School finance-education funding reductions.

2017
STATE OF WYOMING
17LSO-0662
ENGROSSED
2.1

SENATE FILE

NO.

SF0165

School finance-education funding reductions.

Sponsored by:
Senator(s) Landen, Burns, Coe, Dockstader, Driskill, Pappas and Perkins

A BILL

for

AN ACT relating to school finance; making temporary and permanent reductions and contingent further modifications to education funding; creating a select committee on school finance recalibration as specified; limiting transportation expenditures; authorizing Medicaid reimbursement for special education purposes as specified; providing appropriations; modifying previous appropriations; providing rulemaking authority; providing applicability; and providing for effective dates.

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

Section 1
.

W.S. 21
‑
13
‑
101(a)(i), 21
‑
13
‑
309(m)(v)(F)
(I), (II), by creating a new subdivision (III),
by creating a new subparagraph (H), (p) and by
creating new subsections (w) and (y), 21
‑
13
‑
320 by creating new subsections (j) through (m), 21
‑
13
‑
321(b) and by creating a new subsection (h), 21
‑
13
‑
335(d)(intro) and 42
‑
4
‑
103(a) by creating a new paragraph (xxxii) are amended to read:

21
‑
13
‑
101
.

Definitions.

(a)

As used in this chapter:

(i)

"Average daily membership" or "ADM" means the aggregate number of pupils present plus the aggregate number of pupils absent, divided by the actual number of days the school is in session for the year.
Pupils who attend at least eighty percent (80%) of a full
‑
time equivalency basis shall be considered full
‑
time. For pupils enrolled in school on less than a full
‑
time equivalency basis, the school district shall calculate the pupil's contribution to the ADM on a prorated basis with the hours or class periods of enrollment being the numerator and the hours or class periods of full
‑
time equivalency being the denominator.
Pupils who have withdrawn from school or who
have been absent for more than ten (10) consecutive calendar days shall not be counted as members;

21
‑
13
‑
309
.

Determination of amount to be included in foundation program for each district.

(m)

In determining the amount to be included in the foundation program for each district, the state superintendent shall:

(v)

Based upon ADM computations and identified school configurations within each district pursuant to paragraph (iv) of this subsection, compute the foundation program amount for each district as prescribed by the education resource block grant model adopted by the Wyoming legislature as defined under W.S. 21
‑
13
‑
101(a)(xiv), as contained within the spreadsheets and accompanying reports referenced under W.S. 21
‑
13
‑
101(a)(xvii
), on file with the secretary of state and maintained by the state superintendent pursuant to W.S. 21
‑
2
‑
202(e).
The following criteria shall be used by the state superintendent in the administration of the education resource block grant model:

(F)

Amounts provided within the model
for health insurance shall be based upon:

(I)

Except as provided in subdivision (III) of this subparagraph,
p
rior year
statewide average district weighted
actual participation in district health insurance plans
as to the proportion of employee only, split contracts, employee plus spouse or children and family coverage;

and

(II)

Except as provided in subdivision (III) of this subparagraph, t
he annualized state contribution rate as of January 1 of the preceding school year, on behalf of each employee and official enrolled in the state group health insurance plan, for employee only, split contracts, employee plus spouse or children and family coverage
;
.

and

(III)

For school year 2017
‑
2018 only:

(
1
)

The amount for health insurance shall be calculated on a reimbursement basis only for individuals actually employed by the district and shall
not be paid with funds received pursuant to the foundation program amount under W.S. 21
‑
13
‑
309(
p) or funds received under W.S. 21
‑
13
‑
334 or 21
‑
13
‑
335. The amount calculated shall be based upon actual participation in district health insurance plans and shall be based on the district's employer paid premium cost not to exceed the annualized state contribution rate as of January 1, 2017, on behalf of each employee and official enrolled in the state group health insurance plan, for employee only, split contracts, employee plus spouse or children and family coverage, as applies to the coverage of each district employee participating in district health insurance plans;

(
2
)

This subparagraph shall not apply to health insurance amounts generated for employees funded as special education employees, transportation employees, food service employees or employees who are funded one hundred percent (100%) with federal funds;

(
3
)

Employees funded with less than one hundred percent (100%) federal funds shall be calculated based on the pro rata amount that the salary of each employee is paid with foundation program funds or
funds received under W.S. 21
‑
13
‑
334 or 21
‑
13
‑
335 and calculated as provided in this subdivision.

