluding the amount actually expended 

17 by the district as transportation capital outlay for 

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

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

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

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

22 1998-1999 school year, as used in making the computation 

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

24 adjusted for the transportation of school children as 

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



Page  2



 1          

 2               (ii)   Compute  the  total  statewide  amount  expended

 3 on special education and on the transportation of school 

 4 children, but excluding the amount actually expended by the 

 5 district as transportation capital outlay for purchase or 

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

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

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

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

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

11 of this section The amount shall be adjusted for special

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

13          

14              (iii)   To  determine  the  revised  model  amount   per

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

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

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

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

19  shall be adjusted for necessary small schools in each 

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

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

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

23          



Page  3



 1           (iv)  The amount shall be adjusted for 

 2 economically disadvantaged students in each district as 

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

 4          

 5           (v)  The amount shall be adjusted for limited 

 6 English proficient students in each district as provided in 

 7 W.S. 21-13-325;

 8          

 9           (vi)  The amount shall be adjusted for routine 

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

11          

12           (vii)  The amount shall be adjusted for the 

13 seniority level of teachers in each district as provided in 

14 W.S. 21-13-323;

15          

16           (viii)  The amount shall be adjusted for extra 

17 compensation payments to teachers in each district as 

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

19          

20           (ix)  The amount shall be adjusted for isolation 

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

22          

23           (x)  The amount shall be adjusted for small 

24 districts as specified under W.S. 21-13-328.

25          



Page  4



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

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

 3  further adjusted for the following. Unless otherwise

 4  specified in this subsection, the adjustments under this

 5  subsection shall be determined as specified in the cost of

 6  education study, dated April 1997, and the spreadsheet

 7  provided by the consultant performing the study related

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

 9  service office:

10

11          (i)  The amount shall be adjusted for necessary

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

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

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

15 for  the preceding school year at that school;

16

17           (ii)  The amount shall be adjusted for 

18  economically disadvantaged students in each district. For 

19 the purposes of this paragraph, an "economically 

20  disadvantaged  student"  means  a  student  who  has  qualified  for

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

22  implement  and  administer  this  adjustment  and  for  the  purpose

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

24 21-13-313(c), the computation shall be based on the number 



Page  5



 1    of  economically  disadvantaged  students  identified  during  the

 2 preceding school year;

 3

 4      (iii)  The amount shall be adjusted for seniority

 5  level of teachers in each district  based  upon  the seniority 

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

 7  the  school  year for which the computation is made;

 8          

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

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

11  the effects of inflation;

12          

13      (v)(ii) The amount, after the adjustments 

14     adjustmentunder    paragraphs     (i)     through     (iv)paragraph 

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

16  further adjusted for regional cost of living differences.

17  The adjustment for regional cost of living differences shall

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

19  medical component omitted and with the housing component

20  included but modified by excluding the price for rental of

21  shelter subcomponent, as computed by the division of

22  economic analysis, department of administration and

23  information under rules promulgated by it with respect to

24  the methodology under which the index shall be computed.

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



Page  6



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

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

 3  used.This adjustment shall be subject to W.S. 21-13-329.

 4     

 5                   B.  Technical Corrections and Base Funding

 6     

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

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

 9     

10       21-13-309.  Determination of amount to be included in

11  foundation program for each district.

12     

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

14  foundation   program   for   each  district  for   the   1998-19991999-

15  2000 school yearand each school year thereafter, the state

16  superintendent shall first compute for each district a

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

18  follows:

19     

20            (ii)  Multiply the district's average daily

21  membership (ADM) for each school level identified under

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

23  the appropriate prototypical school model level:

24          



Page  7



 1                 (A)  Elementary school - kindergarten through

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

 3 dollars ($5,982.00) six thousand two hundred four dollars

 4 ($6,204.00);

 5               

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

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

 8  thousand two hundred dollars ($6,200.00);

 9               

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

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

12  ($6,572.00)  six  thousand  six  hundred  seventy-seven dollars 

13  ($6,677.00).

14               

15       Section 103.  (Tuition)

16     

17       (a)  W.S. 21-4-502, 21-4-504, 21-4-505 and

18  21-13-102(a)(ii)(A) are amended to read:

19     

20       21-4-502.  Attendance in another district when

21  convenient or desirable; admission of pupils resident in

22  other districts; attendance for ADM computations specified.

23     

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

25   within  the  state may, pay tuition from the  funds  of  the



Page  8



 1   district  for and shall with  respect  to  high  school students 

 2  resident in nonunified school districts, provide for the 

 3  enrollment ofany pupil resident therein who in  a school 

 4  within another district if the pupildesires to attend the

 5  school in another district when and if attendance in such

 6  other district would be more convenient or is desirable

 7  because of services available in such other district. The 

 8  district providing for the enrollment of the pupil in a 

 9  school within another district shall not include the pupil 

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

11  the foundation program under W.S. 21-13-309.

12     

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

14  resident in other districts of the state unless the

15  admission overcrowds the classrooms of the admitting

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

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

18  board of trustees or designated disciplinarian of any other

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

20  tuition  for  a  pupil  admitted pursuant  to  this  subsection  may

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

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

23  per pupil for operation of the admitting school for the 

24  preceding school year. No district shall be liable for 

25  payment unless it has previously given permission, in 



Page  9



 1  writing,  to  the enrollment of the pupil The  district

 2  admitting a pupil under this subsection shall not assess 

 3  tuition payments upon the district wherein the pupil 

 4  resides, but shall include the pupil within its average 

 5  daily membership (ADM) for purposes of determining its 

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

 7     

 8       21-4-504.  Cost of maintaining pupil attending school

 9  outside district of residence.

