Senate Bill No. 428

(By Senator Wagner)

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[Introduced February 21, 1994; referred to the Committee
on Education.]

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A BILL to amend and reenact section eighteen, article sixteen, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend article eight, chapter eleven of said code by adding thereto a new section, designated section six-h; to amend and reenact section eighteen-a, article seven-a, chapter eighteen of said code; to amend and reenact sections two, four, five, five-a, six, nine, ten and twenty-four, article nine-a of said chapter; and that said article be further amended by adding thereto two new sections, designated sections six-b and twenty-five, all relating to total state basic foundation programs for public education; clarifying payments to the public employees insurance agency by county boards of education; reducing automatic payments from county boards of education to public libraries; increasing payments to the teachers retirement system; increasing the caps on gifted and honors and advanced placement programs; providing a definition for
professional administrative personnel; increasing the number of professional educators and increasing the number of substitutes for professional educators; providing one million five hundred thousand dollars for waiver program for service personnel and increasing the number of substitutes for service personnel; amending the net enrollment cap for professional and service personnel; allocating the growth in local share to salaries and fixed charges; increasing the allocation for faculty senates and staff development councils; repealing the growth in local share designated for improved instructional programs; increasing the contribution to the teachers retirement system; and clarifying the payment of employer premiums to the public employees insurance agency.
Be it enacted by the Legislature of West Virginia:
That section eighteen, article sixteen, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that article eight, chapter eleven of said code be amended by adding thereto a new section, designated section six-h; to amend and reenact section eighteen- a, article seven-a, chapter eighteen of said code; to amend and reenact sections two, four, five, five-a, six, nine, ten and twenty-four, article nine-a of said chapter; and that said article be further amended by adding thereto two new sections, designated sections six-b and twenty-five, all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,

SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD

OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS,

OFFICES, PROGRAMS, ETC.

ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.

§5-16-18. Payment of costs by employer; schedule of insurance; special funds created; duties of treasurer with respect thereto.

All employers operating from state general revenue or special revenue funds or federal funds or any combination thereof shall budget the cost of insurance coverage provided by the public employees insurance agency to current and retired employees of the employer as a separate line item, titled "PEIA", in its respective annual budget and are responsible for the transfer of funds to the director for the cost of insurance for employees covered by the plan. Each spending unit shall pay to the director its proportionate share from each source of funds. Any agency wishing to charge general revenue funds for insurance benefits for retirees under section thirteen of this article must provide documentation to the director that the benefits cannot be paid for by any special revenue account or that the retiring employee has been paid solely with general revenue funds for twelve months prior to retirement.
If the general revenue appropriation for any employer, including excluding a county board boards of education, is insufficient to cover the cost of insurance coverage for theemployer's participating employees, retired employees and surviving dependents, the employer shall pay the remainder of the cost from its "personal services" or "unclassified" line items. or, in the case of a county board of education, from other funds The amount of such payments for county boards of education shall be determined by the method set forth in section twenty-five, article nine-a, chapter eighteen of this code:
Provided, That local excess levy funds shall be used only for the purposes for which they were raised: Provided, however, That after approval of its annual financial plan but in no event later than the thirty-first day of December of each year, the finance board shall notify the Legislature and county boards of education of the maximum amount of employer premiums that the county boards of education will be required to pay for covered employees during the following fiscal year. Provided further, That the amount shall not exceed five million, five hundred thousand dollars during fiscal year one thousand nine hundred ninety-four: And Provided further, That the finance board and department of education shall determine the extent to which state school aid appropriations are being used by the county school boards to pay employer premiums for employees whose positions are not funded by state revenues and shall develop and implement a plan to minimize the expenditures.
All other employers not operating from the state general revenue fund shall pay to the director their share of premium costs from their respective budgets. The finance board shallestablish the employers' share of premium costs to reflect and pay the actual costs of the coverage including incurred but not reported claims.
The contribution of the other employers (namely: A county, city or town in the state; any separate corporation or instrumentality established by one or more counties, cities or towns, as permitted by law; any corporation or instrumentality supported in most part by counties, cities or towns; any public corporation charged by law with the performance of a governmental function and whose jurisdiction is coextensive with one or more counties, cities or towns; any comprehensive community mental health center or comprehensive mental retardation facility established, operated or licensed by the secretary of health and human resources pursuant to section one, article two-a, chapter twenty-seven of this code, and which is supported in part by state, county or municipal funds; and a combined city-county health department created pursuant to article two, chapter sixteen of this code) for their employees shall be such percentage of the cost of the employees' insurance package as the employers deem reasonable and proper under their own particular circumstances.
The employee's proportionate share of the premium or cost shall be withheld or deducted by the employer from the employee's salary or wages as and when paid and the sums shall be forwarded to the director with such supporting data as the director may require.
All moneys received by the public employees insurance agency shall be deposited in a special fund or funds as are necessary in the state treasury and the treasurer of the state shall be custodian of the fund or funds and shall administer the fund or funds in accordance with the provisions of this article or as the director may from time to time direct. The treasurer shall pay all warrants issued by the state auditor against the fund or funds as the director may direct in accordance with the provisions of this article.
CHAPTER 11. TAXATION.