(H)

For school year 2018
‑
2019 only, the amount within the block grant model for core teachers and specialist teachers as defined in "Attachment A" shall be reduced based upon the actual number of core and specialist teachers employed by the school district in school year 2016
‑
2017 so that no district shall receive funding for more core and specialist teachers than were actually employed by the district in the 2016
‑
2017 school year. This subparagraph shall not apply to minimum teachers or any calculation for alternative schools or small schools.

(p)

Subject to subsections (w) and (y) of this section and e
xcept as otherwise provided by law and following the computation and application of any adjustment under subsection (o) of this section, the amount computed for each school within each district shall be combined with the amount computed and provided on a district level for that district, as prescribed by the education resource block grant model, to determine the foundation program amount for each district.

(w)

For school year 2018
‑
2019, and subject to recalibration under subsection (t) of this section or development of an alternative K
‑
12 education funding model occurring after March 1, 2017 and enacted into law prior to the 2018
‑
2019 school year, the foundation program amount for each district, excluding any amounts provided under W.S. 21
‑
13
‑
320 and 21
‑
13
‑
321, shall be ninety
‑
seven and one
‑
half percent (97.5%) of the amount determined under subsections (m) and (p) of this section.

(y)

For school year 2019
‑
2020, and subject to recalibration under subsection (t) of this section or development of an alternative K
‑
12 education funding model occurring after March 1, 2017 and enacted into law prior to the 2019
‑
2020 school year, the foundation program amount for each district, excluding any amounts provided under W.S. 21
‑
13
‑
320 and 21
‑
13
‑
321, shall be ninety
‑
five percent (95%) of the amount determined under subsections (m) and (p) of this section.

21
‑
13
‑
320
.

Student transportation; amount within school foundation program formula for transportation
maintenance and operations expenditures and school bus purchases; district reporting requirements.

(j)

Effective for the school year 2018
‑
2019 and each school year thereafter the amount computed under this section shall be in accordance with the provisions of this subsection. Each district shall receive:

(i)

An amount equal to an average of the amounts the district received for school year 2011
‑
2012 pursuant to paragraphs (b)(i) and (ii) of this section; plus

(ii)

The amount authorized by and computed in accordance with subsection (g) of this section for each school bus purchased or initially leased prior to March 15, 2017; plus

(iii)

An amount calculated in accordance with subsection (g) of this section for each school bus purchased or initially leased on or after March 15, 2017, if the school district first applied to the department and the department determined the purchase or lease was necessary to alleviate an emergency.

(k)

For the 2018
‑
2019 school year and each school year thereafter, the provisions of subsections (b), (c) and (f) of this section shall not be used to compute the amount a school district receives pursuant to this section, but the remaining requirements of those subsections shall be effective. As of July 1, 2018, subsection (g) of this section shall be applicable only as necessary to determine an amount under subsection (j) of this section.

(m)

No district shall purchase a school bus or enter into a new lease for a school bus on or after March 15, 2017 unless it first applies to the department and the department determines that an emergency exists necessitating the purchase or lease of the bus.

21
‑
13
‑
321
.

Special education; amount within foundation program formula for special education programs and services; district reporting requirements.

(b)

The amount provided for special education within the education resource block grant model pursuant to W.S. 21
‑
13
‑
309(
m)(v)(E)(II) shall
be equal to one hundred
percent (100%) of
not exceed
the amount actually expended by the district during the
previous
2015
‑
2016
school year for special education programs and services
, subject to adjustment as provided by rule and regulation of the state superintendent pursuant to the limits of subsection (h) of this section
.

(h)

The amount provided for special education may be adjusted by the state superintendent as necessary to meet maintenance of effort requirements of federal law for the special education program.

21
‑
13
‑
335
.

Supplemental financial assistance program for instructional facilitators and instructional coaches.

(d)

Financial assistance under this section shall be based upon prior year school level attendance and configuration reports submitted by each eligible school district pursuant to W.S. 21
‑
13
‑
309(
m)(iv). Grant amounts shall be computed by the department for the eligible applicant district as if the education resource block grant model contained the following component for instructional facilitators, funded at an amount equal to
sixty percent
(60%)
forty
‑
five percent (45%) for the 2017
‑
2018 school year and thirty percent (30%) for each school year thereafter
for each full
‑
time equivalent position, prorated up and down from the FTE position level specified for each prototype similar to computational operation of other components within the block grant model:

42
‑
4
‑
103
.

Authorized services and supplies.

(a)

Services and supplies authorized for medical assistance under this chapter include:

(xxxii)

Services administered by public schools necessary for medical, social, educational, special educational, occupational, speech, physical therapy and audiology needs and related services. Funds shall be provided pursuant to this paragraph to the state department of education for reimbursement to school districts in accordance with rules and regulations of the department of education and the department of health.

