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S1071..........................................................by EDUCATION SCHOOL FACILITIES FUND - Amends and adds to existing law to provide that school districts shall reduce levies upon receipt of certain state funds; to provide for the creation of the "School Facilities Fund"; and to provide for payments from the fund to school districts with qualifying bonds. 02/07 Senate intro - 1st rdg - to printing 02/08 Rpt prt - to Educ
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature First Regular Session - 2001IN THE SENATE SENATE BILL NO. 1071 BY EDUCATION COMMITTEE 1 AN ACT 2 RELATING TO SCHOOL FACILITY FUNDING; AMENDING SECTION 33-802, IDAHO CODE, TO 3 PROVIDE THAT SCHOOL DISTRICTS SHALL REDUCE LEVIES UPON RECEIPT OF CERTAIN 4 STATE FUNDS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 33-804, 5 IDAHO CODE, TO PROVIDE THAT SCHOOL DISTRICTS SHALL REDUCE LEVIES UPON 6 RECEIPT OF CERTAIN STATE FUNDS; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, 7 BY THE ADDITION OF A NEW SECTION 33-905A, IDAHO CODE, TO PROVIDE FOR THE 8 CREATION OF THE SCHOOL FACILITIES FUND AND TO PROVIDE FOR PAYMENTS FROM 9 THE FUND TO SCHOOL DISTRICTS WITH QUALIFYING BONDS; DECLARING AN EMERGENCY 10 AND PROVIDING RETROACTIVE APPLICATION. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Section 33-802, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 33-802. SCHOOL LEVIES. Any tax levied for school purposes shall be a lien 15 on the property against which the tax is levied. The board of trustees shall 16 determine the levies upon each dollar of taxable property in the district for 17 the ensuing fiscal year as follows: 18 1. Bond, Interest and Judgment Obligation Levies. Such levies as shall be 19 required to satisfy all maturing bond, bond interest, and judgment 20 obligations; provided however, that the board of trustees for the school dis- 21 trict, including any specially-chartered district, shall annually reduce the 22 bond levy in an amount equal to any state funds received pursuant to section 23 33-905A, Idaho Code. 24 2. Maximum School Maintenance and Operation Levies. Such levies for main- 25 taining and operating the schools of the district and for the payment of 26 tuition and transportation, that do not exceed an amount equal to four-tenths 27 of one percent (.4%) during tax year 1994, and do not exceed an amount equal 28 to three-tenths of one percent (.3%) during tax year 1995 and thereafter, 29 applied to the actual or adjusted market value for assessment purposes of the 30 district as such valuation existed on December 31 of the previous year, but 31 allowances necessary as a credit for prepaid taxes, as provided in section 32 63-1607, Idaho Code, shall not be included in such maximum levies. 33 3. Authorized School Maintenance and Operation Levies. Such levies for 34 maintaining and operating the schools of the district and for the payment of 35 tuition and transportation that do not exceed one hundred eleven percent 36 (111%) of the local district's contribution authorized in subsection23. of 37 section 33-1002, Idaho Code. Implementation of the provisions of this subsec- 38 tion shall be authorized only after approval by a majority of the district's 39 electors voting on the question. Levies otherwise authorized by law shall not 40 require an election. 41 4. Supplemental Maintenance and Operation Levies. No levy in excess of 42 the levy permitted by subsection 2. or 3. of this section shall be made by a 43 noncharter school district unless such a supplemental levy in a specified 2 1 amount and for a specified time not to exceed two (2) years be first autho- 2 rized through an election held pursuant to chapter 4, title 33, Idaho Code, 3 and approved by a majority of the district electors voting in such election. A 4 levy approved pursuant to this subsection may be reduced by a majority vote of 5 the board of trustees in the second year. 6 5. Charter District Supplemental Maintenance and Operation. Levies pursu- 7 ant to the respective charter of any such charter district shall be first 8 authorized through an election held pursuant to chapter 4, title 33, Idaho 9 Code, and approved by a majority of the district electors voting in such elec- 10 tion. 11 6. The Local District Contribution. The local school district contribu- 12 tion levy is the amount utilized for calculating local district participation 13 in the educational foundation program, which is applied to the adjusted market 14 value for assessment purposes, as such valuation existed on December 31 of the 15 previous year. 16 7. The board of trustees of any school district that has, for at least 17 seven (7) consecutive years, been authorized through an election held pursuant 18 to