ARTICLE 8. LEVIES.

§11-8-6h. Effect on levy contributions to local libraries or park boards where levy rates are fixed by a special act of the Legislature.

Notwithstanding any other provision of law to the contrary, where the provisions of section six-e or six-f of this article cause any contributing municipality, county commission or county board of education to reduce its levy rates to less than the rates allowed under provisions of section six-b, six-c or six-d, the local levy rates set by special act for the support of a local library or park board shall likewise be reduced. The previous maximum rate for Class I property shall be divided into the Class I levy rate adopted by the levying body for the fiscal year beginning the first day of July, one thousand nine hundred ninety-five, and the resulting percentage shall be applied to each rate by special act of the Legislature. The resultingadjusted levy rates, when applied to the assessed value of taxable property in each class of property as contained on the levying body's official levy estimate document, will be the levying body's contribution amount for the fiscal year.
CHAPTER 18. EDUCATION.

ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.

§18-7A-18a. Calculation of allocation to reserve fund.

(a) Beginning the first day of June, one thousand nine hundred ninety-one, the consolidated public retirement board, created pursuant to article ten-d, chapter five of this code, shall make an annual calculation of the aggregate full compensation actually received by the following persons:
(1) Those persons employed on or after the first day of July, one thousand nine hundred ninety-one who would have been teacher members of the state teachers retirement system under this article if such persons' employment had begun prior to such date; and
(2) Those persons employed on and after the first day of July, one thousand nine hundred ninety-one, who would have been nonteaching members of the state teacher's retirement system under this article if such persons' employment had begun prior to such date.
(b) There shall be an annual allocation from the state general revenue fund to the reserve fund, created by section eighteen of this article, equal to the sum of seven and one-half ten and eight-tenths percent of the aggregate compensation totalsof subdivisions one (1) and two (2), subsection (a) of this section.
There shall be an additional allocation in each year an amount equal to the total of all irrevocably forfeited amounts in the suspension account established in section eleven, article seven-b of this chapter plus earnings thereon which have been certified to the several contributing employers as irrevocably forfeited in the prior fiscal year and subsequently utilized by said contributing employers to reduce their total aggregate contribution requirements pursuant to section seventeen, article seven-b of this chapter.
(c) The additional allocation provided in this section represents a funding method by which a part of a rational amortization plan will be established to amortize the current unfunded liability of the teachers retirement system created by this article. The additional allocations are not and shall not be construed to be moneys which are owed to, nor earned by any employee, designated in subdivision (1) or (2), subsection (a) of this section. The calculation of additional allocation provided for herein is solely a mathematical formula to quantify the savings in the state general revenue funds caused by the enactment of the Teachers' Retirement Reform Act codified in article seven-b of this chapter.
ARTICLE 9A. PUBLIC SCHOOL SUPPORT.

§18-9A-2. Definitions.