Section 2
.

2011 Wyoming Session Laws, Chapter 185, ATTACHMENT "A" (b
)(
xxi),
(xxiii),
(xxiv) through (xxviii), (xxx),
(xxxi),
(xxxiv) and (xxxv) is amended to read:

ATTACHMENT "A"
ATTACHMENT "A" CONTAINS AN ENUMERATION OF EDUCATION RESOURCE BLOCK GRANT MODEL COMPONENTS SUMMARIZING AND EXECUTING RECOMMENDATIONS CONTAINED IN THE 2010 COST OF EDUCATION STUDY AS FOLLOWS:

(
b
)

Notwithstanding
components specified in the 2010 cost of education study accepted by the legislature,
the
Wyoming
education resource block grant model components and the resourcing for those components, as enacted by the legislature, shall be as follows:

(xxi)

Books/Ins. Materials

Instructional materials
:
$333.43/elementary and middle school ADM;
$408.26/

$191.37 per elementary, middle and
high school ADM.

(xxii
i)

Special education
:
100% state reimbursement of prior year actual expenditures
C
omputed in accordance with
W.S. 21
‑
13
‑
321
.

(xxiv)

Gifted:
$29.19

$
40.29
/ADM.

(xxv)

Vocational education:
0.29 times FTE vocational education ADM;
$9,027.27

$9,428.77
/FTE vocational education teacher for equipment and supplies.

(xxvi)

Student activities:
Resource under the following school configurations:
K-5
E
lementary school:
$24.05

$23.79
/ADM;
6-8
M
iddle school:
Declining linearly f
rom
$791.02

$782.54
/ADM at 1 ADM school to
$204.38

$202.18
/ADM for 1
,
260 ADM school;
9-12
H
igh school:
Declining linearly f
rom
$2,039.09

$2,017.22
/ADM for 1 ADM school to
$601.08

$594.63
/ADM for 1
,
260 ADM school;
Alternative school: $288.98/ADM

Ninth grade ADM in a middle school resourced at the high school amount for the school students would normally attend
.

(xxvii)

Professional development:

10 pupil free days as resourced in teacher salary under paragraph (xxxvii) of this subsection;
Plus
$116.76

$125.90
/ADM for trainers.

(xxviii)

Assessment:
$37.70

$25.00
/ADM, which amount is not subject to any adjustment made pursuant to
W.S. 21
‑
13
‑
309
(o).

(xxx)

Central office nonpersonnel expenses:
$350.28

$365.86
/ADM.

(xxxi)

Transportation:
100% state reimbursement of prior year actual expenditures
C
omputed in accordance with W.S. 21
‑
13
‑
320.

(xxxiv)

M & O supplies:
$0.64

$0.67
per 110% of gross square feet of authorized education space.

(xxxv)

Utilities:
Actual 2009
‑
2010 expenditures by district

as adjusted by 2015 Wyoming Session Laws, Chapter 142, Section 2, Section 205 footnote 2(a)(i)(D) and (ii)(D) and further adjusted by negative ten and seven hundred sixty-two thousandths percent (
‑
10.762%)
.
For additional school buildings added to district building inventories after 2009
‑
2010, 100% of 2009
‑
2010 district
average utility expenditures per gross square f
oo
t for district school buildings multiplied by the additional authorized educational square footage.

Section 3.

2011 Wyoming Session Laws, Chapter 185, ATTACHMENT "A" (b)(xxii) as amended by 2012 Wyoming Session Laws, Chapter 99, ATTACHMENT "A" (b)(xxii) is amended to read:

ATTACHMENT "A"
ATTACHMENT "A" CONTAINS AN ENUMERATION OF EDUCATION RESOURCE BLOCK GRANT MODEL COMPONENTS SUMMARIZING AND EXECUTING RECOMMENDATIONS CONTAINED IN THE 2010 COST OF EDUCATION STUDY AS FOLLOWS:

(
b
)

Notwithstanding
components specified in the 2010 cost of education study accepted by the legislature,
the
Wyoming
education resource block
grant model components and the resourcing for those components, as enacted by the legislature, shall be as follows:

(xxii)

Computers,

Technology
equipment:
$291.90

$250.00
/ADM
, which amount is not subject to any adjustment made pursuant to W.S. 21
‑
13
‑
309(o)
.

Section 4.

2016 Wyoming Session Laws, Chapter 31, Section 2, Section 205 is amended to read:

Section 205. EDUCATION-SCHOOL FINANCE
2.

