2003 Legislation
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HOUSE BILL NO. 436 – Approp, Public Schools/Operations

HOUSE BILL NO. 436

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H0436.....................................................by APPROPRIATIONS
APPROPRIATIONS - PUBLIC SCHOOLS/OPERATIONS DIVISION  - Provides amounts to
be expended from various funds for the public schools; appropriates
$290,221,300 for the Educational Support Program/Division of Operations for
fiscal year 2004; provides for expenditures for certain technology,
including the "Libraries Linking Idaho" Program; provides for expenditures
relating to the Idaho Council for Technology in Learning; appropriates
moneys for property tax replacement; amends and adds to existing law to
create a Public Education Stabilization Fund and to provide for use of the
moneys; to revise the local districts' contribution calculation; to provide
for a maximum amount to be distributed for property tax relief; to revise
reimbursement rates in the school transportation program; to provide that
the July payment to school districts shall take into account certain
adjustments; to provide that certain transfers shall not be considered in
calculating adjustments when the total amount appropriated to the Public
School Income Fund is not transferred; to provide for adjustment of the
distribution to school districts from the Educational Support Program based
upon the actual amount of discretionary funds per support unit; to provide
that funds may be transferred from the Public Education Stabilization Fund;
to direct that certain tobacco settlement moneys be deposited in the
General Fund; to provide an estimate of discretionary funds per support
unit; and to provide for a transfer of funds to the Public Education
Stabilization Fund.
                                                                        
04/25    House intro - 1st rdg - to printing
04/28    Rpt prt - to 2nd rdg
04/29    2nd rdg - to 3rd rdg
05/01    Ret'd to Approp

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 436
                                                                        
                                BY APPROPRIATIONS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROVISIONS GOVERNING DISTRIBUTION  AND  APPROPRIATION  FOR  PUBLIC
  3        SCHOOLS  DIVISION  OF OPERATIONS; PROVIDING THE AMOUNT TO BE EXPENDED FROM
  4        STATE SOURCES FOR THE PUBLIC SCHOOLS DIVISION OF OPERATIONS; APPROPRIATING
  5        GENERAL FUND MONEYS FOR TRANSFER TO THE PUBLIC SCHOOL INCOME FUND;  APPRO-
  6        PRIATING  FUNDS  TO THE EDUCATIONAL SUPPORT PROGRAM/DIVISION OF OPERATIONS
  7        FOR FISCAL YEAR 2004; DIRECTING THAT $3,100,000  IN  ONGOING  EXPENDITURES
  8        AND  $3,900,000 IN ONE-TIME EXPENDITURES BE EXPENDED FOR THE PUBLIC SCHOOL
  9        TECHNOLOGY GRANT PROGRAM, AND DIRECTING THAT $300,000  BE  TRANSFERRED  TO
 10        THE  LIBRARY  SERVICES  IMPROVEMENT  FUND;  DIRECTING  THAT  NOT MORE THAN
 11        $173,000  BE  EXPENDED  FOR  IDAHO  COUNCIL  FOR  TECHNOLOGY  IN  LEARNING
 12        EXPENSES;  APPROPRIATING THE AMOUNT OF GENERAL  FUND  MONEY  NECESSARY  AS
 13        DETERMINED  BY SECTION 33-1002D, IDAHO CODE, FOR PROPERTY TAX REPLACEMENT;
 14        PROVIDING MONEYS FOR THE FINAL PHASE OF THE IMPLEMENTATION OF  ACHIEVEMENT
 15        STANDARDS;  AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A
 16        NEW SECTION 33-907, IDAHO CODE, TO CREATE THE PUBLIC EDUCATION  STABILIZA-
 17        TION  FUND,  TO PROVIDE MONEYS FOR THE FUND, TO PROVIDE FOR USES OF MONEYS
 18        IN THE FUND AND TO PROVIDE FOR TRANSFER OF CERTAIN  ACCUMULATED  BALANCES;
 19        AMENDING  SECTION  33-1002,  IDAHO  CODE,  TO REVISE THE LOCAL SCHOOL DIS-
 20        TRICTS' CONTRIBUTION CALCULATION; AMENDING SECTION 33-1002D,  IDAHO  CODE,
 21        TO  PROVIDE FOR A MAXIMUM AMOUNT TO BE DISTRIBUTED FOR PROPERTY TAX RELIEF
 22        AND TO PROVIDE FOR A PRO RATA DISTRIBUTION TO SCHOOL  DISTRICTS;  AMENDING
 23        SECTION  33-1006,  IDAHO CODE, TO PROVIDE THAT COSTS OF CERTAIN ADDITIONAL
 24        FEATURES NOT PART OF A BASIC VEHICLE SHALL NOT BE REIMBURSED, TO DEFINE  A
 25        BASIC  VEHICLE,  TO  MAKE  TECHNICAL  CORRECTIONS,  TO LIMIT REIMBURSEMENT
 26        RATES, TO PROVIDE FOR TIME LIMITATIONS AND REVIEW AND TO ALLOW SCHOOL DIS-
 27        TRICTS TO APPLY FOR LOANS; AMENDING SECTION 33-1009, IDAHO CODE,  TO  PRO-
 28        VIDE THAT THE JULY PAYMENT TO SCHOOL DISTRICTS SHALL TAKE INTO ACCOUNT THE
 29        ADJUSTMENT  REQUIRED  BY THE PROVISIONS OF SECTION 33-1018, IDAHO CODE, TO
 30        PROVIDE THAT TRANSFERS INVOLVING THE PUBLIC EDUCATION  STABILIZATION  FUND
 31        SHALL  NOT  BE  CONSIDERED  IN   CALCULATING   ADJUSTMENTS  WHEN THE TOTAL
 32        AMOUNT APPROPRIATED TO THE PUBLIC SCHOOL INCOME FUND  IS  NOT  TRANSFERRED
 33        AND TO MAKE A TECHNICAL CORRECTION; AMENDING  CHAPTER  10, TITLE 33, IDAHO
 34        CODE, BY THE ADDITION OF A NEW SECTION 33-1018, IDAHO CODE, TO PROVIDE FOR
 35        ADJUSTMENT  OF  THE  DISTRIBUTION TO SCHOOL DISTRICTS FROM THE EDUCATIONAL
 36        SUPPORT PROGRAM BASED ON THE  ACTUAL AMOUNT  OF  DISCRETIONARY  FUNDS  PER
 37        SUPPORT  UNIT;  AMENDING CHAPTER 10, TITLE 33, IDAHO CODE, BY THE ADDITION
 38        OF A NEW SECTION 33-1018A, IDAHO CODE, TO PROVIDE THAT FUNDS MAY BE TRANS-
 39        FERRED FROM THE PUBLIC EDUCATION STABILIZATION FUND BY THE BOARD OF  EXAM-
 40        INERS  AND  TO  PROVIDE THAT FUNDS MAY BE APPROPRIATED TO OFFSET DECLINING
 41        DISTRIBUTIONS FROM THE SCHOOL EARNINGS RESERVE FUND;  EXPRESSING  LEGISLA-
 42        TIVE  INTENT  REGARDING  THE  ALLOCATION  OF  CERTAIN INVESTMENT GAINS AND
 43        LOSSES; DIRECTING THAT CERTAIN TOBACCO SETTLEMENT FUNDS  BE  DEPOSITED  IN
 44        THE  GENERAL  FUND; TO PROVIDE AN ESTIMATE OF DISCRETIONARY FUNDS PER SUP-
 45        PORT UNIT; TRANSFERRING MONEYS TO THE PUBLIC EDUCATION STABILIZATION FUND;
 46        DECLARING AN EMERGENCY AND PROVIDING EFFECTIVE DATES.
                                                                        
