TITLE: CONCERNING THE SIZE FACTOR USED IN CALCULATING TOTAL PROGRAM FUNDING FOR CERTAIN SMALL SCHOOL DISTRICTS THAT ADOPT PLANS OF REORGANIZATION THAT RESULT IN DECONSOLIDATION OF THE SCHOOL DISTRICTS.

Fiscal Impact Summary	FY 1999/2000	FY2000/2001	FY 2001/2002
State Revenues General Fund
State Expenditures General Fund			$1,229,562
FTE Position Change	0.0 FTE	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: 90 days after adjournment unless a referendum petition is filed.
Appropriation Summary for FY 1999-2000: None required
Local Government Impact: This bill has the potential to affect two school districts: Yuma-East Yuma and Yuma-West Yuma.

This bill specifies that, following the deconsolidation of a school district that enrolls fewer than 15,000 students during the 2000-01 budget year and that includes a small attendance center that provides a K-12 education program, where the deconsolidation is approved in the 2000 general election, the size factor used in determining the total program funding for the resulting school districts shall be recalculated, even though the recalculation would result in a size factor for the new school districts that is higher than that of the old school district. Fiscal impact would only occur after voter approval of the deconsolidation in the 2000 general election. Therefore, the bill is assessed as having a conditional state and local fiscal impact.

This bill allows a school district that deconsolidates to have a higher size factor, and therefore higher per pupil funding, than permitted by current law, as long as certain criteria are met. The criteria are as follows:

• the school district must be eligible for small attendance center aid (the district has more than one elementary or secondary school attendance center, and operates one or more elementary or secondary schools with an enrollment of less than 200 that is located more than 20 miles from a similar attendance center);

• the original district must have a funded pupil count of less than 15,000 in FY 2000-01; and

Under current law, a school district that is created by deconsolidation must keep the size factor of the original district if the original district's size factor is lower than the size factors of the districts that result from the deconsolidation.

Based on the current districts that receive small attendance center aid, this bill has the potential to affect two school districts: Yuma-East Yuma and Yuma-West Yuma. The potential increase in state General Fund expenditures is $1,229,562 beginning in FY 2001-02. This amount is based on an increase in state aid for school finance of $1,339,868 and a reduction in small attendance center funding of $110,306. Table 1 identifies the potential annual school finance impact if deconsolidation affecting these two districts does occur compared to current funding. The table also indicates funding under current law if deconsolidation were to occur.

Based on the current districts that receive small attendance center aid, this bill has the potential to affect two school districts: Yuma-East Yuma and Yuma-West Yuma. The additional annual state aid that would be received by these districts as a result deconsolidation under the terms of the bill is estimated to be $664,719, and $564,843, respectively.

The fiscal note would imply that no new state appropriations or spending authority are required to implement the provisions of the bill in FY 1999-00.

Current Funding	East Yuma	West Yuma
FY 1998-99 Total Program	$4,751,297	$5,239,935
FY 1998-99 Small Attendance Center Aid	$37,145	$73,161
Total FY 1998-99	$4,788,442	$5,313,096
Deconsolidation: House Bill 99-1367
Original District Total Program	$4,058,384	$4,729,692
Small Attendance Center District Total Program	$1,394,777	$1,148,247
Total	$5,453,161	$5,877,939
Net Potential Impact of House Bill 99-1367
House Bill 99-1367 Net Potential Impact Compared to Current Funding	$664,719	$564,843