2003 Legislation
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HOUSE BILL NO. 463 – Approp, Public Schools/Operations

HOUSE BILL NO. 463

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H0463.....................................................by APPROPRIATIONS
APPROPRIATIONS - PUBLIC SCHOOLS/OPERATIONS DIVISION  - Provides amounts to
be expended from various funds for the public schools; appropriates
$289,771,300 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 provide an estimate of discretionary funds per support unit; to provide
for a transfer of funds to the Public Education Stabilization Fund; and to
provide for reimbursable transportation expenditures for fiscal year 2004
and 2005.
                                                                        
04/30    House intro - 1st rdg - to printing
    Rpt prt - to 2nd rdg
    Rls susp - PASSED - 39-31-0
      AYES -- Barraclough(Schanz), Barrett, Bauer, Bedke, Bell, Black,
      Block, Bradford, Collins, Crow, Deal, Denney, Eberle, Ellsworth,
      Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Kellogg,
      Lake, Langford, McGeachin, McKague, Moyle, Nielsen, Raybould, Ring,
      Roberts, Rydalch, Sali, Schaefer, Skippen, Stevenson, Tilman, Wills,
      Wood, Mr. Speaker
      NAYS -- Andersen(Guyon), Bieter, Boe, Bolz, Campbell, Cannon, Clark,
      Cuddy, Douglas, Edmunson, Henbest, Jaquet, Jones, Kulczyk, Langhorst,
      Martinez(Echohawk), Meyer, Miller, Mitchell, Naccarato, Ridinger,
      Ringo, Robison, Sayler, Shepherd(Buell), Shirley, Smith(30),
      Smith(24), Smylie, Snodgrass, Trail
      Absent and excused -- None
    Floor Sponsor - Bedke
    Title apvd - to Senate
05/01    Senate intro - 1st rdg - to Fin
    Rpt out - rec d/p - to 2nd rdg
05/02    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 21-14-0
      AYES -- Bailey, Brandt, Bunderson, Burtenshaw, Cameron, Compton,
      Davis, Geddes, Goedde, Hill, Ingram, Keough, Little, Lodge, McKenzie,
      Noble, Pearce(Banner), Sorensen, Stegner, Sweet, Williams
      NAYS -- Andreason, Burkett, Calabretta, Darrington, Gannon, Kennedy,
      Malepeai, Marley, McWilliams, Noh, Richardson, Schroeder, Stennett,
      Werk
      Absent and excused -- None
    Floor Sponsor - Cameron
    Title apvd - to House
05/03    To enrol - Rpt enrol - Sp signed - Pres signed
05/05    To Governor
05/09    Governor signed
         Session Law Chapter 372
         Effective: 05/09/03 Section 15;
         07/01/03 All others

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 463
                                                                        
                                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  $5,000,000 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; TO PROVIDE AN ESTIMATE OF DISCRETIONARY FUNDS  PER  SUPPORT  UNIT;
 44        TRANSFERRING  MONEYS TO THE PUBLIC EDUCATION STABILIZATION FUND; PROVIDING
 45        FOR REIMBURSABLE TRANSPORTATION EXPENDITURES FOR  FISCAL  YEARS  2004  AND
 46        2005; 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                                                      $242,891,300
  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                                                           $289,771,300
                                                                        
 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                                                      $242,891,300
                                                                        
 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                                         $284,591,300
 24    Federal Grant Fund                                                   5,180,000
 25      TOTAL                                                           $289,771,300
                                                                        
 26        SECTION  4.  Of  the  moneys  appropriated  in  Section  3  of  this  act,
 27    $8,400,000  shall  be  expended by the Superintendent of Public Instruction as
 28    follows: $3,100,000 for  ongoing  expenditures  and  $5,000,000  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.
                                                                        
 35        SECTION 5.   Of the $8,400,000 referenced in Section 4  of  this  act,  an
 36    amount  not to exceed $173,000 may be expended by the Superintendent of Public
 37    Instruction for staff support and various expenses related to the Idaho  Coun-
 38    cil for Technology in Learning as approved by the State Board of Education.
                                                                        
 39        SECTION  6.  Of the moneys appropriated in Section 3 of this act, there is
 40    hereby appropriated the amount necessary for property tax replacement, subject
 41    to the limitations of law, to be expended according to Section 33-1002D, Idaho
 42    Code, for the period July 1, 2003, through June 30, 2004.
                                                                        
 43        SECTION 7.  Of the moneys appropriated in Section 3 of this  act,  $33,700
 44    in  General  Fund  moneys and $101,000 in federal grant funds shall be for the
 45    third and final phase of the implementation of  achievement  standards  estab-
 46    lished  under  the  provisions  of  the rules of the State Board of Education,
 47    IDAPA 08.02.03. These funds shall be distributed  according  to  formulas  and
 48    criteria established by the Superintendent of Public Instruction. It is legis-
                                                                        