                                       2
                                                                        
  1    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  2        SECTION 1.  The following amount shall be expended from state sources  for
  3    the Public Schools Division of Operations for the period July 1, 2003, through
  4    June 30, 2004:
  5    FROM:
  6    General Fund                                                      $243,341,300
  7    Public School Endowment Earnings Reserve Fund Transfer              37,750,000
  8    Federal Mineral Royalties                                            1,500,000
  9    Liquor Control Fund                                                  1,200,000
 10    Miscellaneous Receipts/Balances                                      1,250,000
 11    Federal Grant Fund                                                   5,180,000
 12      TOTAL                                                           $290,221,300
                                                                        
 13        SECTION 2.  There is hereby appropriated the following amount to be trans-
 14    ferred  to  the Public School Income Fund for the period July 1, 2003, through
 15    June 30, 2004:
 16    FROM:
 17    General Fund                                                      $243,341,300
                                                                        
 18        SECTION 3.  There  is  hereby  appropriated  to  the  Educational  Support
 19    Program/Division  of  Operations,  pursuant  to law and the provisions of this
 20    act, the following amounts to be expended from the listed funds for the period
 21    July 1, 2003, through June 30, 2004:
 22    FROM:
 23    Public School Income Fund                                         $285,041,300
 24    Federal Grant Fund                                                   5,180,000
 25      TOTAL                                                           $290,221,300
                                                                        
 26        SECTION  4.  Of  the  moneys  appropriated  in  Section  3  of  this  act,
 27    $7,300,000 shall be expended by the Superintendent of  Public  Instruction  as
 28    follows:  $3,100,000  for  ongoing  expenditures  and  $3,900,000 for one-time
 29    expenditures for the Public School Technology Grant Program upon direction  of
 30    the Idaho Council for Technology in Learning, for software purchases, technol-
 31    ogy  equipment  repairs and maintenance, and equipment necessary to administer
 32    state-required assessments; and $300,000 to be transferred to the Library Ser-
 33    vices Improvement Fund for  the  State  Library's  "Libraries  Linking  Idaho"
 34    (LiLI)  statewide database licensing project. It is the intent of the Legisla-
 35    ture that, beginning in Fiscal Year 2006, the $7,300,000 in  technology  funds
 36    will  be  utilized  to  support the $7,000,000 annual cost of the Idaho School
 37    Information Management System and  the  $300,000  annual  allocation  for  the
 38    Libraries Linking Idaho Program.
                                                                        
 39        SECTION  5.    Of  the  $7,300,000 referenced in Section 4 of this act, an
 40    amount not to exceed $173,000 may be expended by the Superintendent of  Public
 41    Instruction  for staff support and various expenses related to the Idaho Coun-
 42    cil for Technology in Learning as approved by the State Board of Education.
                                                                        
 43        SECTION 6.  Of the moneys appropriated in Section 3 of this act, there  is
 44    hereby appropriated the amount necessary for property tax replacement, subject
 45    to the limitations of law, to be expended according to Section 33-1002D, Idaho
 46    Code, for the period July 1, 2003, through June 30, 2004.
                                                                        
 47        SECTION  7.  Of  the moneys appropriated in Section 3 of this act, $33,700
 48    in General Fund moneys and $101,000 in federal grant funds shall  be  for  the
                                                                        
                                       3
                                                                        
  1    third  and  final  phase of the implementation of achievement standards estab-
  2    lished under the provisions of the rules of  the  State  Board  of  Education,
  3    IDAPA  08.02.03.  These  funds  shall be distributed according to formulas and
  4    criteria established by the Superintendent of Public Instruction. It is legis-
  5    lative intent that the State Department of Education and State Board of Educa-
  6    tion seek any waivers that may be necessary to utilize the $101,000 in federal
  7    grant funds.
                                                                        
  8        SECTION 8.  That Chapter 9, Title 33, Idaho Code,  be,  and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 33-907, Idaho Code, and to read as follows:
                                                                        
