S.B. 345 created a second method for calculating the amount required to be set aside for textbook and instructional materials and for capital and maintenance. Both methods use prior year data. Each fiscal year districts may choose between the two methods for calculating its set aside requirement. If a district chooses to use the original H.B. 412 method, the local board of education must pass a resolution by September 30th and keep it on file for audit purposes. The board of education does not have to take any action if it chooses to use the new S.B. 345 method.
S.B. 345 Calculation
The new method, established under S.B. 345, allows districts to take student population times the prior year’s base cost per pupil times 3% to determine the amount of the set aside.
H.B. 412 Calculation
The set aside requirement under H.B. 412, is 3% of the prior year’s base revenue. Base revenue consists of property taxes, income taxes, and the state portion of base revenue for the regular student population.
This amount should be added to the district’s local property taxes and income taxes to get the total base revenue. Districts should consult Auditor of State Bulletin 98-014 to determine which local property and income taxes are included in the base revenue.
Districts should consult Auditor of State Bulletin 2001-06 for more details.
Last Modified: 5/17/2013 2:43:14 PM