10

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

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

13  required  to  maintain  the pupil  in  the  admitting  district  and

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

15  disabilities  placed  outside  the  district.  A  school district 

16  admitting a pupil from a nonunified school district in the 

17  state or providing for the enrollment of a pupil in a school 

18  within a school district in another state under W.S. 

19  21-4-505 shall, in accordance with rules and regulations of 

20  the state department, be reimbursed from the school 

21  foundation program account for expenditures for maintaining 

22  that pupil in the admitting district for any length of time 

23  the pupil is required to reside in the admitting district.  

24  Reimbursement under this subsection shall be subject to and 

25  reported in accordance with rule and regulation of the state 



Page  10



 1 department and shall be administered as if the district's 

 2 total foundation program amount computed under W.S. 

 3 21-13-309(p) is increased by the amount of the expenditure 

 4 for maintenance during the preceding year.

 5

 6       21-4-505.  Payment of tuition for pupil attending

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

 8     

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

10  of any school district within the state that instruction for

11  any pupil residing in the district can be more

12  advantageously or economically furnished by a public school

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

14  Wyoming district may enter into an agreement for the

15  instruction of such pupils at rates of tuition specified in

16  the agreement. The Wyoming district shall be reimbursed for 

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

18  district from the school foundation program account 
 
19  administered as if the district's total foundation program 
 
20  amount computed under W.S. 21-13-309 for that year was 

21  increased by the amount of the tuition paid during the 

22  preceding year.  The district shall not include a pupil 

23  attending a school within an out of state school district 

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



Page  11



 1 computing its foundation program amount under W.S. 

 2 21-13-309.

 3     

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

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

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

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

 8  21-4-503  under subsection (c)  of  this  section. The 

 9  admitting district shall:

10     

11           (i)  Include the admitted out of state pupil 

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

13 computing its foundation program amount under W.S. 

14 21-13-309; and

15          

16           (ii)  Account separately for the portion of the 

17 tuition received pursuant to this subsection which is 

18 related to school buildings and facilities, as determined by 

19 the district and reported to the state department, and 

20 deposit that portion in its debt service account. The 

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

22 21-13-310(a)(ix).

23          

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

25 shall be determined by dividing the total operating cost of 



Page  12



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

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

 3 of the district's average daily membership for the previous 

 4 year.

 5          

 6       21-13-102.  Maximum rate of school district tax;

 7  recapture of excess; equalization of permissive levies.

 8     

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

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

11  school purposes, exclusive of bond interest and redemption,

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

13  assessed valuation within the school district is as follows:

14

15            (ii)  In any nonunified school district consisting

16  of kindergarten through grade eight (8):

17          

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

19  be levied for school purposes; and

20               

21       Section 103.  (Tuition)

22     

23       (b)  W.S. 21-4-501, 21-4-503 and 21-13-102(a)(ii)(C)

24  are repealed.

25     



Page  13



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

 2  21-4-401(a) and by creating new subsections (d) and (e) is

 3  amended to read:

 4     

 5       21-4-401.  Transportation or maintenance for isolated

 6  pupils.

 7     

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

 9  within the state shall provide transportation or maintenance

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

11  pupil unless a greater maximum is established by the state 

12  superintendent, for isolated elementary or high school

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

14  the best interests of the affected children to provide

15  transportation or maintenance than to establish a school to

16  serve these pupils,. In no case shall  sumsand for those 

17  isolated pupils resident within the district who are 

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

19  21-4-502.  Amountspaid under this section shall be subject 

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

21  exceed the actual costs incurred by parents or pupils.

22     

23      (d)  To receive transportation payments under this 

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

25 eligible under this section shall file a transportation 



Page  14



 1 reimbursement claim with the district on a form provided by 

 2 the district specifying the total round trip miles traveled 

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

 4 applicable. The total round trip miles shall be multiplied 

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

 6 9-3-103(a)(iii) to compute the daily mileage reimbursement 

 7 amount. Where combined transportation is provided for two 

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

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

10     

11      (e)  Monthly maintenance payments may be paid under 

12 this section in lieu of transportation payments if the pupil 

13 resides at a location near the school rather than the 

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

15 the amount of maintenance payments claimed or the 

16 transportation payments that would have been payable under 

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

18 under this section shall reimburse the isolated student's 

19 parent or legal guardian for additional reasonable living 

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

21 district shall be reimbursed for the full amount of 

22 isolation or maintenance payments it makes under this 

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

24 total foundation program amount computed under W.S. 



Page  15



 1 21-13-309(p) was increased by the amount of isolation or 

 2 maintenance payments made during the preceding year.

 3     

 4       Section 105.  (Teacher Extra Compensation

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

 6     

 7       21-13-324.  Teacher extra compensation adjustment to

 8  district total amount per ADM.