For the purpose of this article:
"State board" means the West Virginia board of education.
"County board" or "board" means a county board of education.
"Professional salaries" means the state legally mandated salaries of the professional educators as provided in article four, chapter eighteen-a of this code.
"Professional educator" shall be synonymous with and shall have the same meaning as "teacher" as defined in section one, article one, chapter eighteen of this code.
"Professional instructional personnel" means a professional educator whose regular duty is as that of a classroom teacher, librarian, counselor, attendance director, school psychologist or school nurse with a bachelors degree and who is licensed by the West Virginia board of examiners for registered professional nurses. A professional educator having both instructional and administrative or other duties shall be included as professional instructional personnel for that ratio of the school day for which he is assigned and serves on a regular full-time basis in appropriate instruction, library, counseling, attendance, psychologist or nursing duties.
"Service personnel salaries" shall mean the state legally mandated salaries for service personnel as provided in section eight-a, article four, chapter eighteen-a of this code.
"Service personnel" shall mean all personnel as provided for in section eight, article four, chapter eighteen-a of this code. For the purpose of computations under this article of ratios of service personnel to adjusted enrollment, a service employeeshall be counted as that number found by dividing his number of employment days in a fiscal year by two hundred:
Provided, That the computation for any such person employed for three and one- half hours or less per day as provided in section eight-a, article four, chapter eighteen-a of this code shall be calculated as one half an employment day.
"Net enrollment" means the number of pupils enrolled in special education programs, kindergarten programs and grades one to twelve, inclusive, of the public schools of the county. Commencing with the school year beginning on the first day of July, one thousand nine hundred eighty-eight, net enrollment further shall include adults enrolled in regular secondary vocational programs existing as of the effective date of this section:
Provided, That net enrollment shall include no more than one thousand such adults counted on the basis of full-time equivalency and apportioned annually to each county in proportion to the adults participating in regular secondary vocational programs in the prior year counted on the basis of full-time equivalency: Provided, however, That no tuition or special fees beyond that required of the regular secondary vocational student is charged for such adult students.
"Adjusted enrollment" means the net enrollment plus twice the number of pupils enrolled for special education. Commencing with the school year beginning on the first day of July, one thousand nine hundred ninety, adjusted enrollment means the net enrollment plus twice the number of pupils enrolled for specialeducation, including exceptional gifted, plus the number of pupils in grades nine through twelve enrolled for honors and advanced placement programs, plus the number of pupils enrolled on the first day of July, one thousand nine hundred eighty-nine, in the gifted program in grades nine through twelve:
Provided, That commencing with the school year beginning on the first day of July, one thousand nine hundred ninety, no more than four five percent of net enrollment of grades one through eight may be counted as enrolled in gifted education and no more than six seven percent of net enrollment of grades nine through twelve may be counted as enrolled in gifted education, exceptional gifted education (subject to the limitation set forth in section one, article twenty of this chapter) and honors and advanced placement programs for the purpose of determining adjusted enrollment within a county: Provided, however, That nothing herein shall be construed to limit the number of students who may actually enroll in gifted, honors or advanced placement education programs in any county: Provided further, That until the school year beginning on the first day of July, one thousand nine hundred ninety-two, the preceding percentage limitations shall not restrict the adjusted enrollment definition for a county to the extent that those limitations are exceeded by students enrolled in gifted education programs on the first day of July, one thousand nine hundred eighty-nine: And Provided further, That no pupil may be counted more than three times for the purpose of determining adjusted enrollment. Such enrollment shall be adjusted to theequivalent of the instructional term and in accordance with such eligibility requirements and rules as established by the state board. No pupil shall be counted more than once by reason of transfer within the county or from another county within the state, and no pupil shall be counted who attends school in this state from another state.
"Levies for general current expense purposes" means ninety- eight percent of the levy rate for county boards of education calculated or set by the Legislature pursuant to the provisions of section six-f, article eight, chapter eleven of this code.
"Basic resources per pupil" for the state and the several counties means the total of (a) ninety-five percent of the property tax revenues computed at the levy rate for county boards of education calculated or set by the Legislature pursuant to the provisions of section six-f, article eight, chapter eleven of this code, but excluding revenues from increased levies as provided in section ten, article X of the Constitution of West Virginia, and (b) basic state aid as provided in sections twelve and thirteen of this article, but excluding the foundation allowance to improve instructional programs as provided in section ten of this article, and excluding any funds appropriated for the purpose of achieving salary equity among county board employees, this total divided by the number of students in adjusted enrollment: Provided, That beginning with the school year commencing on the first day of July, one thousand nine hundred ninety-one, and thereafter, the foundation allowance fortransportation costs as provided in section seven of this article shall also be excluded and the total shall be divided by the number of students in net enrollment: Provided, however, That any year's allocations to the counties of the eighty percent portion of the foundation allowance to improve instructional programs, as provided in section ten of this article, shall be determined on the basis of the immediately preceding school year's basic resources per pupil. Professional administrative personnel" means a professional educator employed as a superintendent, associate superintendent, assistant superintendent, central office administrator, principal, assistant principal, supervisor, director, coordinator, school business official, administrative assistant, and others who are charged with the administering or supervising of the whole or some assigned part of the total program of the county-wide school system.
§18-9A-4. Foundation allowance for professional educators.

