State Board Policy
DESCRIPTOR TERM: Equity Funding
The sections of the Mississippi Code listed below explain how the allocations are calculated for each of the funding elements.
Required Millage Levies
Uniform Millage Assistance Grant -- Section 37-22-1
Second Level Funding Program -- Section 37-22-3
Emergency Fund Loss Assistance -- Section 37-22-5
For those districts with operational levies at 28.33 mills or higher for FY 89:
No increase in levies are required for FY 91.
For those districts with FY 89 operational levies below 28.33 mills but with a levy sufficient to generate $463 per student in ADA:
An increase must be levied:
1. that would have generated $463 per student in ADA for FY 89
2. equal to the Uniform Minimum School District Ad Valorem Tax Levy (28.33 mills) whichever is less; except that districts may levy such increases in 4 mill annual increments. Please note Section 37-57-107, Mississippi Code, regarding the limitation on the increase of taxes: "....(c) any additional millage levied and the revenue generated therefrom which shall be excluded from the limitation for the first and each subsequent year of the levy, for the purpose of generating additional local contributions mandated under Section 37-57-105, Mississippi Code of 1972, requiring the board of trustees of a school district to reach the millage levy certified by the State Board of Education as the uniform minimum school district ad valorem tax levy or the millage levy which would generate funds in an amount equal to a school district's "district entitlement" as defined in Section 37-22-1 (2) (e)."Use of Funds
The law states that funds shall be expended "exclusively for classroom instructional purposes." We have initially interpreted this to mean any expenditures in Expenditure Function 1000 (Instruction) plus 2100 (Student) plus 2200 (Staff). This definition will include all direct costs of "instruction" plus guidance services, in-service training, library/media and the other expenditures properly classified under Functions 2100 and 2200. It would not include administration cost (Functions 2300, 2400, and 2500), operation and maintenance of plant (Function 2600), transportation (Function 2700), central services (Function 2800), non-instructional cost (Function 300), facility acquisition and construction (Function 5000) and debt services (Function 6000).
Accounting for Expenditures
These funds may be commingled in other District Maintenance Funds, therefore, no tracking of expenditures is required.
It was the intent of the Legislature that all funds made available be expended during the year for which appropriated. However, there is no requirement in the law for unexpended funds to be returned to the State. Any residue of unexpended funds may be carried over to the next fiscal year so long as they are budgeted and spent for "classroom instructional purposes."
Distribution of Funds
Each district will receive 1/9th of the allocation for the 1990-91 school year beginning October 25, 1990, and on the 25th, or the next business day after that date, thereafter except for the December payment which will be made on December 15th or the next business day after that date. (The payment schedule is the same as for Minimum Program funds.) The payments will be by electronic transfer to the district's District Maintenance Fund.