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S1131..........................................................by EDUCATION
DISADVANTAGED SCHOOL DISTRICT BUILDING ACCOUNT - Amends and adds to
existing law to create a Disadvantaged School District Building Account to
match school district moneys for the purposes of construction of school
facilities; and to allocate money from the Sales Tax Fund to the
Disadvantaged School District Building Account.
02/12 Senate intro - 1st rdg - to printing
02/13 Rpt prt - to Educ
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1131
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 AND TO
4 MATCH SCHOOL DISTRICT MONEYS FOR THE PURPOSES OF THE ACCOUNT; AMENDING
5 CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-905A,
6 IDAHO CODE, TO CREATE A SCHOOL FACILITIES FUND TO PROVIDE DISTRIBUTION OF
7 LOTTERY PROCEEDS BASED UPON AVERAGE DAILY ATTENDANCE OF THE DISTRICT;
8 AMENDING SECTION 63-3638, IDAHO CODE, TO PROVIDE A DISTRIBUTION FROM THE
9 SALES TAX TO THE DISADVANTAGED SCHOOL DISTRICT BUILDING ACCOUNT AND TO
10 MAKE TECHNICAL CORRECTIONS; AND AMENDING SECTION 67-7434, IDAHO CODE, TO
11 PROVIDE FOR DEPOSIT OF THE LOTTERY PROCEEDS.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Section 33-905, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 33-905. SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS
16 APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS
17 -- REPORTS ON APPLICATIONS -- USES OF MONEYS. 1. The state of Idaho, recogniz-
18 ing its responsibility to establish and maintain a general, uniform and thor-
19 ough system of public, free common schools, in an effort to partially fulfill
20 this responsibility, hereby creates and establishes the disadvantaged school
21 district building account in the state treasury. The disadvantaged school dis-
22 trict building account shall have paid into it such appropriations or revenues
23 as may be provided by law.
24 2. Moneys in the disadvantaged school district building account are
25 hereby appropriated to and may be expended by the state board of education at
26 any time for the purposes provided in this section, any provision of chapter
27 35, title 67, Idaho Code, or chapter 36, title 67, Idaho Code, notwithstand-
28 ing.
29 3. (a) As to any moneys in the account other than lottery dividends dis-
30 tributed pursuant to subsection 4. of this section Commencing July 1,
31 2001, the board of trustees of any school district may apply to the state
32 board of education to receive a payment or payments from the disadvantaged
33 school district building account; provided, a district demonstrates to the
34 state board of education that it has a substantial and serious need based
35 upon the district's classroom student-teacher ratios, past efforts to levy
36 for such construction, physical condition of existing structures, and the
37 total assessed market value of the district, all of which shall be further
38 defined by actual need criteria established by the state board of educa-
39 tion for grants to match district moneys to pay costs of school construc-
40 tion and related planning, administrative and financing to address an
41 identified safety or health need. The board shall establish appropriate
42 criteria governing need, space, cost and use of facilities to qualify for
43 state funding participation in school district construction. Criteria
2
1 shall address life, safety and health issues, temporary classroom facili-
2 ties in use in the district, projected future enrollment, bond, facility
3 or supplemental levy history of the district, unemployment rates in the
4 area served by the district, land ownership recognizing specifically dis-
5 proportionate ownership by government units, average wages in the district
6 compared to the statewide average, and the maintenance experience of
7 facilities in the district. Only that portion of the project which quali-
8 fied according to the criteria will qualify for state matching funds; pro-
9 vided that this restriction shall not limit the school district from com-
10 mitting additional funds derived from local funding sources for a project
11 or any portion of a project which does not qualify for state
12 participation.
13 (b) When an application for moneys from the account is approved by the
14 state board of education, the state board shall inform the school district
15 that the application has been approved, citing the amount approved for
16 payment and an estimate of the time when the payment can actually be made
17 to the school district.
