HB 1234-4_ Filed 02/17/2004, 10:22 Simpson

SENATE MOTION


MADAM PRESIDENT:

    I move
that Engrossed House Bill 1234 be amended to read as follows:

    Delete the title and insert the following:
    A BILL FOR AN ACT to amend the Indiana Code concerning education.

SOURCE: Page 1, line 1; (04)MO123414.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 21-1-31; (04)MO123414.1. -->     "SECTION 1. IC 21-1-31 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]:
     Chapter 31. Early Learning Program
    Sec. 1. As used in this chapter, "department" refers to the department of education.
    Sec. 2. As used in this chapter, "eligible school" refers to an eligible school determined under section 9 of this chapter.
    Sec. 3. As used in this chapter, "eligible student" refers to an eligible student determined under section 8 of this chapter.
    Sec. 4. As used in this chapter, "school" means any school maintained by a school corporation.
    Sec. 5. As used in this chapter, "school corporation" has the meaning set forth in IC 21-3-1.6-1.1.

    Sec. 6. The department shall establish a program to make grants beginning after June 30, 2005, to any school corporation that applies for a grant in the manner prescribed by the department to establish, continue, or expand voluntary kindergarten programs in one (1) or more eligible schools in the school corporation.
    Sec. 7. Subject to section 10 of this chapter, the amount of a grant is equal to one thousand five hundred dollars ($1,500) for each eligible student, as determined under section 8 of this chapter, in an eligible school, as determined under section 9 of

this chapter.
    Sec. 8. The number of eligible students in a school corporation is equal to the number of students in the school corporation who are:
        (1) enrolled in full day kindergarten in the current school year, as determined in one (1) or more counts of students made under the rules adopted the department; and
        (2) attending an eligible school.
    Sec. 9. A school is an eligible school if:
        (1) the school has not received a grant under any combination of P.L.224-2003 and this chapter in more than two (2) consecutive school years immediately preceding the current school year; and
        (2) the students enrolled in full day kindergarten in the school are not counted as one (1) pupil under IC 21-3-1.6-1.1(d)(2).
    Sec. 10. If in any school year, insufficient money is appropriated for full day kindergarten grants to make grants for all eligible students enrolled in all applicant school corporations, money shall be awarded in the following order until the amount appropriated for grants is exhausted:
        (1) The amounts determined under subsection (b).
        (2) The amounts determined under subsection (c).
        (3) The amounts determined under subsection (d).
    (b) The department shall first award grants from appropriations made for full day kindergarten grants in the amount determined under STEP FIVE of the following formula:
        STEP ONE: For each school that received state funding for full day kindergarten in the immediately previous school year, determine the number of eligible students enrolled in the current school year in the school.
        STEP TWO: For each school described in STEP ONE, multiply the number determined under STEP ONE by the amount of the grant determined under section 7 of this chapter.
        STEP THREE: Rank each school described in STEP ONE by the percentage of the eligible students who are eligible for a free or reduced school lunch program, with the school with the highest percentage ranked first and the school with the lowest percentage ranked last.
        STEP FOUR: Beginning with the school ranked first under STEP THREE and proceeding through the school ranked last under STEP THREE, allocate the lesser of the following to each school:
            (A) The amount determined for the school under STEP

TWO.
            (B) The amount remaining from the amounts appropriated for full day kindergarten grants after allocating money to each school with a higher ranking under STEP THREE.
        STEP FIVE: Distribute to each school corporation the sum of the amounts allocated under STEP FOUR for each school in the school corporation.
    (c) If the amount appropriated for full day kindergarten grants has a balance after making all of the distributions required under subsection (b), grants shall be distributed in the amount determined under STEP FIVE of the following formula:
        STEP ONE: For each Title I school that did not receive state funding for full day kindergarten in the immediately previous school year, determine the number of eligible students enrolled in the current school year.
        STEP TWO: For each school described in STEP ONE, multiply the number determined under STEP ONE by the amount of the grant determined under section 7 of this chapter.
        STEP THREE: Rank each school described in STEP ONE by the percentage of the eligible students who are eligible for a free or reduced school lunch program, with the school with the highest percentage ranked first and the school with the lowest percentage ranked last.
        STEP FOUR: Beginning with the school ranked first under STEP THREE and proceeding through the school ranked last under STEP THREE, allocate the lesser of the following to each school:
            (A) The amount determined for the school under STEP TWO.
            (B) The amount remaining from amounts appropriated for full day kindergarten grants after allocating money to each school with a higher ranking under STEP THREE.
        STEP FIVE: Distribute to each school corporation the sum of the amounts allocated under STEP FOUR for each school in the school corporation.
    (d) If the amount appropriated for full day kindergarten grants has a balance after making all of the distributions required under subsections (b) and (c), grants shall be distributed in the amount determined under STEP FIVE of the following formula:
        STEP ONE: For each school that is not described in subsection (b) or (c), determine the number of eligible students enrolled in the current school year in the school.
        STEP TWO: For each school described in STEP ONE, multiply the number determined under STEP ONE by the amount of

