Adjustment for tuition loss




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1595415-954.  Adjustment for tuition loss

A.  The district may increase its base support level for tuition loss as prescribed in subsection B of this section if all of the following apply:

1.  A school district receives tuition for high school pupils from a school district which is inside or outside of this state and which does not offer instruction in one or more high school grade levels.

2.  The school district which had received the tuition loses the tuition because the other school district begins to offer instruction in one or more high school grade levels not previously offered.

3.  The number of pupils for whom the district loses the tuition is equal to at least five per cent of the average daily membership of pupils educated by the district in grades nine through twelve for the year prior to the year in which the other school district begins to offer the instruction.

B.  The maximum amount by which a district may increase its base support level  for tuition loss is determined as follows:

1.  Determine the amount of tuition lost between the year before the other school district begins to offer instruction, which is the base year, and the year after the base year.

2.  For the year after the base year, the maximum amount is seventy five per cent of the amount determined in paragraph 1.

3.  For the second year after the base year, the maximum amount is fifty per cent of the amount determined in paragraph 1.

4.  For the third year after the base year, the maximum amount is twenty five per cent of the amount determined in paragraph 1.

C.  If the resident school district is a joint unified district and phases in the instruction over more than one year:

1.  The computation prescribed by subsection A, paragraph 3 of this section shall be made separately for each phase by dividing the number of pupils in the phase by the average daily membership of pupils in grades nine through twelve who are educated by the district of attendance in the year prior to the year in which the resident district begins to offer instruction for this phase.

2.  The base year and the maximum amounts determined pursuant to subsection B of this section shall be computed separately for each phase.

3.  The total increase in the base support level for a given fiscal year shall be the sum of the computations for each phase calculated pursuant to paragraph 2 of this subsection.



D.  If the school district does not qualify for equalization assistance as provided in section 15 971, the part of the primary property tax rate set to fund the tuition loss as provided in this section shall not be included in the computation of additional state aid revenues as prescribed in section 15 972.15954



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