WILLIAM DONALD SCHAEFER, Governor

Ch. 1

(II) THE AVERAGE OF THE BASIC CURRENT EXPENSES PER
PUPIL FOR THE THIRD AND FOURTH PRECEDING FISCAL YEARS
MULTIPLIED BY 0.75 FOR FISCAL YEAR 1994 AND FOR EACH FISCAL YEAR
THEREAFTER, AS CALCULATED BY THE DEPARTMENT ON OR BEFORE
JULY 1 PRIOR TO THE FISCAL YEAR.

(b) (1) Each county board and the Mayor and City Council of Baltimore City
shall receive from the State, in the manner and subject to the limitations under this
section, an amount for each school year to be known as the "State share of basic current
expenses" FOR EACH COUNTY, which shall be calculated as indicated in this
subsection.

(2) (i) [In this paragraph "average statewide per pupil expenditure"
means the average for the third and fourth preceding fiscal years of the statewide
aggregate of expenditures for basic current expenses for the fiscal year, divided by the
full-time equivalent enrollment on September 30 of the fiscal year. The statewide
aggregate of expenditures for basic current expenses shall:

1.       Exclude disbursements for food subsidy programs and food
service, employer contributions to teachers' retirement and social security paid by the
State, student body activities, community services, pupil transportation, adult education,
school construction, and debt service;

2.       Include disbursements for instruction, kindergarten through
grade 12, pupil personnel services, health services, operation of plant, maintenance of
plant, administration, and fixed charges, including teachers' retirement and teachers'
social security contributions paid by the subdivisions; and

3.       Be reduced by the following revenues to the subdivisions:
State drivers' education aid, compensatory education funds, State handicapped education
aid, all federal aid except that for adult education, food subsidy, school construction,
youth services, multiservice centers and any other aid not applicable to the expenditure
categories noted in sub-subparagraph 2. of this subparagraph.

(ii) The State shall share in an expenditure for basic current expenses
equal to the product of the full-time equivalent enrollment and the following amounts:

1.       $1,286 for fiscal year 1985

2.       $1,449 for fiscal year 1986

3.       $1,651 for fiscal year 1987

4.       $1,846 for fiscal year 1988

5.       $1,999 for fiscal year 1989

6.       $2,168 for fiscal year 1990

7.       The amount equal to the average statewide per pupil
expenditure multiplied by .74, or $2,352, whichever is the lesser figure, for fiscal year
1991; and

- 55 -