Substitute Senate Bill No. 1041
         Substitute Senate Bill No. 1041

              PUBLIC ACT NO. 97-318


AN ACT CONCERNING EDUCATION GRANTS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1. Section  10-262f  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Whenever used in  this  section  and  sections
10-262g to 10-262j,  inclusive, AS AMENDED BY THIS
ACT:
    (1) "Adjusted equalized  net grand list" means
the equalized net  grand list of a town multiplied
by its income adjustment factor.
    (2) "Base aid ratio" means one minus the ratio
of a town's  wealth to the state guaranteed wealth
level, provided no  town's aid ratio shall be less
than zero.
    (3)  "Income  adjustment   factor"  means  the
average of a  town's  per capita income divided by
the per capita income of the town with the highest
per capita income in the state and a town's median
household income divided  by  the median household
income  of  the   town  with  the  highest  median
household income in the state.
    (4) "Median household  income"  for  each town
means that enumerated  in  the most recent federal
decennial census of  population or that enumerated
in the current  population report series issued by
the United States  Department  of Commerce, Bureau
of  the  Census,  whichever  is  more  recent  and
available on January  first of the fiscal year two
years prior to the fiscal year in which payment is
to be made pursuant to section 10-262i.
    (5) "Supplemental aid  factor"  means for each
town the average  of  its  percentage  of children
eligible under the  aid to families with dependent
children program and its grant mastery percentage.
    (6) "Percentage of children eligible under the
aid to families  with  dependent children program"
means the town's  number of children under the aid
to  families  with   dependent   children  program
divided by the  number  of  children  age  five to
seventeen, inclusive, in the town.
    (7)  "Average mastery  percentage"  means  for
each school year  the  average  of  the three most
recent mastery percentages  available  on December
first of the school year.
    (8) "Equalized net  grand  list", for purposes
of calculating the  amount  of  grant to which any
town  is  entitled   in  accordance  with  section
10-262h, AS AMENDED  BY  SECTION  2  OF  THIS ACT,
means the average  of  the  net grand lists of the
town upon which  taxes were levied for the general
expenses of the  town  two,  three  and four years
prior to the fiscal year in which such grant is to
be  paid,  provided   such  net  grand  lists  are
equalized in accordance with section 10-261a.
    (9) "Foundation" means (A) for the fiscal year
ending June 30,  1990, three thousand nine hundred
eighteen dollars, (B)  for  the fiscal year ending
June  30,  1991,   four   thousand   one   hundred
ninety-two dollars, (C) for the fiscal year ending
June  30,  1992,   four   thousand   four  hundred
eighty-six  dollars,  (D)  for  the  fiscal  years
ending June 30,  1993, June 30, 1994, and June 30,
1995, four thousand  eight hundred dollars and (E)
for the fiscal  years  ending June 30, 1996, [and]
June 30, 1997,  JUNE  30, 1998, AND JUNE 30, 1999,
five thousand seven hundred eleven dollars.
    (10)  "Number  of   children   age   five   to
seventeen, inclusive" means that enumerated in the
most recent federal decennial census of population
or enumerated in  the  current  population  report
series issued by  the  United States Department of
Commerce, Bureau of  the Census, whichever is more
recent  and available  on  January  first  of  the
fiscal year two  years prior to the fiscal year in
which payment is  to  be  made pursuant to section
10-262i.
    (11) "Supplemental aid  ratio" means .04 times
the supplemental aid  factor  of a town divided by
the highest supplemental aid factor when all towns
are ranked from  low  to  high,  provided any town
whose percentage of  children  eligible  under the
aid to families  with  dependent  children program
exceeds twenty-five shall  have a supplemental aid
ratio of .04.
    (12) "Grant mastery  percentage" means (A) for
the school year  ending  June  30,  1989,  average
mastery percentage and  (B)  for  the school years
ending June 30,  1990,  through  the  school  year
ending  June  30,   1995,   the   average  mastery
percentage plus the mastery improvement bonus, and
(C) for each  school  year thereafter, the average
mastery percentage.
    (13) "Mastery count"  of a town means for each
school year the  grant  mastery  percentage of the
town  multiplied  by   the   number   of  resident
students. [in regular programs in the town for the
school year.]
    (14)  "Mastery improvement  bonus"  means  for
each school year  through  the  school year ending
June  30,  1995,  seventy-five  per  cent  of  the
difference   between   (A)   the   grant   mastery
percentage for the  previous  school  year and (B)
the  average mastery  percentage  for  the  school
year, but not less than zero.
    (15) "Mastery percentage"  of  a  town for any
examination year means,  using  the  mastery  test
data  of record  for  the  examination  year,  the
number obtained by  dividing  (A) the total number
of valid tests  with  scores  below the state-wide
standard for remedial  assistance as determined by
the Department of Education in each subject of the
examinations pursuant to  subsections  (a) and (b)
of section 10-14n  taken  by resident students, by
(B) the total  number of such valid tests taken by
such students.
    (16) "Mastery test  data  of  record"  for any
examination year means  the  data of record on the
April thirtieth subsequent  to  the administration
of the examinations  pursuant  to  subsections (a)
and (b) of  section  10-14n,  except  that for the
examination years prior  to July 1, 1988, the date
of the data of record shall be April 30, 1988, and
provided beginning with the administration of such
examinations during the 1988-1989 school year, and
for each such  administration  thereafter,  school
districts may, not  later  than  the  March  first
following the administration  of  an  examination,
file  a  request  with  the  state  Department  of
Education for an  adjustment  of  the mastery test
data from such examination.
