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S1433..........................................................by EDUCATION
SCHOOLS - BOND LEVY - Adds to and amends existing law to adopt the bond
levy equalization support program for school facilities; to provide a
method for computation of bond and bond interest levies; and to create the
Bond Levy Equalization Fund for the purposes of the equalization.
02/11 Senate intro - 1st rdg - to printing
02/12 Rpt prt - to Educ
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1433
BY EDUCATION COMMITTEE
1 AN ACT
2 PROVIDING BOND LEVY EQUALIZATION SUPPORT PROGRAM FOR SCHOOL FACILITIES; AMEND-
3 ING SECTION 33-802A, IDAHO CODE, TO REVISE THE COMPUTATION OF BOND AND
4 BOND INTEREST LEVIES AND TO CORRECT A CODIFIER'S ERROR; AMENDING CHAPTER
5 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-906, IDAHO
6 CODE, TO ADOPT A BOND LEVY EQUALIZATION SUPPORT PROGRAM; AND AMENDING
7 CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-906A,
8 IDAHO CODE, TO CREATE THE BOND LEVY EQUALIZATION FUND AND SPECIFY PUR-
9 POSES.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 33-802A, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 33-802A. COMPUTATION OF BOND AND BOND INTEREST LEVIES. When the board of
14 trustees of any school district determines and makes the levy required by sec-
15 tion 33-802, Idaho Code, and incorporates such levy as a part of the school
16 district's budget to service all maturing bond and bond interest payments for
17 the ensuing fiscal year, it shall take into consideration any state bond levy
18 equalization funds provided pursuant to section 33-906, Idaho Code, and any
19 balances remaining or that may remain in its bond interest and redemption fund
20 after meeting its bond and bond interest obligations for its current fiscal
21 year. The levy so made for the ensuing fiscal year shall be an amount which,
22 together with any state bond levy equalization funds provided pursuant to sec-
23 tion 33-906, Idaho Code, and the balance in its bond interest and redemption
24 fund remaining after meeting its current fiscal year bond and bond interest
25 gations obligations, shall satisfy all maturing bond and bond interest pay-
26 ments for at least the ensuing twelve (12) months, and not to exceed the ensu-
27 ing nineteen (19) months counted from July 1 of the current calendar year.
28 SECTION 2. That Chapter 9, Title 33, Idaho Code, be, and the same is
29 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
30 ignated as Section 33-906, Idaho Code, and to read as follows:
31 33-906. BOND LEVY EQUALIZATION SUPPORT PROGRAM. The state department of
32 education shall annually calculate the market value per support unit used to
33 equalize school funding for each school district in the state, and the state-
34 wide average. School districts with a market value per support unit that is
35 below the statewide average market value per support unit shall be eligible to
36 receive additional state financial assistance for the cost of annual bond
37 interest and redemption payments made on bonds passed on or after September
38 15, 2002. However, any school district shall receive no less than ten percent
39 (10%) of the interest cost portion of the annual bond interest and redemption
40 payment for bonds passed on or after September 15, 2002. The state department
41 of education shall disburse such funds to school districts from moneys appro-
2
1 priated from the bond levy equalization fund. The department shall disburse
2 the funds no later than September 1 of each year for school districts certify-
3 ing a qualifying bond interest and redemption payment for the fiscal year in
4 which the disbursement is made. For districts with a market value per support
5 unit for equalization purposes that is below the statewide average, the per-
6 centage of each annual bond payment that is paid by the state shall be deter-
7 mined by dividing the difference between the statewide average market value
8 for equalization purposes per support unit and the school district's market
9 value for equalization purposes per support unit, by the statewide average
10 market value for equalization purposes per support unit, provided that the
11 state shall pay for no more than the interest cost portion of the annual bond
12 interest and redemption payment, and each school district shall receive no
13 less than ten percent (10%) of the interest cost portion of the qualifying
14 bond interest and redemption payment. Calculations of the statewide average
15 market value for equalization purposes and each district's market value for
16 equalization purposes shall be based on the most recent annual data available
17 from the state department of education.
18 For the purposes of this section, the annual bond interest and redemption
19 payment shall be determined by dividing the total payment amounts by the num-
20 ber of fiscal years in which payments are to be made. The interest cost por-
21 tion of the annual payment shall be determined by dividing the total interest
22 paid by the number of fiscal years in which payments are to be made.
23 SECTION 3. That Chapter 9, Title 33, Idaho Code, be, and the same is
24 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
25 ignated as Section 33-906A, Idaho Code, and to read as follows:
26 33-906A. BOND LEVY EQUALIZATION FUND. There is hereby created in the
27 state treasury a bond levy equalization fund. This fund shall contain such
28 moneys as may be directed pursuant to appropriation. Moneys in the fund shall
29 be used exclusively to make the payments authorized by the bond levy equaliza-
30 tion program created in section 33-906, Idaho Code.
STATEMENT OF PURPOSE
RS 12057
The purpose of this legislation is to provide a subsidy to
school districts passing bond issues after September 15, 2002. This
subsidy is based on a formula that provides greater subsidy to the
poorer districts and decreasing as the fiscal abilities of the
school district increases.
FISCAL IMPACT
It is estimated that in FY’04, the impact will be
$1,411,000, in FY’05 $2,380,000, and escalating each year for 20
years reaching a maximum plateau of $25,750,000 in 20 years.
Contact
Name: Senator Darrel Deide
Phone: 332-1328
Representative Lawrence Denney
332-1244
STATEMENT OF PURPOSE/FISCAL NOTE S 1433
REVISED REVISED REVISED REVISED