 11        33-907.  PUBLIC EDUCATION STABILIZATION FUND. There is hereby  created  in
 12    the  state  treasury  a fund to be known as the public education stabilization
 13    fund, which shall function as a fund detail of the public school income  fund.
 14    The fund shall consist of moneys transferred to the fund according to the pro-
 15    visions  of  section  33-1018, Idaho Code, and any other moneys made available
 16    through legislative transfers or appropriations. Moneys in the fund are hereby
 17    continuously appropriated for the purposes stated in  section  33-1018,  Idaho
 18    Code,  and  shall only be expended for the purposes stated in sections 33-1018
 19    and 33-1018A, Idaho Code. Any accumulated balances in the  fund  that  are  in
 20    excess  of  three percent (3%) of the current fiscal year's total general fund
 21    appropriation for public school support shall be transferred to the bond  levy
 22    equalization  fund.  Interest earned from the investment of moneys in the fund
 23    shall be credited to the public school income fund.
                                                                        
 24        SECTION 9.  That Section 33-1002, Idaho Code, be, and the same  is  hereby
 25    amended to read as follows:
                                                                        
 26        33-1002.  EDUCATIONAL  SUPPORT PROGRAM. The educational support program is
 27    calculated as follows:
 28        1.  State Educational Support Funds. Add the state appropriation,  includ-
 29    ing  the  moneys available in the public school income fund, together with all
 30    miscellaneous revenues to determine the total state funds.
 31        2.  From the total state funds subtract the following amounts  needed  for
 32    state support of special programs provided by a school district:
 33        a.  Pupil  tuition-equivalency allowances as provided in section 33-1002B,
 34        Idaho Code;
 35        b.  Transportation support program as provided in section  33-1006,  Idaho
 36        Code;
 37        c.  Feasibility  studies  allowance as provided in section 33-1007A, Idaho
 38        Code;
 39        d.  The approved costs for border district allowance, provided in  section
 40        33-1403,  Idaho  Code, as determined by the state superintendent of public
 41        instruction;
 42        e.  The approved costs for exceptional child approved contract  allowance,
 43        provided in subsection 2. of section 33-2004, Idaho Code, as determined by
 44        the state superintendent of public instruction;
 45        f.  Certain  expectant and delivered mothers allowance as provided in sec-
 46        tion 33-2006, Idaho Code;
 47        g.  Salary-based apportionment calculated as provided in sections  33-1004
 48        through 33-1004F, Idaho Code;
 49        h.  Unemployment insurance benefit payments according to the provisions of
 50        section 72-1349A, Idaho Code;
 51        i.  For  programs  to provide basic curricula necessary to enable students
                                                                        
                                       4
                                                                        
  1        to enter academic or professional-technical postsecondary  education  pro-
  2        grams,  an allocation of $300 per support unit for the 1994-95 school year
  3        only;
  4        j.  For provision of teacher supplies to facilitate classroom instruction,
  5        an allocation of $200 per support unit for the 1994-95 school year only;
  6        k.  For expenditure as provided by the public school  technology  program,
  7        $10,400,000 for the 1994-95 school year;
  8        l.  For  additional school innovation pilot project grants based on recom-
  9        mendations of the  Idaho  school  reform  committee,  $2,000,000  for  the
 10        1994-95 school year;
 11        m.  For  the  support of provisions that provide a safe environment condu-
 12        cive to student learning and maintain classroom discipline, an  allocation
 13        of $300 per support unit; and
 14        n.  Any additional amounts as required by statute to effect administrative
 15        adjustments  or  as specifically required by the provisions of any bill of
 16        appropriation;
 17    to secure the state educational support funds.
 18        3.  Local  Districts'  Contribution  Calculation.  Without  including  any
 19    allowance as a credit for prepaid taxes as provided by section 63-1607,  Idaho
 20    Code, the local districts' contribution shall be four-tenths the amount appro-
 21    priated  pursuant  to  section 33-1002D, Idaho Code, plus three-tenths percent
 22    (.43%) during fiscal year 1994-95 2003-04 and each  year  thereafter,  of  the
 23    total  state  adjusted  market  value for assessment purposes for the previous
 24    year with such value being determined by the  provisions  of  section  63-315,
 25    Idaho  Code, and four-tenths percent (.4%) during fiscal year 1994-95 and each
 26    year thereafter, of the cooperative electrical associations'  property  values
 27    that have been derived from the taxes paid in lieu of ad valorem taxes for the
 28    previous year as provided in section 63-3502, Idaho Code.
 29        4.  Educational  Support  Program  Distribution  Funds. Add the local dis-
 30    tricts' contribution, subsection 3. of this section, and the state educational
 31    support program funds, subsection 1. of this section, together to  secure  the
 32    total educational support program distribution funds.
 33        5.  Average  Daily  Attendance.  The  total state average daily attendance
 34    shall be the sum of the average daily attendance of all  of  the  school  dis-
 35    tricts  of  the state. The state board of education shall establish rules set-
 36    ting forth the procedure to determine average daily attendance  and  the  time
 37    for, and method of, submission of such report. Average daily attendance calcu-
 38    lation  shall  be carried out to the nearest hundredth. Computation of average
 39    daily attendance shall also be governed by the provisions of section 33-1003A,
 40    Idaho Code.
 41        6.  Support Units. The total state support units shall  be  determined  by
 42    using  the tables set out hereafter called computation of kindergarten support
 43    units, computation of elementary support units, computation of secondary  sup-
 44    port  units,  computation of exceptional education support units, and computa-
 45    tion of alternative school secondary support units. The  sum  of  all  of  the
 46    total  support  units  of all school districts of the state shall be the total
 47    state support units.
 48                      COMPUTATION OF KINDERGARTEN SUPPORT UNITS
 49    Average Daily
 50    Attendance            Attendance Divisor         Units Allowed
 51    41 or more     ....   40.......................  1 or more as computed
 52    31 -  40.99 ADA....    -.......................  1
 53    26 -  30.99 ADA....    -.......................   .85
 54    21 -  25.99 ADA....    -.......................   .75
 55    16 -  20.99 ADA....    -.......................   .6
                                                                        