18 4. By not later than August 31, moneys in the account pursuant to distri-
19 bution from section 67-7434, Idaho Code, the lottery dividends and interest
20 earned thereon, shall be distributed to each of the several school districts,
21 in the proportion that the average daily attendance of that district for the
22 previous school year bears to the total average daily attendance of the state
23 during the previous school year. For the purposes of this subsection 4. only,
24 the Idaho school for the deaf and blind shall be considered a school district,
25 and shall receive a distribution based upon the average daily attendance of
26 the school. Average daily attendance shall be calculated as provided in sec-
27 tion 33-1002 4., Idaho Code A school district may apply for, and the state
28 board may approve, payment or payments from the account to match school dis-
29 trict funds to pay existing indebtedness incurred for qualified school facili-
30 ties in the district which may be funded to the same extent as a proposed
31 project on the remaining indebtedness outstanding.
32 5. All payments from the disadvantaged school district building account
33 shall be paid out directly to the school district in warrants drawn by the
34 state controller upon presentation of proper vouchers from the state board of
35 education. Pending payments out of the disadvantaged school district building
36 account, the moneys in the account shall be invested by the state treasurer in
37 the same manner as provided under section 67-1210, Idaho Code, with respect to
38 other idle moneys in the state treasury. Interest earned on the investments
39 shall be returned to the disadvantaged school district building account.
40 6. Payments from the disadvantaged school district building account
41 received by a school district may be used by the school district for the pur-
42 poses authorized in section 33-1102, Idaho Code as set forth herein.
43 7. (a) By not later than December 1, each school district shall report to
44 the state department of education the projects on which moneys received
45 from the disadvantaged school district building account were expended. The
46 state department of education shall transmit a summary of such reports to
47 the legislature by not later than January 15 of the following year.
48 (b) By not later than December 1, each school district shall report to
49 the state department of education the planned uses for the moneys received
50 from the disadvantaged school district building account. The state
51 department of education shall transmit a summary of the reports to the
52 legislature by not later than January 15 of the following year.
53 SECTION 2. That Chapter 9, Title 33, Idaho Code, be, and the same is
54 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
3
1 ignated as Section 33-905A, Idaho Code, and to read as follows:
2 33-905A. SCHOOL FACILITIES -- LOTTERY PROCEEDS. (1) The state of Idaho,
3 recognizing its unique responsibility to appropriately expend the proceeds of
4 the state lottery, establishes the school facility lottery fund. The school
5 facility lottery fund shall have paid into it such appropriations or revenues
6 as may be required by law.
7 (2) By not later than August 31 of each year, moneys in the fund shall be
8 distributed to each of the several school districts, in the proportion that
9 the average daily attendance of that district for the previous year bears to
10 the total average daily attendance of the state during the previous school
11 year. Average daily attendance shall be calculated as provided in section
12 33-1002 5., Idaho Code. This distribution shall be made as provided herein,
13 the provisions of chapter 35 or 36, title 67, Idaho Code, notwithstanding.
14 (3) All payments from the school facility lottery fund shall be paid out
15 directly to the school district in warrants drawn by the state controller upon
16 presentation of proper vouchers from the state board of education. Pending
17 payments out of the school facility lottery fund, the moneys in the fund shall
18 be invested by the state treasurer in the same manner as provided under sec-
19 tion 67-1210, Idaho Code, with respect to other idle moneys in the state trea-
20 sury. Interest earned on the investments shall be returned to the school
21 facility lottery fund.
22 (4) Payments from the school facility lottery fund received by the school
23 district may be used by the school district for the purposes of maintenance,
24 repair and improvement of school facilities.
25 (5) After August 1, 2002, a school district shall be ineligible and shall
26 forfeit the distribution provided in this section if it has not developed and
27 filed a long-range maintenance plan for the facilities of the district with
28 the department of education. The plan shall be updated not less often than
29 every four (4) years.