 9     

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

11  as necessary to employ teachers for providing educational

12  programs at locations which because of their unique

13  circumstances require additional pay. Extra compensation

14  under this section:

15          

16            (i)  Shall not reflect district preference for

17  higher salaries;

18          

19            (ii)  Shall be payment for performing regular

20  duties and not be payment for performing any additional

21  duties assigned to the teacher;

22          

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

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

25     



Page  16



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

 2  or other costs, the school district shall provide

 3  information to the state department describing the

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

 5  comparable market rate within the county for rent or other

 6  subsidized cost.

 7     

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

 9  prescribed and provided by the state department, the

10  department shall reimburse the district from the foundation

11  account for extra compensation paid pursuant to subsection

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

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

14  was increased by the amount of extra compensation paid

15  during the preceding year. The department shall require the

16  district to document the need for extra compensation

17  payments.

18     

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

20  new subsection (s) is amended to read:

21     

22       21-13-309.  Determination of amount to be included in

23  foundation program for each district.

24



Page  17



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

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

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

 4 statutes referenced in this section or otherwise applicable 

 5 in making computations under this section, the average daily 

 6 membership for each district's kindergarten students shall 

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

 8 to be made in this section in accordance with 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                  C.  School Finance Funding Formula Components

15     

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

17  created to read:

18     

19       21-13-320.  Student transportation; adjustment to

20  school foundation program formula for transportation

21  maintenance and operations expenditures and school bus

22  purchases; district reporting requirements.

23     



Page  18



 1       (a)  The adjustment for the transportation of school

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

 3  in accordance with this section.

 4     

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

 6  for each district shall be reduced by the total statewide

 7  expenditure for transportation, including capital outlay for

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

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

10  21-13-309(p) for each school district equal to one hundred

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

12  district during the previous school year under subsection

13  (c) of this section and for:

14     

15            (i)  The maintenance and operation of

16  transportation routes for transporting school children to

17  and from school; and

18     

19            (ii)  The transportation of students to and from

20  student activities authorized by department of education

21  rules.  For the purpose of this paragraph, student

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

23  No reimbursement shall be made for transportation expenses

24  for student activities for expenses for transportation in



Page  19



 1  excess of one hundred fifty (150) miles from the Wyoming

 2  border into another state.

 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  20



 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)  In addition to the amount computed pursuant to

22  subsection (b) of this section, to encourage school

23  districts to reduce transportation expenditures,  any school

24  district shall receive an amount in addition to its



Page  21



 1  guarantee under W.S. 21-13-309(p) equal to one-half (1/2) of

 2  the difference between:

 3

 4            (i)  The expenditures for the transportation items

 5  in paragraphs (b)(i) and (ii) of this section in school year

 6  1997-1998; and

 7

 8  (ii) The expenditures for the transportation items

 9  in paragraphs (b)(i) and (ii) of this section for the

10  preceding school year.

11          

12       (e)  The department of education shall adopt necessary

13  rules and regulations to implement and enforce state

14  standards established under this section and to administer

15  this section.  In addition, districts shall report

16  expenditures, purchases and lease arrangements for the

17  applicable reporting period as required by department rule

18  and regulation.  The department shall annually review and

19  conduct audits as necessary of information submitted under

20  this section.

21     

22       Section 202.  (Small Schools Adjustment)

23     



Page  22



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

 2  21-13-319(b)(intro) and by creating a new paragraph (iv) is

 3  amended to read:

 4     

 5       21-13-319.  Small schools; adjustment to the school

 6  foundation program formula.

 7     

 8       (b)  The adjustment for necessary small schools shall

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

10 to the following follows:

11     

12           (iv)  There shall be an adjustment for student 

13 activities as provided by this paragraph subject to the 

14 following:

15               

16           (A)  This adjustment shall be computed by 

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

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

19 student activities at the school for the preceding school 

20 year reduced by the amount included within the model for 

21 student activities. For the purpose of computing the 

22 adjustment in this paragraph, the number of student 

23 activities for a school shall not exceed the number of 

24 activities provided at the school during the 1997-1998 

25 school year;



Page  23



 1               

 2          (B)  For purposes of this paragraph:

 3                    

 4                     (I)  "Student activities" means athletic 

 5 and nonathletic activities sanctioned by the Wyoming high 

 6 school activities association and school sponsored athletic 

 7 and nonathletic activities in grades preceding high school 

 8 which directly correspond to those high school activities 

 9 sanctioned by the Wyoming high school activities 

10 association, exclusive of transportation costs for such 

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

12                    

13      (II)  "The amount included within the 

14 model for student activities" shall be computed using the 

15 amount for student activities contained within each 

16 prototypical school model, as adjusted by the amount for 

17 student activities contained within necessary small school 

18 prototypical model, the regional cost adjustment and the 

19 external cost adjustment, if any. 

20     

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

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

23  amended to read:

24     



Page  24



 1       21-13-319.  Small schools; adjustment to the school

 2  foundation program formula.