                                       5
                                                                        
  1     8 -  15.99 ADA....    -.......................   .5
  2     1 -   7.99 ADA....    -.......................  count as elementary
                                                                        
  3                       COMPUTATION OF ELEMENTARY SUPPORT UNITS
  4    Average Daily
  5    Attendance            Attendance Divisor         Minimum Units Allowed
  6    300 or more ADA........................................  15
  7                        ..23...grades 4,5 & 6....
  8                        ..22...grades 1,2 & 3....1994-95
  9                        ..21...grades 1,2 & 3....1995-96
 10                        ..20...grades 1,2 & 3....1996-97
 11                              and each year thereafter.
 12    160   to  299.99 ADA... 20.....................         8.4
 13    110   to  159.99 ADA... 19.....................         6.8
 14     71.1 to  109.99 ADA... 16.....................         4.7
 15     51.7 to   71.0  ADA... 15.....................         4.0
 16     33.6 to   51.6  ADA... 13.....................         2.8
 17     16.6 to   33.5  ADA... 12.....................         1.4
 18      1.0 to   16.5  ADA... n/a....................         1.0
                                                                        
 19                        COMPUTATION OF SECONDARY SUPPORT UNITS
 20    Average Daily
 21    Attendance            Attendance Divisor         Minimum Units Allowed
 22    750 or more      .... 18.5.....................        47
 23    400 -  749.99 ADA.... 16.......................        28
 24    300 -  399.99 ADA.... 14.5.....................        22
 25    200 -  299.99 ADA.... 13.5.....................        17
 26    100 -  199.99 ADA.... 12.......................         9
 27     99.99 or fewer       Units allowed as follows:
 28             Grades 7-12  .........................         8
 29             Grades 9-12  .........................         6
 30             Grades 7- 9  .........................         1 per 14 ADA
 31             Grades 7- 8  .........................         1 per 16 ADA
                                                                        
 32                  COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
 33    Average Daily
 34    Attendance            Attendance Divisor         Minimum Units Allowed
 35    14 or more ....       14.5.....................  1 or more as computed
 36    12 -  13.99....        -.......................  1
 37     8 -  11.99....        -.......................   .75
 38     4 -   7.99....        -.......................   .5
 39     1 -   3.99....        -.......................   .25
                                                                        
 40              COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
 41    Pupils in Attendance  Attendance Divisor         Minimum Units Allowed
 42    12 or more..........  12......................   1 or more as computed
                                                                        
 43        In applying these tables to any given separate attendance unit, no  school
 44    district  shall  receive  less  total  money than it would receive if it had a
 45    lesser average daily attendance in such separate attendance unit. In  applying
 46    the  kindergarten  table  to  a  kindergarten program of less days than a full
 47    school year, the support unit allowance shall be in ratio  to  the  number  of
 48    days  of a full school year. The tables for exceptional education and alterna-
 49    tive school secondary support units shall  be  applicable  only  for  programs
 50    approved  by  the state department of education following rules established by
                                                                        
                                       6
                                                                        
  1    the state board of education. Moneys generated  from  computation  of  support
  2    units  for  alternative  schools shall be utilized for alternative school pro-
  3    grams. School district administrative and facility costs may  be  included  as
  4    part of the alternative school expenditures.
  5        7.  State Distribution Factor per Support Unit. Divide educational support
  6    program distribution funds, after subtracting the amounts necessary to pay the
  7    obligations  specified  in  subsection  2. of this section, by the total state
  8    support units to secure the state distribution factor per support unit.
  9        8.  District Share of State Funds for Educational Support Program.  Ascer-
 10    tain  a district's share of state funds for the educational support program as
 11    follows:
 12        a.  District Contribution Calculation. Without including any allowance  as
 13        a  credit  for  prepaid taxes, as provided in section 63-1607, Idaho Code,
 14        the district contribution calculation shall be the rate  determined  under
 15        subsection 3. of this section.
 16        b.  District  Support  Units.  The number of support units for each school
 17        district in the state shall be determined as follows:
 18             (1)  Divide the actual average daily attendance,  excluding  students
 19             approved  for inclusion in the exceptional child educational program,
 20             for the administrative schools and each of the separate  schools  and
 21             attendance  units  by the appropriate divisor from the tables of sup-
 22             port units in this section, then add  the  quotients  to  obtain  the
 23             district's support units allowance for regular students, kindergarten
 24             through  grade  12  including  alternative school secondary students.
 25             Calculations in application of this subsection shall be  carried  out
 26             to the nearest tenth.
 27             (2)  Divide  the  combined  totals of the average daily attendance of
 28             all preschool, handicapped, kindergarten, elementary,  secondary  and
 29             juvenile  detention  center  students  approved  for inclusion in the
 30             exceptional child program of the district by the appropriate  divisor
 31             from the table for computation of exceptional education support units
 32             to  obtain  the  number  of  support units allowed for the district's
 33             approved exceptional child program. Calculations for this  subsection
 34             shall be carried out to the nearest tenth when more than one (1) unit
 35             is allowed.
 36             (3)  The  total  number of support units of the district shall be the
 37             sum of the total  support  units  for  regular  students,  subsection
 38             8.b.(1)  of  this  section,  and  the support units allowance for the
 39             approved exceptional child program, subsection 8.b.(2) of  this  sec-
 40             tion.
 41        c.  Total  District Allowance Educational Program. Multiply the district's
 42        total number of support units, carried out to the nearest  tenth,  by  the
 43        state  distribution  factor  per  support unit and to this product add the
 44        approved amount of programs of the district provided in subsection  2.  of
 45        this  section to secure the district's total allowance for the educational
 46        support program.
 47        d.  District Share. To secure the district's share of state apportionment,
 48        subtract the amount of the local district contribution  calculation,  sub-
 49        section  3.  of this section, from the amount of the total district allow-
 50        ance, subsection 8.c. of this section.
 51        e.  Adjustment of District Share. The contract salary of every noncertifi-
 52        cated teacher shall be subtracted from the district's share as  calculated
 53        from the provisions of subsection 8.d. of this section.
                                                                        