PROGRAM

School Foundation Program

1.

1,677,514,609

S5

1,677,514,609
1,723,465,604
S5
1,723,465,604
Court Ordered Placements

19,433,639

S5

19,433,639

Foundation-Specials
1.

79,765,894

S5

79,765,894
78,742,048
S5
78,742,048
Education Reform

9,654,900

S5

9,654,900

Student Performance Data

6,351,539

S5

6,351,539

TOTALS

0

0

1,792,720,581

1,792,720,581
1,837,6
47,730

1,837,6
47,730

AUTHORIZED EMPLOYEES

Full Time

3
Part Time

0
TOTAL

3

1.

(a)

This other funds appropriation includes funding for an external cost adjustment to the education resource block grant model computed as follows:

(i)

Effective for school year 2016-2017 only:

(A)

For the
"
professional labor
"
category of model components inclusive of those components defined by 2012 Wyoming Session Laws, Chapter 99, Section 3 [Attachment
"
A
"
(a)(vi)], two and one hundred forty-eight thousandths percent (2.148%);

(B)

For the
"
nonprofessional labor
"
category of model components inclusive of those components defined by 2012 Wyoming Session Laws, Chapter 99, Section 3 [Attachment
"
A
"
(a)(v)], one and nine hundred forty-seven thousandths percent (1.947%);

(C)

For the
"
energy
"
category of model components inclusive of those components defined by 2012 Wyoming Session Laws, Chapter 99, Section 3 [Attachment
"
A
"
(a)(iv)], two and four hundred forty-five thousandths percent (2.445%);

(D)

For the
"
educational materials
"
category of model components inclusive of those components defined by 2012 Wyoming Session Laws, Chapter 99, Section 3 [Attachment
"
A
"
(a)(iii)], two and one hundred twenty-six thousandths percent (2.126%).

(ii)

Effective for school year 2017-2018 only:

(A)

For the "professional labor" category of model components inclusive of those components defined by 2012 Wyoming Session Laws, Chapter 99, Section 3 [Attachment "A"(a)(vi)], one and four hundred sixty-two thousandths percent (1.462%);

(B)

For the "nonprofessional labor" category of model components inclusive of those components defined by 2012 Wyoming Session Laws, Chapter 99, Section 3 [Attachment "A"(a)(v)], one and three hundred twenty-six thousandths percent (1.326%);

(C)

For the "energy" category of model components inclusive of those components defined by 2012 Wyoming Session Laws, Chapter 99, Section 3 [Attachment "A"(a)(iv)], one and six hundred sixty-five thousandths percent (1.665%);

(D)

For the "educational materials" category of model components inclusive of those components defined by 2012 Wyoming Session Laws, Chapter 99, Section 3 [Attachment "A"(a)(iii)], one and four hundred forty-seven thousandths percent (1.447%).
2.

Not later than November 1, 2016, pursuant to W.S. 21
‑
13
‑
309(o) and (u), the joint education interim committee and the joint appropriations committee shall review information prepared for the model monitoring process, including school year 2015-2016 average daily membership data, to inform recommendations made to the governor and the legislature pursuant to law to modify the external cost adjustment contained in footnote 1(a)(ii) of this section. Not later than January 1, 2017, the department of education shall provide preliminary student enrollment data for school year 2016-2017 to the joint appropriations committee. The joint appropriations committee shall report any recommendation to revise the external cost adjustment as a result of the review of the preliminary student enrollment data to the governor and the legislature.

Section 5
.

The amendments to 2016 Wyoming Session Laws, Chapter 31, Section 2, Section 205, Footnote 1(a)(ii) enacted pursuant to section 4 of this act shall
be given precedence and shall prevail over
any
amendments
to 2016 Wyoming Session Laws, Chapter 31, Section 2, Section 205, Footnote 1(a)(ii)
in
2017 House Bill 0001
to the extent that
2017 House Bill 0001 is
in conflict with this act.
To the extent required by this section, adjust totals and renumber as necessary.

Section 6.

The department of education and department of health shall promulgate rules by July 1, 2017 to comply with amendments to W.S. 21
‑
13
‑
321 and 42
‑
4
‑
103 in section 1 of this act. If the Medicaid state plan is amended to allow reimbursement for special education services, school districts may seek reimbursement for allowable expenditures. The Medicaid program may seek and receive reimbursement from the appropriation under this section for the state share of these Medicaid expenses. On the effective date of this section there is appropriated up to five million dollars ($5,000,000.00) from the school foundation program account to the department of education. This amount shall only be expended on a district by
district basis as determined necessary by the state superintendent to ensure all maintenance of effort requirements of federal law are being met by each district and to provide matching funds required for reimbursement by the Medicaid program. Any unexpended, unencumbered amounts appropriated under this section shall revert as provided by law on June 30, 2018.