chapter 4, title 33, Idaho Code, to certify a supplemental levy that has 19 annually been equal to or greater than twenty percent (20%) of the total gen- 20 eral maintenance and operation fund, may submit the question of an indefinite 21 term supplemental levy to the electors of the school district. Such question 22 shall clearly state the dollar amount that will be certified annually and that 23 the levy will be for an indefinite number of years. The question must be 24 approved by a majority of the district electors voting on the question in an 25 election held pursuant to chapter 4, title 33, Idaho Code. The levy approved 26 pursuant to this subsection may be reduced by a majority vote of the board of 27 trustees during any fiscal year. 28 SECTION 2. That Section 33-804, Idaho Code, be, and the same is hereby 29 amended to read as follows: 30 33-804. SCHOOL PLANT FACILITIES RESERVE FUND LEVY. In any school district 31 in which a school plant facilities reserve fund has been created, either by 32 resolution of the board of trustees or by apportionment to new districts 33 according to the provisions of section 33-901, Idaho Code, to provide funds 34 therefor the board of trustees shall submit to the qualified school electors 35 of the district the question of a levy not to exceed four-tenths of one per- 36 cent (.4%) of market value for assessment purposes in each year, as such valu- 37 ation existed on December 31 of the previous year, for a period not to exceed 38 ten (10) years. 39 The question of a levy to be submitted to the electors of the district and 40 the notice of such election shall state the dollar amount proposed to be col- 41 lected each year during the period of years in each of which the collection is 42 proposed to be made, the percentage of votes in favor of the proposal which 43 are needed to approve the proposed dollar amount to be collected, and the pur- 44 poses for which such funds shall be used. Said notice shall be given, the 45 election shall be conducted and the returns canvassed as provided in chapter 46 4, title 33, Idaho Code; and the dollar amount to be collected shall be 47 approved only if: 48 1. Fifty-five percent (55%) of the electors voting in such election are 49 in favor thereof if the levy will result in a total levy for school plant 50 facilities and bonded indebtedness of less than two-tenths of one percent 51 (.2%) of market value for assessment purposes as such valuation existed on 52 December 31 of the year immediately preceding the election; 53 2. Sixty percent (60%) of the electors voting in such election are in 3 1 favor thereof if the levy will result in a total levy for school plant facili- 2 ties and bonded indebtedness of two-tenths of one percent (.2%) or more and 3 less than three-tenths of one percent (.3%) of market value for assessment 4 purposes as such valuation existed on December 31 of the year immediately pre- 5 ceding the election; or 6 3. Two-thirds (2/3) of the electors voting in such election are in favor 7 thereof if the levy will result in a total levy for school plant facilities 8 and bonded indebtedness of three-tenths of one percent (.3%) or more of market 9 value for assessment purposes as such valuation existed on December 31 of the 10 year immediately preceding the election. 11 If the question be approved, the board of trustees may make a levy, not to 12 exceed four-tenths of one percent (.4%) of market value for assessment pur- 13 poses as such valuation existed on December 31 of the previous year, in each 14 year for which the collection was approved, sufficient to collect the dollar 15 amount approved;andprovided however, that the board of trustees shall annu- 16 ally reduce the levy in an amount equal to any state funds received pursuant 17 to section 33-905A, Idaho Code. The board of trustees may again submit the 18 question of the levy at the expiration of the period of such levy, for the 19 dollar amount to be collected during each year,and the number of years which 20 the board may at that time determine. Or, during the period approved at any 21 such election, if such period be less than ten (10) years or the levy be less 22 than four-tenths of one percent (.4%) of market value for assessment purposes 23 as such valuation existed on December 31 of the previous year, the board of 24 trustees may submit to the qualified school electors in the same manner as 25 before, the question whether the number of years, or the levy, or both, be 26 increased, but not to exceed the maximum herein authorized. If such increase 27 or increases be approved by the electors, the terms of such levy shall be in 28 lieu of those approved in the first instance, but disapproval shall not affect 29 any terms theretofore in effect. 