The basic foundation allowance to the county for professional educators shall be the sum of the following:
The amount of money required to pay the state minimum salaries, for the ensuing fiscal year in accordance with provisions of article four, chapter eighteen-a of this code, to the personnel employed:
Provided, That in making this computation no county shall receive an allowance for the personnel which number is in excess of educators fifty-three and one-half professional educators to each one thousand students inadjusted enrollment: Provided, however, That in the school year beginning the first day of July, one thousand nine hundred ninety-five, and thereafter, no county may receive an allowance for such personnel which number is in excess of fifty-four and one-half professional educators to each one thousand students in adjusted enrollment: Provided however further, That any county not qualifying under the provision of section fourteen of this article is eligible for a growth rate in professional personnel in any one year not to exceed twenty percent of its total potential increase under this provision, except that in no case shall the limit be fewer than five professionals: And provided further, That the number of and the allowance for personnel paid in part by state and county funds shall be prorated: And provided further, That where two or more counties join together in support of a vocational or comprehensive high school or any other program or service, the professional educators for the school or program may be prorated among the participating counties on the basis of each one's enrollment therein and that the personnel shall be considered within the above-stated limit: And provided further, That in the school year beginning the first day of July, one thousand nine hundred eighty-eight, and in each school year thereafter, each county board shall establish and maintain a minimum ratio of fifty professional instructional personnel per one thousand students in adjusted enrollment: And provided further, That in the school year beginning the first day of July, one thousand nine hundred ninety-five, and in eachschool year thereafter, each county board shall establish and maintain a minimum ratio of fifty-one professional instructional personnel per one thousand students in adjusted enrollment: And provided further, That no permanent substitute shall be included in the minimum ratio for professional instructional personnel. Permanent substitutes may be included in the computation for professional educators. For the purposes of this section, permanent substitute means a full-time employee who performs the duties of a day-to-day substitute: And provided further, That no county shall have less than a total of five principals and central office administrators professional administrative personnel. Any county board which does not establish and maintain this minimum ratio shall suffer a pro rata reduction in the allowance for professional educators under this section: And provided further, That no county shall be penalized if it has increases in enrollment during that school year: And provided further, That any county board which does not establish and maintain this minimum ratio shall utilize any and all allocations to it by provision of section fourteen of this article solely to employ professional instructional personnel until the minimum ratio is attained. Every county shall utilize methods other than reductions in force, such as attrition and early retirement, before implementing their reductions in force policy to comply with the limitations of this section. It is the intent of the Legislature that in planning reductions in force to comply with reduced ratios of professional educators to students in adjustedenrollment, county boards shall consider positions for elimination in the following order: (1) Central office administrators, (2) assistant principals, and (3) principals.
No county shall increase the number of administrative personnel employed as either professional educators or pay grade "H" service personnel above the number which were employed, or for which positions were posted, on the thirtieth day of June, one thousand nine hundred ninety, and, therefore, county boards shall whenever possible utilize classroom teachers for curriculum administrative positions through the use of modified or extended contracts:
Provided, That the governor shall submit a recommendation to the Legislature at the beginning of the regular session thereof in the year one thousand nine hundred ninety-one ninety-five, which proposes a method for establishing a responsible level of administrative support for each county school system and a pay scale differentiation on a daily rate between classroom positions and administrative positions when all other factors are equal and, for professional educator substitutes, three and five-tenths percent of the computed state allocation for professional educators as determined in subsection (a) of this section.
§18-9A-5. Foundation allowance for service personnel.