    (17) "Number of  children  under  the  aid  to
families with dependent  children  program"  means
the  number  obtained   by   adding  together  the
unduplicated aggregate number  of children five to
eighteen years of age eligible to receive benefits
under the aid  to families with dependent children
program pursuant to  sections  17b-22,  17b-180 to
17b-183, inclusive, 17b-807 and 17b-808 in October
and May of  each fiscal year, and dividing by two,
such  number  to   be   certified   and  submitted
annually, no later  than  the first day of July of
the succeeding fiscal year, to the Commissioner of
Education by the Commissioner of Social Services.
    (18) "Per capita  income"  for each town means
that  enumerated  in   the   most  recent  federal
decennial census of  population or that enumerated
in the current  population report series issued by
the United States  Department  of Commerce, Bureau
of  the  Census,  whichever  is  more  recent  and
available on January  first of the fiscal year two
years prior to the fiscal year in which payment is
to be made pursuant to section 10-262i.
    (19)  "Regional bonus"  means,  for  any  town
which is a  member  of  a regional school district
and has students  who  attend such regional school
district, an amount  equal  to twenty-five dollars
for each such  student  enrolled  in  the regional
school  district on  October  first  or  the  full
school day immediately preceding such date for the
school year prior  to the fiscal year in which the
grant is to be paid multiplied by the ratio of the
number of grades,  kindergarten  to  grade twelve,
inclusive,  in the  regional  school  district  to
thirteen.
    (20) "Regular program  expenditures" means (A)
total current educational  expenditures  less  (B)
expenditures for (i)  special  education  programs
pursuant to subsection (h) of section 10-76f, (ii)
pupil  transportation eligible  for  reimbursement
pursuant  to  section   10-266m,  (iii)  land  and
capital  building  expenditures,   and   equipment
otherwise supported by  a  state grant pursuant to
chapter  173, including  debt  service,  provided,
with respect to debt service, the principal amount
of any debt  incurred  to pay an expense otherwise
includable in regular  program expenditures may be
included as part  of  regular program expenditures
in  annual  instalments   in   accordance  with  a
schedule  approved  by  the  state  Department  of
Education based upon substantially equal principal
payments over the  life  of  the debt, (iv) health
services for nonpublic  school children, (v) adult
education, (C) expenditures  directly attributable
to (i) state  grants  received  by or on behalf of
school districts except  grants for the categories
of expenditures listed in subparagraphs (B) (i) to
(B) (v), inclusive, of this subdivision and except
grants received pursuant  to  section  10-262i and
section 10-262c of  the general statutes, revision
of 1958, revised  to  January  1, 1987, and except
grants  received pursuant  to  chapter  173,  (ii)
federal grants received  by or on behalf of school
districts except for  adult  education and federal
impact aid and  (iii)  receipts from the operation
of child nutrition services and student activities
services, (D) expenditures  of  funds from private
and other sources  and  (E)  tuition  received  on
account  of  nonresident  students.  The  town  of
Woodstock  may include  as  part  of  the  current
expenses of its  public  schools  for  each school
year the amount  expended  for current expenses in
that year by  Woodstock  Academy  from income from
its endowment funds upon receipt from said academy
of a certified statement of such current expenses.
The town of  Winchester may include as part of the
current expenses of  its  public  school  for each
school  year  the   amount  expended  for  current
expenses in that  year  by the Gilbert School from
income from its  endowment funds upon receipt from
said  school of  a  certified  statement  of  such
current expenses.
    (21) "Regular program  expenditures  per  need
student" means, in  any  year, the regular program
expenditures of a  town  for  such year divided by
the number of  total need students in the town for
such school year,  provided  for  towns  which are
members  of  a   kindergarten   to  grade  twelve,
inclusive, regional school  district  and for such
regional   school   district,   "regular   program
expenditures per need student" means, in any year,
the regular program  expenditures of such regional
school district divided  by  the sum of the number
of total need students in all such member towns.
    (22) "Resident students"  means  the number of
pupils of the  town  enrolled in public schools at
the expense of  the  town  on October first or the
full school day  immediately  preceding such date,
provided the number  shall  be  decreased  by  the
Department of Education for failure to comply with
the  provisions of  section  10-16  and  shall  be
increased  by one-one-hundred-eightieth  for  each
full-time equivalent school day in the school year
immediately preceding such  date  of at least five
hours of actual  school  work  in  excess  of  one
hundred eighty days  and  nine  hundred  hours  of
actual  school  work   and  be  increased  by  the
full-time  equivalent  number   of   such   pupils
attending   the   summer    sessions   immediately
preceding such date  at  the  expense of the town;
"enrolled" shall include  pupils who are scheduled
for  vacation  on  the  above  date  and  who  are
expected  to  return   to   school  as  scheduled.
Students enrolled in an approved program described
in section 10-266j  shall be counted in accordance
with  the  provisions   of   subdivision   (3)  of
subsection (c) of said section.
    [(23) "Resident students  in regular programs"
means for each  school year the number of resident
students for the  school  year  less the number of
resident   students   for    the    school    year
participating in special  education  programs  and
services pursuant to  section 10-76d for fifty per
cent or more of their instructional time.
    (24)] (23) "Schools"  means  nursery  schools,
kindergarten and grades one to twelve, inclusive.
    [(25)] (24) "State  guaranteed  wealth  level"
means (A) for  the  fiscal  year  ending  June 30,
1990, 1.8335 times  the  town  wealth  of the town
with the median  wealth  as  calculated  using the
data of record  on  December  first  of the fiscal
year prior to the year in which the grant is to be
paid pursuant to  section 10-262i, and (B) for the
fiscal  years ending  June  30,  1991,  and  1992,
1.6651 times the town wealth of the town with such
median wealth, and (C) for the fiscal years ending
June 30, 1993,  June  30, 1994, and June 30, 1995,
1.5361 times the  town wealth of the town with the
median wealth, and  (D) for the fiscal year ending
June 30, 1996,  and  each  fiscal year thereafter,
1.55 times the  town  wealth  of the town with the
median wealth.