                                       3
                                                                        
  1    lative intent that the State Department of Education and State Board of Educa-
  2    tion seek any waivers that may be necessary to utilize the $101,000 in federal
  3    grant funds.
                                                                        
  4        SECTION  8.  That  Chapter  9,  Title  33, Idaho Code, be, and the same is
  5    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  6    ignated as Section 33-907, Idaho Code, and to read as follows:
                                                                        
  7        33-907.  PUBLIC  EDUCATION  STABILIZATION FUND. There is hereby created in
  8    the state treasury a fund to be known as the  public  education  stabilization
  9    fund,  which shall function as a fund detail of the public school income fund.
 10    The fund shall consist of moneys transferred to the fund according to the pro-
 11    visions of section 33-1018, Idaho Code, and any other  moneys  made  available
 12    through legislative transfers or appropriations. Moneys in the fund are hereby
 13    continuously  appropriated  for  the purposes stated in section 33-1018, Idaho
 14    Code, and shall only be expended for the purposes stated in  sections  33-1018
 15    and  33-1018A,  Idaho  Code.  Any accumulated balances in the fund that are in
 16    excess of three percent (3%) of the current fiscal year's total  general  fund
 17    appropriation  for public school support shall be transferred to the bond levy
 18    equalization fund. Interest earned from the investment of moneys in  the  fund
 19    shall be credited to the public school income fund.
                                                                        
 20        SECTION  9.  That  Section 33-1002, Idaho Code, be, and the same is hereby
 21    amended to read as follows:
                                                                        
 22        33-1002.  EDUCATIONAL SUPPORT PROGRAM. The educational support program  is
 23    calculated as follows:
 24        1.  State  Educational Support Funds. Add the state appropriation, includ-
 25    ing the moneys available in the public school income fund, together  with  all
 26    miscellaneous revenues to determine the total state funds.
 27        2.  From  the  total state funds subtract the following amounts needed for
 28    state support of special programs provided by a school district:
 29        a.  Pupil tuition-equivalency allowances as provided in section  33-1002B,
 30        Idaho Code;
 31        b.  Transportation  support  program as provided in section 33-1006, Idaho
 32        Code;
 33        c.  Feasibility studies allowance as provided in section  33-1007A,  Idaho
 34        Code;
 35        d.  The  approved costs for border district allowance, provided in section
 36        33-1403, Idaho Code, as determined by the state superintendent  of  public
 37        instruction;
 38        e.  The  approved costs for exceptional child approved contract allowance,
 39        provided in subsection 2. of section 33-2004, Idaho Code, as determined by
 40        the state superintendent of public instruction;
 41        f.  Certain expectant and delivered mothers allowance as provided in  sec-
 42        tion 33-2006, Idaho Code;
 43        g.  Salary-based  apportionment calculated as provided in sections 33-1004
 44        through 33-1004F, Idaho Code;
 45        h.  Unemployment insurance benefit payments according to the provisions of
 46        section 72-1349A, Idaho Code;
 47        i.  For programs to provide basic curricula necessary to  enable  students
 48        to  enter  academic or professional-technical postsecondary education pro-
 49        grams, an allocation of $300 per support unit for the 1994-95 school  year
 50        only;
 51        j.  For provision of teacher supplies to facilitate classroom instruction,
                                                                        
