- Committee -

SCS/SB 781 - TAX ABATEMENT - Tax abatements may not be issued or become effective in St. Louis City unless the city determines the total revenue to be generated by the project and pays 50% of that amount to the school district.

ACADEMICALLY DEFICIENT SCHOOLS - Districts with graduation rates below 65% shall determine which schools meet the criteria of "academically deficient" schools, and the district may suspend or terminate contracts of certificated staff, principals and other administrators of such school and may reconstitute the school or sponsor a charter school. Termination of a tenured teacher's contract shall be pursuant to applicable due process as provided by law. School districts which make self-determinations of "academically-deficient" schools shall establish a program of incentives and rewards for teachers to help improve such schools.

GRANTS FOR RESEARCH BASED REFORM - This act establishes a matching grant program to allow schools to choose and implement proven, research-based reforms at the school level. Grants are renewable for up to a total of three years. Priority is given to academically deficient schools. State Board rules implementing the program shall be subject to review of the Joint Committee on Administrative Rules.

CHARTER SCHOOLS - Charter schools may be established in St. Louis City and Kansas City Missouri School District. Charter schools may be sponsored by the local school board or the State Board of Education. Applications denied by the local board may be appealed to the State Board. Approved public and private colleges and universities in the district or in the urban school choice program area (St. Louis County) may operate a charter school.

The act specifies requirements for the proposed charter to be submitted to the sponsor by the entity seeking to establish a charter school. Geographical regions of charter schools shall not create racially or socio-economically isolated schools. Charter schools may not limit admission based upon race or ability. Charter schools shall be nonsectarian, financially accountable, offer a comprehensive program of instruction for one or more grade levels, have methods to measure pupil progress towards state academic standards and comply with laws pertaining to health, safety and minimum educational standards. Charter schools shall be exempt from all other laws and rules pertaining to schools, except as provided in this act.

A charter school and school district may agree for the charter school to contract with the school district for special education services, and, in such cases, the proportionate share of state and federal funds for disabled students shall go to charter schools educating such students. Schools within special school districts may elect to enroll disabled students in charter schools by contract and with agreement of the parent, school district and charter school. A school district may contract with a charter school to provide special education services.

The state share of per pupil aid shall be paid directly from the Department of Elementary and Secondary Education to the charter school. The school district where the pupil resides shall pay the local share of per pupil operating revenues, plus any other federal or state aid received on behalf of such child, to the charter school. Each charter school shall report the names, address and eligibility for state categorical aid for each pupil to the school district of residence and to the Department, and each charter school shall promptly report to the district and the Department when a student discontinues enrollment.

Certificated teachers at a charter school, may, at the school's option, participate in the public school teacher retirement system applicable to the district in which the school is located. A charter school may employ non-certificated teachers to comprise up to 20% of the instructional staff, but such teachers shall not be members of PSRS. All instructional staff shall have education, experience and skills appropriate to their instructional duties. School district employees may be employed by the district and the charter school contract may provide for employees to choose to remain employed by the district. A criminal and child abuse background check shall be conducted before hiring any employee of the charter school.

Similar provisions regarding charter schools are contained in SB 789.

LAPSING DISTRICTS - The State Board may attach territory of a lapsed district to another district. The State Board of Education may appoint a three-member special administrative board for any lapsed school district. Special administrative boards shall serve for two years and may be extended for two more years by the State Board. Existing charter schools shall continue under the current sponsor or a successor school district.

REVISED GOVERNANCE FOR ST. LOUIS CITY SCHOOLS - The St. Louis School Board is abolished for four years and governance of the district vested with the State Board of Education. The State Board shall appoint a Chief Executive Officer for the district. The CEO's powers are listed, per the Committee Report. Beginning in April 2003, a new school board shall be established with seven members elected statewide to represent subdistricts to serve four-year terms.

Each member of the new Board shall participate in board member training. The new Board shall implement a comprehensive school improvement plan to ensure that all students meet or exceed grade level standards. All students in the district who do not achieve grade level standards shall be required to attend summer school. Social promotion shall not be allowed for students who are more than one year behind current grade level in reading.

