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H0189.............................................................by EDUCATION
SCHOOL DISTRICTS - Amends existing law to revise how a school district's value
index is calculated by using the free and reduced lunch rate in the school
compared to the state average of free and reduced lunch rates.
02/06 House intro - 1st rdg - to printing
02/07 Rpt prt - to Educ
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 189
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO THE VALUE INDEX CALCULATION FOR SCHOOL DISTRICTS; AMENDING SECTION
3 33-906B, IDAHO CODE, TO REVISE HOW A SCHOOL DISTRICT'S VALUE INDEX IS CAL-
4 CULATED; AND DECLARING AN EMERGENCY.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 33-906B, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 33-906B. VALUE INDEX CALCULATION. The state department of education shall
9 establish a value index for each school district, based on each school
10 district's market value per support unit for equalization purposes, the aver-
11 age annual seasonally-adjusted unemployment rate in the county in which a plu-
12 rality of the school district's market value for assessment purposes of tax-
13 able property is located and the per capita income free and reduced lunch rate
14 in the county in which a plurality of the school district's market value for
15 assessment purposes is located school district and the state average of free
16 and reduced lunch rates. The value index for each school district shall be
17 calculated as the sum of the following three (3) two (2) components:
18 (1) The state department of education shall annually calculate the market
19 value per support unit that is used to equalize school funding for each school
20 district in the state, and one hundred twenty-five percent (125%) of the
21 statewide average. The first portion of the value index shall be calculated by
22 dividing the school district's market value for equalization purposes per sup-
23 port unit by the statewide average market value for equalization per support
24 unit and dividing the result of this calculation by two (2).
25 (2) The second portion of the value index shall be calculated by dividing
26 the statewide unemployment rate by the unemployment rate in the county in
27 which a plurality of the school district's market value for assessment pur-
28 poses of taxable property is located free and reduced lunch rate average rate
29 by one hundred twenty-five percent (125%) of the school district's free and
30 reduced lunch rate, and dividing the result of this calculation by four two
31 (42). For the purposes of this subsection, the statewide unemployment free and
32 reduced lunch rate and county unemployment school district free and reduced
33 lunch rates shall be based on the most recent average annual seasonally-
34 adjusted unemployment rate data reported by the United States department of
35 labor, for which there is a complete calendar year of data calculated annually
36 by the state department of education when such figures are available.
37 (3) The third portion of the value index shall be calculated by dividing
38 the county per capita income in the county in which a plurality of the school
39 district's market value for assessment purposes of taxable property is located
40 by the statewide per capita income, and dividing the result of this calcula-
41 tion by four (4). For the purposes of this subsection, the statewide per cap-
42 ita income and county per capita income shall be based on the most recent data
43 reported by the United States department of commerce, for which there is a
2
1 complete calendar year of data.
2 SECTION 2. An emergency existing therefor, which emergency is hereby
3 declared to exist, this act shall be in full force and effect on and after its
4 passage and approval.
STATEMENT OF PURPOSE
RS 12476C1
The purpose of this legislation is to amend the value index
calculation in Section 33-906B, Idaho Code, providing a subsidy to
school districts passing bond issues after September 15, 2002. Each
school districts free and reduced lunch rates will replace the county
unemployment rate data reported by the United States Department of
Labor and the county per capita income as determined by the United
States Department of Commerce in determining the value index
calculation. The second component is the market value per support
unit determined by the State Department of Education that is used to
equalize school funding for each school district in the state, and
the statewide average. This change ensures that all data used in
calculating the value index is school district specific.
FISCAL IMPACT
The original legislation SB1474 estimated that in FY '04, the impact
will be approximately $1,000,000, in FY '05,$1,5000,000 and
escalating each year for 20 years reaching a maximum plateau of $16 -
$20,000,000 in 20 years. It is estimated that the change in the
value index will yield an economic impact consistent with the above
figure.
Contact:
Name: Rep. Tom Trail
Phone: 332-1202
STATEMENT OF PURPOSE/FISCAL NOTE H 189