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S1483..........................................................by EDUCATION
DISADVANTAGED SCHOOL DISTRICT - Amends and adds to existing law to create a
disadvantaged school district building account to match school district
moneys for the purposes of constructing school facilities; to require an
inspection of school facilities; to require publication of a summary of the
inspection report; to provide for allocation of sales tax funds; and to
provide that lottery funds are placed in a separate fund and continue to be
distributed as they are at present.
02/21 Senate intro - 1st rdg - to printing
02/22 Rpt prt - to Educ
S1483
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1483
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO SCHOOL DISTRICT FACILITY FINANCING; AMENDING SECTION 33-905, IDAHO
3 CODE, TO CREATE THE DISADVANTAGED SCHOOL DISTRICT BUILDING ACCOUNT, TO
4 MATCH SCHOOL DISTRICT MONEYS FOR THE PURPOSES OF THE ACCOUNT, TO REQUIRE
5 AN INSPECTION OF SCHOOL FACILITIES AND TO REQUIRE PUBLICATION OF A SUMMARY
6 OF THE INSPECTION REPORT; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE
7 ADDITION OF A NEW SECTION 33-905A, IDAHO CODE, TO CREATE A SCHOOL FACILI-
8 TIES FUND TO PROVIDE DISTRIBUTION OF LOTTERY PROCEEDS BASED UPON AVERAGE
9 DAILY ATTENDANCE OF THE DISTRICT; AMENDING SECTION 63-3638, IDAHO CODE, TO
10 PROVIDE A DISTRIBUTION FROM THE SALES TAX TO THE DISADVANTAGED SCHOOL DIS-
11 TRICT BUILDING ACCOUNT; AND AMENDING SECTION 67-7434, IDAHO CODE, TO PRO-
12 VIDE FOR DEPOSIT OF THE LOTTERY DIVIDENDS.
13 Be It Enacted by the Legislature of the State of Idaho:
14 SECTION 1. That Section 33-905, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 33-905. DISADVANTAGED SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO
17 ACCOUNT -- MONEYS APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS --
18 PAYMENTS TO DISTRICTS -- REPORTS ON APPLICATIONS -- USES OF MONEYS. 1. The
19 state of Idaho, recognizing its responsibility to establish and maintain a
20 general, uniform and thorough system of public, free common schools, in an
21 effort to partially fulfill this responsibility, hereby creates and estab-
22 lishes the disadvantaged school district building account in the state trea-
23 sury. The disadvantaged school district building account shall have paid into
24 it such appropriations or revenues as may be provided by law.
25 2. Moneys in the disadvantaged school district building account are
26 hereby appropriated to and may be expended by the state board of education at
27 any time for the purposes provided in this section, any provision of chapter
28 35, title 67, Idaho Code, or chapter 36, title 67, Idaho Code, notwithstand-
29 ing.
30 3. (a) As to any moneys in the account other than lottery dividends dis-
31 tributed pursuant to subsection 4. of this section, Commencing July 1,
32 2000, the board of trustees of any school district may apply to the state
33 board of education to receive a payment or payments from the disadvantaged
34 school district building account; provided, a district demonstrates to the
35 state board of education that it has a substantial and serious need based
36 upon the district's classroom student-teacher ratios, past efforts to levy
37 for such construction, physical condition of existing structures, and the
38 total assessed market value of the district, all of which shall be further
39 defined by actual need criteria established by the state board of educa-
40 tion for grants to match district moneys to pay costs of school construc-
41 tion and related planning, administrative and financing to address an
42 identified safety or health need. The board shall establish appropriate
43 criteria governing need, space, cost and use of facilities to qualify for
2
1 state funding participation in school district construction. Criteria
2 shall address life safety and health issues, temporary classroom facili-
3 ties in use in the district, projected future enrollment, bond, facility
4 or supplemental levy history of the district, unemployment rates in the
5 area served by the district, land ownership recognizing specifically dis-
6 proportionate ownership by government units, average wages in the district
7 compared to the statewide average, and the maintenance experience of
8 facilities in the district. Only that portion of the project which quali-
9 fies according to the criteria will qualify for state matching funds; pro-
10 vided that this restriction shall not limit the school district from com-
11 mitting additional funds derived from local funding sources for a project
12 or any portion of a project which does not qualify for state
13 participation.
14 (b) When an application for moneys from the account is approved by the
15 state board of education, the state board shall inform the school district
16 that the application has been approved, citing the amount approved for
17 payment and an estimate of the time when the payment can actually be made
18 to the school district.