                                       4
                                                                        
  1        an allocation of $200 per support unit for the 1994-95 school year only;
  2        k.  For  expenditure  as provided by the public school technology program,
  3        $10,400,000 for the 1994-95 school year;
  4        l.  For additional school innovation pilot project grants based on  recom-
  5        mendations  of  the  Idaho  school  reform  committee,  $2,000,000 for the
  6        1994-95 school year;
  7        m.  For the support of provisions that provide a safe  environment  condu-
  8        cive  to student learning and maintain classroom discipline, an allocation
  9        of $300 per support unit; and
 10        n.  Any additional amounts as required by statute to effect administrative
 11        adjustments or as specifically required by the provisions of any  bill  of
 12        appropriation;
 13    to secure the state educational support funds.
 14        3.  Local  Districts'  Contribution  Calculation.  Without  including  any
 15    allowance  as a credit for prepaid taxes as provided by section 63-1607, Idaho
 16    Code, the local districts' contribution shall be four-tenths the amount appro-
 17    priated pursuant to section 33-1002D, Idaho Code,  plus  three-tenths  percent
 18    (.43%)  during  fiscal  year  1994-95 2003-04 and each year thereafter, of the
 19    total state adjusted market value for assessment  purposes  for  the  previous
 20    year  with  such  value  being determined by the provisions of section 63-315,
 21    Idaho Code, and four-tenths percent (.4%) during fiscal year 1994-95 and  each
 22    year  thereafter,  of the cooperative electrical associations' property values
 23    that have been derived from the taxes paid in lieu of ad valorem taxes for the
 24    previous year as provided in section 63-3502, Idaho Code.
 25        4.  Educational Support Program Distribution Funds.  Add  the  local  dis-
 26    tricts' contribution, subsection 3. of this section, and the state educational
 27    support  program  funds, subsection 1. of this section, together to secure the
 28    total educational support program distribution funds.
 29        5.  Average Daily Attendance. The total  state  average  daily  attendance
 30    shall  be  the  sum  of the average daily attendance of all of the school dis-
 31    tricts of the state. The state board of education shall establish  rules  set-
 32    ting  forth  the  procedure to determine average daily attendance and the time
 33    for, and method of, submission of such report. Average daily attendance calcu-
 34    lation shall be carried out to the nearest hundredth. Computation  of  average
 35    daily attendance shall also be governed by the provisions of section 33-1003A,
 36    Idaho Code.
 37        6.  Support  Units.  The  total state support units shall be determined by
 38    using the tables set out hereafter called computation of kindergarten  support
 39    units,  computation of elementary support units, computation of secondary sup-
 40    port units, computation of exceptional education support units,  and  computa-
 41    tion  of  alternative  school  secondary  support units. The sum of all of the
 42    total support units of all school districts of the state shall  be  the  total
 43    state support units.
 44                      COMPUTATION OF KINDERGARTEN SUPPORT UNITS
 45    Average Daily
 46    Attendance            Attendance Divisor         Units Allowed
 47    41 or more     ....   40.......................  1 or more as computed
 48    31 -  40.99 ADA....    -.......................  1
 49    26 -  30.99 ADA....    -.......................   .85
 50    21 -  25.99 ADA....    -.......................   .75
 51    16 -  20.99 ADA....    -.......................   .6
 52     8 -  15.99 ADA....    -.......................   .5
 53     1 -   7.99 ADA....    -.......................  count as elementary
                                                                        
                                       5
                                                                        
  1                       COMPUTATION OF ELEMENTARY SUPPORT UNITS
  2    Average Daily
  3    Attendance            Attendance Divisor         Minimum Units Allowed
  4    300 or more ADA........................................  15
  5                        ..23...grades 4,5 & 6....
  6                        ..22...grades 1,2 & 3....1994-95
  7                        ..21...grades 1,2 & 3....1995-96
  8                        ..20...grades 1,2 & 3....1996-97
  9                              and each year thereafter.
 10    160   to  299.99 ADA... 20.....................         8.4
 11    110   to  159.99 ADA... 19.....................         6.8
 12     71.1 to  109.99 ADA... 16.....................         4.7
 13     51.7 to   71.0  ADA... 15.....................         4.0
 14     33.6 to   51.6  ADA... 13.....................         2.8
 15     16.6 to   33.5  ADA... 12.....................         1.4
 16      1.0 to   16.5  ADA... n/a....................         1.0
                                                                        
 17                        COMPUTATION OF SECONDARY SUPPORT UNITS
 18    Average Daily
 19    Attendance            Attendance Divisor         Minimum Units Allowed
 20    750 or more      .... 18.5.....................        47
 21    400 -  749.99 ADA.... 16.......................        28
 22    300 -  399.99 ADA.... 14.5.....................        22
 23    200 -  299.99 ADA.... 13.5.....................        17
 24    100 -  199.99 ADA.... 12.......................         9
 25     99.99 or fewer       Units allowed as follows:
 26             Grades 7-12  .........................         8
 27             Grades 9-12  .........................         6
 28             Grades 7- 9  .........................         1 per 14 ADA
 29             Grades 7- 8  .........................         1 per 16 ADA
                                                                        
 30                  COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
 31    Average Daily
 32    Attendance            Attendance Divisor         Minimum Units Allowed
 33    14 or more ....       14.5.....................  1 or more as computed
 34    12 -  13.99....        -.......................  1
 35     8 -  11.99....        -.......................   .75
 36     4 -   7.99....        -.......................   .5
 37     1 -   3.99....        -.......................   .25
                                                                        
 38              COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
 39    Pupils in Attendance  Attendance Divisor         Minimum Units Allowed
 40    12 or more..........  12......................   1 or more as computed
                                                                        