The basic foundation allowance to the county for service personnel shall be the sum of the following:
The amount of money required to pay the annual state minimum salaries for the ensuing fiscal year in accordance with theprovisions of article four, chapter eighteen-a of the code, to such service personnel employed:
Provided, That no county shall receive an allowance for an amount in excess of thirty-four service personnel per one thousand students in adjusted enrollment: Provided, however, That the state superintendent of schools is authorized in accordance with rules and regulations established by the state board and upon request of a county superintendent to waive the maximum ratio of thirty-four service personnel per one thousand students in adjusted enrollment and the twenty percent per year growth cap provided in this section, to the extent appropriations are provided but not less than a sum of one million five hundred thousand dollars annually, in those cases where the state superintendent determines that student population density and miles of bus route driven justify the waiver, except or where the state superintendent determines that students spend an extraordinary amount of time in transportation and that the additional service personnel will reduce the transportation time for these students: Provided further, That no waiver shall be granted to any county whose financial statement shows a net balance in general current expense funds greater than three percent at the end of the previous fiscal year: And provided further, That on or before the first day of each regular session of the Legislature, the state board, through the state superintendent, shall make to the Legislature a full report concerning the number of waivers granted and the fiscal impact related thereto. Every county shall utilize methods otherthan reduction in force, such as attrition and early retirement, before implementing their reductions in force policy to comply with the limitations of this section.
For any county which has in excess of thirty-four service personnel per one thousand students in adjusted enrollment, the allowance shall be computed based upon the average state minimum pay scale salary of all service personnel in the county:
Provided, That for any county having fewer than thirty-four service personnel per one thousand students in adjusted enrollment, in any one year, the number of service personnel used in making this computation may be increased the succeeding years by no more than twenty percent per year of its total potential increase under this provision, except that in no case shall the limit be fewer than two service personnel until the county attains the maximum ratio set forth: Provided, however, That where two or more counties join together in support of a vocational or comprehensive high school or any other program or service, the service personnel for the school or program may be prorated among the participating counties on the basis of each one's enrollment therein and that the personnel shall be considered within the above-stated limit and for service personnel substitutes, three and five-tenths percent of the computed state allowance for service personnel as determined in subsection (a) of this section.
§18-9A-5a. Ratio of foundation allowances for professional educators and service personnel to net enrollment.

(a) The purpose of this section is to establish maximum ratios between the numbers of professional educators and service personnel in the counties which are funded through the public school support plan and the net enrollment in the counties, such ratios are in addition to the ratios provided for in sections four and five of this article. It is the intent of the Legislature to adjust these ratios pursuant to legislative act as may be appropriate when additional personnel are needed to perform additional duties.
(b) Commencing with the school year one thousand nine hundred eighty-nine--ninety, and each year thereafter, in computing the basic foundation allowance to a county for professional educators and the basic foundation allowance to a county for service personnel under sections four and five of this article, a county shall not receive an allowance for such personnel which number per one thousand students in net enrollment is in excess of the number of seventy-four and one-half professional educators and the number of forty-three and three-quarters service personnel in the county. computed as follows:
Maximum professionalMaximum service
For theeducators per 1000personnel per 1000
school yearnet enrollment thenet enrollment the
preceding yearpreceding year
1989-9076.545.5
1990-9176.045.0
1991-9275.544.5
1992-9375.044.0
1993-9474.543.75
1994-95 and74.043.5
thereafter
(c) Every county shall utilize methods other than reductions in force, such as attrition and early retirement, before implementing their reductions in force policy to comply with the limitations of this section.
(d) For the school years one thousand nine hundred eighty- nine--ninety and one thousand nine hundred ninety--ninety-one only, if a school district loses more than six percent of the number chargeable for the previous school year for professional educator positions or service personnel positions, due to the maximum ratios established in subsection (b) of this section, it may apply to the state board for a waiver of said ratios to the extent that the loss exceeds either six percent of its professional educators or service personnel: Provided, That the county board of education establishes and maintains the minimum ratio of professional instructional personnel per one thousand students in adjusted enrollment as required in section four of this article. Waivers shall be determined on a case by case basis according to rules adopted by the state board and granted to the extent funds are appropriated by the Legislature for this purpose. Prior to the adoption of such rules, the state board shall conduct a thorough review of the staffing patterns in eachcounty. Any personnel positions funded as a result of a waiver granted under the provisions of this subsection shall not be included in the computations set forth in sections four and five of this article.
§18-9A-6. Foundation allowance for fixed charges.

