How will Proposition A funds be distributed?
by Roger Kurtz
November 13, 2008
Now that the citizens of Missouri have approved Proposition A. How will the schools get the money that was promised during the campaign?
The proposal is very specific as to how the money will be distributed to the public schools. Beginning with the current fiscal year (FY09) and every year hereafter, the total amount of gaming revenue that exceeds the amount generated by gaming in FY08 will be placed in the schools first elementary and secondary education fund. The amendment stipulates that funds placed in this fund will constitute new and additional funding for elementary and secondary education and shall not be used to replace existing funding provided for elementary and secondary education.
Once the amount of money has been determined (for next year, FY09 gaming proceeds - FY08 gaming proceeds), it is divided by the total average daily attendance (ADA) of all schools in FY09. This amount will then be added to the state adequacy target and distributed through the formula in 2009-2010 (FY10). The amount for the first year will be less because the law only took effect in November.
Some important points to consider. First, this money is being added to the state adequacy target and because the formula will only distribute 56% of the state adequacy target in 2009-2010 as part of the phase-in, it is mathematically impossible to distribute all of the money in the schools first fund. Second, when the formula is fully phased in, the money is divided by ADA and the money is distributed on the basis of a school districts' weighted average daily attendance (WADA). Therefore, this distribution method will distribute more money than is in the schools first fund.
Another consequence of Proposition A is that the amount of money placed in the classroom trust fund will be capped at the 2008 level. All new money will be distributed as described above by increasing the state adequacy target.
The Department of Elementary and Secondary Education prepared a simulation to demonstrate how $118 million would be distributed through the formula. There is a very big caution here. This amount is purely an estimate. It is also an estimate of the amount the new law will generate during an entire year. The amount added to the state adequacy target in 2009-2010 will undoubtedly be less as the calculation will only include the first seven months under the new law.
Below are two links for reference.