 3     

 4       (b)  The adjustment for necessary small schools shall

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

 6  21-13-309(n)(iii) subject to the following:

 7     

 8       (ii)  There shall be an adjustment for utilities

 9  as provided in this paragraph.  This adjustment shall be

10  computed    by   increasing   the   small    school    adjustmentby adding 

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

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

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

14  this paragraph, "utilities" means electricity plus natural

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

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

17  necessary small school located on a school area with another

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

19  school;

20

21            (iii)  There shall be an adjustment for food

22  service participating in the national school lunch program

23  as  provided  in  this  paragraph.  as follows:

24          



Page  25



 1               (A)  No necessarysmall school shall be

 2  eligible for this adjustment unless:

 3               

 4                     (I)  Middle and high schoolstudents are

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

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

 7 determined under federal regulation issued by the United 

 8 States Department of Agriculture under the National School 

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

10                    

11                     (II)  Elementary students are charged 

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

13 rate specified under subdivision (I) of this subparagraph 

14 for each reimbursable lunch; and

15                    

16                     (III)  The rates assessed under this 

17 paragraph shall be not less than the rate specified under 

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

19 prepayment discount has been deducted from the rate the 

20 district established for the reimbursable lunch.

21                    

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

23  adjustment shall be computed by adding to the amount 

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

25  difference  between  the  actual cost  of  expenditures for



Page  26



 1  providing food service and the revenues received from

 2  charges for lunches.  Payments for this difference in excess

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

 4  the state superintendent finds that failure to provide full

 5  payment for the difference will significantly affect the

 6  ability of the school district to provide adequate

 7  educational services to students.

 8     

 9       (d)  (Small Schools-including alternative and charter

10  schools) W.S. 21-13-318(b)(iv), (v), (c)(iv) and (v) is

11  repealed.

12     

13       (e)  W.S. 21-13-328 is created to read:

14     

15       21-13-328.  Additional funding for special schools.

16

17       (a)  For the purposes of this section "choice school"

18  means a school, operated by a district:

19

20            (i)  In which students may enroll as a matter of

21  choice and are not required to attend as a result of their

22  geographic location;

23



Page  27



 1            (ii)  Whose enrollment is open to all students

 2  within the district or all those within reasonable commuting

 3  distance of the school, provided that district may adopt:

 4

 5                 (A)  Provisions to limit the enrollment to

 6  the planned capacity of the school, admissions

 7  qualifications for applying students; and

 8

 9                 (B)  Restrictions on enrollment designed to

10  ensure that students enroll in the school are appropriate

11  given the curriculum, teaching methods and education.

12

13            (iii)  Which uses a curriculum, teaching methods

14  or educational philosophy or methods significantly different

15  from that found in the majority of schools within the

16  district or schools containing the majority of the pupils in

17  the district in the grades served by choice school.

18

19       (b)  The adjustment for choice schools shall be

20  computed in the same manner as the adjustment for small

21  schools, subject to the following:

22

23            (i)  The restrictions on school area provided by

24  W.S. 21-13-318(a)(ii) do not apply.  No choice school shall



Page  28



 1  receive the adjustment provided by this section if it is

 2  physically located within the facilities of another school;

 3

 4            (ii)  Except for schools in existence as of

 5  January 15, 1999, no school shall be eligible for this

 6  adjustment without the approval of the state superintendent

 7  of public instruction.  Nothing in this act shall be

 8  construed as requiring a school district to obtain the

 9  approval of the state superintendent of public instruction

10  in order to establish a choice school. The state

11  superintendent shall not permit such schools to obtain the

12  adjustment if the primary purpose of establishing such a

13  school was to obtain additional funding;

14

15            (iii)  Schools qualifying for this adjustment may

16  permit students to enroll in other schools for the purpose

17  of participating in activities, or taking courses not

18  offered by the school receiving the adjustment or where

19  valid educational concerns including scheduling problems

20  make taking particular courses at another school

21  advantageous to individual students. In this event districts

22  shall not count students more than once in computing their

23  ADM.

24



Page  29



 1  (c)  In lieu of the small school adjustment, if any,

 2  under W.S. 21-13-319 with respect to charter schools and

 3  alternative schools, or the adjustment under this section

 4  with respect to choice schools, a  district may elect to

 5  receive an adjustment equal to one hundred dollars ($100.00)

 6  per ADM at the school in the preceding year plus the

 7  adjustments provided under W.S. 21-13-319(b)(ii) through

 8  (iv).

 9     

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

11  created to read:

12

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

14  foundation program formula.

15

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

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

18  maintenance.

19

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

21  21-13-322 is created to read:

22     

23       21-13-322.  Economically disadvantaged students;

24  adjustment to foundation program formula.

25     



Page  30



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

 2  disadvantaged student" means a student who has qualified for

 3  free or reduced priced lunch under the national school lunch

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

 5     

 6       (b)  The adjustment for economically disadvantaged

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

 8  for each district as provided in this section. Each district

 9  shall receive an adjustment computed by multiplying the

10  number of identified economically disadvantaged students

11  attending the district for the preceding school year times

12  two hundred fifty dollars ($250.00).

13     

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

15  21-13-325 is created to read:

16     

17       21-13-325.  Limited English proficient students;

18  adjustment to foundation program formula.

19     

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

21  proficient student" means a student identified with limited

22  English proficiency under state identification and

23  assessment procedures prescribed by rule and regulation of

24  the state department.

25     



Page  31



 1       (b)  The adjustment for limited English proficient

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

 3  computed for each district as provided in this section.

 4  Computations under this section shall be based upon

 5  identified limited English proficient student numbers and

 6  average daily membership counts for the preceding school

 7  year.