 54        SECTION 10.  That Section 33-1002D, Idaho Code, be, and the same is hereby
                                                                        
                                       7
                                                                        
  1    amended to read as follows:
                                                                        
  2        33-1002D.  PROPERTY  TAX  REPLACEMENT.  The  purpose of this section is to
  3    replace a portion of the authorized school maintenance and operation  property
  4    tax  levy  with  state  sales  tax receipts. As used in this section, the term
  5    "property tax computation ratio" shall mean a ratio determined by dividing the
  6    district's certified property tax maintenance  and  operation  budget  by  the
  7    actual or adjusted market value for assessment purposes as such values existed
  8    on December 31 of the previous calendar year.
  9        (1) (a)  In the case of a school district that had a property tax computa-
 10        tion  ratio  of not less than four-tenths of one percent (.4%) in tax year
 11        1994, that school district shall receive from the appropriations made  for
 12        that  purpose,  an amount equal to the greater of the district's actual or
 13        adjusted market value for assessment purposes as such valuation existed on
 14        December 31 of the previous calendar year multiplied by one-tenth  of  one
 15        percent (.1%).
 16        (b)  In  the case of a school district that had a property tax computation
 17        ratio of less than four-tenths of one percent (.4%) in tax year 1994,  the
 18        greater of the 1992, 1993 or 1994 property  tax  computation  ratio   less
 19        three-tenths  of one percent (.3%) shall be designated the district's base
 20        multiplier. In no case shall the base multiplier be less  than  zero  (0).
 21        Four-tenths of one percent (.4%) less the greater of the district's  1992,
 22        1993  or  1994  property  tax  computation  ratio  shall be designated the
 23        district's adjustment factor. In no case shall the  adjustment  factor  be
 24        greater  than  one-tenth  of one percent (.1%) or less than zero (0). Each
 25        school district's actual multiplier shall be the base multiplier plus one-
 26        fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
 27        plus two-fifths (2/5) of the adjustment factor in tax year 1996, the  base
 28        multiplier  plus  three-fifths  (3/5) of the adjustment factor in tax year
 29        1997, the base multiplier plus four-fifths (4/5) of the adjustment  factor
 30        in  tax  year  1998, and the base multiplier plus the adjustment factor in
 31        tax year 1999 and beyond. Each school district  shall  receive,  from  the
 32        appropriations  made  for  that purpose, an amount equal to the district's
 33        actual or adjusted market value for assessment purposes as such  valuation
 34        existed  on  December  31  of the previous calendar year multiplied by the
 35        district's actual multiplier.
 36        (c)  The preceding provisions of this subsection  notwithstanding,  appro-
 37        priations  from  the state for the value of one-tenth of one percent (.1%)
 38        of the greater of the district's  actual  or  adjusted  market  value  for
 39        assessment purposes as such valuation existed on December 31 of the previ-
 40        ous   calendar   year   shall  not  exceed  seventy-five  million  dollars
 41        ($75,000,000) in any fiscal year. If the  amount  school  districts  would
 42        otherwise  be  entitled to receive pursuant to the preceding provisions of
 43        this subsection exceeds seventy-five million dollars  ($75,000,000),  then
 44        each school district shall receive its pro rata share of seventy-five mil-
 45        lion dollars ($75,000,000).
 46        (2) (a)  Participation in this property tax reduction program is voluntary
 47        for a charter district. If a charter district participates, in addition to
 48        the provisions of subsection (1) of this section it shall not have a prop-
 49        erty  tax  computation  ratio   that  is above three-tenths of one percent
 50        (.3%) or the district's property tax computation ratio  in tax year  1994,
 51        less one-tenth of one percent (.1%), whichever is greater.
 52        (b)  If  in any year the charter district's property tax computation ratio
 53        used to calculate its maintenance and operation budget is increased  above
 54        the limit specified in this subsection the district  shall not be eligible
                                                                        
                                       8
                                                                        
  1        for  the  distribution pursuant to subsection (1) of this section for that
  2        year.
  3        (3)  Limitations imposed upon a school district's property tax computation
  4    ratio under the provisions of this section do not apply to any  levy  approved
  5    by electors of the school district as provided by law.
  6        (4)  Distributions calculated as provided in this section shall be made to
  7    school  districts of this state in two (2) equal installments on the due dates
  8    as specified in section 63-903(1), Idaho Code, for the  property  taxes  being
  9    replaced.
 10        (5)  For  purposes of section 33-1002, Idaho Code, moneys distributed pur-
 11    suant to this section shall not be included in determining total state funds.
                                                                        