 41        In  applying these tables to any given separate attendance unit, no school
 42    district shall receive less total money than it would  receive  if  it  had  a
 43    lesser  average daily attendance in such separate attendance unit. In applying
 44    the kindergarten table to a kindergarten program of  less  days  than  a  full
 45    school  year,  the  support  unit allowance shall be in ratio to the number of
 46    days of a full school year. The tables for exceptional education and  alterna-
 47    tive  school  secondary  support  units  shall be applicable only for programs
 48    approved by the state department of education following rules  established  by
 49    the  state  board  of  education. Moneys generated from computation of support
 50    units for alternative schools shall be utilized for  alternative  school  pro-
 51    grams.  School  district  administrative and facility costs may be included as
                                                                        
                                       6
                                                                        
  1    part of the alternative school expenditures.
  2        7.  State Distribution Factor per Support Unit. Divide educational support
  3    program distribution funds, after subtracting the amounts necessary to pay the
  4    obligations specified in subsection 2. of this section,  by  the  total  state
  5    support units to secure the state distribution factor per support unit.
  6        8.  District  Share of State Funds for Educational Support Program. Ascer-
  7    tain a district's share of state funds for the educational support program  as
  8    follows:
  9        a.  District  Contribution Calculation. Without including any allowance as
 10        a credit for prepaid taxes, as provided in section  63-1607,  Idaho  Code,
 11        the  district  contribution calculation shall be the rate determined under
 12        subsection 3. of this section.
 13        b.  District Support Units. The number of support units  for  each  school
 14        district in the state shall be determined as follows:
 15             (1)  Divide  the  actual average daily attendance, excluding students
 16             approved for inclusion in the exceptional child educational  program,
 17             for  the  administrative schools and each of the separate schools and
 18             attendance units by the appropriate divisor from the tables  of  sup-
 19             port  units  in  this  section,  then add the quotients to obtain the
 20             district's support units allowance for regular students, kindergarten
 21             through grade 12 including  alternative  school  secondary  students.
 22             Calculations  in  application of this subsection shall be carried out
 23             to the nearest tenth.
 24             (2)  Divide the combined totals of the average  daily  attendance  of
 25             all  preschool,  handicapped, kindergarten, elementary, secondary and
 26             juvenile detention center students  approved  for  inclusion  in  the
 27             exceptional  child program of the district by the appropriate divisor
 28             from the table for computation of exceptional education support units
 29             to obtain the number of support  units  allowed  for  the  district's
 30             approved  exceptional child program. Calculations for this subsection
 31             shall be carried out to the nearest tenth when more than one (1) unit
 32             is allowed.
 33             (3)  The total number of support units of the district shall  be  the
 34             sum  of  the  total  support  units  for regular students, subsection
 35             8.b.(1) of this section, and the  support  units  allowance  for  the
 36             approved  exceptional  child program, subsection 8.b.(2) of this sec-
 37             tion.
 38        c.  Total District Allowance Educational Program. Multiply the  district's
 39        total  number  of  support units, carried out to the nearest tenth, by the
 40        state distribution factor per support unit and to  this  product  add  the
 41        approved  amount  of programs of the district provided in subsection 2. of
 42        this section to secure the district's total allowance for the  educational
 43        support program.
 44        d.  District Share. To secure the district's share of state apportionment,
 45        subtract  the  amount of the local district contribution calculation, sub-
 46        section 3. of this section, from the amount of the total  district  allow-
 47        ance, subsection 8.c. of this section.
 48        e.  Adjustment of District Share. The contract salary of every noncertifi-
 49        cated  teacher shall be subtracted from the district's share as calculated
 50        from the provisions of subsection 8.d. of this section.
                                                                        
 51        SECTION 10.  That Section 33-1002D, Idaho Code, be, and the same is hereby
 52    amended to read as follows:
                                                                        
 53        33-1002D.  PROPERTY TAX REPLACEMENT. The purpose of  this  section  is  to
                                                                        