 8     

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

10  proficient students shall be computed as follows:

11          

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

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

14  student by five percent (5%);

15          

16            (ii)  Multiply the number of identified limited

17  English proficient students attending the district for the

18  preceding school year times the amount determined under

19  paragraph (c)(i) of this section.

20          

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

22  created to read:

23

24       21-13-323.  Teacher seniority; adjustment to foundation

25  program formula.



Page  32



 1

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

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

 4  or professional staff for whom certification is required as

 5  a condition of employment as a certified professional

 6  employee, excluding certified and noncertified

 7  administrative staff.

 8

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

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

11  each district by multiplying the total number of years of

12  service of all teachers employed by the district during the

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

14  seniority, determined as specified in the spreadsheets

15  accompanying the February 1998 teacher seniority adjustment

16  report provided by the consultant performing the cost of

17  education study, which is on file with the legislative

18  service office.  The adjustment computation under this

19  subsection shall be subject to the following:

20

21            (i)  Except as otherwise specified by paragraph

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

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

24  the district;

25          



Page  33



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

 2  district for any school year shall not include any first

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

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

 5  service until completion of the initial year of employment.

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

 7  service for each year of employment within any Wyoming

 8  school district in accordance with W.S. 21-7-104(b), or

 9  school district of another state.  Not more than five (5)

10  years service in another state shall be credited. Service in

11  another state shall not be credited under this paragraph

12  prior to any year in which the teacher was not certified as

13  a teacher in Wyoming or another state;

14

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

16  district for any school year shall not include more than

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

18

19            (iv)  The statewide value of one (1) year of

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

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

22  for computations under this section.

23

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

25  created to read:



Page  34



 1     

 2       21-13-321.  Special education; adjustment to foundation

 3  program formula.

 4     

 5       (a)  As used in this section:

 6          

 7            (i)  "General fund operating expenditures" means

 8  those expenditures of the district from the general fund for

 9  operation of the district as reported to the department of

10  education under rules promulgated by the department;

11          

12            (ii)  "Special education programs and services"

13  means programs and services for students with disabilities

14  as identified under the federal Individuals with

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

16     

17       (b)  The adjustment for special education pursuant to

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

19     

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

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

22  expenditure for special education per ADM during the 1996-

23  1997 school year;

24          



Page  35



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

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

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

 4  district during the previous school year for special

 5  education programs and services, subject to the following

 6  computations by the state department:

 7               

 8                 (A)  For the school year preceding the school

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

10  district expenditures for special education programs and

11  services by the total general fund operating expenditures of

12  the district;

13               

14                 (B)  For the school year preceding the school

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

16  of this paragraph, divide the total district expenditures

17  for special education programs and services by the total

18  general fund expenditures of the district;

19          

20            (iii)  If the ratio computed under subparagraph

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

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

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

24  district expenditures for special education programs and

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



Page  36



 1  making the adjustment under this section for that school

 2  year.  The district shall provide the department written

 3  documentation regarding the increase in the rates of

 4  expenditures for special education programs and services for

 5  that school year;

 6          

 7            (iv)  The department shall reduce the amount of

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

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

10  of this subsection unless the department finds those excess

11  expenditures were necessary to providing essential special

12  education services.

13     

14       (c)  The adjustment provided under this section shall

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

16  2002-2003 only.

17     

18       (d)  The department of education shall annually review

19  and report to the joint education interim committee

20  regarding services provided to special education students by

21  school districts.  The report shall evaluate the extent to

22  which services are being appropriately provided and whether

23  expenditures for services are reasonable in light of charges

24  by providers of similar services in Wyoming.

25     



Page  37



 1       Section 208. (Additional small schools adjustment to

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

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

 4

 5       21-13-327.  Additional adjustment for small schools.

 6

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

 8  provided in this section which shall be additional and not

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

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

11  21-13-309(p) for each district.  The adjustment for each

12  district shall be equal to:

13

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

15  (1/3) of the difference between the amount computed under

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

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

18  the district;

19

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

21  (2/3) of the difference between the amount computed under

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

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

24  the district;

25



Page  38



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

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

 3  difference between the amount computed under subsection (b)

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

 5  21-13-309(p) for that school year for the district.

 6

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

 8  state superintendent shall annually recompute the amount for

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

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

11  computed subject to the following:

12

13            (i)  A school is a necessary small elementary

14  school if:

15

16                 (A)  The school was established as an

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

18  1998, it qualifies under W.S. 21-13-318(f); or

19

20  (B)  If the school was established before

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

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

23  1998, and:

24



Page  39



 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 has not been

11  disqualified as a necessary small school under W.S.

12  21-13-318(d), for change of grade configuration, or W.S.

13  21-13-318(e) for loss of ADM.

14

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

16  if:

17

18                 (A)  The school was established as a high

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

20  21-13-318(f); or

21

22  (B)  If the school was established before

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

24  high school before July 1, 1998, and:

25



Page  40



 1                      (I)  There was a total of four hundred

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

 3  (12) enrolled in the school;

 4

 5                      (II)  The average ADM enrolled in grades

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

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

 8  was four hundred (400) or fewer ADM;

 9

10                      (III)  The school has not been

11  disqualified as a necessary small school under W.S.

12  21-13-318(d), for change of grade configuration, or W.S.

13  21-13-318(e) for loss of ADM.

14

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

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

17  read:

18

19       21-13-310.  Annual computation of district revenues.