    [(26)] (25) "Total  need  students"  means the
sum of (A)  the number of resident students of the
town for the  school  year,  (B)  one-quarter  the
number of children  under the aid to families with
dependent children program  for  the  prior fiscal
year, (C) one-quarter of the mastery count for the
school year and  (D) ten per cent of the number of
eligible children, as  defined  in subdivision (1)
of section 10-17e, for whom the board of education
is not required  to  provide a program pursuant to
section 10-17f.
    [(27)] (26) "Town wealth" means the average of
a town's adjusted equalized net grand list divided
by its total  need  students  for  the fiscal year
prior to the year in which the grant is to be paid
and its adjusted  equalized net grand list divided
by its population.
    [(28)] (27) "Population"  of a town means that
enumerated in the  most  recent  federal decennial
census of population  or  that  enumerated  in the
current population report  series  issued  by  the
United States Department  of  Commerce,  Bureau of
the  Census available  on  January  first  of  the
fiscal year two  years prior to the fiscal year in
which a grant  is  to  be  paid, whichever is most
recent;  except that  any  town  whose  enumerated
population   residing   in   state   and   federal
institutions within such  town  and  attributed to
such town by  the census exceeds forty per cent of
such  "population"  shall   have   its  population
adjusted as follows:  Persons who are incarcerated
or in custodial  situations,  including,  but  not
limited to jails,  prisons,  hospitals or training
schools  or  persons   who   reside  in  dormitory
facilities in schools,  colleges,  universities or
on military bases  shall  not  be  counted  in the
"population" of a town.
    [(29)] (28) "Base revenue" for the fiscal year
ending June 30,  1995,  means the sum of the grant
entitlements for the  fiscal  year ending June 30,
1995, of a  town  pursuant  to section 10-262h, AS
AMENDED BY SECTION  2  OF THIS ACT, and subsection
(a) of section  10-76g, including its proportional
share, based on  enrolment,  of  the  revenue paid
pursuant  to  section   10-76g,  to  the  regional
district of which  the  town  is a member, and for
each fiscal year  thereafter  means  the amount of
each  town's  entitlement   pursuant   to  section
10-262h   minus   its   density   supplement,   as
determined   pursuant  to   subdivision   (6)   of
subsection (a) of section 10-262h.
    [(30)] (29) "Density"  means the population of
a town divided by the square miles of a town.
    [(31)]  (30) "Density  aid  ratio"  means  the
product of (A)  the  density  of a town divided by
the density of  the  town  in  the  state with the
highest density and (B) .006273.
    [(32)] (31) "Mastery  goal  improvement count"
means the product  of  (A)  the difference between
the percentage of  state-wide  mastery examination
scores, pursuant to  subsections  (a)  and  (b) of
section 10-14n, at or above the mastery goal level
for the most  recently  completed  school year and
the percentage of such scores for the prior school
year and (B) the resident students of the town, or
zero, whichever is greater.
    Sec. 2. Subdivision  (6)  of subsection (a) of
section  10-262h  of   the   general  statutes  is
repealed and the  following is substituted in lieu
thereof:
    (6) For the fiscal years ending June 30, 1996,
[and] June 30,  1997,  JUNE 30, 1998, AND JUNE 30,
1999, a grant in an amount equal to the sum of (A)
the  product of  a  town's  base  aid  ratio,  the
foundation  level  and   the   town's  total  need
students for the  fiscal year prior to the year in
which the grant  is to be paid, (B) the product of
a town's supplemental  aid  ratio,  the foundation
level and the sum of the portion of its total need
students count described  in subparagraphs (B) and
(C) of subdivision [(26)] (25) of section 10-262f,
AS AMENDED BY  SECTION  1  OF  THIS  ACT,  for the
fiscal year prior  to the fiscal year in which the
grant is to  be  paid,  and the adjustments to its
resident student count  described  in  subdivision
(22) of section  10-262f,  relative  to  length of
school year and summer school sessions and (C) the
town's regional bonus,  except  that the amount so
determined shall be  adjusted  in  accordance with
the following: For  the  fiscal  years ending June
30, 1996, [and]  June 30, 1997, JUNE 30, 1998, AND
JUNE  30,  1999,   for   each  town,  the  maximum
percentage increase over  its previous year's base
revenue shall be  the  product of two per cent and
the ratio of  the  wealth  of  the town ranked one
hundred fifty-third when  all  towns are ranked in
descending order to  each  town's wealth, provided
no town shall receive an increase greater than two
per cent. For  the  fiscal  year  ending  June 30,
1996,  for  each   town,  the  maximum  percentage
reduction from its  previous  year's  base revenue
shall be equal  to  the  product of three per cent
and the ratio  of each town's wealth to the wealth
of the town  ranked seventeenth when all towns are
ranked in descending  order,  provided  no  town's
grant shall be  reduced  by  more  than  three per
cent. For the  fiscal [year] YEARS ending June 30,
1997, JUNE 30,  1998,  AND JUNE 30, 1999, for each
town, the maximum  percentage  reduction  from its
previous year's base revenue shall be equal to the
product of nine  per  cent  and  the ratio of each
town's wealth to  the  wealth  of  the town ranked
seventeenth  when  all   towns   are   ranked   in
descending order, provided  no  town's grant shall
be reduced by more than nine per cent. In addition
to  the  amount   determined   pursuant   to  this
subdivision,  a  town  shall  be  eligible  for  a
density supplement if  the  density of the town is
greater than the  average  density of all towns in
the  state.  The   density   supplement  shall  be
determined by multiplying the density aid ratio of
the town by  the  foundation  level and the town's
total needs students  for  the  prior fiscal year.