 12        SECTION 11.  That Section 33-1006, Idaho Code, be, and the same is  hereby
 13    amended to read as follows:
                                                                        
 14        33-1006.  TRANSPORTATION  SUPPORT  PROGRAM. (1)  The state board of educa-
 15    tion shall determine what costs of transporting pupils, including maintenance,
 16    operation and depreciation of basic vehicles, insurance, payments  under  con-
 17    tract with other public transportation providers whose vehicles used to trans-
 18    port pupils comply with federal transit administration regulations, "bus test-
 19    ing,"  49 C.F.R. part 665, and any revision thereto, as provided in subsection
 20    (4.)(d) of this section, or other state department of education approved  pri-
 21    vate transportation providers, salaries of drivers, and any other costs, shall
 22    be  allowable  in  computing the transportation support program of school dis-
 23    tricts.
 24        (2)  Any costs associated with the addition of vehicle features  that  are
 25    not  part  of the basic vehicle shall not be allowable in computing the trans-
 26    portation support program of school  districts.  A  basic  vehicle  is  hereby
 27    defined  as  the cost of the vehicle without optional features, plus the addi-
 28    tion of essential safety features and features necessary for  the  transporta-
 29    tion of pupils with disabilities.
 30        (3)  Each  school  district shall maintain records and make reports as are
 31    required for the purposes of this section.
 32        (4)  The transportation support program of  a  school  district  shall  be
 33    based upon the allowable costs of:
 34        1.(a)  Transporting public school pupils one and one-half (1 1/2) miles or
 35        more to school;
 36        2.(b)  Transporting  pupils  less  than  one and one-half (1 1/2) miles as
 37        provided in section 33-1501, Idaho Code, when approved by the state  board
 38        of education;
 39        3.(c)  The costs of payments when transportation is not furnished, as pro-
 40        vided in section 33-1503, Idaho Code;
 41        4.(d)  The  transportation program for grades six (6) through twelve (12),
 42        upon the costs of payments pursuant to a contract  with  other  public  or
 43        private  transportation  providers  entered  into  as  provided in section
 44        33-1510, Idaho Code, if the school district  establishes  that  the  reim-
 45        bursable  costs  of transportation under the contract are equal to or less
 46        than the costs for school buses.;
 47        5.(e)  The costs of providing transportation to and from  approved  school
 48        activities as may be approved by rules of the state board of education;
 49        6.(f)  The  employer's  share  of  contributions  to  the  public employee
 50        retirement system and to social security.
 51        (5)  The state's share of the  transportation  support  program  shall  be
 52    eighty-five  percent  (85%)  of allowable transportation costs of the district
 53    for incurred during the next immediately preceding state fiscal  year,    pro-
                                                                        
                                       9
                                                                        
  1    vided  the  allowable  costs do not exceed one hundred three percent (103%) of
  2    the state average reimbursable cost per mile or the state average reimbursable
  3    cost per student, whichever is more advantageous to the school district. If  a
  4    school district's costs exceed the one hundred three percent (103%) limit when
  5    computed by the more advantageous of the two (2) methods, that school district
  6    shall  be  reimbursed  at  eighty-five  percent (85%) of the maximum limit for
  7    whichever method is more favorable to the school district. A  school  district
  8    may  appeal  the  application of the one hundred three percent (103%) limit on
  9    allowable costs to the state board of education, which may establish for  that
 10    district  a  new  percentile  limit  for allowable costs compared to the state
 11    average, which is higher than one hundred three percent (103%). In  doing  so,
 12    the state board of education may set a new limit that is greater than one hun-
 13    dred  three percent (103%), but is less than the percentile limit requested by
 14    the school district. Any costs above the new level established  by  the  state
 15    board  of  education  shall  not  be  reimbursed.  Such a change shall only be
 16    granted by the state board of education if the application  can  be  justified
 17    based on uniquely difficult geographic circumstances, or extraordinary one (1)
 18    time  circumstances  outside the district's foresight and control. An applica-
 19    tion granted based on extraordinary one (1) time circumstances shall be effec-
 20    tive for one (1) year only. An application based on  uniquely  difficult  geo-
 21    graphic  circumstances  shall  be reviewed by the state board of education for
 22    continued validity at least every five (5) years.
 23        (6)  School districts that are unable to absorb the impact of the  limita-
 24    tion  on reimbursable expenses, through either efficiencies or the utilization
 25    of fund balances, may apply to the state board of education to receive a  loan
 26    of  moneys,  not to exceed the amount of state funds lost through the applica-
 27    tion of the limitation on reimbursable expenses,  from  the  public  education
 28    stabilization  fund. Any school district receiving such a loan shall cause its
 29    reimbursement of state transportation moneys to be reduced by a like amount in
 30    the subsequent fiscal year, and the moneys so reduced shall  be  deposited  in
 31    the public education stabilization fund.
                                                                        
 32        SECTION  12.  That Section 33-1009, Idaho Code, be, and the same is hereby
 33    amended to read as follows:
                                                                        
 34        33-1009.  PAYMENTS FROM THE PUBLIC SCHOOL INCOME FUND.
 35        1.  a. Payments of the state  general  account  appropriation  for  public
 36        school  support shall be made each year by the state board of education to
 37        the public school districts of the state in five (5) payments. Payments to
 38        the districts shall be made not later than the fifteenth  day  of  August,
 39        the first day of October, the fifteenth day of November, the fifteenth day
 40        of  February,  and the fifteenth day of May each year. Each payment by the
 41        state board of education shall be approximately twenty  percent  (20%)  of
 42        the  total  general  account  appropriation  for  the fiscal year. Amounts
 43        apportioned due to a special transfer to the public school income fund  to
 44        restore  or  reduce  a deficiency in the prior year's transfer pursuant to
 45        subsection 4. of this section shall not be subject to this limitation.
 46        b.  Payments of moneys, other than the state  general  account  appropria-
 47        tion,  that  accrue  to the public school income fund shall be made by the
 48        state board of education to the school districts of the state on the  fif-
 49        teenth day of November, February, May and July each year. The total amount
 50        of  such payments shall be determined by the state department of education
 51        and shall not exceed the amount of moneys available and on deposit in  the
 52        public school income fund at the time such payment is made.
 53        c.  Amounts  apportioned  due  to  a special transfer to the public school
                                                                        