30 Any bonded indebtedness incurred in accordance with the provisions of sec- 31 tion 33-1103, Idaho Code, subsequent to the approval of a plant facilities 32 reserve fund levy shall not affect the terms of that levy for any time during 33 which such levy is in effect. 34 SECTION 3. That Chapter 9, Title 33, Idaho Code, be, and the same is 35 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 36 ignated as Section 33-905A, Idaho Code, and to read as follows: 37 33-905A. SCHOOL FACILITIES FUND -- PAYMENTS TO FUND -- APPLICATION FOR 38 MONEYS -- PAYMENTS TO DISTRICTS -- REPORTS ON APPLICATIONS -- USE OF MONEYS. 39 (1) The state of Idaho hereby creates and establishes the school facilities 40 fund in the state treasury. The school facilities fund shall have paid into it 41 such appropriations or revenues as may be provided by law. 42 (2) Moneys in the school facilities fund are hereby appropriated to and 43 may be expended by the state board of education at any time for the purposes 44 provided in this section, notwithstanding any provision of chapter 35 or chap- 45 ter 36, title 67, Idaho Code. 46 (3) (a) Upon certification to the state board of education of the total 47 amount of taxes collected in the previous calendar year pursuant to a levy 48 for a bond or bonds approved by the electors of the school district, the 49 board of trustees of a school district may apply on an annual basis to the 50 state board of education to receive a payment or payments from the school 51 facilities fund in the amount of twenty percent (20%) of the total amount 52 of such taxes. If a school district receives payments from the school 53 facilities fund under this chapter, and reduces bond levies or plant 4 1 facilities levies pursuant to section 33-802 or 33-804, Idaho Code, the 2 school district may continue to qualify for payments from the school 3 facilities fund in an amount representing twenty percent (20%) of the 4 total amount of taxes the school district would have collected in the pre- 5 vious calendar year if such payments from the fund were not received. 6 (b) When an application for moneys from the fund is approved by the state 7 board of education, the state board shall inform the school district that 8 the application has been approved, citing the amount approved for payment 9 and an estimate of the time when the payment can actually be made to the 10 school district. 11 (4) All payments from the school facilities fund shall be paid out 12 directly to the school district in warrants drawn by the state controller upon 13 presentation of proper vouchers from the state board of education. Pending 14 payments out of the school facilities fund, the moneys in the fund shall be 15 invested by the state treasurer in the same manner as provided under section 16 67-1210, Idaho Code, with respect to other idle moneys in the state treasury. 17 Interest earned on the investments shall be returned to the school facilities 18 fund. 19 (5) Payments from the school facilities fund received by a school dis- 20 trict may be used by the school district for the purposes provided in section 21 33-802, 33-804 or 33-1102, Idaho Code, or for the repayment of bonds. 22 (6)(a) By not later than December 1, each school district receiving funds 23 from the school facilities fund shall report to the state department of 24 education the projects on which moneys received from the school facilities 25 fund were expended. The state department of education shall transmit a 26 summary of the reports to the legislature by not later than January 15 of 27 the following year. 28 (b) By not later than December 1, each school district receiving funds 29 from the school facilities fund shall report to the state department of 30 education the planned uses for the moneys received from the fund. The 31 state department of education shall transmit a summary of the reports to 32 the legislature by not later than January 15 of the following year. 33 SECTION 4. An emergency existing therefor, which emergency is hereby 34 declared to exist, this act shall be in full force and effect on and after its 35 passage and approval, and retroactively to January 1, 2001.
STATEMENT OF PURPOSE RS 10882 This legislation would authorize annual payment by the state of up to 20 per cent of the amount of property taxes collected by Idaho school districts in the previous year with bond or plant facilities levies. School districts would be required to reduce their bond or plant facilities levy tax collections by an equivalent amount in the following year. FISCAL IMPACT It would require $20 million to pay 20 per cent of the cost of current bond and plant facilities levies. There would be a corresponding reduction in property taxes. Contact: Sen. Betsy Dunklin 332-1382 Statement of purpose/fiscal impact S 107