MO HB1789

Increases annual appropriation for small school grants from $15 million to $16 million, distributed to districts with average daily attendance of 350 students or less in the preceding school year.

Raises the first distribution tier from $10 million to $11 million, allocated proportionally based on each eligible district's average daily attendance for the regular school year.

Maintains $5 million for the second distribution tier, directed to districts meeting specific operating levy requirements, calculated using tax-rate-weighted regular school year average daily attendance.

Establishes a new tier beginning in fiscal year 2011 for districts with 351 to 400 students in average daily attendance, receiving 98 percent of the per-pupil amount for 351 students and decreasing by 2 percent for each additional student up to 400.

Specifies that payments cannot be transferred to capital projects funds and may be used for distance learning, transportation costs, rural teacher recruitment, and student learning opportunities unavailable within the district.