the grant determined under section 7 of this chapter.
        STEP THREE: Rank each school described in STEP ONE by the percentage of the eligible students who are eligible for a free or reduced school lunch program, with the school with the highest percentage ranked first and the school with the lowest percentage ranked last.
        STEP FOUR: Beginning with the school ranked first under STEP THREE and proceeding through the school ranked last under STEP THREE, allocate the lesser of the following to each school:
            (A) The amount determined for the school under STEP TWO.
            (B) The amount remaining from amounts appropriated for full day kindergarten grants after allocating money to each school with a higher ranking under STEP THREE.
        STEP FIVE: Distribute to each school corporation the sum of the amounts allocated under STEP FOUR for each school in the school corporation.
    Sec. 11. Distributions of grant amounts under this chapter shall be made at the time and in the manner prescribed by the department.
    Sec. 12. Money distributed to a school corporation under this chapter may be used only for the purposes described in the grant application approved by the department.
    Sec. 13. As a condition of receiving a grant under this chapter, a school corporation may not charge a fee for any eligible student who is eligible for a free or reduced lunch program.

SOURCE: IC 21-3-1.6-1.1; (04)MO123414.2. -->     SECTION 2. IC 21-3-1.6-1.1, AS AMENDED BY P.L.276-2003, SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 1.1. As used in this chapter:
    (a) "School corporation" means any local public school corporation established under Indiana law. Except as otherwise indicated, the term includes a charter school.
    (b) "School year" means a year beginning July 1 and ending the next succeeding June 30.
    (c) "State distribution" due a school corporation means the amount of state funds to be distributed to a school corporation in any calendar year under this chapter.
    (d) "Average daily membership" or "ADM" of a school corporation means the number of eligible pupils enrolled in the school corporation or in a transferee corporation on a day to be fixed annually by the Indiana state board of education and, beginning in the school year that ends in the 2005 calendar year, as subsequently adjusted not later than January 30 under the rules adopted by the state board of education. The initial day of the count shall fall within the first thirty (30) days of the

school term. If, however, extreme patterns of student in-migration, illness, natural disaster, or other unusual conditions in a particular school corporation's enrollment on either the day fixed by the Indiana state board of education or on the subsequent adjustment date, cause the enrollment to be unrepresentative of the school corporation's enrollment throughout a school year, the Indiana state board of education may designate another day for determining the school corporation's enrollment. The Indiana state board of education shall monitor changes that occur after the fall count, in the number of students enrolled in programs for children with disabilities and shall, before December 2 of that same year and, beginning in the 2004 calendar year, before April 2 of the following calendar year, make an adjusted count of students enrolled in programs for children with disabilities. The superintendent of public instruction shall certify the December adjusted count to the budget committee before February 5 of the following year and the April adjusted count not later than May 31 immediately after the date of the April adjusted count. In determining the ADM:
         (1) each kindergarten pupil who is not:
            (A) enrolled in a full day kindergarten program class at a school in a school corporation that received a state grant under any combination of P.L.224-2003 and IC 21-1-31 for full day kindergarten for part or all of at least two (2) consecutive school years ending immediately before the date that the ADM count is made for the current school year; or
            (B) enrolled in a full day kindergarten program class in which pupils were counted as one (1) pupil under subdivision (2) in the immediately preceding school year;
        
shall be counted as one-half (1/2) pupil; and
        (2)
each kindergarten pupil who is:
            (A) enrolled in a full day kindergarten program class at a school in a school corporation that received a state grant under any combination of P.L.224-2003 and IC 21-1-31 for full day kindergarten for part or all of at least two (2) consecutive school years ending immediately before the date that the ADM count is made for the current school year; or
            (B) enrolled in a full day kindergarten program class in which pupils were counted as one (1) pupil under this subdivision in the immediately preceding school year;
        shall be counted as one (1) pupil.
Where a school corporation commences kindergarten in a school year, the ADM of the current and prior calendar years shall be adjusted to reflect the enrollment of the kindergarten pupils. In determining the