For the fiscal  year  ending  June  30,  1997, the
grant   determined   in   accordance   with   this
subdivision for a  town  ranked  one  to forty-two
when all towns  are  ranked  in  descending  order
according to town  wealth shall be further reduced
by one and  two-hundredths  of a per cent and such
grant for all other towns shall be further reduced
by fifty-six-hundredths of  a  per  cent.  FOR THE
FISCAL YEARS ENDING  JUNE  30,  1998, AND JUNE 30,
1999, NO TOWN  WHOSE SCHOOL DISTRICT IS A PRIORITY
SCHOOL DISTRICT SHALL  RECEIVE A GRANT PURSUANT TO
THIS SUBDIVISION IN  AN  AMOUNT  THAT IS LESS THAN
THE AMOUNT RECEIVED UNDER SUCH GRANT FOR THE PRIOR
FISCAL YEAR. FOR  THE FISCAL YEARS ENDING JUNE 30,
1998, AND JUNE  30,  1999,  NO  TOWN  WHOSE SCHOOL
DISTRICT  IS  A  PRIORITY  SCHOOL  DISTRICT  SHALL
RECEIVE A GRANT PURSUANT TO THIS SUBDIVISION IN AN
AMOUNT THAT IS  LESS  THAN SEVENTY PER CENT OF THE
SUM OF (i) THE PRODUCT OF A TOWN'S BASE AID RATIO,
THE FOUNDATION LEVEL  AND  THE  TOWN'S  TOTAL NEED
STUDENTS FOR THE  FISCAL YEAR PRIOR TO THE YEAR IN
WHICH THE GRANT IS TO BE PAID, (ii) THE PRODUCT OF
A TOWN'S SUPPLEMENTAL  AID  RATIO,  THE FOUNDATION
LEVEL AND THE SUM OF THE PORTION OF ITS TOTAL NEED
STUDENTS COUNT DESCRIBED  IN SUBPARAGRAPHS (B) AND
(C) OF SUBDIVISION  (25)  OF  SECTION  10-262f, AS
AMENDED BY SECTION  1  OF THIS ACT, FOR THE FISCAL
YEAR PRIOR TO  THE  FISCAL YEAR IN WHICH THE GRANT
IS TO BE PAID, AND THE ADJUSTMENTS TO ITS RESIDENT
STUDENT COUNT DESCRIBED  IN  SUBDIVISION  (22)  OF
SAID SECTION 10-262f  RELATIVE TO LENGTH OF SCHOOL
YEAR AND SUMMER  SCHOOL  SESSIONS  AND  (iii)  THE
TOWN'S REGIONAL BONUS.
    Sec.  3.  Section   10-262k   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Notwithstanding any provision  of  the general
statutes to the  contrary,  the board of education
which has jurisdiction  over  the  schools  in any
town (1) with  a  total  population, as defined in
subdivision  (7)  of  subsection  (a)  of  section
10-261, greater than  twenty  thousand  and (2) in
which the grant  mastery percentage, as defined in
subdivision (8) of  section 10-262f, AS AMENDED BY
SECTION 1 OF  THIS ACT, is greater than twenty per
cent may [,  not  later than January 15, 1997, and
annually  thereafter,]  ANNUALLY   apply   to  the
Commissioner of Education,  on  such  forms as the
commissioner may prescribe,  to  receive  not more
than two per  cent of the town's grant entitlement
pursuant to section 10-262h, AS AMENDED BY SECTION
2 OF THIS  ACT, for the subsequent fiscal year for
compensatory education programs.  At  the  time of
application, the board  of  education shall notify
the board of finance in each town or city having a
board of finance,  the  board of selectmen in each
town having no  board  of finance or otherwise the
authority  making appropriations  for  the  school
district of the  application. Upon submission of a
timely  application  to   the   commissioner,  the
commissioner shall deduct  such  amount  from  the
payment  made to  the  town  in  October  of  such
subsequent  fiscal  year   pursuant   to   section
10-262i, and the  board of education shall receive
a grant in such amount.
    Sec.  4.  Section   10-262j   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) For the fiscal years ending June 30, 1990,
June 30, 1991,  June  30, 1992, and June 30, 1993,
the regular program  expenditures  of a town shall
be not less than the greater of (1) the product of
(A) the target foundation multiplied by the number
of total need  students  of the town for the prior
school year and  (B) the ratio of the town's grant
entitlement  for such  year  pursuant  to  section
10-262h, AS AMENDED  BY  SECTION  2  OF  THIS ACT,
divided by the  town's  target  grant  or  (2)  an
amount equal to the sum of (A) the regular program
expenditures for the  town  for  the  prior fiscal
year and (B)  the  amount of the aid increase paid
to the town  as  calculated pursuant to subsection
(b) of this section.