30 SECTION 3. That Section 63-3638, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
33 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
34 be distributed by the tax commission as follows:
35 (1) An amount of money shall be distributed to the state refund account
36 sufficient to pay current refund claims. All refunds authorized under this
37 chapter by the commission shall be paid through the state refund account, and
38 those moneys are continuously appropriated.
39 (2) Five million dollars ($5,000,000) per year is continuously appropri-
40 ated and shall be distributed to the permanent building fund, provided by sec-
41 tion 57-1108, Idaho Code.
42 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
43 continuously appropriated and shall be distributed to the water pollution con-
44 trol account established by section 39-3605, Idaho Code.
45 (4) An amount equal to the sum required to be certified by the chairman
46 of the Idaho housing and finance association to the state tax commission pur-
47 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
48 ated and shall be paid to any capital reserve fund, established by the Idaho
49 housing and finance association pursuant to section 67-6211, Idaho Code. Such
50 amounts, if any, as may be appropriated hereunder to the capital reserve fund
51 of the Idaho housing and finance association shall be repaid for distribution
52 under the provisions of this section, subject to the provisions of section
4
1 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
2 possible, from any moneys available therefor and in excess of the amounts
3 which the association determines will keep it self-supporting.
4 (5) An amount equal to the sum required by the provisions of section
5 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
6 by section 63-709, Idaho Code.
7 (6) An amount required by the provisions of chapter 53, title 33, Idaho
8 Code. of this section
9 (7) One dollar ($1.00) on each application for certificate of title or
10 initial application for registration of a motor vehicle, snowmobile, all-
11 terrain vehicle or other vehicle processed by the county assessor or the Idaho
12 transportation department excepting those applications in which any sales or
13 use taxes due have been previously collected by a retailer, shall be a fee for
14 the services of the assessor of the county or the Idaho transportation depart-
15 ment in collecting such taxes, and shall be paid into the current expense fund
16 of the county or state highway account established in section 40-702, Idaho
17 Code.
18 (8) Thirteen and three-quarters percent (13.75%) is continuously appro-
19 priated and shall be distributed to the revenue sharing account which is cre-
20 ated in the state treasury, and the moneys in the revenue sharing account will
21 be paid by the tax commission as follows:
22 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
23 ious cities as follows:
24 (i) Fifty percent (50%) of such amount shall be paid to the various
25 cities, and each city shall be entitled to an amount in the propor-
26 tion that the population of that city bears to the population of all
27 cities within the state; and
28 (ii) Fifty percent (50%) of such amount shall be paid to the various
29 cities, and each city shall be entitled to an amount in the propor-
30 tion that the preceding year's market value for assessment purposes
31 for that city bears to the preceding year's market value for assess-
32 ment purposes for all cities within the state.
33 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
34 ious counties as follows:
35 (i) One million three hundred twenty thousand dollars ($1,320,000)
36 shall be distributed one forty-fourth (1/44) to each of the various
37 counties; and
38 (ii) The balance of such amount shall be paid to the various coun-
39 ties, and each county shall be entitled to an amount in the propor-
40 tion that the population of that county bears to the population of
41 the state;
42 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
43 ated in this subsection (8) shall be paid to the several counties for dis-
44 tribution to the cities and counties as follows:
45 (i) Each city and county which received a payment under the provi-
46 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
47 calendar year 1999, shall be entitled to a like amount during suc-
48 ceeding calendar quarters.
49 (ii) If the dollar amount of money available under this subsection
50 (8)(c) in any quarter does not equal the amount paid in the fourth
51 quarter of calendar year 1999, each city's and county's payment shall
52 be reduced proportionately.
53 (iii) If the dollar amount of money available under this subsection
54 (8)(c) in any quarter exceeds the amount paid in the fourth quarter
55 of calendar year 1999, each city and county shall be entitled to a
5
1 proportionately increased payment, but such increase shall not exceed
2 one hundred five percent (105%) of the total payment made in the
3 fourth quarter of calendar year 1999.