19 4. By not later than August 31, moneys in the account pursuant to distri-
20 bution from section 67-7434, Idaho Code, the lottery dividends and interest
21 earned thereon, shall be distributed to each of the several school districts,
22 in the proportion that the average daily attendance of that district for the
23 previous school year bears to the total average daily attendance of the state
24 during the previous school year. For the purposes of this subsection 4. only,
25 the Idaho school for the deaf and blind shall be considered a school district,
26 and shall receive a distribution based upon the average daily attendance of
27 the school. Average daily attendance shall be calculated as provided in sec-
28 tion 33-1002 4. [5.], Idaho Code A school district may apply for, and the
29 state board may approve, payment or payments from the account to match school
30 district funds to pay existing indebtedness incurred for qualified school
31 facilities in the district which may be funded to the same extent as a pro-
32 posed project on the remaining indebtedness outstanding.
33 5. All payments from the disadvantaged school district building account
34 shall be paid out directly to the school district in warrants drawn by the
35 state controller upon presentation of proper vouchers from the state board of
36 education. Pending payments out of the disadvantaged school district building
37 account, the moneys in the account shall be invested by the state treasurer in
38 the same manner as provided under section 67-1210, Idaho Code, with respect to
39 other idle moneys in the state treasury. Interest earned on the investments
40 shall be returned to the disadvantaged school district building account.
41 6. It is the duty of the board of trustees of every school district at
42 least once in every school year to require an independent inspection of the
43 district's school facilities to determine whether those school facilities com-
44 ply with the health and safety standards made applicable to the district by
45 statute or by rule of the state board of education. The inspection of facili-
46 ties shall be done pursuant to section 39-4130, Idaho Code, or pursuant to any
47 alternative comparable or more demanding inspection of facilities authorized
48 by rule of the state board of education. The results of the inspection of
49 facilities shall be presented to the board of trustees for their review and
50 consideration. A summary of the report listing specific health and safety
51 defects by school shall be published not more than one (1) week following the
52 presentation to the trustees, in a newspaper as provided in section 60-106,
53 Idaho Code, published in the county or in any county in which the district may
54 lie and having general circulation within the district. A complete copy of the
55 report shall be available to the public in the office of the school district.
3
1 7. Payments from the disadvantaged school district building account
2 received by a school district may be used by the school district for the pur-
3 poses authorized in section 33-1102, Idaho Code as set forth herein.
4 78. (a) By not later than December 1, each school district shall report
5 to the state department of education the projects on which moneys received
6 from the disadvantaged school district building account were expended. The
7 state department of education shall transmit a summary of such reports to
8 the legislature by not later than January 15 of the following year.
9 (b) By not later than December 1, each disadvantaged school district
10 shall report to the state department of education the planned uses for the
11 moneys received from the disadvantaged school district building account.
12 The state department of education shall transmit a summary of the reports
13 to the legislature by not later than January 15 of the following year.
14 SECTION 2. That Chapter 9, Title 33, Idaho Code, be, and the same is
15 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
16 ignated as Section 33-905A, Idaho Code, and to read as follows:
17 33-905A. SCHOOL FACILITIES -- LOTTERY PROCEEDS. (1) The state of Idaho,
18 recognizing its unique responsibility to appropriately expend the proceeds of
19 the state lottery, establishes the school facility lottery fund. The school
20 facility lottery fund shall have paid into it such appropriations or revenues
21 as may be provided by law.
22 (2) By not later than August 31 of each year, moneys in the fund shall be
23 distributed to each of the several school districts, in the proportion that
24 the average daily attendance of that district for the previous school year
25 bears to the total average daily attendance of the state during the previous
26 school year. Average daily attendance shall be calculated as provided in sec-
27 tion 33-1002 5., Idaho Code. This distribution shall be made as provided
28 herein, the provisions of chapter 35, title 67, Idaho Code, or chapter 36,
29 title 67, Idaho Code, notwithstanding.
30 (3) All payments from the school facility lottery fund shall be paid out
31 directly to the school district in warrants drawn by the state controller upon
32 presentation of proper vouchers from the state board of education. Pending
33 payments out of the school facility lottery fund, the moneys in the fund shall
34 be invested by the state treasurer in the same manner as provided under sec-
35 tion 67-1210, Idaho Code, with respect to other idle moneys in the state trea-
36 sury. Interest earned on the investments shall be returned to the school
37 facility lottery fund.
38 (4) Payments from the school facility lottery fund received by the school
39 district may be used by the school district for the purposes of maintenance,
40 repair and improvement of school facilities.
41 (5) After August 1, 2001, a school district shall be ineligible and shall
42 forfeit the distribution provided in this section if it has not developed and
43 filed a long-range maintenance plan for the facilities of the district with
44 the department of education. The plan shall be updated not less often than
45 every four (4) years.