    (b) For the purposes of subsection (a) of this
section, the amount  of the aid increase paid to a
town shall be  (1) for the fiscal year ending June
30, 1990, the amount of aid to be paid to the town
for the fiscal year ending June 30, 1990, pursuant
to section 10-262i,  less  the  base  aid  for the
town, (2) for  the  fiscal  year  ending  June 30,
1991, the amount  of  aid paid to the town for the
fiscal year ending June 30, 1991, pursuant to said
section, less the  amount  of aid paid to the town
for the fiscal year ending June 30, 1990, pursuant
to said section,  (3)  for  the fiscal year ending
June 30, 1992,  the amount of aid paid to the town
for the fiscal year ending June 30, 1992, pursuant
to said section,  less  the  amount of aid paid to
the town for the fiscal year ending June 30, 1991,
pursuant to said  section, (4) for the fiscal year
ending June 30,  1993,  the  amount of aid paid to
the town for the fiscal year ending June 30, 1993,
less the amount  of  aid  paid to the town for the
fiscal year ending June 30, 1992, pursuant to said
section, (5) for  the fiscal years ending June 30,
1994, and June 30, 1995, the amount of aid paid to
the town for  the  fiscal  year  pursuant  to said
section, less the  amount  of aid paid to the town
for  the  prior   fiscal  year  pursuant  to  said
section, (6) for  the  fiscal year ending June 30,
1996, the amount  paid  to the town for the fiscal
year  ending  June  30,  1996,  pursuant  to  said
section less base  revenue  for  the  fiscal  year
ending June 30,  1995,  [and]  (7)  for the fiscal
year ending June  30, 1997, the amount paid to the
town for the  fiscal  year  ending  June 30, 1997,
less the amount  paid  to  the town for the fiscal
year  ending  June  30,  1996,  pursuant  to  said
section, (8) FOR  THE  FISCAL YEAR ENDING JUNE 30,
1998, THE AMOUNT  PAID  TO THE TOWN FOR THE FISCAL
YEAR ENDING JUNE 30, 1998, LESS THE AMOUNT PAID TO
THE TOWN FOR THE FISCAL YEAR ENDING JUNE 30, 1997,
PURSUANT TO SAID  SECTION  AND  (9) FOR THE FISCAL
YEAR ENDING JUNE  30, 1999, THE AMOUNT PAID TO THE
TOWN FOR THE  FISCAL  YEAR  ENDING  JUNE 30, 1999,
LESS THE AMOUNT  PAID  TO  THE TOWN FOR THE FISCAL
YEAR  ENDING  JUNE  30,  1998,  PURSUANT  TO  SAID
SECTION.
    (c)   Notwithstanding   the    provisions   of
subsection (a) of  this  section,  for  the  years
ending June 30,  1990,  June  30,  1991,  June 30,
1992, and June 30, 1993, no town shall be required
to spend more on regular program expenditures than
an amount equal  to  the product of the foundation
for such year  and  the total need students of the
town for the prior school year.
    (d) (1) For the year ending June 30, 1994, the
regular program expenditures  of  a  town shall be
not less than  the  greater  of the foundation for
such year multiplied by the total need students of
the town for  the  prior  school year or an amount
equal  to the  sum  of  (A)  the  regular  program
expenditures for the  town  for  the  prior fiscal
year and (B)  the  amount of the aid increase paid
to the town  as  calculated pursuant to subsection
(b) of this  section, except that no town shall be
required  to  spend   more   on   regular  program
expenditures than one hundred five per cent of the
product of the  foundation  for  such year and the
total need students  of  the  town  for  the prior
school year.
    (2) For the  fiscal year ending June 30, 1995,
the regular program  expenditures  of a town shall
be not less than the greater of the foundation for
such year multiplied by the total need students of
the town for  the  prior  school year or an amount
equal  to the  sum  of  (A)  the  regular  program
expenditures for the  town  for  the  prior fiscal
year and (B)  the  amount of the aid increase paid
to the town  as  calculated pursuant to subsection
(b) of this  section, except that no town shall be
required  to  spend   more   on   regular  program
expenditures than one  hundred ten per cent of the
product of the  foundation  for  such year and the
total need students  of  the  town  for  the prior
school year.
    (3) For the fiscal years ending June 30, 1996,
and   June   30,   1997,   the   regular   program
expenditures of a  town shall not be less than the
lesser of (A)  the  sum  of  the  regular  program
expenditures for the  town  for  the  prior fiscal
year, and the amount of the aid increase paid to a
town pursuant to subsection (b) of this section or
(B) the sum  of  the  town's  minimum  expenditure
requirement cap as determined by the Department of
Education for the  fiscal  year  ending  June  30,
1995, and the  sum  of any aid increases paid to a
town pursuant to  subsection  (b)  of this section
after the fiscal year ending June 30, 1995.
    (4) FOR THE  FISCAL YEAR ENDING JUNE 30, 1998,
THE REGULAR PROGRAM  EXPENDITURES  OF A TOWN SHALL
BE THE LESSER  OF  THE  SUM  OF  (A)  ITS  MINIMUM
EXPENDITURE REQUIREMENT FOR THE FISCAL YEAR ENDING
JUNE 30, 1997,  (B)  ITS  AID INCREASE PURSUANT TO
SUBSECTION (b) OF  THIS SECTION AND (C) THE RESULT
OBTAINED BY MULTIPLYING THE DIFFERENCE BETWEEN THE
TOWN'S RESIDENT STUDENT  COUNT  FOR  OCTOBER 1996,
USING THE DATA  OF  RECORD AS OF DECEMBER 1, 1996,
AND ITS FINAL  AUDITED  RESIDENT STUDENT COUNT FOR
OCTOBER 1993, BY  ONE-HALF  OF  THE FOUNDATION, OR
THE SUM OF (i) ITS MINIMUM EXPENDITURE REQUIREMENT
FOR THE FISCAL YEAR ENDING JUNE 30, 1997, AND (ii)
ITS AID INCREASE  PURSUANT  TO  SUBSECTION  (b) OF
THIS SECTION.
