2003-2004 Bill 4048: S.M.A.R.T. ( Streamlined Management and Accountable Resources For

South Carolina General Assembly

115th Session, 2003-2004

H. 4048

STATUS INFORMATION

General Bill

Sponsors: Reps. J.R.Smith, Scarborough, Neilson, Cotty, Anthony, Bailey, Barfield, Cato, Ceips, Clark, Clemmons, Coates, Cooper, Davenport, Duncan, Edge, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hinson, Huggins, Keegan, Leach, Limehouse, Loftis, Lucas, McGee, Owens, Perry, Pinson, E.H.Pitts, Quinn, Rice, Sandifer, Simrill, Sinclair, Skelton, D.C.Smith, W.D.Smith, Stewart, Talley, Thompson, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Wilkins, Witherspoon, Young, Merrill, G.M.Smith, Chellis, Bingham, Bowers, Herbkersman, Littlejohn and White

Document Path: l:\council\bills\bbm\9769mm03.doc

Companion/Similar bill(s): 665

Introduced in the House on April 23, 2003

Introduced in the Senate on May 27, 2003

Last Amended on May 21, 2003

Currently residing in the Senate

Summary: S.M.A.R.T. ( Streamlined Management and Accountable Resources for Teaching) Funding in Education Act

HISTORY OF LEGISLATIVE ACTIONS

DateBodyAction Description with journal page number

4/23/2003HouseIntroduced and read first time HJ148

4/23/2003HouseReferred to Committee on Ways and MeansHJ149

4/24/2003HouseMember(s) request name added as sponsor: Merrill, G.M.Smith, Chellis, Bingham, Bowers, Herbkersman, Littlejohn

5/8/2003HouseMember(s) request name removed as sponsor: Miller, Battle, Branham, G.Brown, Hayes, Snow

5/15/2003HouseCommittee report: Favorable with amendment Ways and MeansHJ7

5/19/2003Scrivener's error corrected

5/21/2003HouseMember(s) request name added as sponsor: White

5/21/2003HouseAmended HJ30

5/21/2003HouseRead second time HJ34

5/22/2003HouseRead third time and sent to Senate HJ22

5/27/2003SenateIntroduced and read first time SJ21

5/27/2003SenateReferred to Committee on EducationSJ21

5/26/2004SenateCommittee report: Favorable with amendment EducationSJ13

6/2/2004SenateCommittee amendment amended SJ128

6/2/2004SenateRead second time SJ128

6/2/2004SenateOrdered to third reading with notice of amendments SJ128

VERSIONS OF THIS BILL

4/23/2003

5/15/2003

5/19/2003

5/21/2003

5/26/2004

5/27/2004

5/27/2004-A

6/2/2004

COMMITTEE AMENDMENT AMENDED

June 2, 2004

H.4048

Introduced by Reps. J.R.Smith, Scarborough, Neilson, Cotty, Anthony, Bailey, Barfield, Cato, Ceips, Clark, Clemmons, Coates, Cooper, Davenport, Duncan, Edge, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hinson, Huggins, Keegan, Leach, Limehouse, Loftis, Lucas, McGee, Owens, Perry, Pinson, E.H.Pitts, Quinn, Rice, Sandifer, Simrill, Sinclair, Skelton, D.C.Smith, W.D.Smith, Stewart, Talley, Thompson, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Wilkins, Witherspoon, Young, Merrill, G.M.Smith, Chellis, Bingham, Bowers, Herbkersman, Littlejohn and White

S. Printed 5/26/04S.

Read the first time May 27, 2003.

THE COMMITTEE ON EDUCATION

To whom was referred a Bill (H.4048) to amend the Code of Laws of South Carolina, 1976, by adding Chapter 155 to Title 59 so as to enact the “S.M.A.R.T., etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by deleting all after the enacting words and inserting:

/ SECTION1.The General Assembly finds that:

(1)flexibility in the use of funding provides opportunities for fiscal efficiencies and maximum benefit to students;

(2)programs established by statute or regulation must be continued to meet the needs of individual students or to compensate and reward teachers; and

(3)the State has a continuing responsibility to support the operations, infrastructure, and safety of schools.