20

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

22  uniformly sufficient to enable compliance with the uniform

23  standards for educational programs prescribed under W.S.

24  21-9-101 and 21-9-102 and to secure state board

25  accreditation of educational programs under W.S.



Page  41



 1  21-2-304(a)(ii), the revenues specified under this

 2  subsection shall be deemed state revenues and shall be

 3  considered in determining the amount to be distributed to

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

 5  annual computation of the following revenues:

 6

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

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

 9  earned during the previous school year, excluding interest

10  earnings on the separate major building and facility repair

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

12

13       Section 210. (Small district adjustment)  W.S.

14  21-13-328 is created to read:

15

16       21-13-328.  Small school district adjustment.

17

18  (a)  There shall be an adjustment for small school

19  districts as provided in this section. For the purpose of

20  this adjustment for any school year, a small school district

21  is a school district with not more than one thousand three

22  hundred fifty (1350) ADM.  W.S. 21-13-309(s) applies to this

23  section.  The amount of the adjustment under W.S.

24  21-13-309(n)(x) shall be the sum of the amounts computed



Page  42



 1  under subsections (b) through (d) of this section divided by

 2  the ADM of the district.

 3

 4       (b)  The small school district adjustment shall include

 5  fifty thousand dollars ($50,000.00) for each attendance

 6  center in the district in addition to the one (1) in which

 7  the district office is located.  An "attendance center" is

 8  the set of all schools located within or near a municipality

 9  or at a location separate and apart from that municipality,

10  including, but not limited to, one (1) teacher schools or in

11  communities which are not municipalities.  The department of

12  education shall annually specify attendance centers in small

13  school districts by rule and shall rely to the extent

14  practicable upon whether the school has a mailing address of

15  a different town.  Those rules shall reflect the legislative

16  intent that there are additional administrative and other

17  operational costs in small school districts where students

18  attend school at different locations in the district other

19  than in the same town in which the district office is

20  located.

21

22       (c)  The small school district adjustment shall include

23  an amount for administration for districts with fewer than

24  nine hundred (900) ADM computed as follows where "ADM" means

25  the ADM for the district and where "x" means times:



Page  43



 1

 2  (ADM x (ADM - 900) x (ADM - 900)) +  600) - (ADM x 600)

 3  (      (        (1040)          )       )

 4

 5       (d)  The small school district adjustment shall include

 6  an amount for maintenance and operations for districts with

 7  fewer than one thousand one hundred (1,100) ADM computed as

 8  follows where "ADM" means the ADM for the district and where

 9  "x" means times:

10

11  (ADM x (ADM - 1100) x (ADM - 1100)) +  350) - (ADM x 350)

12  (      (        (3700)            )       )

13

14   Section 211.  W.S. 21-13-309(p) and by creating a new

15  subsection (t) is amended to read:

16

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

18  foundation program for each district.

19

20       (p)  After all adjustments under subsection (o) of this

21  section have been made, this adjusted, revised model ADM

22  amount for each district shall be multiplied by the ADM for

23  each district to determine the initial amount for each 

24  foundation program amount for each district. To each of 

25  these initial amounts, there shall be added all additions to 



Page  44



 1 the amount under this subsection otherwise specified by law, 

 2 except for hold harmless payments under 1997 Wyoming Special 

 3 Session Laws, Chapter 3, Section 306, as amended.  The sum 

 4 of these initial amounts, with additions, shall be divided 

 5 by the statewide ADM to determine a statewide average amount 

 6 per ADM.  The initial amount, with additions, for any 

 7 district which is less than ninety-four percent (94%) of the 

 8 statewide average amount per ADM shall be increased to 

 9 ninety-four percent (94%) of the statewide average amount 

10 per ADM.  After all required increases, the initial amount, 

11 with additions, shall be multiplied by the ADM for each 

12 districtto determine the foundation program amount for each

13 district, except as otherwise provided by law and subsection 

14 (t) of this section.  For the purposes of this subsection,

15  the average daily membership (ADM) for each district's

16  kindergarten students shall be divided by two (2).

17

18 (t)  The model amount for each district shall be 

19 ninety-nine percent (99%) of the amount computed under 

20 subsection (p) of this section and shall be used for the 

21 purposes of computing hold harmless payments under 1997 

22 Wyoming Special Session Laws, Chapter 3, Section 306, as 

23 amended.

24     

25       Section 212. W.S. 21-13-329 is created to read:



Page  45



 1     

 2       21-13-329.  Additional regional cost adjustment.

 3     

 4       (a)  There shall be added to the foundation program

 5  amount computed under W.S. 21-13-309(p) an amount as

 6  computed under this section.

 7     

 8       (b)  The amount shall be fifty percent (50%) of the

 9  difference between:

10     

11            (i)  The foundation program amount computed under

12  W.S. 21-13-309(p) for the district using the regional cost

13  index under subsection (c) of this section if applicable;

14  and

15     

16            (ii)  The foundation program amount computed under

17  W.S. 21-13-309(p) for the district.

18     

19       (c)  For the purposes of making the computation under

20  paragraph (b)(i) of this section, there shall be no

21  exclusions from the housing component in the Wyoming cost-

22  of-living index used to make the computation under paragraph

23  (ii) of this subsection for a district if, using the average

24  of the six (6) versions of the Wyoming cost-of-living index

25  with the omissions and exclusions in paragraph (ii) of this



Page  46



 1  subsection, the difference between the index for a district

 2  and the average index for all districts is at least two-

 3  thirds (2/3) of the difference between the highest and

 4  lowest index  for all districts.

