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Minutes for HB2697 - Committee on K-12 Education Budget

Short Title

Amending the transportation weighting calculation.

Minutes Content for Thu, Mar 8, 2018

Chairperson Patton welcomed everyone to today's meeting of the K-12 Education Budget Committee.

Chairperson Patton opened the hearing on HB2697 and introduced Nick Myers, Assistant Revisor, Office of the Revisor of Statutes, who gave an overview of both bills being heard today.

Revisor Myers first covered HB2697 which would amend the transportation funding formula in K.S.A. 72-5148 by increasing the assumed cost for transporting students who live 2.5 or more miles from the school building.  Currently, the assumed cost factor is set at 2.8 in the formula.  HB2697 would increase the assumed cost factor to 5.0. (Attachment 1)

Revisor Myers then gave a briefing on HB2561 which would amend the transportation funding formula in K.S.A. 72-5148 by providing a minimum per-student transportation funding level.  To determine such minimum funding level, the 10 school districts with the highest index of density on the density-cost graph of the transportation funding formula would be identified.  Next, the median per-student cost of transportation would be determined for those districts after excluding the districts with the highest and lowest per-student transportation costs.  Finally, the curve of best fit of the density-cost graph would be adjusted to create a horizontal line at such median per-student cost.  A district's state transportation funding would then be determined by the curve of best fit of the density-cost graph as adjusted by the horizontal line. (Attachment 2)  Revisor Myers answered questions directed to him.

Justin Stowe, Interim Legislative Post Auditor, provided the Committee with background information on the December 2017 audit that evaluated several aspects of the state's K-12 transportation funding formula.  As part of the division's work on the audit, they evaluated 16 school districts and found that students who live more than 2.5 miles from school are on average five times more expensive to transport than students who live closer.  Using data from the sampled districts, the audit division created a model to estimate the difference in how much it costs districts to transport students who live at least 2.5 miles from their school and the students who live closer.  Auditors ran their model 2,000 times to estimate a median ratio statewide.  The ratios ranged between 3.0 to 7.0, with a median ratio of 5.0.  The Legislative Division of Post Audit (LPA) recommends the Legislature review the comparative cost ratio in the statutory formula and amend state laws as needed if it determines a ratio that better reflects district's costs is more appropriate. (Attachment 3)  During the question and answer session, Mr. Stowe introduced Ms. Heidi Zimmerman, Auditor, who had worked extensively on the project and spoke more in detail about the bill.  She answered several questions from representatives.

Chairperson Patton recognized Mark Tallman, Kansas Association of School Boards (KASB) as a proponent.  Mr. Tallman testified that KASB supports this measure because if a state formula is understating actual costs of required programs, it means school districts are required to, in effect, subsidize these programs by transferring funds from education programs and activities. (Attachment 4)

John Allison, Olathe Public Schools, spoke in favor of the bill.  He noted that currently 15 percent (4,500) of the students in the Olathe district live more than 2.5 miles from their education center.  He believes the change in HB2697 more accurately reflects the district's costs for providing transportation services to those students. (Attachment 5)

Dr. Scott McWilliams, Auburn-Washburn, stood in support of this bill.  He stated student safety was the primary reason why Auburn-Washburn provides transportation to all students at no cost.  If HB2697 is passed, it would greatly help the district's efforts to ensure students are transported to/from school in the safest and most reliable way possible. (Attachment 6)

Testifying as a proponent of this bill was Dr. Steve Noble, Seaman Schools.  Dr. Noble supports those parts of HB2697 that would change the weighting multiplier from 2.8 to 5.0 as recommended by LPA. The increased multiplier would help reduce the gap in funding that would allow the district to allocate operating expenses to other areas. (Attachment 7)

HB2697 was supported by Frank Harwood, DeSoto Schools.  He mentioned the current formula does not cover transportation costs for many school districts and urged the Committee to make the transportation funding formula more reflective of actual transportation expenses.(Attachment 8)

The Spring Hill School District is seeing rapid growth and transportation costs have increased significantly.  Dr. Wayne Burke presented exhibits that showed the district had transportation expenses over two million dollars more than the funding received from the state.  He is a proponent of this bill. (Attachment 9)  Exhibits included: (Attachment10)

Providing testimony in support of HB2697 was Dr. Todd White, Blue Valley.  Dr. White affirmed that the transportation costs in the district exceeded the revenue by over $850,000 per year.  He noted that every dollar that is transferred from the general operating budget to cover costs for transportation is a dollar that cannot be invested in the classroom.(Attachment 11)

Written testimony in support of the bill was submitted by:

Dr. Martin Stessman, Superintendent, Shawnee Heights, USD 450. (Attachment 12)

Brett White, Superintendent, Andover Public Schools. (Attachment 13)

There was no oral or written testimony in opposition to the bill.

Neutral testimony was given by Sean E. Tarwater, Sr., Kansas House of Representatives.  He stated he would be a proponent of this bill if it were amended favorably.  He asked that HB2697 be amended to allow for the safe busing of children that do not otherwise have a safe route to self-commute. (Attachment 14)

Appearing before the Committee with neutral testimony was Mary Ann Woirhaye, parent, who gave Committee members a personal accounting of school busing in the Kansas community where she resides.  She stated it was her hope that as the Committee considered transportation issues, they would always keep the kids and their safety in the forefront of the discussion. (Attachment 15)

Chairperson Patton recognized Mike O'Neal, Kansas Policy Institute, who offered neutral testimony.  He provided comments with regard to proposals to address an appropriate approach to K-12 transportation funding. (Attachment 16)

There was no other proponent, opponent, or neutral testimony presented.

After all questions were answered by the conferees, Chairperson Patton closed the hearing on HB2697.