2001 Legislation
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SENATE BILL NO. 1131 – Disadvantaged school dist bldg acct

SENATE BILL NO. 1131

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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

Bill Text


                                                                        
                                                                        
  ||||              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 / Fiscal Impact



                         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