46 SECTION 3. That Section 63-3638, Idaho Code, be, and the same is hereby
47 amended to read as follows:
48 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
49 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
50 be distributed by the tax commission as follows:
51 (a) An amount of money shall be distributed to the state refund account
4
1 sufficient to pay current refund claims. All refunds authorized under this
2 chapter by the commission shall be paid through the state refund account, and
3 those moneys are continuously appropriated.
4 (b) Five hundred thousand dollars ($500,000) per year is continuously
5 appropriated and shall be distributed to the permanent building account, pro-
6 vided by section 57-1108, Idaho Code.
7 (c) Four million eight hundred thousand dollars ($4,800,000) per year is
8 continuously appropriated and shall be distributed to the water pollution con-
9 trol account established by section 39-3605, Idaho Code.
10 (d) (1) An amount equal to the sum required to be certified by the chair-
11 man of the Idaho housing and finance association to the state tax commis-
12 sion pursuant to section 67-6211, Idaho Code, in each year is continuously
13 appropriated and shall be paid to any capital reserve fund, established by
14 the Idaho housing and finance association pursuant to section 67-6211,
15 Idaho Code. Such amounts, if any, as may be appropriated hereunder to the
16 capital reserve fund of the Idaho housing and finance association shall be
17 repaid for distribution under the provisions of this section, subject to
18 the provisions of section 67-6215, Idaho Code, by the Idaho housing and
19 finance association, as soon as possible, from any moneys available there-
20 for and in excess of the amounts which the association determines will
21 keep it self-supporting.
22 (2) An amount equal to the sum required by the provisions of section
23 63-709, Idaho Code, is continuously appropriated and shall be paid as pro-
24 vided by section 63-709, Idaho Code.
25 (3) An amount required by the provisions of chapter 53, title 33, Idaho
26 Code.
27 (e) Six percent (6%) is hereby appropriated and shall be paid to the
28 county treasurer of each county in amounts to be determined as follows:
29 (1) Each taxing district other than school districts shall be entitled to
30 a base share of sales tax moneys equal to the amount distributed to that
31 district for the fourth calendar quarter of 1979. The computation shall
32 not include any distributions made to the credit of either the former
33 county school levy or the state water pollution control levy. The percent-
34 age so determined for each taxing district shall be applied each quarter
35 to the above percentage of sales tax. The resulting sums shall be paid to
36 the county treasurer of each county for distribution to each taxing dis-
37 trict, except school districts, which received sales tax moneys in 1979.
38 Whenever a taxing district is dissolved, the dissolved district's share of
39 sales moneys shall be credited continuously to the county current expense
40 fund.
41 (2) Whenever the amount of nonschool district sales tax moneys distrib-
42 uted exceeds in any quarter the total amount of moneys distributed to non-
43 school districts for the base quarter, which is the fourth calendar quar-
44 ter of 1979, by ten percent (10%), or more, the excess of the base quarter
45 shall be paid to the county treasurer of each county for distribution to
46 each taxing district in the county, except school districts, in the fol-
47 lowing manner.
48 The state tax commission shall compute the percentage that the aver-
49 age amount of taxes collected from assessments for the years 1965, 1966
50 and 1967 on the personal property described as business inventory in sub-
51 sections (1) and (2) of section 63-602W, Idaho Code, for each county bears
52 to the average total amount of taxes collected from assessments for said
53 years on the personal property described as business inventory in subsec-
54 tions (1) and (2) of section 63-602W, Idaho Code, for all counties in the
55 state. The percentage so determined for each county shall be applied to
5
1 the sales tax distributed under this subsection and the resulting sum
2 shall be paid to the county treasurer of each county for distribution to
3 each taxing district, except school districts, in the county as follows:
4 (i) Each year the county commissioners in each county shall take
5 the tax charge, applicable to the current property roll equalized by
6 county commissioners sitting as a board of equalization, of each tax-
7 ing district within the county, except school districts, and divide
8 it by the total current tax charges applicable to the current prop-
9 erty roll of all taxing districts, except school districts, within
10 said county and the resulting percentages shall be applied to the
11 county's proportionate share of said sales tax account and the
12 resulting amount shall be distributed to each taxing district in the
13 county periodically but not less frequently than quarterly by the
14 county auditor and applied by such taxing districts in the same man-
15 ner and in the same proportions as revenues from property taxation.
16 (ii) The moneys set aside and appropriated to the county treasurer
17 out of the sales tax account above may be considered by the counties
18 and other taxing districts and budgeted against at the same time, in
19 the same manner and in the same year as revenues from taxation on all
20 classes of personal property which these moneys replace.