 5     

 6       Section 213.  W.S. 21-13-330 is created to read:

 7

 8       21-13-330.  Distance learning incentive.

 9

10  (a)  Effective for the 1999-2000 school year, and each

11  year thereafter, any school district offering and providing

12  the teacher for any course via distance learning technology

13  shall receive a payment from the foundation program of five

14  hundred dollars ($500.00) per student for every student who

15  takes the course and who attends school in a district other

16  than the district which employs the teacher.  This payment

17  shall be in addition to the foundation program amount under

18  W.S. 21-13-309(p).  The number of students shall be

19  determined by counting them as of the day after the normal

20  last date for students in their home school district to drop

21  a course.  In the event there is insufficient money

22  appropriated from the foundation program, the state

23  superintendent shall make a pro rata reduction in the

24  payments to districts for each student.

25



Page  47



 1       (b)  The University of Wyoming and every community

 2  college providing any course via distance learning

 3  technology for dual high school and college credit shall

 4  receive a payment from the foundation program as provided by

 5  subsection (a) of this section for every high school student

 6  from a high school outside the school district in which the

 7  college instructor primarily responsible for the course is

 8  located.

 9

10       (c)  If a separate appropriation is made for payments

11  under this section, no additional funds shall be made

12  available for such payments.  If no separate appropriation

13  is made, the appropriation for schools from the foundation

14  program applies to payments under this section.

15

16       (d)  Effective for the 2000-2001 school year, all

17  courses offered using interactive video equipment shall

18  begin on the hour.  The state superintendent, with the

19  approval of the state board of education may establish a

20  different uniform starting time or schedule of starting

21  times for such courses.  The state superintendent may grant

22  exceptions to the uniform rule for good cause shown in

23  individual cases.

24



Page  48



 1       (e)  Classrooms equipped with interactive video

 2  equipment purchased pursuant to this act shall be available,

 3  when not needed for school purposes, for use for

 4  instructional purposes by the University of Wyoming or any

 5  Wyoming community college.   In the case of conflicting

 6  requests for usage, the school district board of trustees

 7  shall determine the usage.  The school districts may charge

 8  a fee for this use, but the fee shall not exceed the

 9  additional cost incurred by the district to accommodate the

10  use.  Such fees received shall not be included in the

11  computation of revenue for the district under W.S.

12  21-13-310.

13     

14       Section 214.  W.S. 21-13-331 is created to read:

15     

16       21-13-331.  Cooperative services incentive.

17     

18       (a)  If two (2) or more districts enter into an

19  arrangement to combine student transportation services, the

20  district shall receive an amount in addition to the

21  guarantee under W.S. 21-13-309(p) during the succeeding

22  school year, subject to the following:

23

24            (i)  The combined service arrangement shall result

25  in a reduction in the total expenditures of both



Page  49



 1  participating districts for the portion of total

 2  transportation services included within the arrangement.

 3  Districts participating in a combined service arrangement

 4  may agree to apportion reduced expenditures among themselves

 5  for the purposes of paragraph (ii) of this subsection;

 6

 7            (ii)  This additional incentive shall be equal to

 8  fifty percent (50%) of the total savings but shall not

 9  exceed fifty thousand dollars ($50,000.00) for any one (1)

10  combined service arrangement; and

11

12  (iii)  Each district participating in a combined

13  service arrangement shall report to and submit documentation

14  regarding the combined service arrangement to the state

15  department.

16

17       (b)  If two (2) or more districts enter into an

18  arrangement to combine any program or service for children

19  with disabilities, the district shall receive an amount in

20  addition to the guarantee under W.S. 21-13-309(p) during the

21  succeeding school year, subject to the following:

22

23            (i)  The combined arrangement shall result in a

24  reduction in the total expenditures of all participating

25  districts for that program, service or portion thereof which



Page  50



 1  is included within the arrangement.  Districts participating

 2  in a combined service arrangement may agree to apportion

 3  reduced expenditures among themselves for the purposes of

 4  paragraph (ii) of this subsection;

 5

 6            (ii)  This additional incentive shall be equal to

 7  fifty percent (50%) of the total savings but shall not

 8  exceed fifty thousand dollars ($50,000.00) for any one (1)

 9  combined service arrangement; and

10

11            (iii)  The district reports to and submits

12  documentation on the combined arrangement to the state

13  department.

14

15       (c)  Districts shall report information necessary to

16  compute any additional payments resulting from combined

17  service agreements under subsection (a) or (b) of this

18  section at the same time they report actual revenue

19  collections for the purpose of reconciliation under W.S.

20  21-13-313(d).  Not later than October 15 of each year,

21  school districts shall be paid from the school foundation

22  program any payments for which the district is eligible

23  under this section.  None of the additional incentive

24  payments under this section shall be counted for the purpose



Page  51



 1  of computing a district's entitlement to revenues for any

 2  school year.

 3     

 4                        [Part II.  1998-1999 School Year]

 5                                       

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

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

 8

 9       21-13-309.  Determination of amount to be included in

10  foundation program for each district.