SECTION2.Title 59 of the 1976 Code is amended by adding:

“CHAPTER 155

S.M.A.R.T. Funding in Education Act

Section 5915510.This chapter may be cited as the ‘S.M.A.R.T. (Streamlined Management and Accounting Resources for Teaching) Funding in Education Act’.

Section 5915520.(A)There is established a fund management and accounting program, called ‘S.M.A.R.T. Funding in Education’, that, beginning July 1, 2004, must allow transferability of all program funding to the state’s school districts and special schools for enhanced flexibility in their operations of grades K12.

(B)Once statutory and regulatory program requirements have been fulfilled, a local school district board of trustees has the authority to transfer up to one hundred percent of funds between programs to any instructional program provided the funds are utilized for direct classroom instruction. A transfer may not deny an educator basic or supplementary compensation provided by statute. A transfer may not waive or reduce funds required for a program match in a district choosing to continue a federal program requiring matching funds.

Section 5915530.(A)The State Department of Education shall provide the details of transfers by local school districts to members of the General Assembly and the Governor upon request. A school district may carry forward unexpended funds from the previous fiscal year into the next fiscal year to be used for the original purpose.

(B)All transfers executed pursuant to this chapter must be completed by May first of the current fiscal year. A local school district board of trustees may expend funds received from the Children’s Education Endowment Fund for school facilities and fixed equipment assistance, for an instructional program.

(C)Any grant or technical assistance funds allocated directly to an individual school or school district must not be reduced or reallocated within the school or school district and must be expended by the receiving school or school district only according to the guidelines governing the funds.

Section 5915540.(A)The State Board of Education shall promulgate regulations or publish guidelines necessary to effectuate the provisions of this chapter including, but not limited to, a procedure for the review of all transfers authorized by this chapter.

(B)The State Department of Education shall adopt and implement an accounting procedure between the department and each local school district for oversight and management of transfers made pursuant to this chapter. A local school district shall utilize, throughout the year, the uniform accounting procedure to facilitate timely and consistent reporting.”

SECTION3.Upon approval by the Governor, this act takes effect July 1, 2004. /

Renumber sections to conform.

Amend title to conform.

WARREN K. GIESE for Committee.

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

Minimal (Some additional costs expected but can be absorbed)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

EXPLANATION OF IMPACT:

Enactment of this bill would have minimal impact on the State Department of Education’s (SDE) administrative expenses assuming the current expenditure classifications and structure by fund code, subfund code, and object code are not required to be changed upon enactment. SDE assumes implementation does not require an increase in subfund codes to be used by the school districts, and that the accounting procedure referenced in 5915540(B) pertains only to transfers. In addition, it is assumed the existing financial reporting system will satisfy the requirements for a uniform accounting procedure referenced in the bill.

Approved By:

Don Addy

Office of State Budget

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 155 TO TITLE 59 SO AS TO ENACT THE “S.M.A.R.T. (STREAMLINED MANAGEMENT AND ACCOUNTABLE RESOURCES FOR TEACHING) FUNDING IN EDUCATION ACT”, TO PROVIDE FOR THE CONSOLIDATION OF STATE SOURCES OF FUNDING FOR K12 INTO A SINGLE SOURCE FOR ALLOCATION BY EACH LOCAL SCHOOL DISTRICT INTO AREAS IT DETERMINES BEST ACHIEVE ITS OBJECTIVES AND ENHANCE ITS ACCOUNTABILITY, TO PROVIDE THAT THE FUNDING BE MADE BASED ON SIX GENERAL CATEGORIES FOR WHICH THE FUNDS MUST BE USED, AND TO DESCRIBE THAT THE MONIES WHICH FORM THE POOL OF MONIES IN EACH GENERAL CATEGORY MAY BE TRANSFERRED WITH ONE HUNDRED PERCENT FLEXIBILITY AMONG PROGRAMS WITHIN THAT CATEGORY, TO PROVIDE FOR SOME FLEXIBILITY IN DISTRIBUTION OF FUNDING ACROSS CATEGORIES, AND TO PROVIDE THAT THE S.M.A.R.T. FUNDING PROGRAM WILL BE FUNDED BEGINNING JULY 1, 2004.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION1.The General Assembly finds that:

(1)flexibility in the use of funding provides opportunities for fiscal efficiencies and maximum benefit to students;

(2)limiting the number of funding categories should reduce management and accounting requirements;

(3)programs established by statute or regulation must be continued to meet the needs of individual students or to compensate and reward teachers; and

(4)the State has a continuing responsibility to support the operations, infrastructure, and safety of schools.