21 (3) All moneys distributed pursuant to subsection (e) of this section
22 shall be subject to the redistribution provisions of section 40-801, Idaho
23 Code, where applicable.
24 (f) One dollar ($1.00) on each application for certificate of title or
25 initial application for registration of a motor vehicle, snowmobile,
26 allterrain all-terrain vehicle or other vehicle processed by the county asses-
27 sor or the Idaho transportation department excepting those applications in
28 which any sales or use taxes due have been previously collected by a retailer,
29 shall be a fee for the services of the assessor of the county or the Idaho
30 transportation department in collecting such taxes, and shall be paid into the
31 current expense fund of the county or state highway account established in
32 section 40-702, Idaho Code.
33 (g) Seven and three-quarters percent (7.75%) is continuously appropriated
34 and shall be distributed to the revenue sharing account which is created in
35 the state operating fund, and the moneys in the revenue sharing account will
36 be paid by the tax commission as follows:
37 (1) One-half (1/2) shall be paid to the various cities as follows:
38 (i) Fifty percent (50%) of such amount shall be paid to the various
39 cities, and each city shall be entitled to an amount in the propor-
40 tion that the population of that city bears to the population of all
41 cities within the state; and
42 (ii) Fifty percent (50%) of such amount shall be paid to the various
43 cities, and each city shall be entitled to an amount in the propor-
44 tion that the preceding year's market value for assessment purposes
45 for that city bears to the preceding year's market value for assess-
46 ment purposes for all cities within the state.
47 (2) One-half (1/2) shall be paid to the state's general account or to the
48 various counties as follows:
49 (i) One million three hundred twenty thousand dollars ($1,320,000)
50 shall be distributed one forty-fourth (1/44) to each of the various
51 counties; and
52 (ii) The balance of such amount shall be paid to the various coun-
53 ties, and each county shall be entitled to an amount in the propor-
54 tion that the population of that county bears to the population of
55 the state.
6
1 (h) In fiscal year 2001, 2002, 2003 and 2004, fifteen million dollars
2 ($15,000,000) is hereby appropriated to the disadvantaged school district
3 building account created in section 33-905, Idaho Code, to be expended for the
4 purposes of the account.
5 (i) Any moneys remaining over and above those necessary to meet and
6 reserve for payments under other subsections of this section shall be distrib-
7 uted to the general account.
8 SECTION 4. That Section 67-7434, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 67-7434. LOTTERY DIVIDENDS. Annually, on July 1, the lottery shall trans-
11 fer one-half (1/2) of its net income to the permanent building account and
12 one-half (1/2) of its net income to the school district building account
13 facility lottery fund, after reserving sufficient moneys to ensure the contin-
14 uation of the lottery, as determined by the director and commission.
15 A one (1) time allotment of two hundred thousand dollars ($200,000) of the
16 lottery's first year dividends shall be allocated and used by the permanent
17 building fund advisory council for the construction of a Vietnam veterans
18 memorial in the state.
STATEMENT OF PURPOSE
RS 10103
The purpose of this legislation is to establish a "Disadvantaged
School District Building Account" in Idaho Code. This proposal
seeks to recognize and provide a remedy for those school districts
in Idaho which suffer from financial hardships and have a difficult
time maintaining or building public school facilities. It
establishes a system of criteria that recognizes not only market
value, but also other economic factors and land ownership patterns
as affecting district patrons' ability to raise taxes to support
schools.
The bill proposes to assist school districts with health and safety
needs by providing matching grants from the state. It also proposes
to provide matching grants to school districts that have passed bonds,
to assist in paying off those bonds should those districts be deemed
"disadvantaged." The funding source provided in the bill proposes
to utilize $15 million from sales tax revenue over the next four
years.
Finally, the bill provides that lottery money can only be received
by school districts when they have filed a long range maintenance
plan for buildings. Additionally, the bill requires school districts
to identify health and safety needs by school and publish those needs
in the local paper and make the detail report available to the public.
FISCAL IMPACT
The bill proposes to utilize $15 million from sales tax revenue in
the next four years: 2001, 2002, 2003, andd 2004.
After statutory diversions, the amount of sales tax revenue placed
in the general fund grew by $20.0 million in FY 97-98 and by $37.2
million in FY 98-99. At this point in FY 2000, the growth in sales
tax revenue is projected to be $28.8 million; for FY 2001, the growth
is projected to be $26.4 million.
This bill would take $25 million from this growth in sales tax revenue
and place our financial priorities on our moral obligation to ensure
that Idaho's public school buildings are safe for Idaho's children.
Contact
Name: Senator Shawn Keough
Phone: 332-1340
STATEMENT OF PURPOSE/FISCAL NOTE S1483