ADM, each pupil enrolled in a public school and a nonpublic school is to be counted on a full-time equivalency basis as provided in section 1.2 of this chapter.
    (e) "Additional count" of a school corporation, or comparable language, means the aggregate of the additional counts of the school corporation for certain pupils as set out in section 3 of this chapter (repealed) and as determined at the times for calculating ADM. "Current additional count" means the initial computed additional count of the school corporation for the school year ending in the calendar year. "Prior year additional count" of a school corporation used in computing its state distribution in a calendar year means the initial computed additional count of the school corporation for the school year ending in the preceding calendar year.
    (f) For purposes of this subsection, "school corporation" does not include a charter school. "Adjusted assessed valuation" of any school corporation used in computing state distribution for a calendar year means the assessed valuation in the school corporation, adjusted as provided in IC 6-1.1-34. The amount of the valuation shall also be adjusted downward by the department of local government finance to the extent it consists of real or personal property owned by a railroad or other corporation under the jurisdiction of a federal court under the federal bankruptcy laws (11 U.S.C. 101 et seq.) if as a result of the corporation being involved in a bankruptcy proceeding the corporation is delinquent in payment of its Indiana real and personal property taxes for the year to which the valuation applies. If the railroad or other corporation in some subsequent calendar year makes payment of the delinquent taxes, then the state superintendent of public instruction shall prescribe adjustments in the distributions of state funds pursuant to this chapter as are thereafter to become due to a school corporation affected by the delinquency as will ensure that the school corporation will not have been unjustly enriched under the provisions of P.L.382-1987(ss). The amount of the valuation shall also be adjusted downward by the department of local government finance to the extent it consists of real or personal property described in IC 6-1.1-17-0.5(b).
    (g) "General fund" means a fund established under IC 21-2-11-2.
    (h)"Teacher" means every person who is required as a condition of employment by a school corporation to hold a teacher's license issued or recognized by the state, except substitutes and any person paid entirely from federal funds.
    (i) For purposes of this subsection, "school corporation" does not include a charter school. "Teacher ratio" of a school corporation used in computing state distribution in any calendar year means the ratio assigned to the school corporation pursuant to section 2 of this chapter.
    (j) "Eligible pupil" means a pupil enrolled in a school corporation if:
        (1) the school corporation has the responsibility to educate the pupil in its public schools without the payment of tuition;
        (2) subject to subdivision (5), the school corporation has the

responsibility to pay transfer tuition under IC 20-8.1-6.1, because the pupil is transferred for education to another school corporation (the "transferee corporation");
        (3) the pupil is enrolled in a school corporation as a transfer student under IC 20-8.1-6.1-3 or entitled to be counted for ADM or additional count purposes as a resident of the school corporation when attending its schools under any other applicable law or regulation;
        (4) the state is responsible for the payment of transfer tuition to the school corporation for the pupil under IC 20-8.1-6.1; or
        (5) all of the following apply:
            (A) The school corporation is a transferee corporation.
            (B) The pupil does not qualify as a qualified pupil in the transferee corporation under subdivision (3) or (4).
            (C) The transferee corporation's attendance area includes a state licensed private or public health care facility, child care facility, or foster family home where the pupil was placed:
                (i) by or with the consent of the division of family and children;
                (ii) by a court order;
                (iii) by a child placing agency licensed by the division of family and children; or
                (iv) by a parent or guardian under IC 20-8.1-6.1-5.
For purposes of IC 21-3-12, the term includes a student enrolled in a charter school.
    (k) "General fund budget" of a school corporation means the amount of the budget approved for a given year by the department of local government finance and used by the department of local government finance in certifying a school corporation's general fund tax levy and tax rate for the school corporation's general fund as provided for in IC 21-2-11. The term does not apply to a charter school.
    (l) "At risk index" means the following:
        (1) For a school corporation that is a not a charter school, the sum of:
            (A) the product of sixteen-hundredths (0.16) multiplied by the percentage of families in the school corporation with children who are less than eighteen (18) years of age and who have a family income below the federal income poverty level (as defined in IC 12-15-2-1);
            (B) the product of four-tenths (0.4) multiplied by the percentage of families in the school corporation with a single parent; and
            (C) the product of forty-four hundredths (0.44) multiplied by the percentage of the population in the school corporation who are at least twenty (20) years of age with less than a twelfth grade education.
        The data to be used in making the calculations under this