4 (iv) If the dollar amount of money available under this subsection
5 (8)(c) in any quarter exceeds one hundred five percent (105%) of the
6 total payment made in the fourth quarter of calendar year 1999, any
7 amount over and above such one hundred five percent (105%) shall be
8 paid fifty percent (50%) to the various cities in the proportion that
9 the population of the city bears to the population of all cities
10 within the state, and fifty percent (50%) to the various counties in
11 the proportion that the population of a county bears to the popula-
12 tion of the state; and
13 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
14 this subsection (8) shall be paid to the several counties for distribution
15 to special purpose taxing districts as follows:
16 (i) Each such district which received a payment under the provi-
17 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
18 calendar year 1999, shall be entitled to a like amount during suc-
19 ceeding calendar quarters.
20 (ii) If the dollar amount of money available under this subsection
21 (8)(d) in any quarter exceeds the amount distributed under paragraph
22 (i) of this subsection (8)(d), each special purpose taxing district
23 shall be entitled to a share of the excess based on the proportion
24 each such district's current property tax budget bears to the sum of
25 the current property tax budgets of all such districts in the state.
26 The state tax commission shall calculate district current property
27 tax budgets to include any unrecovered foregone amounts as determined
28 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
29 district is situated in more than one (1) county, the tax commission
30 shall determine the portion attributable to the special purpose tax-
31 ing district from each county in which it is situated.
32 (iii) If special purpose taxing districts are consolidated, the
33 resulting district is entitled to a base amount equal to the sum of
34 the base amounts which were received in the last calendar quarter by
35 each district prior to the consolidation.
36 (iv) If a special purpose taxing district is dissolved or
37 disincorporated, the state tax commission shall continuously distrib-
38 ute to the board of county commissioners an amount equal to the last
39 quarter's distribution prior to dissolution or disincorporation. The
40 board of county commissioners shall determine any redistribution of
41 moneys so received.
42 (v) Taxing districts formed after January 1, 2001, are not entitled
43 to a payment under the provisions of this subsection (8)(d).
44 (vi) For purposes of this subsection (8)(d), a special purpose tax-
45 ing district is any taxing district which is not a city, a county or
46 a school district.
47 (9) In fiscal years 2002, 2003, 2004 and 2005, fifteen million dollars
48 ($15,000,000) is hereby appropriated to the disadvantaged school district
49 building account created in section 33-905, Idaho Code, to be expended for the
50 purposes of the account.
51 (10) Any moneys remaining over and above those necessary to meet and
52 reserve for payments under other subsections of this section shall be distrib-
53 uted to the general account fund.
54 SECTION 4. That Section 67-7434, Idaho Code, be, and the same is hereby
6
1 amended to read as follows:
2 67-7434. LOTTERY DIVIDENDS. Annually, on July 1, the lottery shall trans-
3 fer one-half (1/2) of its net income to the permanent building account and
4 one-half (1/2) of its net income to the school district building account
5 facility lottery fund, after reserving sufficient moneys to ensure the contin-
6 uation of the lottery, as determined by the director and commission.
7 A one (1) time allotment of two hundred thousand dollars ($200,000) of the
8 lottery's first year dividends shall be allocated and used by the permanent
9 building fund advisory council for the construction of a Vietnam veterans
10 memorial in the state.
STATEMENT OF PURPOSE
RS 11068
The purpose of this legislation is to establish a "Disadvantage
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.
FISCAL IMPACT
The bill proposes to utilize $15 million from sales tax revenue
in the next four years: 2002, 2003, 2004, and 2005.
After statutory diversions, the amount of sales tax revenue
placed in the general fund grew by $20 million in FY '97- 98 and
by $37.2 million in FY '98- 99. FY 2000, the growth in sales tax
revenue was $38.7 million; for FY 2001, the growth is projected
to be $30.5 million. FY 2002 is projected to be $38.3 million.
This bill would take $15 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 1405
STATEMENT OF PURPOSE/FISCAL NOTE S 1131