    (5) FOR THE  FISCAL YEAR ENDING JUNE 30, 1999,
THE REGULAR PROGRAM  EXPENDITURES  OF A TOWN SHALL
BE THE LESSER  OF  THE  SUM  OF  (A)  ITS  MINIMUM
EXPENDITURE REQUIREMENT FOR THE FISCAL YEAR ENDING
JUNE 30, 1998,  (B)  ITS  AID INCREASE PURSUANT TO
SUBSECTION (b) OF  THIS SECTION AND (C) THE RESULT
OBTAINED BY MULTIPLYING THE DIFFERENCE BETWEEN THE
TOWN'S RESIDENT STUDENT  COUNT  FOR  OCTOBER 1997,
USING THE DATA  OF  RECORD AS OF DECEMBER 1, 1997,
AND THE TOWN'S  RESIDENT STUDENT COUNT FOR OCTOBER
1996, USING THE  DATA  OF RECORD AS OF DECEMBER 1,
1996, BY ONE-HALF OF THE FOUNDATION, OR THE SUM OF
(i) ITS MINIMUM  EXPENDITURE  REQUIREMENT  FOR THE
FISCAL YEAR ENDING JUNE 30, 1998, AND (ii) ITS AID
INCREASE  PURSUANT  TO   SUBSECTION  (b)  OF  THIS
SECTION.
    (e) Upon a determination by the State Board of
Education that a  town  or  kindergarten  to grade
twelve, inclusive, regional school district failed
in any fiscal year to meet its minimum expenditure
requirement pursuant to  subsection  (a), (c), (d)
or (f), as  appropriate, of this section, the town
or  kindergarten  to   grade   twelve,  inclusive,
regional school district  shall  forfeit an amount
equal to two  times  the  difference  between said
minimum expenditure requirement  and the town's or
kindergarten to grade  twelve, inclusive, regional
school   district's   actual    regular    program
expenditures. The amount  so  forfeited  shall  be
withheld by the state Department of Education from
the grant payable to the town in the second fiscal
year  immediately  following   such   failure   by
deducting such amount from the town's equalization
aid grant payment  pursuant  to  section  10-262i,
except that in the case of a kindergarten to grade
twelve, inclusive, regional  school  district, the
amount so forfeited shall be withheld by the state
Department of Education  from  the  grants payable
pursuant to said  section  10-262i  to  the  towns
which  are  members   of   such   regional  school
district. The amounts deducted from such grants to
each member town  shall  be  proportional  to  the
number of resident  students [in regular programs]
in   each   member   town.   Notwithstanding   the
provisions of this  subsection, the State Board of
Education may waive such forfeiture upon agreement
with the town  or  kindergarten  to  grade twelve,
inclusive, regional school  district that the town
or  kindergarten  to   grade   twelve,  inclusive,
regional school district  shall exceed its minimum
expenditure requirement during  the fiscal year in
which the forfeiture  would occur by an amount not
less  than the  amount  of  said  forfeiture.  Any
additional  funds expended  pursuant  to  such  an
agreement shall not  be  included  in a district's
expenditures for the  purpose  of establishing any
future minimum expenditure requirement.
    (f)  (1)  Notwithstanding  the  provisions  of
subsections (a), (b)  and (c) of this section: (A)
For the fiscal  years  ending  June 30, 1990, June
30, 1991, June  30,  1992,  and June 30, 1993, the
regular program expenditures  of a kindergarten to
grade twelve, inclusive,  regional school district
shall not be  less  than  the  greater  of (i) the
product of (I) the target foundation multiplied by
the sum of  the  number  of total need students in
the member towns  in  the regional school district
for the prior  school  year  and (II) the ratio of
the sum of  the  member  towns' grant entitlements
for such year  pursuant  to  section  10-262h,  AS
AMENDED BY SECTION  2  OF THIS ACT, divided by the
sum of the  member towns' target grants or (ii) an
amount equal to the sum of (I) the regular program
expenditures for the  regional school district for
the prior fiscal  year  and (II) the amount of the
sum of the  aid increases paid to the member towns
as calculated pursuant  to  subsection (b) of this
section, provided no kindergarten to grade twelve,
inclusive,  regional  school   district  shall  be
required  to  spend   more   on   regular  program
expenditures than an  amount  equal to the product
of the foundation for such year and the sum of the
total need students  in  the  member  towns of the
regional  school district  for  the  prior  school
year; and (B)  for  the year ending June 30, 1993,
and for each  fiscal  year thereafter, the regular
program expenditures of  a  kindergarten  to grade
twelve, inclusive, regional  school district shall
be not less  than  the  foundation  for  such year
multiplied by the  sum  of the total need students
of all member towns for the prior school year.
    (2)   Notwithstanding   the    provisions   of
subdivision (3) of subsection (d) of this section,
for the fiscal  years  ending  June  30, 1996, and
June 30, 1997, the regular program expenditures of
a  kindergarten  to  twelve,  inclusive,  regional
school district shall  not be less than the lesser
of (A) the sum of the regular program expenditures
for the regional  school  district  for  the prior
fiscal year, and  the sum of the member towns' aid
increases  pursuant  to  subsection  (b)  of  this
section  or (B)  the  sum  of  the  member  towns'
minimum expenditure requirement caps as determined
by the Department of Education for the fiscal year
ending June 30,  1995,  and  the sum of the member
towns' aid increases  paid  pursuant to subsection
(b) of this  section  after the fiscal year ending
June 30, 1995.
    (g) For the  purposes  of  this section "total
need  students"  means   total  need  students  as
calculated using the data of record as of December
first of such data year.
    Sec. 5. Subsection  (a)  of section 10-262l of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  Each  local   and   regional   board   of
education, within available  appropriations, shall
be eligible to receive a state grant of funds as a
reward    for   demonstrating    improvement    in
district-wide   student   achievement    on    the
state-wide mastery examinations  under subsections
(a) and (b)  of  section  10-14n.  Each  local and
regional  board  of   education  shall  receive  a
proportional share of  the amount appropriated for
purposes   of  this   section   based   upon   the
improvement in its mastery goal improvement count,
as defined in  subdivision  [(32)] (31) of section
10-262f, AS AMENDED  BY SECTION 1 OF THIS ACT. The
minimum grant for each eligible town shall be five
hundred dollars. Each  local and regional board of
education shall expend  grant  funds  pursuant  to
this section on  behalf of its schools in a manner
consistent    with    each    school's    relative
contribution  to  the   level   of   mastery  goal
achievement within the district.