The total allowance for fixed charges shall be the sum of the following:
(1) The sum of the foundation allowance for professional educators and the foundation allowance for other personnel, as determined in sections four and five above, multiplied by the current social security rate of contribution; plus
(2) The sum of the foundation allowance for professional educators and the foundation allowance for other personnel, as determined in sections four and five above, multiplied by four hundredths of one percent as an allowance for unemployment compensation contribution; plus
(3) The sum of the foundation allowance for professional educators and the foundation allowance for other personnel, as determined in sections four and five above, multiplied by the rate which is derived by dividing the total contributions for workers' compensation for professional educators and other personnel by the total of the state minimum salaries. The computation of this rate shall be determined by using data of the most recent year for which available. plus
(4) The teachers retirement fund allowance as determined in section six-a of this article.
§18-9A-6b. Allocation of growth of local share.

Beginning the first day of July, one thousand nine hundred ninety-four, and thereafter, an allocation due to increase in total share above that computed for the school year beginning on the first day of July, one thousand nine hundred ninety-three, and thereafter shall be distributed in the following manner: (a) Sixty percent shall be allocated to the foundation allowance for professional educators as set forth in section four of this article, which shall be in addition to the appropriation as provided for on the first day of July, one thousand nine hundred ninety-three, and shall be distributed equally throughout the salary schedule as defined in section two, article four, chapter eighteen-a of this code; (b) eighteen percent shall be allocated to reducing net enrollment as provided for in section five of this article which shall be in addition to the appropriation provided for on the first day of July, one thousand nine hundred ninety-three, and shall be distributed equally throughout the salary schedule as set forth in section eight-a, article four, chapter eighteen-a of this code; (c) seven percent shall be allocated to further the purpose set forth in section six of this article which shall be distributed in the manner required by such section; and (d) fifteen percent shall be allocated to further the purpose of funding the payment of employer premiums as provided for in section twenty-four of this article which shall be distributed in a manner required by such section.
§18-9A-9. Foundation allowance for other current expense and
substitute employees.
The total allowance for other current expense and substitute employees shall be the sum of the following: Provided, That each of the three amounts set forth in subparagraphs (1), (2) and (3) of this section shall not exceed the preceding year's allowance by more than four percent:
(1) For current expense, for the year one thousand nine hundred ninety--ninety-one and thereafter, ten percent of the sum of the computed state allocation for professional educators and service personnel as determined in sections four and five of this article. Distribution to the counties shall be made proportional to the average of each county's average daily attendance for the preceding year and the county's second month net enrollment; plus
(2) For professional educator substitutes or current expense, two and five-tenths percent of the computed state allocation for professional educators as determined in section four of this article. Distribution to the counties shall be made proportional to the number of professional educators authorized for the county in compliance with sections four and five-a of this article; plus
(3) For service personnel substitutes or current expense, two and five-tenths percent of the computed state allocation for service personnel as determined in section five of this article. Distribution to the counties shall be made proportional to the number of service personnel authorized for the county in compliance with sections five and five-a of this article; plus
(4) (2) For academic materials, supplies and equipment for use in instructional programs, two three hundred dollars multiplied by the number of professional instructional personnel employed in the schools of the county. Distribution shall be made to each county for allocation to the faculty senate of each school in the county on the basis of two three hundred dollars per professional instructional personnel employed at the school. Faculty senate means a faculty senate created pursuant to section five, article five-a of this chapter. Decisions for the expenditure of such funds shall be made at the school level by the faculty senate in accordance with the provisions of said section five, article five-a, except that each classroom teacher shall have available one hundred dollars annually for the purchase of materials, supplies or equipment. and Funds available to faculty senates shall not be used to supplant the current expense expenditures of the county. Beginning on the first day of September, one thousand nine hundred ninety-four, and every September thereafter, county boards shall forward to each school for the use by faculty senates the appropriation specified in this section. Each school shall be responsible for keeping accurate records of expenditures; plus
(5) (3) For the school year one thousand nine hundred ninety--ninety-one only, There shall be a one-time additional appropriation of five hundred thousand dollars to be distributed to the counties on a needs basis. Funds shall be distributed to those very few counties in which costs for the delivery ofeducational services are extraordinarily greater than in the vast majority of counties, thus impairing the quality of education in those few counties. The factors used to determine eligibility for funds shall be sparsity of student population, combined with geographical barriers to the efficient transportation of students; or extraordinary growth in net enrollment for school year one thousand nine hundred ninety--ninety-one, which exceed the allowance for increased enrollment appropriated in the budget for that year. Prior to the distribution of funds, the state superintendent shall establish that the applying county has demonstrated efficiency and fiscal responsibility in staffing, and in maximum sharing of services with adjoining counties and the regional educational service agency for that county in the use of the total local county budget; plus
(4) Beginning the first day of July, one thousand nine hundred ninety-four, and every year thereafter the allowance for county professional staff development councils established pursuant to section eight, article three, chapter eighteen-a of this code shall be one tenth of one percent of the computed state allocation for professional educators as determined in section four of this article:
Provided, That the money allocated under this subdivision shall be used solely by the county professional staff development councils in accordance with section eight, article three, chapter eighteen-a; plus
(5) Beginning the first day of July, one thousand nine hundred ninety-four, and every year thereafter the allowance forcounty service personnel staff development councils shall be one tenth of one percent of the computed state allocation for service personnel as determined in section five of this article:
Provided, That the money allocated under this subdivision shall be used solely by the county service personnel staff development councils in accordance with section nine, article three, chapter eighteen-a.
§18-9A-10. Foundation allowance to improve instructional programs.

