SB 1040 - The act establishes a new formula for the distribution of state school aid. The formula establishes a flat, per pupil entitlement known as the "formula base amount per EP". Deductions are made for local sources of operating revenues and some federal revenues.

The act requires that each district levy no less than the minimum operating levy as an eligibility requirement for state aid. Local property tax receipts from the minimum levy are deducted at 100% from state aid entitlement and additional local property tax receipts are deducted (at 50% times the income factor) to the extent that such additional receipts exceed 10% of the formula base amount per pupil.

The Line 14 At-Risk categorical aid is revised so that districts receive payment of 25% of the base formula amount on the basis of Free and Reduced Price Lunch Eligible pupils in excess of the statewide average percentage enrollment of such pupils.

Payments pursuant to the new formula are phased in over 2 years for districts that participate in a Comprehensive School Improvement Plan, while a 3-year phase-in will be applied to other districts.

The one-cent Proposition C sales tax revenues will be distributed as part of the state sources used to fund the basic formula payment.

The act has a referendum clause.
OTTO FAJEN