COMMITTEE SUBSTITUTE

FOR

H. B. 2114

(By Mr. Speaker, Mr. Kiss, and Delegate Trump)

SPONSOR[By Request of the Executive]


(Originating in the Committee on Education)


[February 14, 2003]


A BILL to amend and reenact section thirteen-b, article nine-a, chapter eighteenBill Title of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to establishing a reserve allowance for strategic educational enhancements; making legislative findings and providing legislative intent; providing for disposition in line item of certain funding amounts resulting from decreases in net and adjusted enrollments; providing for governor to make recommendations for appropriations of amount in line item for certain purposes; requiring allocations of amount in line item for certain purposes subject to appropriation; providing for amount of appropriated allocations; and specifying line item is additional allowance under basic foundation program subject to appropriation for public school purposes. Title Language

Be it enacted by the Legislature of West Virginia:

That Enacting Sectionsection thirteen-b, article nine-a, chapter eighteenBill Title of the code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 9A. PUBLIC SCHOOL SUPPORT.

§18-9A-13b. Reserve allowance for strategic educational enhancements.

Commencing with the school year beginning on the first day of July, two thousand, funds which accrue from allocations due to decreases in net and adjusted enrollment from the preceding school year shall be deposited in a special revenue fund which is hereby created in the state treasury, designated the "legislative reserve fund". The fund shall be an interest bearing account and shall be appropriated by the Legislature.
(a) The Legislature finds that decreases in student enrollment in the public schools result in decreased economies of scale and a resulting higher per student cost of education. Furthermore, the Legislature finds that the heightened demand for accountability for student, school and school system performance will require continued improvements in system efficiency, productivity, capacity and quality to achieve the results expected. Therefore, the intent of this section is to retain within the budgetary accounts for public education for appropriation by the Legislature all proposed expenditures of the general revenue funds that become available due to a decline in student enrollment in the current school year and are therefore not needed in the succeeding school year for appropriation for the total state basic foundation program as determined by the statutes then in effect.
(b) Whenever there is a reduction in the amount of funds required to be appropriated for the basic foundation program pursuant to this article for the next fiscal year as a result of decreases in the net and adjusted enrollments from the net and adjusted enrollments of the preceding school year , the difference in the amount of funds required to be appropriated which is attributable to the decreases in the net and adjusted enrollments shall be placed in the line item in the budget account of the state department of education which shall be designated "Reserve allowance for strategic educational enhancement s" and shall be subject to appropriation by the Legislature.

(c) Commencing with the regular session of the Legislature, two thousand four, and each regular session thereafter, the governor may submit as a part of his or her plan of expenditures for the next fiscal year, recommendations for appropriation of the amount placed in the reserve allowance for strategic educational enhancement s to effect continued improvements in the efficiency, productivity, capacity and quality of the education system to meet or exceed the standards for student, school and school system performance and progress.
(d) Commencing with the fiscal year beginning on the first day of July, two thousand four, and thereafter, the amount placed in the reserve allowance for strategic educational enhancement s shall, subject to appropriation by the Legislature, be allocated for continued improvements in the efficiency, productivity, capacity and quality of the education system to meet or exceed the standards for student, school and school system performance. The appropriated allocations shall be equal to the reduction in the amount of funds required to be appropriated for the basic foundation program pursuant to this article as a result of decreases in the net and adjusted enrollments from the net and adjusted enrollments of the preceding school year. The reserve allowance for strategic educational enhancement s is an additional allowance under the basic foundation program which is subject to legislative appropriation for public school purposes.