(a) For the school year beginning on the first day of July, one thousand nine hundred ninety-three only, thirty-two million, five hundred twenty thousand, nine hundred ninety-four dollars, unless a greater amount is appropriated by the Legislature, in addition to funds which accrue from allocations due to increase in total local share above that computed for the school year beginning on the first day of July, one thousand nine hundred ninety-three, from balances in the general school fund, or from appropriations for such purpose shall be allocated to increase state support of counties as follows:
Provided, That for the school year beginning on the first day of July, one thousand nine hundred ninety-three only, no county shall gain more than seventy-three and sixty-six one-hundredths percent or lose more than twenty-six and thirty-four one-hundredths percent over the previous year's allocation: Provided, however, That for the school year beginning on the first day of July, one thousand nine hundred ninety-four, and thereafter, the sum of the allocationsshall be in an amount at least equal to the amount appropriated by the Legislature, in addition to funds which accrue from allocations due to increase in total local share above that computed for the previous school year, from balances in the general school fund, or from appropriations for such purposes:
(1) One hundred fifty thousand dollars shall be allocated to each county; and
(2) Distribution to the counties of the remainder of these funds shall be made proportional to the average of each county's average daily attendance for the preceding year and the county's second month net enrollment. Moneys allocated by provision of this section shall be used to improve instructional programs according to a plan for instructional improvement which the affected county board shall file with the state board by the first day of August of each year, to be approved by the state board by the first day of September of that year if such plan substantially complies with standards to be adopted by the state board:
Provided, That notwithstanding any other provision of the code to the contrary, moneys allocated by provision of this section may also be used in the implementation and maintenance of the uniform integrated regional computer information system.
(3) For the school year beginning on the first day of July, one thousand nine hundred ninety-three, Up to twenty-five percent of this allocation may be used to employ professional educators and/or service personnel in counties after all applicable provisions of sections four and five of this articlehave been fully utilized.
Prior to the use of any funds from this section for personnel costs, the county board must receive authorization from the state superintendent of schools. The state superintendent shall require the district board to demonstrate: (1) The need for the allocation, (2) efficiency and fiscal responsibility in staffing, and (3) sharing of services with adjoining counties and the regional educational service agency for that county in the use of the total local district board budget. District boards shall make application for available funds for the next fiscal year by the first day of May of each year. Provided, That for the school year beginning on the first day of July, one thousand nine hundred ninety-three only, district boards shall make application for available funds by the fifteenth day of June, one thousand nine hundred ninety-three On or before the first day of June, the state superintendent shall review all applications and notify applying district boards of the distribution of the allocation:
Provided, That for the school year beginning on the first day of July, one thousand nine hundred ninety-three only, the state superintendent shall review all applications and notify applying district boards of the distribution of the allocation on or before the first day of July, one thousand nine hundred ninety-three. Such funds shall be distributed during the fiscal year as appropriate. The state superintendent shall require the county board to demonstrate the need for an allocation for personnel based upon the county's inability to meet therequirements of state law or state board policy: Provided, however, That the funds available for personnel under this section may not be used to increase the total number of professional noninstructional personnel in the central office beyond four. Such instructional improvement plan shall be made available for distribution to the public at the office of each affected county board.
(b) Commencing with the school year beginning on the first day of July, one thousand nine hundred ninety-three, thirty-five million, four hundred forty thousand, four hundred ninety-three twenty-three million, three hundred fifty thousand, eight hundred nine dollars shall be paid into the school building capital improvements fund created by section six, article nine-d of this chapter, and shall be used solely for the purposes of said article nine-d:
Provided, That in the event that additional money is authorized for expenditure for new construction bonds, then this appropriation shall be increased in an amount no less than the new debt service. In each fiscal year thereafter, fifty percent of the funds which accrue due to an increase in local share above that computed for the school year beginning on the first day of July, one thousand nine hundred eighty-seven, shall be paid into the school building capital improvements fund created by section six, article nine-d of this chapter, and shall be used solely for the purposes of said article nine-d: Provided, however, That If funds are available and appropriated in each such subsequent fiscal year, not less than seven million,seven hundred thousand dollars shall be added to the amount of the prior year's appropriation for such fund.
§18-9A-24. Foundation support for teacher retirement system.