                                       7
                                                                        
  1    replace  a portion of the authorized school maintenance and operation property
  2    tax levy with state sales tax receipts. As used  in  this  section,  the  term
  3    "property tax computation ratio" shall mean a ratio determined by dividing the
  4    district's  certified  property  tax  maintenance  and operation budget by the
  5    actual or adjusted market value for assessment purposes as such values existed
  6    on December 31 of the previous calendar year.
  7        (1) (a)  In the case of a school district that had a property tax computa-
  8        tion ratio of not less than four-tenths of one percent (.4%) in  tax  year
  9        1994,  that school district shall receive from the appropriations made for
 10        that purpose, an amount equal to the greater of the district's  actual  or
 11        adjusted market value for assessment purposes as such valuation existed on
 12        December  31  of the previous calendar year multiplied by one-tenth of one
 13        percent (.1%).
 14        (b)  In the case of a school district that had a property tax  computation
 15        ratio of less than four-tenths of one percent (.4%) in tax year 1994,  the
 16        greater  of  the  1992,  1993 or 1994 property tax computation ratio  less
 17        three-tenths of one percent (.3%) shall be designated the district's  base
 18        multiplier.  In  no  case shall the base multiplier be less than zero (0).
 19        Four-tenths of one percent (.4%) less the greater of the district's  1992,
 20        1993 or 1994 property tax  computation  ratio   shall  be  designated  the
 21        district's  adjustment  factor.  In no case shall the adjustment factor be
 22        greater than one-tenth of one percent (.1%) or less than  zero  (0).  Each
 23        school district's actual multiplier shall be the base multiplier plus one-
 24        fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
 25        plus  two-fifths (2/5) of the adjustment factor in tax year 1996, the base
 26        multiplier plus three-fifths (3/5) of the adjustment factor  in  tax  year
 27        1997,  the base multiplier plus four-fifths (4/5) of the adjustment factor
 28        in tax year 1998, and the base multiplier plus the  adjustment  factor  in
 29        tax  year  1999  and  beyond. Each school district shall receive, from the
 30        appropriations made for that purpose, an amount equal  to  the  district's
 31        actual  or adjusted market value for assessment purposes as such valuation
 32        existed on December 31 of the previous calendar  year  multiplied  by  the
 33        district's actual multiplier.
 34        (c)  The  preceding  provisions of this subsection notwithstanding, appro-
 35        priations from the state for the value of one-tenth of one  percent  (.1%)
 36        of  the  greater  of  the  district's  actual or adjusted market value for
 37        assessment purposes as such valuation existed on December 31 of the previ-
 38        ous  calendar  year  shall  not  exceed   seventy-five   million   dollars
 39        ($75,000,000)  in  any  fiscal  year. If the amount school districts would
 40        otherwise be entitled to receive pursuant to the preceding  provisions  of
 41        this  subsection  exceeds seventy-five million dollars ($75,000,000), then
 42        each school district shall receive its pro rata share of seventy-five mil-
 43        lion dollars ($75,000,000).
 44        (2) (a)  Participation in this property tax reduction program is voluntary
 45        for a charter district. If a charter district participates, in addition to
 46        the provisions of subsection (1) of this section it shall not have a prop-
 47        erty tax computation ratio  that is  above  three-tenths  of  one  percent
 48        (.3%)  or the district's property tax computation ratio  in tax year 1994,
 49        less one-tenth of one percent (.1%), whichever is greater.
 50        (b)  If in any year the charter district's property tax computation  ratio
 51        used  to calculate its maintenance and operation budget is increased above
 52        the limit specified in this subsection the district  shall not be eligible
 53        for the distribution pursuant to subsection (1) of this section  for  that
 54        year.
 55        (3)  Limitations imposed upon a school district's property tax computation
                                                                        
                                       8
                                                                        
  1    ratio  under  the provisions of this section do not apply to any levy approved
  2    by electors of the school district as provided by law.
  3        (4)  Distributions calculated as provided in this section shall be made to
  4    school districts of this state in two (2) equal installments on the due  dates
  5    as  specified  in  section 63-903(1), Idaho Code, for the property taxes being
  6    replaced.
  7        (5)  For purposes of section 33-1002, Idaho Code, moneys distributed  pur-
  8    suant to this section shall not be included in determining total state funds.
                                                                        