subdivision must be the data from the 2000 federal decennial census.
        (2) For a charter school, the index determined under subdivision (1) for the school corporation in which the charter school is located.
    (m) "ADM of the previous year" or "ADM of the prior year" used in computing a state distribution in a calendar year means the initial computed ADM for the school year ending in the preceding calendar year.
    (n) "Current ADM" used in computing a state distribution in a calendar year means the initial computed ADM for the school year ending in the calendar year.

SOURCE: IC 21-3-1.7-3.1; (04)MO123414.3. -->     SECTION 3. IC 21-3-1.7-3.1, AS AMENDED BY P.L.276-2003, SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2006]: Sec. 3.1. (a) As used in this chapter, "previous year revenue" for calculations with respect to a school corporation equals:
        (1) the school corporation's tuition support for regular programs, including basic tuition support, and excluding:
            (A) special education grants;
            (B) vocational education grants;
            (C) at-risk programs;
            (D) the enrollment adjustment grant;
            (E) the academic honors diploma award;
            (F) the primetime distribution; and
            (G) for 2005 and thereafter, the supplemental remediation grant;
        for the year that precedes the current year; plus
        (2) the school corporation's tuition support levy for the year that precedes the current year before the reductions required under section 5(1) and 5(2) of this chapter; plus
        (3) distributions received by the school corporation under IC 6-1.1-21.6 for the year that precedes the current year; plus
        (4) the school corporation's excise tax revenue for the year that precedes the current year by two (2) years; minus
        (5) an amount equal to the reduction in the school corporation's tuition support under subsection (b) or IC 20-10.1-2-1, or both; plus
        (6) in calendar year 2003, the amount determined for calendar year 2002 under section 8.2 of this chapter, STEP TWO (C); plus
        (7) in calendar year 2004, the amount determined for calendar year 2002 under section 8.2 of this chapter, STEP TWO (D); plus
        (8) notwithstanding subdivision (1), in calendar year 2004, the school corporation's distribution under section 9.7 of this chapter for calendar year 2003; plus
        (9) for the year immediately preceding the first year in which

a pupil in full day kindergarten is counted as one (1) pupil under IC 21-3-1.6-1.1(d)(2), the product of:
            (A) the number of pupils counted as one (1) pupil under IC 21-3-1.6-1.1(d)(2); multiplied by
            (B) one thousand five hundred dollars ($1,500).
    (b) A school corporation's previous year revenue shall be reduced if:
        (1) the school corporation's state tuition support for special or vocational education was reduced as a result of a complaint being filed with the department of education after December 31, 1988, because the school program overstated the number of children enrolled in special or vocational education programs; and
        (2) the school corporation's previous year revenue has not been reduced under this subsection more than one (1) time because of a given overstatement.
The amount of the reduction equals the amount the school corporation would have received in tuition support for special and vocational education because of the overstatement.
    (c) A school corporation's previous year revenue shall be reduced if an existing elementary or secondary school located in the school corporation converts to a charter school under IC 20-5.5-11. The amount of the reduction equals the product of:
        (1) the sum of the amounts distributed to the conversion charter school under IC 20-5.5-7-3.5(c) and IC 20-5.5-7-3.5(d); multiplied by
        (2) two (2).

SOURCE: ; (04)MO123414.4. -->     SECTION 4. [EFFECTIVE JULY 1, 2004] (a) Grants may not be distributed under IC 21-1-31, as added by this act, before June 30, 2005.
    (b) IC 21-3-1.6-1.1, as amended by this act, applies only to ADM counts made after June 30, 2005.
".
    Renumber all SECTIONS consecutively.
    (Reference is to EHB 1234 as printed February 13, 2004.)

________________________________________

Senator SIMPSON




MO123414/DI 51
2004