SECTION2.Title 59 of the 1976 Code is amended by adding:

“CHAPTER 155

S.M.A.R.T. Funding in Education Act

Section 5915510.This chapter may be cited as the ‘S.M.A.R.T. (Streamlined Management and Accounting Resources for Teaching) Funding in Education Act’.

Section 5915520.(A)There is established a fund management and accounting program, called ‘S.M.A.R.T. Funding in Education’, that, beginning July 1, 2004, must consolidate all program funding to the state’s school districts and special schools for enhanced flexibility in their operations of grades K12.

(B)(1)S.M.A.R.T. funding must be allocated in accordance with statutory and regulatory program funding requirements to each school district and must be spent in six general categories:

(a)quality teaching;

(b)instruction;

(c)technical assistance;

(d)operations, infrastructure, and safety;

(e)workforce education; and

(f) special needs.

(2)The programs designated within each general category are:

(a)quality teaching: critical teaching needs, National Board CertificationIncentive Reimbursement, National Board CertificationSalary Supplement, teacher salary supplement, school employer contributions, principal salary/fringe increase, fringe benefits employer contributions, retiree insurance, health/dental benefits, ADEPT;

(b)instruction: arts in education, advanced placement, gifted and talented, academic assistance K3, academic assistance 412, excellence in middle schools, increase high school diploma requirements, alternative schools program, EAA reduce class size grades 13, K5 competitive grants, fouryearold child development, school innovation funds, base student cost;

(c)technical assistance: EAA homework center grants, EAA retraining grants, EAA summer school/comprehensive remediation;

(d)operations, infrastructure, and safety: reallocation of EIA funds, school bus driver salary supplement and fringe, school lunch supervisor salary, school lunch program aid, State School Building Aid, Children’s Education Endowment, school safety officers, technology funding from education license plates, attendance supervisor salary;

(e)workforce education: parenting/family literacy, career and technology education equipment, adult education, nursing program, SchooltoWork Transition Act; and

(f)special needs: trainable and profoundly mentally disabled student services, handicapped transportationbus driver aides, handicapped transportationspecial needs students contract reimbursement, and preschool programs for children with disabilities.

(C)(1)Within the parameters of item (2), each school district must allocate S.M.A.R.T. funds among programs within the specified general categories and between general categories as it determines is most effective for the achievement of that individual local district’s educational objectives pursuant to Chapter 139 of Title 59 and to ensure that students are equipped with a strong academic foundation.

(2)A local school district board of trustees may transfer up to one hundred percent of funds among programs designated within the same general category once the district has fulfilled the statutory and regulatory program requirements. A school district may transfer up to twenty percent of these funds from one general category to other general categories. A transfer may not deny an educator basic or supplementary compensation provided by statute. A transfer may not waive or reduce funds required for a program match in a district choosing to continue a federal program requiring matching funds.

(3)A school district with fifty percent or more of its schools earning an unsatisfactory absolute rating may utilize the provisions of this chapter pursuant to the requirements for flexibility in Section 59181120 of the Education Accountability Act.

Section 5915530.(A)The General Assembly and the Governor, beginning with the annual general appropriations act for fiscal year 20042005, shall adjust the format of the general appropriations act to reflect the categories of this chapter.

(B)The State Department of Education must provide the details of transfers by local school districts to members of the General Assembly upon request. A school district may carry forward unexpended funds from the previous fiscal year into the next fiscal year to be used for the original purpose.

Section 5915540.(A)The State Board of Education must promulgate regulations or publish guidelines necessary to effectuate the provisions of this chapter including, but not limited to, a procedure for the review of all transfers authorized by this chapter.

Section 5915550.The State Department of Education shall review the utilization of the flexibility and transfer provisions of this chapter and report by district to the General Assembly the changes in the proportion of funds spent in each of the six categories, the benefit to students, and the fiscal efficiencies achieved before and after implementation of this chapter.”

SECTION3.Upon approval by the Governor, this act takes effect July 1, 2003.

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