HB 105 -- SCHOOL DISTRICT OPERATING LEVY

This bill permits school districts in second class counties
having a nuclear power plant (South Callaway R-II) or in third
class counties with an electrical plant having a capacity of
more than 150 megawatts owned or operated by a rural electric
cooperative (Westran R-I and New Madrid R-I) to increase their
operating levy for school purposes and capital projects to $2.75
minus the adjustments required by article X, section 22 of the
state Constitution.

HB 105 -- SCHOOL DISTRICT OPERATING LEVY (Copeland)

This bill permits school districts in second class counties
having a nuclear power plant (South Callaway R-II) or in third
class counties with an electrical plant having a capacity of
more than 150 megawatts owned or operated by a rural electric
cooperative (Westran R-I and New Madrid R-I) to increase their
operating levy for school purposes and capital projects to $2.75
minus the adjustments required by article X, section 22 of the
state Constitution.

FISCAL NOTE:  No impact on state funds.

HB 105, HCA 1 -- SCHOOL DISTRICT OPERATING LEVY

SPONSOR:  Copeland

COMMITTEE ACTION:  Voted "do pass" by the Committee on Education
- Elementary and Secondary by a vote of 21 to 3.

This bill permits school districts in second class counties
having a nuclear power plant (South Callaway R-II) or in third
class counties with an electrical plant having a capacity of
more than 150 megawatts owned or operated by a rural electric
cooperative (Westran R-I and New Madrid R-I) to increase their
operating levy to $2.75 minus the adjustments required by
article X, section 22 of the state Constitution.

HCA 1 -- Adds capital projects to purpose of levy.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that The three districts affected by
this bill were excluded from the $2.75 minimum levy because of
the effects of power plants on the assessed valuation of the
districts.  In the years since SB 380, one of the districts has
experienced substantial growth and used reserve funds to cope
with it.  Using reserve funds diminished the interest on those
funds, so in turn, the district's operating funds were similarly
diminished since the interest on the reserve was placed in the
operating fund.  Another of the districts approved a Proposition
C rollback to compensate for shrinking of state and federal
funding because of a declining student population but is now
within a few cents of needing a small increase.  Fund transfer
limitations make it necessary to ask for capital projects to be
included in the levy.  The bill would allow the school board in
each of these districts to vote to levy up to $2.75, the same
authority given to other districts under SB 380, providing them
some flexibility to deal with their unique situation.

Testifying for the bill were Representative Copeland; and New
Madrid County R-1 School District.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Research Analyst

HB 105 -- School District Operating Levy

Sponsor:  Copeland

This bill permits school districts in second class counties
having a nuclear power plant (South Callaway R-II) or in third
class counties with an electrical plant having a capacity of
more than 150 megawatts owned or operated by a rural electric
cooperative (Westran R-I and New Madrid R-I) to increase their
operating levy to $2.75 minus the adjustments required by
article X, section 22 of the state Constitution.