MO SB409

Repeals section 163.031 and enacts a new section modifying how Missouri calculates and distributes state aid to school districts, effective beginning with the 2006-07 school year.

Incorporates 75 percent of allowable transportation costs directly into the state aid calculation formula for eligible school districts, rather than treating transportation as a separate categorical add-on.

Establishes a phased implementation schedule from 2006-07 through 2011-12 with varying percentages of new aid calculations and baseline 2005-06 revenue amounts, gradually transitioning districts to the new funding methodology.

Includes protections for small districts (average daily attendance of 350 or less) by allowing them to use either 2004-05 or 2005-06 baseline revenue figures for the transition period.

Maintains requirement that at least 75 percent of state revenue be spent on certificated compensation and tuition expenditures, with penalties for improper student identification for special programs.