Section
7
.

(a)

The reductions implemented by this act are intended to be temporary pending a recalibration of the
education resource block grant model
.
The select committee on school finance recalibration is created consisting of the following members:

(i)

F
ive (5) members of the Wyoming senate appointed by the president of the senate of which one (1) member shall be the chairman of the senate education committee and one (1) member shall be the chairman of the senate appropriations committee;

(ii)

Five (5)
members of the Wyoming house of representatives appointed by the speaker of the house of representatives, of which

one (1) member shall be the chairman of the house education committee and one (1)
mem
ber shall be the chairman of the house appropriations committee;

(iii)

Not
more than four (4) members
from each house shall be from the
same political
party;

(iv)

The

cochairmen of the select committee shall be appointed by the president of the senate and the speaker of the house, respectively.

(b)

The select committee shall undertake a study to
review the state educational program under W.S. 21
‑
9
‑
101 and to
recalibrate the education resource block grant model as
provided
under W.S. 21-13-309(t) to determine if modifications are necessary to ensure the model remains effective and cost-based in light of changing conditions and modifications to
law. If the committee determines an alternative to the education resource block grant model should be reviewed and developed to more efficiently meet
the constitutional duties of the legislature in providing K-12 education funding the committee shall not limit its study to a recalibration of the existing cost-based model.

(c)

The select committee shall be staffed by the legislative service office.
The department of education, department of workforce services, school districts and the school finance data advisory committee established under W.S. 21-2-203 shall collect and provide the information requested by the select committee.

(d)

The select committee may seek out expert opinions and may hire consultants as necessary to complete the study and recommendations required under this section. The legislative service office is authorized, subject to the approval of management council, to contract with consultants for the purposes of this subsection to complete recalibration of the
education resource block grant model
.

(e
)

The select committee shall report its recommendations and any associated legislation to the legislature
not later than January 31, 2018.
The select committee may develop and introduce legislation as
necessary to effectuate the purposes of this section
, provided that no legislation shall be introduced by the committee unless it is approved by a majority of the members of the select committee from each house
.

(f
)

Appointments shall be made under this section not later than March 1
5, 2017
. The select committee shall exist until
March 31, 2018
. Any vacancy occurring on the select committee shall be filled by the president

of the senate

or speaker

of the house of representatives, as appropriate, immediately upon the vacancy occurring.

(
g
)

For the period beginning on the effective date of this
section and ending June 30, 2018
, there is appropriated
from the school foundation program account to the legislative service office
eighty thousand dollars ($8
0,000.00) to provide salary, per diem and mileage for members of the select committee and to fund other expenses of the select committee as necessary to carry out this section.

Section
8
.

(a)

W.S. 21
‑
13
‑
309(w) created by s
ection 1 of this act is effective only if the secretary of state certif
ies to the department of education
that
the legislature has not enacted legislation providing for recalibration of
education resource block grant model
as provided under W.S. 21
‑
13
‑
309(t) and section 5 of this act following the effective date of this section and prior to July 1, 2018.

(b)

W.S. 21
‑
13
‑
309(y) created by s
ection 1 of this act is effective only if the secretary of state certif
ies to the department of education
that
the legislature has not enacted legislation providing for recalibration of
education resource block grant model
as provided under W.S. 21
‑
13
‑
309(t) and section 5 of this act following the effective date of this section and prior to July 1, 2019.

Section
9
.

(a)

There is appropriated
two hundred six million dollars
($206,000,000.00)
from the
school foundation program account
to the
department of education
.
This appropriation shall be for the period beginning with the effective date of t
his section and ending June 30, 2018
.

This appropriation shall only be expended for the purpose of
providing health insurance funding to school districts as provided in W.S. 21
‑
13
‑
309(m)(v)(F)(III).
Notwithstanding any other provision of law, this appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on
June 30, 2018
.

(b)

The department of education shall adopt rules and regulations for reimbursement of health insurance to school districts as provided in W.S. 21
‑
13
‑
309(m)(v)(F)(III) not later than July 1, 2017.

Section

10
.

(a)

Except as otherwise provided in subsection (b) of this section,
t
his act is effective July 1, 201
7
.

(b)

W.S. 21
‑
13
‑
320
as amended by
section 1 of
this act
and sections 6
through 9
of this act
are effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

1
SF0165