MO HB1920

Repeals and replaces section 163.031, RSMo, governing hold-harmless payments in state aid calculations for school districts.

Establishes a phase-out schedule for hold-harmless payments beginning in school year 2016-17, with districts divided into three groups based on a calculated factor using enrollment and expenditure data from 2015-16.

Implements gradual elimination of excess hold-harmless payments: lowest one-third of districts cease receiving them in 2016-17, middle one-third in 2017-18, and highest one-third in 2018-19.

After 2018-19 school year, districts with zero or negative basic state-aid calculations receive no payment, while affected districts receive only the standard calculation under subsection 1.

Maintains existing state aid formulas based on weighted average daily attendance, state adequacy targets, and local district effort, with spending requirements ensuring 75 percent of state revenue goes to certificated compensation and tuition expenses.