                                       10
                                                                        
  1        income fund to restore or reduce a deficiency in the prior year's transfer
  2        pursuant to subsection 4. of this section shall not be subject to the lim-
  3        itation imposed by paragraphs a. and b.
  4        2.  Payments made to the school districts in August, October and  November
  5    are advance payments for the current year and will be based upon payments from
  6    the  public school income fund for the preceding school year. Each school dis-
  7    trict shall receive its proportionate share of the  advance  payments  in  the
  8    same ratio that its total payment for the preceding year was to the total pay-
  9    ments to all school districts for the preceding year.
 10        3.  No  later  than  the fifteenth day of February in each year, the state
 11    department of education shall compute the state distribution factor  based  on
 12    the  total  average daily attendance through the first Friday in November. The
 13    factor will be used in payments of state funds in February and May. Attendance
 14    shall be reported in a format and at a time specified by the state  department
 15    of education.
 16        As  of the thirtieth day of June of each year the state department of edu-
 17    cation shall determine final payments to be made on July fifteenth  next  suc-
 18    ceeding to the several school districts from the public school income fund for
 19    the  school  year  ended  June 30. The July payments shall take into consider-
 20    ation:
 21        a.  the average daily attendance of the several school districts  for  the
 22        twenty-eight  (28)  best weeks of the school year completed not later than
 23        the thirtieth of June,
 24        b.  all funds available in the public school income fund  for  the  fiscal
 25        year ending on the thirtieth of June,
 26        c.  all  payments  distributed  for the current fiscal year to the several
 27        school districts,
 28        d.  the adjustment based on the actual amount of discretionary  funds  per
 29        support unit required by the provisions of section 33-1018, Idaho Code,
 30        e.  payments  made  or  due for the transportation support program and the
 31        exceptional education support program. The state department  of  education
 32        shall apportion and direct the payment to the several school districts the
 33        moneys  in the public school income fund in each year, taking into account
 34        the advance made under subsection 2. of this section, in such  amounts  as
 35        will  provide  in full for each district its support program, and not more
 36        than therefor required, and no school district  shall  receive  less  than
 37        fifty dollars ($50.00).
 38        4.  If  the full amount appropriated to the public school income fund from
 39    the general account by the legislature is not transferred to the public school
 40    income fund by the end of the fiscal year, the deficiency resulting  therefrom
 41    shall  either  be restored or reduced through a special transfer from the gen-
 42    eral account in the first sixty (60) days of the  following  fiscal  year,  or
 43    shall  be  calculated  in  computing  district levies, and any additional levy
 44    shall be certified by the state superintendent of public  instruction  to  the
 45    board  of  county  commissioners  and  added to the district's maintenance and
 46    operation levy. If the deficiency is restored or reduced by special  transfer,
 47    the  amount  so transferred shall be in addition to the amount appropriated to
 48    be transferred in such following fiscal year, and shall be apportioned to each
 49    school district in the same amount as each would have received had the  trans-
 50    fer  been  made  in  the year the deficiency occurred. The state department of
 51    education shall distribute to the school district the full amount of the  spe-
 52    cial  transfer as soon as practical after such transfer is made. In making the
 53    levy computations required by this subsection the state department  of  educa-
 54    tion  shall  take into account and consider the full amount of money receipted
 55    into the public school income fund from all sources for the given fiscal year.
                                                                        
                                       11
                                                                        
  1    Deficits in the transfer of the appropriated amount of general account revenue
  2    to the public school income fund shall be reduced by the amount, if any,  that
  3    the  total  amount  receipted from other sources into the public school income
  4    fund exceeds the official estimated amount from those  sources.  The  official
  5    estimate  of  receipts  from other sources shall be the total amount stated by
  6    the legislature in the appropriation bill. The provisions of  this  subsection
  7    shall not apply to any transfers to or from the public education stabilization
  8    fund.
  9        5.  Any apportionments in any year, made to any school district, which may
 10    within  the  succeeding  three  (3) year period be found to have been in error
 11    either of computation or transmittal, may be corrected during  the  three  (3)
 12    year  period  by  reduction  of apportionments to any school district to which
 13    over-apportionments  may  have  been  made  or  received,  and   corresponding
 14    additions   to   apportionments   to  any  school  district  to  which  under-
 15    apportionments may have been made or received.
                                                                        
 16        SECTION 13.  That Chapter 10, Title 33, Idaho Code, be, and  the  same  is
 17    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 18    ignated as Section 33-1018, Idaho Code, and to read as follows:
                                                                        
 19        33-1018.  PUBLIC SCHOOL DISCRETIONARY FUNDING VARIABILITY. The legislature
 20    shall  annually  state  in  the  appropriation  for  the  educational  support
 21    program/division of operations the estimate of the total discretionary funding
 22    provided per support unit. The department of education shall, before  the  end
 23    of  each fiscal year, calculate the actual discretionary funding available per
 24    support unit.
 25        (1)  If the total estimated discretionary funding per support unit  stated
 26    in  the  appropriation  for the educational support program/division of opera-
 27    tions is lower than the actual discretionary  funding  available  per  support
 28    unit, then the state controller shall multiply the difference by the number of
 29    actual  support  units,  and transfer the result from the public school income
 30    fund to the public education stabilization fund and the final distributions to
 31    school districts from the department of education shall be reduced by  a  like
 32    amount.
 33        (2)  If  the total estimated discretionary funding per support unit stated
 34    in the appropriation for the educational support  program/division  of  opera-
 35    tions  is  greater than the actual discretionary funding available per support
 36    unit, then the state controller shall multiply the difference by the number of
 37    actual support units, and transfer the result from the public education stabi-
 38    lization fund to the public school income fund. This transfer shall be limited
 39    to moneys available in the public education stabilization fund. Moneys  trans-
 40    ferred  from  the  public  education  stabilization  fund to the public school
 41    income fund under the provisions  of  this  section  are  hereby  continuously
 42    appropriated for the educational support program/division of operations.
                                                                        
 43        SECTION  14.  That  Chapter  10, Title 33, Idaho Code, be, and the same is
 44    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 45    ignated as Section 33-1018A, Idaho Code, and to read as follows:
                                                                        
 46        33-1018A.  OTHER  USES  OF PUBLIC EDUCATION STABILIZATION FUND. (1) If, in
 47    any fiscal year, general fund revenues are inadequate to sustain general  fund
 48    appropriations  made for that year by the legislature, then the board of exam-
 49    iners may transfer moneys from the public education stabilization fund to  the
 50    general  fund.  The maximum amount that may be transferred by the board in any
 51    fiscal year shall be determined by dividing the  total  of  all  general  fund
                                                                        