11

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

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

14  further adjusted for the following. Unless otherwise

15  specified in this subsection, the adjustments under this

16  subsection shall be determined as specified in the cost of

17  education study, dated April 1997, and the spreadsheet

18  provided by the consultant performing the study related

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

20  service office:

21

22            (iii)  In making computations for funding for the 

23  1998-1999 school year the amount shall be adjusted for

24  seniority level of teachers in each district based upon the

25  seniority level of teachers employed by the district as of



Page  52



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

 2 computation is made;

 3

 4       Section 302.  (Transitional payments due to estimates)

 5     

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

 7  transition to the new school finance system and that

 8  educational goods and services can be continuously provided

 9  to students, relief should be provided to school districts

10  where:

11

12            (i)  The school district budgeted in good faith

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

14  provided by the department of education during the spring of

15  1998; and

16

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

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

19  as computed in August 1998 was calculated to be

20  significantly less than the amount estimated in the spring

21  of 1998.

22

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

24  districts shall be entitled to funding as provided in this

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



Page  53



 1  funding available to the district in accordance with law.

 2  Funding provided under this section shall be included in

 3  calculating total revenue for the district during the 1998-

 4  1999 school year when determining the district's eligibility

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

 6  year as provided under 1997 Wyoming Special Session Laws,

 7  Chapter 3, Section 306, as amended.

 8

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

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

11  30, 1998, is at least five percent (5%) greater than the

12  amount of revenue calculated by the department of education

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

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

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

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

17  21-13-309(p) had been increased by this amount.  To the

18  extent payments are required from the department to the

19  district due to this additional funding, payments shall be

20  made during the remainder of the school year proportionally

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

22

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

24  revenue" means the amount of revenue for the district

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



Page  54



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

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

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

 4

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

 6                                   Technology]

 7                                       

 8       Section 401.  (Special Education Adjustment)

 9     

10       (a)  The state superintendent shall on or before

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

12  committee on the special education adjustment provided under

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

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

15  recommendations for modification of the adjustment.

16     

17       (b)  The joint education interim committee shall report

18  any recommendations on the special education adjustment to

19  the legislature for consideration by the 2003 legislature.

20

21       Section 402. (Vocational education data collection)

22     

23       As required by law, the department of education submitted to

24  the select committee on school finance a report dated

25  September 25, 1998, entitled "The feasibility of developing



Page  55



 1  a cost adjustment for vocational-technical education

 2  programs." Consistent with the recommendations contained

 3  therein, the department of education shall collect data

 4  regarding vocational education equipment and supplies

 5  expenditures from districts through district reporting

 6  requirements established by the department.  The purpose of

 7  this reporting is to develop baseline data regarding

 8  expenditures for vocational education equipment and

 9  supplies.  The department shall submit the report to the

10  joint education interim committee not later than October 1,

11  1999.  The committee shall submit a report to the 2000

12  legislature regarding the feasibility of implementing an

13  adjustment to the school finance formula for vocational

14  education in light of the baseline data.

15

16             [Part IV.  Public Education-Refinements and Conforming

17                                   Amendments]

18                                       

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

20  are amended to read:

21

22       21-2-203.  School district data collection; division

23  established; duties and responsibilities specified.

24



Page  56



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

 2  shall apply:

 3

 4       21-13-313.  Distribution of funds from foundation

 5  account; property tax and cash reserve adjustment;

 6  regulations.

 7

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

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

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

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

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

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

14  calculation, the entire operating balance and cash reserves

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

16  as computed by the department, shall be separately accounted

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

18  the district. Except as otherwise provided in 1997 Special

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

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

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

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

23  21-13-102.  The department shall promulgate rules, including

24  reporting requirements and procedures for districts, to

25  implement this subsection.  As used in this section,



Page  57



 1  "operating balance and cash reserves" means those financial

 2  resources of the district which are not encumbered by the

 3  district board of trustees for expenditure to meet an

 4  existing legal obligation or otherwise restricted by law or

 5  regulation for expenditure on specific educational programs.

 6  For purposes of this subsection, any balance within a

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

 8  21-15-109(e) for major building and facility repair and

 9  replacement shall be deemed restricted by law for

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

11  be considered an operating balance and cash reserve under

12  this section.

13     

14       Section 502.  (Fees for participation in activities)

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

16

17       21-4-506.  Participation in activities by students not

18  enrolled in the district; limitation on fees.

19

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

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

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

23  time student in the district in which he resides, shall be

24  permitted by the district to participate in any activities

25  which are sanctioned by the Wyoming high school activities



Page  58



 1  association and which are offered by the district subject to

 2  the following:

 3

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

 5  any fees for participation which are required by the Wyoming

 6  high school activities association;

 7

 8            (ii)  The district may charge that student an

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

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

11  students of the district.  The district shall not require

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

13  charges as a condition of participation;

14          

15            (iii)  As a condition of participation, the

16  student shall be required to comply with all other rules and

17  policies of the district or any school activities

18  association applicable to all students participating in the

19  activity and not related to the assessment of fees or

20  charges.

21

22                           [Part V.  Effective Dates]

23                                       

                                        

                                    Page  59

                                        

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

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

 3  immediately upon completion of all acts necessary for a bill

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

 5  Wyoming Constitution.

 6     

 7                                      (END)

                                        

Page  60