MO HB558

Repeals and replaces Section 163.031 RSMo governing state aid calculations for Missouri school districts, specifically addressing "hold-harmless" payments that guarantee minimum funding levels

Requires the Department of Elementary and Secondary Education to calculate a ranking factor for each district receiving hold-harmless payments by July 1, 2017, based on enrollment and the ratio of state aid to current expenditures

Phases out hold-harmless payments over three years: districts in the lowest third of the ranking lose supplemental payments in 2017-18, middle third in 2018-19, and highest third in 2019-20

After 2019-20, districts where the basic state aid formula yields zero or negative receive no state aid payment; districts with positive calculations receive only the formula amount without hold-harmless supplements

Maintains existing provisions requiring 75% of state revenue go to teachers' funds and establishing penalties for districts that inappropriately identify students for free/reduced lunch, special education, or limited English proficiency programs