  9        SECTION  11.  That Section 33-1006, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        33-1006.  TRANSPORTATION SUPPORT PROGRAM. (1)  The state board  of  educa-
 12    tion shall determine what costs of transporting pupils, including maintenance,
 13    operation  and  depreciation of basic vehicles, insurance, payments under con-
 14    tract with other public transportation providers whose vehicles used to trans-
 15    port pupils comply with federal transit administration regulations, "bus test-
 16    ing," 49 C.F.R. part 665, and any revision thereto, as provided in  subsection
 17    (4.)(d)  of this section, or other state department of education approved pri-
 18    vate transportation providers, salaries of drivers, and any other costs, shall
 19    be allowable in computing the transportation support program  of  school  dis-
 20    tricts.
 21        (2)  Any  costs  associated with the addition of vehicle features that are
 22    not part of the basic vehicle shall not be allowable in computing  the  trans-
 23    portation  support  program  of  school  districts.  A basic vehicle is hereby
 24    defined as the cost of the vehicle without optional features, plus  the  addi-
 25    tion  of  essential safety features and features necessary for the transporta-
 26    tion of pupils with disabilities.
 27        (3)  Each school district shall maintain records and make reports  as  are
 28    required for the purposes of this section.
 29        (4)  The  transportation  support  program  of  a school district shall be
 30    based upon the allowable costs of:
 31        1.(a)  Transporting public school pupils one and one-half (1 1/2) miles or
 32        more to school;
 33        2.(b)  Transporting pupils less than one and  one-half  (1 1/2)  miles  as
 34        provided  in section 33-1501, Idaho Code, when approved by the state board
 35        of education;
 36        3.(c)  The costs of payments when transportation is not furnished, as pro-
 37        vided in section 33-1503, Idaho Code;
 38        4.(d)  The transportation program for grades six (6) through twelve  (12),
 39        upon  the  costs  of  payments pursuant to a contract with other public or
 40        private transportation providers  entered  into  as  provided  in  section
 41        33-1510,  Idaho  Code,  if the school district  establishes that the reim-
 42        bursable costs of transportation under the contract are equal to  or  less
 43        than the costs for school buses.;
 44        5.(e)  The  costs  of providing transportation to and from approved school
 45        activities as may be approved by rules of the state board of education;
 46        6.(f)  The employer's  share  of  contributions  to  the  public  employee
 47        retirement system and to social security.
 48        (5)  The  state's  share  of  the  transportation support program shall be
 49    eighty-five percent (85%) of allowable transportation costs  of  the  district
 50    for  incurred  during  the next immediately preceding state fiscal year,  pro-
 51    vided the allowable costs do not exceed one hundred three  percent  (103%)  of
 52    the state average reimbursable cost per mile or the state average reimbursable
 53    cost  per student, whichever is more advantageous to the school district. If a
                                                                        
                                       9
                                                                        
  1    school district's costs exceed the one hundred three percent (103%) limit when
  2    computed by the more advantageous of the two (2) methods, that school district
  3    shall be reimbursed at eighty-five percent (85%)  of  the  maximum  limit  for
  4    whichever  method  is more favorable to the school district. A school district
  5    may appeal the application of the one hundred three percent  (103%)  limit  on
  6    allowable  costs to the state board of education, which may establish for that
  7    district a new percentile limit for allowable  costs  compared  to  the  state
  8    average,  which  is higher than one hundred three percent (103%). In doing so,
  9    the state board of education may set a new limit that is greater than one hun-
 10    dred three percent (103%), but is less than the percentile limit requested  by
 11    the  school  district.  Any costs above the new level established by the state
 12    board of education shall not be  reimbursed.  Such  a  change  shall  only  be
 13    granted  by  the  state board of education if the application can be justified
 14    based on uniquely difficult geographic circumstances, or extraordinary one (1)
 15    time circumstances outside the district's foresight and control.  An  applica-
 16    tion granted based on extraordinary one (1) time circumstances shall be effec-
 17    tive  for  one  (1) year only. An application based on uniquely difficult geo-
 18    graphic circumstances shall be reviewed by the state board  of  education  for
 19    continued validity at least every five (5) years.
 20        (6)  School  districts that are unable to absorb the impact of the limita-
 21    tion on reimbursable expenses, through either efficiencies or the  utilization
 22    of  fund balances, may apply to the state board of education to receive a loan
 23    of moneys, not to exceed the amount of state funds lost through  the  applica-
 24    tion  of  the  limitation  on reimbursable expenses, from the public education
 25    stabilization fund. Any school district receiving such a loan shall cause  its
 26    reimbursement of state transportation moneys to be reduced by a like amount in
 27    the  subsequent  fiscal  year, and the moneys so reduced shall be deposited in
 28    the public education stabilization fund.
                                                                        
 29        SECTION 12.  That Section 33-1009, Idaho Code, be, and the same is  hereby
 30    amended to read as follows:
                                                                        
 31        33-1009.  PAYMENTS FROM THE PUBLIC SCHOOL INCOME FUND.
 32        1.  a. Payments  of  the  state  general  account appropriation for public
 33        school support shall be made each year by the state board of education  to
 34        the public school districts of the state in five (5) payments. Payments to
 35        the  districts  shall  be made not later than the fifteenth day of August,
 36        the first day of October, the fifteenth day of November, the fifteenth day
 37        of February, and the fifteenth day of May each year. Each payment  by  the
 38        state  board  of  education shall be approximately twenty percent (20%) of
 39        the total general account  appropriation  for  the  fiscal  year.  Amounts
 40        apportioned  due to a special transfer to the public school income fund to
 41        restore or reduce a deficiency in the prior year's  transfer  pursuant  to
 42        subsection 4. of this section shall not be subject to this limitation.
 43        b.  Payments  of  moneys,  other than the state general account appropria-
 44        tion, that accrue to the public school income fund shall be  made  by  the
 45        state  board of education to the school districts of the state on the fif-
 46        teenth day of November, February, May and July each year. The total amount
 47        of such payments shall be determined by the state department of  education
 48        and  shall not exceed the amount of moneys available and on deposit in the
 49        public school income fund at the time such payment is made.
 50        c.  Amounts apportioned due to a special transfer  to  the  public  school
 51        income fund to restore or reduce a deficiency in the prior year's transfer
 52        pursuant to subsection 4. of this section shall not be subject to the lim-
 53        itation imposed by paragraphs a. and b.
                                                                        