Beginning the first day of July, one thousand nine hundred ninety-four, and every year thereafter the total teachers retirement fund allowance shall be the sum of the following: (1) The basic foundation allowance for professional educators and basic foundation allowance for service personnel, as provided in sections four and five of this article, (2) all salary equity appropriations authorized in section five, article four of chapter eight-a, and (3) such amounts as are to be paid by the counties pursuant to sections five-a and five-b of said article to the extent such county salary supplements are equal to the amount distributed for salary equity among the counties, multiplied by eighteen and three-tenths percent.
The teachers retirement fund allowance amounts shall be accumulated in the employers accumulation fund of the state teachers retirement system pursuant to section eighteen, article seven-a of this chapter, and shall be in lieu of the contribution required of employers pursuant to subsection (b) of section eighteen as to all personnel included in the allowance for state aid in accordance with sections four and five of this article.
§18-9A-25. Foundation allowance for public employees insurance fund.

(a) Beginning the first day of July, one thousand nine hundred ninety-four, and every year thereafter, the allowance tothe public employees insurance agency for school employees shall be made in accordance with the following: The number of individuals employed by county boards of education as professional educators pursuant to section four or five-a of this article, whichever is less, plus the number of individuals employed by county boards of education as service personnel pursuant to section five or five-a of this article, whichever is less, multiplied by the average premium rate for all county board of education employees established by the public employees insurance agency finance board. The average premium rate for all county board of education employees shall be incorporated into each financial plan developed by the finance board in accordance with section five, article sixteen, chapter five of this code. Such premiums shall include any proportionate share of retirees subsidy established by the finance board. The appropriations made in accordance with this subsection shall be made directly to the public employees insurance agency.
(b) County boards of education shall only be responsible for payments to the public employees insurance agency for individuals who are employed as professional employees above and beyond those authorized by section four or five-a, whichever is less, and individuals who are employed as service personnel above and beyond those authorized by section five and five-a whichever is less. For each employee employed beyond those authorized by section four, five or five-a, the county board of education which employs such employee, shall forward to the public employeesinsurance agency an amount equal to the number of such employees times the average premium for all county boards of education as established by the public employees insurance agency financial board. The average premium rate for all county board of education employees shall be incorporated into each financial plan developed by the finance board in accordance with section five, article sixteen, chapter five of this code. Such average premium rate shall include any proportionate share of retiree subsidy established by the finance board.



NOTE: The purpose of this bill is to revise the school aid formula in order to: Clarify how public employees insurance agency premiums are paid for school employees; proportionately reduce automatic payments from county boards of education to public libraries when regular levies are reduced by the Legislature; increase caps on gifted and honors and advanced placement programs; provide a definition for professional administrative personnel; eliminate a one year delay in reimbursing county boards of education for years of experience incremental pay for teachers and service personnel; increase the number of professional instructional personnel and the number of professional educators; increase the payment to county boards of education for professional and service personnel substitutes; eliminate further reductions in professional and service personnel based on net enrollment; reallocate the growth in local share to steps one, two and three; increase the allocations to faculty senates; and increase payment to the Teachers Retirement System.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§§11-8-6h, 18-9A-6b and 18-9A-25 are new; therefore, strike- throughs and underscoring have been omitted.

§18-9A-24 has been completely rewritten; therefore, strike- throughs and underscoring have been omitted.