                                       12
                                                                        
  1    appropriations for the educational support program by the total of all general
  2    fund appropriations, and multiplying the result by the amount of the shortfall
  3    in general fund revenues.
  4        (2)  The  governor  may  recommend, and the legislature may authorize, the
  5    appropriation of moneys from the public education stabilization fund to offset
  6    declining distributions from the public school earnings reserve  fund  to  the
  7    public school income fund.
                                                                        
  8        SECTION  15.  It  was  and  remains the intent of the Legislature that the
  9    provisions of Chapter 254, Laws of 2001,  be  applied  to  the  allocation  of
 10    investment  gains  and  losses  between  Earnings  Reserve Funds and Permanent
 11    Endowment Funds during the period July 1, 2000, through  June  30,  2001.  Any
 12    reallocations  made  necessary by the application of these provisions shall be
 13    completed by no later than July 1, 2003.
                                                                        
 14        SECTION 16.  Notwithstanding the  provisions  of  Section  67-1801,  Idaho
 15    Code,  the State Treasurer is hereby directed to deposit into the General Fund
 16    the first $12,025,000 in tobacco payments distributed to the  state  of  Idaho
 17    pursuant  to  the  Master Settlement Agreement during the period July 1, 2003,
 18    through June 30, 2004.
                                                                        
 19        SECTION 17.  Pursuant to the provisions of Section 33-1018, Idaho Code, it
 20    is estimated that the appropriation of state funds to the Educational  Support
 21    Program/Division  of  Operations  will  result in total discretionary funds of
 22    $24,447 per support unit.
                                                                        
 23        SECTION 18.  The State Controller shall transfer $12,025,000 from the Pub-
 24    lic School Income Fund to the Public Education Stabilization Fund.
                                                                        
 25        SECTION 19.  An emergency existing therefor,  which  emergency  is  hereby
 26    declared to exist, Section 15 of this act shall be in full force and effect on
 27    and  after passage and approval; the remaining provisions of this act shall be
 28    in full force and effect on and after July 1, 2003.

Statement of Purpose / Fiscal Impact




STATEMENT OF PURPOSE

STATEMENT OF PURPOSE

RS13296C2

FISCAL NOTE

Public Schools Budget Breakout

This is the FY 2004 appropriation
for the Division of Operations portion of the Public Schools budget.

   FY 2003
Approp.
 FY 2004
$943 Budget
 Div. of
Operations

I.

STATE APPROPRIATION 

A.

Sources of Funds

1.

General Fund

$920,000,000

$943,000,800

$243,341,300

   percent change:

1.1%

2.5%

 

2.

Dedicated Funds

$65,513,000

$55,650,000

$41,700,000

   percent change:

1.1%

-15.1%

 

3.

Federal Funds

$0

$153,980,000

$5,180,000

   percent change:

 

4.

TOTAL STATE APPROPRIATIONS

$985,513,000

$1,152,630,800

$290,221,300

 

percent change*:

1.1%

17.0%

 

II.

PROGRAM DISTRIBUTION

A.

Statutory Requirements 

1.

Property Tax Replacement 

$68,935,700

$73,022,700

$73,022,700

2.

Transportation 

$57,654,500

$57,773,000

$57,773,000

3.

Border Contracts 

$1,000,000

$800,000

$0

4.

Exceptional Contracts/Tuition Equivalents

$3,500,000

$4,000,000

$0

5.

Floor 

$1,300,000

$1,300,000

$1,300,000

6.

Program Adjustments 

$300,000

$300,000

$0

7.

Salary-based Apportionment

$660,086,500

$666,616,200

$89,159,000

8.

Teacher Incentive Award 

$560,000

$654,000

$0

9.

State Paid Employee Benefits

$116,084,600

$117,238,500

$15,531,500

10.

Early Retirement Program

$5,500,000

$4,500,000

$0

11.

Bond Levy Equalization 

$0

$825,000

$0

12.

Idaho Safe & Drug-Free Schools

$4,700,000

$4,700,000

$0

13.

Sub-total — Statutory Requirements

$919,621,300

$931,729,400

$236,786,200

B.

Other Program Distributions

1.

Technology Grants

$8,400,000

$7,300,000

$7,300,000

2.

Idaho Reading Initiative

$3,300,000

$3,300,000

$0

3.

Limited English Proficiency (LEP)

$4,475,000

$4,475,000

$0

4.

Least Restrictive Environment (teacher
trainin

$1,000,000

$1,000,000

$0

5.

Gifted & Talented 

$500,000

$500,000

$0

6.

Achievement Standards Implementation

$4,000,000

$4,000,000

$134,700

7.

Beginning Teacher Support Program

$2,000,000

$0

$0

8.

Idaho Digital Learning Academy

$0

$0

$0

9.

Classroom Supplies 

$2,000,000

$0

$0

10.

School Facilities Funding (Lottery)

$0

$8,425,000

$0

11.

Federal Funds for Local School Districts

$0

$150,980,000

$5,079,000

12.

Sub-total — Other Program Distributions

$25,675,000

$179,980,000

$12,513,700

 

TOTAL CATEGORICAL EXPENDITURES

$945,296,300

$1,111,709,400

$249,299,900

III.

EDUCATION STABILIZATION FUNDS

$0

$12,025,000

$12,025,000

IV.

STATE DISCRETIONARY FUNDS

$40,216,700

$28,896,400

$28,896,400

V.

ESTIMATED SUPPORT UNITS

12,545

12,670

12,670

VI.

STATE DISCRETIONARY PER SUPPORT

$3,206

$2,281

$2,281

VII.

LOCAL DISCRETIONARY PER SUPPOR

$21,241

$22,166

$22,166

VIII.

TOTAL DISCRETIONARY PER SUPPORT

$24,447

$24,447

$24,447

* Overall percent change would be
1.3% without the transfer of federal pass-through funds to this budget, and 0.4%
without the addition of Lottery funds.

Contact:
Jason Hancock

Legislative
Services Office

Budget
and Policy Analysis

Telephone:
334-3531