                                       10
                                                                        
  1        2.  Payments  made to the school districts in August, October and November
  2    are advance payments for the current year and will be based upon payments from
  3    the public school income fund for the preceding school year. Each school  dis-
  4    trict  shall  receive  its  proportionate share of the advance payments in the
  5    same ratio that its total payment for the preceding year was to the total pay-
  6    ments to all school districts for the preceding year.
  7        3.  No later than the fifteenth day of February in each  year,  the  state
  8    department  of  education shall compute the state distribution factor based on
  9    the total average daily attendance through the first Friday in  November.  The
 10    factor will be used in payments of state funds in February and May. Attendance
 11    shall  be reported in a format and at a time specified by the state department
 12    of education.
 13        As of the thirtieth day of June of each year the state department of  edu-
 14    cation  shall  determine final payments to be made on July fifteenth next suc-
 15    ceeding to the several school districts from the public school income fund for
 16    the school year ended June 30. The July payments  shall  take  into  consider-
 17    ation:
 18        a.  the  average  daily attendance of the several school districts for the
 19        twenty-eight (28) best weeks of the school year completed not  later  than
 20        the thirtieth of June,
 21        b.  all  funds  available  in the public school income fund for the fiscal
 22        year ending on the thirtieth of June,
 23        c.  all payments distributed for the current fiscal year  to  the  several
 24        school districts,
 25        d.  the  adjustment  based on the actual amount of discretionary funds per
 26        support unit required by the provisions of section 33-1018, Idaho Code,
 27        e.  payments made or due for the transportation support  program  and  the
 28        exceptional  education  support program. The state department of education
 29        shall apportion and direct the payment to the several school districts the
 30        moneys in the public school income fund in each year, taking into  account
 31        the  advance  made under subsection 2. of this section, in such amounts as
 32        will provide in full for each district its support program, and  not  more
 33        than  therefor  required,  and  no school district shall receive less than
 34        fifty dollars ($50.00).
 35        4.  If the full amount appropriated to the public school income fund  from
 36    the general account by the legislature is not transferred to the public school
 37    income  fund by the end of the fiscal year, the deficiency resulting therefrom
 38    shall either be restored or reduced through a special transfer from  the  gen-
 39    eral  account  in  the  first sixty (60) days of the following fiscal year, or
 40    shall be calculated in computing district  levies,  and  any  additional  levy
 41    shall  be  certified  by the state superintendent of public instruction to the
 42    board of county commissioners and added  to  the  district's  maintenance  and
 43    operation  levy. If the deficiency is restored or reduced by special transfer,
 44    the amount so transferred shall be in addition to the amount  appropriated  to
 45    be transferred in such following fiscal year, and shall be apportioned to each
 46    school  district in the same amount as each would have received had the trans-
 47    fer been made in the year the deficiency occurred.  The  state  department  of
 48    education  shall distribute to the school district the full amount of the spe-
 49    cial transfer as soon as practical after such transfer is made. In making  the
 50    levy  computations  required by this subsection the state department of educa-
 51    tion shall take into account and consider the full amount of  money  receipted
 52    into the public school income fund from all sources for the given fiscal year.
 53    Deficits in the transfer of the appropriated amount of general account revenue
 54    to  the public school income fund shall be reduced by the amount, if any, that
 55    the total amount receipted from other sources into the  public  school  income
                                                                        
                                       11
                                                                        
  1    fund  exceeds  the  official estimated amount from those sources. The official
  2    estimate of receipts from other sources shall be the total  amount  stated  by
  3    the  legislature  in the appropriation bill. The provisions of this subsection
  4    shall not apply to any transfers to or from the public education stabilization
  5    fund.
  6        5.  Any apportionments in any year, made to any school district, which may
  7    within the succeeding three (3) year period be found to  have  been  in  error
  8    either  of  computation  or transmittal, may be corrected during the three (3)
  9    year period by reduction of apportionments to any  school  district  to  which
 10    over-apportionments   may  have  been  made  or  received,  and  corresponding
 11    additions  to  apportionments  to  any  school  district   to   which   under-
 12    apportionments may have been made or received.
                                                                        
 13        SECTION  13.  That  Chapter  10, Title 33, Idaho Code, be, and the same is
 14    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 15    ignated as Section 33-1018, Idaho Code, and to read as follows:
                                                                        
