The 1998 Supplemental K-12 Education Bill appropriated approximately $215 million for a variety of education purposes. The majority of the funding went to districts for additional staff development to implement the new graduation standards and to buy off the remaining portion of the general education levy recognition shift. The fiscal changes made this year authorize an additional $126 million in spending for the next biennium.

Graduation Standards Implementation Revenue. The 1998 Legislature created a new categorical aid to help districts implement the new state graduation standards through staff development, technology improvements, class size reduction, and programs for gifted and talented students. Districts that implement the full graduation standards during the 1998-99 school year will receive $66 per pupil, and districts that choose to phase in the implementation of the graduation standards will receive $52 per pupil. For the 1999-2000 school year and later, all districts will receive $43 per pupil for ongoing graduation standards programs. Certain low property wealth districts will receive an additional $25 per pupil for graduation standards implementation. The statewide cost for this new categorical aid is about $70.8 million for FY 1999, and about $107 million for the next biennium.

Shift Eliminated. $90.1 million was needed to buy back the remaining 7 percent of the general education levy recognition shift. The property tax recognition shift is the amount of anticipated property tax revenue school districts are required to recognize in the current year.

Transitional Compensatory Revenue. The Legislature appropriated $14.7 million to certain school districts who received less than a 35 percent increase in last year's new compensatory revenue formula to help offset budgetary problems encountered when districts had to allocate all of the compensatory revenue to school sites, as required by last year's funding changes.

Facilities and Flood Losses. The state will begin to house some students in at least three new residential academies through a $12 million appropriation. These residential academies will house and educate certain at-risk children. The 1998 Legislature also appropriated almost $11 million to aid districts that incurred excessive flood and storm-related damages.

Special Education. The Supplemental K-12 Education Bill contained a number of special education provisions which comply with federal changes in special education regulations and address some of the rising costs of special education. About $800,000 was appropriated to help districts access federal health care money through a statewide data management system and staff training. The Omnibus Bill also contained $500,000 to help districts with their litigation costs associated with special education.

Reporting the Cost of Education. In order for future Legislatures to better understand the funding needs of school districts, the 1998 Legislature required school districts to provide additional fiscal information to the state. Beginning in 1999, school districts must report the expenditures required for different percentages of students to pass the basic skills test. Superintendents must also report how much the district is cross-subsidizing programs with special education, compensatory, and general education revenue.

Other Education Appropriations. The Legislature also provided:

• $1.5 million to the First Grade Preparedness/ All-Day Kindergarten program;

• $2 million for a Clearinghouse of Best Education Practices which will promote successful teaching methods and staff development;

• $3.5 million for Graduation Rule Resource Grants which will go to public or private entities to help develop curriculum packages for the new graduation standards; and

• $900,000 to increase funding for the Department of Children, Families, and Learning for costs associated with educational adequacy litigation.

  
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