    Sec.  6.  Section   10-266p   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a)  The  State   Board   of  Education  shall
administer  a  priority   school   district  grant
program  to assist  certain  school  districts  to
improve    student   achievement    and    enhance
educational opportunities. The grant program shall
be for school  districts in (1) the eight towns in
the state with  the  largest  population, based on
the  most recent  federal  decennial  census,  (2)
towns which rank for the first fiscal year of each
biennium from one  to  eleven  when  all towns are
ranked in descending order from one to one hundred
sixty-nine based on  the  number of children under
the  aid  to   families  with  dependent  children
program as defined  in subdivision (14) of section
10-262f, AS AMENDED BY SECTION 1 OF THIS ACT, plus
the  mastery count  of  the  town  as  defined  in
subdivision (9) of  said  section  and  (3)  towns
which rank for  the  first  fiscal  year  of  each
biennium one to  eleven  when all towns are ranked
in  descending  order  from  one  to  one  hundred
sixty-nine based on  the  ratio  of  the number of
children under the  aid to families with dependent
children program as  so  defined  to  the resident
students of such  town  as  defined in subdivision
(19)  of  said  section  plus  the  grant  mastery
percentage of the  town  as defined in subdivision
(8) of said  section. The State Board of Education
shall  utilize  the   categorical   grant  program
established  under  this   section   and  sections
10-266q, AS AMENDED  BY SECTION 7 OF THIS ACT, and
10-266r and other  educational  resources  of  the
state  to  work  cooperatively  with  such  school
districts during any  school year to improve their
educational programs or to provide early childhood
education or early  reading intervention programs.
The State Board  of  Education  shall allocate one
million  dollars  to   each  of  the  eight  towns
described in subdivision  (1)  of  this subsection
and five hundred  thousand  dollars to each of the
towns described in  subdivisions  (2)  and  (3) of
this subsection, except  the  towns  described  in
subdivision (1) shall  not  receive any additional
allocation  if  they   are   also   described   in
subdivision (2) or (3).
    (b)   Notwithstanding   the    provisions   of
subsection (a) of  this  section,  any  town which
received a grant  pursuant to this section (1) for
the  fiscal  year  ending  June  30,  1994,  shall
receive a grant  in the same amount for the fiscal
year ending June  30, 1995, and (2) for the fiscal
year ending June  30, 1995, which does not qualify
for a grant  pursuant  to  subsection  (a) for the
fiscal year ending  June 30, 1996, shall receive a
grant (A) for fiscal year ending June 30, 1996, in
an amount equal  to  one-half  the  amount  of the
grant  such town  received  for  the  fiscal  year
ending June 30,  1995, and (B) for the fiscal year
ending  June 30,  1997,  in  an  amount  equal  to
one-quarter of the  amount  of the grant such town
received for the fiscal year ending June 30, 1995.
    (c)  In  addition   to  the  amount  allocated
pursuant to subsection  (a)  of  this section, for
the fiscal year  ending  June  30,  1997, and each
fiscal  year  thereafter,   the   State  Board  of
Education shall allocate  (1)  seven hundred fifty
thousand dollars to each town which ranks from one
to three, inclusive,  in  population  pursuant  to
subdivision (1) of  said  subsection (a) and three
hundred thirty-four thousand  dollars to each town
which ranks from  four  to  eight,  inclusive,  in
population pursuant to  said  subdivision  and (2)
one hundred eighty thousand dollars to each of the
towns described in  subdivisions  (2)  and  (3) of
said  subsection  (a),   except   that  the  towns
described in subdivision  (1)  of  said subsection
(a) shall not  receive  any  additional allocation
pursuant to subdivision  (2) of this subsection if
they are also  described in subdivision (2) or (3)
of said subsection (a). [Towns which receive funds
pursuant to this  subsection  shall  use an amount
equal to at  least  twenty-five  per  cent of such
funds for early  childhood  education  or  reading
intervention programs and such towns shall not use
such amount to supplant the local share of support
for   early  childhood   education   and   reading
intervention programs.]
    (d)  IN  ADDITION  TO  THE  AMOUNTS  ALLOCATED
PURSUANT  TO  SUBSECTIONS  (a)  AND  (c)  OF  THIS
SECTION,  THE  STATE   BOARD  OF  EDUCATION  SHALL
ALLOCATE A SHARE,  IN  THE  SAME PROPORTION AS THE
TOTAL   AMOUNT   ALLOCATED    PURSUANT   TO   SAID
SUBSECTIONS, OF TWO  MILLION FIVE HUNDRED THOUSAND
DOLLARS FOR THE  FISCAL YEAR ENDING JUNE 30, 1998,
AND THREE MILLION  DOLLARS  FOR  THE  FISCAL  YEAR
ENDING  JUNE  30,  1999,  TO  EACH  OF  THE  TOWNS
RECEIVING A GRANT PURSUANT TO THIS SECTION.
    Sec.  7.  Section   10-266q   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a) On or  before  September fifteenth of each
fiscal year in  which  payment  is to be made, the
State Board of  Education  shall  authorize  grant
awards.  Grant awards  shall  be  authorized  only
after  proposals  for   such   grants   have  been
submitted  to  the   commissioner  by  the  school
districts described in section 10-266p, AS AMENDED
BY SECTION 6 OF THIS ACT, at such time and in such
manner as the  commissioner  shall  prescribe, and
after  the  commissioner   and  each  such  school
district have reached agreement regarding how such
grant shall be  utilized.  Each  proposal shall be
based on a  three-year  project  plan and include,
but not be  limited  to, an explanation of project
goals,  objectives,  evaluation   strategies   and
budget  which shall  identify  local  funding  and
other resource contributions  for  the  three-year
period provided proposals  shall  give priority to
the  development  or   expansion  of  extended-day
kindergarten programs.