The Board shall implement a professional development plan for teachers and other support staff. The school improvement plan shall ensure open enrollment and program access to all students in the district. Students who change residence within the district shall be allowed to continue to attend the school in which they were initially enrolled for the remainder of their education at that school with transportation provided by the district.

The school improvement plan and professional development plan shall be subject to review and approval by the State Board of Education.

Per pupil expenditures and pupil-teacher ratios shall be the same for all schools at a given grade level. The Board shall ensure that Early Childhood education is available throughout the district. The Board shall ensure that vocational education instruction is provided within the district. The Superintendent shall serve as an ex-officio member of the Mayor's office.

The Board shall hire an accountability officer to improve schools within two years. The State Board shall not limit determinations of schools as "academically deficient" based upon the location of the school or the number of deficient schools in a district.

A pilot program of "looping" is established in St. Louis City. The program shall establish multi-year teacher-student groupings. The program shall be implemented in no less than 20 schools in the district and shall be implemented for no less than five consecutive years and in at least six classrooms per school. The board shall establish a policy and a procedure to review and act upon requests by a student or the parent of a student that the student be transferred to a different class with a different teacher. The program shall be subject to monitoring, review and approval by the State Board of Education.

URBAN PUBLIC SCHOOL CHOICE PROGRAM - The program area will include St. Louis City and St. Louis County and be administered by a Governing Council consisting of the Superintendent or CEO of each district in the program area. Participation is voluntary for districts and for students. The Council shall establish four regional attendance zones mapping parts of the city with the county.

Incentive aid shall be provided for city students attending in a county district. Any non-resident student shall count as an "eligible pupil" for state aid in the district attended for distributing formula aid, line 14 (At-Risk aid),Free Textbook, Fair Share, Prop C and state assessed railroad and utility revenue. The incentive payment shall guarantee that the district attended receives the full entitlement of the city district for that child (the city's $3.75 levy times the GTB per pupil) plus line 14 aid but the total aid received shall not to exceed the district's cost of education. Incentive aid shall only be provided for the first ten years.

Districts shall provide transportation to non-resident students in the same attendance zone and receive 100% transportation reimbursement. Districts shall provide transportation to other non-resident students and receive transportation reimbursement at the same rate as given to other transportation costs under Section 163.161, RSMo. State and federal categorical aid shall also follow the student to the district attended.

A Joint Committee shall be established in 5 years to review the program, and the Committee shall be reestablished in 10 years to review the program and recommend whether the financial incentives should be extended.

DEFINITIONS - Defines the "Fiscal Instructional Ratio of Efficiency" (FIRE) used to determine administrative efficiency. Defines "Graduation Rate". Some existing definitions are moved into alphabetical order.

URBAN CATEGORICAL - Up to $1,000 per eligible pupil for Kansas City and St. Louis school districts. Receipt of such aid is contingent upon maintenance of the district's operating levy and upon termination of state desegregation aid for operating purposes to the district. After the Public School Choice incentive payment ends in 10 years, the urban categorical aid shall also be paid to St. Louis County districts where St. Louis City students continue to attend school on a per eligible pupil basis.

URBAN SUBURBAN CATEGORICAL - Up to $1000 per free and reduce lunch eligible pupil for eligible districts meeting the following criteria:

(1) High concentrations of poverty, high security risks, high student mobility rate and an underserved need for early childhood education, Parents as Teachers programs and counseling on social and family issues;

(2) A current operating levy of at least $3.75 per hundred dollars assessed valuation;

(3) The enrollment of students eligible for free or reduced price lunch is at least the statewide average; and

(4) The district is located in a county where at least 70% of the school districts in the county were subject to a federal court school desegregation decree or order on the effective date of this section.

USE OF DESEGREGATION SAVINGS - Funds shall be distributed in the following order:

1) The $80 million saved from 1994 to 1997 shall remain in the foundation formula.

2) Up to the next $75 million shall also go to fund the formula.

3) The next priority is to fund increases in state categorical aid. These increases will be phased in over three years, capped at the amounts listed in the act for each program and fully funded in the order of priority listed in the report (transportation, vocational ed., special ed., gifted education, remedial reading and academic assessments).

4) The final priority is to fund the new urban categorical aid and urban suburban categorical aid programs.

PRINCIPAL TENURE - The act eliminates principal tenure in St. Louis City.

OTTO FAJEN