    (b) A priority  school district grant shall be
payable to the  local  board  of education for the
school districts described  in section 10-266p, AS
AMENDED BY SECTION  6 OF THIS ACT, which shall use
the  funds for  any  of  the  following:  (1)  The
creation or expansion  of  [training,  evaluation,
research,  development,  innovative]  programs  or
activities   related   to    dropout   prevention,
[developed pursuant to  the  policy adopted by the
State  Board  of   Education  in  accordance  with
section 10-202e,] (2) ALTERNATIVE AND TRANSITIONAL
PROGRAMS FOR STUDENTS HAVING DIFFICULTY SUCCEEDING
IN  TRADITIONAL EDUCATIONAL  PROGRAMS,  [(2)]  (3)
academic  enrichment,  tutorial   and   recreation
programs or activities  in school buildings during
nonschool hours [, (3)] AND DURING THE SUMMER, (4)
development   or   expansion    of    extended-day
kindergarten programs, [(4)]  (5)  development  or
expansion of [early  childhood education or] early
reading intervention programs,  [or (5)] INCLUDING
SUMMER AND AFTER-SCHOOL  PROGRAMS, (6) ENHANCEMENT
OF THE USE OF TECHNOLOGY TO SUPPORT INSTRUCTION OR
IMPROVE  PARENT  AND  TEACHER  COMMUNICATION,  (7)
initiatives to strengthen  parent  involvement  in
the education of  children,  and  parent and other
community  involvement  in   school   and   school
district  programs,  activities   and  educational
policies, which may  be  in  accordance  with  the
provisions of section  10-4g,  OR (8) FOR PURPOSES
OF  OBTAINING  ACCREDITATION  FOR  ELEMENTARY  AND
MIDDLE SCHOOLS FROM THE NEW ENGLAND ASSOCIATION OF
SCHOOLS AND COLLEGES. EACH SUCH BOARD OF EDUCATION
SHALL USE AT  LEAST  TWENTY  PER CENT OF ITS GRANT
FOR EARLY READING INTERVENTION PROGRAMS. Each such
board  of  education   shall   use  its  grant  to
supplement  existing  programs   or   create   new
programs. If the  State  Board  of Education finds
that  any such  grant  is  being  used  for  other
purposes or is  being  used  to decrease the local
share  of support  for  schools,  it  may  require
repayment of such grant to the state.
    (c) Each priority  school district grant shall
be awarded by  the  State Board of Education on an
annual basis. Funding in subsequent years shall be
based on funds  available,  annual application and
program evaluation.
    Sec. 8. (a) The State Board of Education shall
establish a standard of reading competency for use
by  local and  regional  boards  of  education  to
measure reading competency  for students in grades
one to three,  inclusive.  The  standard  may be a
requirement for a  certain score on a standardized
test.
    (b)  The  Commissioner   of   Education  shall
report, in accordance  with  section  11-4a of the
general statutes, on  such  standard  to the joint
standing committee of  the General Assembly having
cognizance of matters  relating  to  education, by
February 1, 1998.
    Sec. 9. Subsection  (c)  of section 10-266j of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (c) (1) Each  sending  district shall receive,
from  the amount  appropriated  for  interdistrict
cooperative  program grants  pursuant  to  section
10-74d,  for  each   child   participating  in  an
intercommunity program under  this  section  which
has been approved by the State Board of Education,
an amount equal  to  [seven]  THREE  hundred FIFTY
dollars  for each  such  pupil.  (2)  Each  school
district which transports  such  children under an
agreement made pursuant  to  this section shall be
eligible   to  receive   for   each   such   pupil
transported from one  school  district  to another
school district, from  the  amount so appropriated
for  interdistrict  cooperative   program   grants
pursuant to section 10-74d, an amount equal to the
reasonable cost of  transporting  each such child.
(3) Notwithstanding any  provision of this chapter
to  the  contrary,  each  sending  district  shall
divide the number of children participating in the
program by two  for  purposes  of  the  counts for
subdivision   (22)   of    section   10-262f   and
subdivision  (2)  of  subsection  (a)  of  section
10-261. Each receiving  district  shall divide the
number of children participating in the program by
two for purposes  of  the  counts pursuant to said
subdivisions. (4) The  total  amount of the grants
pursuant  to subdivisions  (1)  and  (2)  of  this
subsection shall not  exceed  [nine] SEVEN hundred
thousand dollars.
    Sec. 10. Two  hundred  thousand dollars of the
amount appropriated to  the  Office  of Policy and
Management in section  1  of special act 97-21 for
the fiscal year  ending  June  30,  1998,  for the
contingency reserve account  shall  be transferred
to  the  appropriation   to   the   Department  of
Education in said  section  of  said  act for said
fiscal year for  the special education over-burden
account.
    Sec. 11. For  the  fiscal year ending June 30,
1998, the Department  of  Education shall provide,
from the special  education  over-burden  account,
grants  in the  amount  of  one  hundred  thousand
dollars  each  to  the  towns  of  Colchester  and
Stratford due to  the  large  increase in resident
students,  as  defined   in  subdivision  (22)  of
section  10-262f  of   the  general  statutes,  as
amended by section 1 of this act, in said towns.
    Sec. 12. This  act  shall  take effect July 1,
1997.

Approved July 10, 1997