 16        33-1018.  PUBLIC SCHOOL DISCRETIONARY FUNDING VARIABILITY. The legislature
 17    shall  annually  state  in  the  appropriation  for  the  educational  support
 18    program/division of operations the estimate of the total discretionary funding
 19    provided  per  support unit. The department of education shall, before the end
 20    of each fiscal year, calculate the actual discretionary funding available  per
 21    support unit.
 22        (1)  If  the total estimated discretionary funding per support unit stated
 23    in the appropriation for the educational support  program/division  of  opera-
 24    tions  is  lower  than  the actual discretionary funding available per support
 25    unit, then the state controller shall multiply the difference by the number of
 26    actual support units, and transfer the result from the  public  school  income
 27    fund to the public education stabilization fund and the final distributions to
 28    school  districts  from the department of education shall be reduced by a like
 29    amount.
 30        (2)  If the total estimated discretionary funding per support unit  stated
 31    in  the  appropriation  for the educational support program/division of opera-
 32    tions is greater than the actual discretionary funding available  per  support
 33    unit, then the state controller shall multiply the difference by the number of
 34    actual support units, and transfer the result from the public education stabi-
 35    lization fund to the public school income fund. This transfer shall be limited
 36    to  moneys available in the public education stabilization fund. Moneys trans-
 37    ferred from the public education  stabilization  fund  to  the  public  school
 38    income  fund  under  the  provisions  of  this section are hereby continuously
 39    appropriated for the educational support program/division of operations.
                                                                        
 40        SECTION 14.  That Chapter 10, Title 33, Idaho Code, be, and  the  same  is
 41    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 42    ignated as Section 33-1018A, Idaho Code, and to read as follows:
                                                                        
 43        33-1018A.  OTHER USES OF PUBLIC EDUCATION STABILIZATION FUND. (1)  If,  in
 44    any  fiscal year, general fund revenues are inadequate to sustain general fund
 45    appropriations made for that year by the legislature, then the board of  exam-
 46    iners  may transfer moneys from the public education stabilization fund to the
 47    general fund.  The maximum amount that may be transferred by the board in  any
 48    fiscal  year  shall  be  determined  by dividing the total of all general fund
 49    appropriations for the educational support program by the total of all general
 50    fund appropriations, and multiplying the result by the amount of the shortfall
 51    in general fund revenues.
                                                                        
                                       12
                                                                        
  1        (2)  The governor may recommend, and the legislature  may  authorize,  the
  2    appropriation of moneys from the public education stabilization fund to offset
  3    declining  distributions  from  the public school earnings reserve fund to the
  4    public school income fund.
                                                                        
  5        SECTION 15.  It was and remains the intent of  the  Legislature  that  the
  6    provisions  of  Chapter  254,  Laws  of  2001, be applied to the allocation of
  7    investment gains and losses  between  Earnings  Reserve  Funds  and  Permanent
  8    Endowment  Funds  during  the  period July 1, 2000, through June 30, 2001. Any
  9    reallocations made necessary by the application of these provisions  shall  be
 10    completed by no later than July 1, 2003.
                                                                        
 11        SECTION 16.  Pursuant to the provisions of Section 33-1018, Idaho Code, it
 12    is  estimated that the appropriation of state funds to the Educational Support
 13    Program/Division of Operations will result in  total  discretionary  funds  of
 14    $24,447 per support unit.
                                                                        
 15        SECTION  17.  The State Controller shall transfer $9,785,000 from the Pub-
 16    lic School Income Fund to the Public Education Stabilization Fund.
                                                                        
 17        SECTION 18.  The provisions of Section 33-1006, Idaho Code,  notwithstand-
 18    ing,  for the period July 1, 2003, through June 30, 2004, only, the limitation
 19    on allowable school district transportation costs as compared to the statewide
 20    average cost per mile, or the statewide average cost per student, whichever is
 21    more beneficial to the school district,  shall  be  one  hundred  ten  percent
 22    (110%),  rather  than  the  one hundred three percent (103%) stated in Section
 23    33-1006, Idaho Code. The provisions of Section 33-1006, Idaho  Code,  notwith-
 24    standing,  for the period July 1, 2004, through June 30, 2005, only, the limi-
 25    tation on allowable school district transportation costs as  compared  to  the
 26    statewide  average  cost  per mile, or the statewide average cost per student,
 27    whichever is more beneficial to the school district, shall be one hundred five
 28    percent (105%), rather than the one hundred three  percent  (103%)  stated  in
 29    Section 33-1006, Idaho Code.
                                                                        
 30        SECTION  19.  An  emergency  existing  therefor, which emergency is hereby
 31    declared to exist, Section 15 of this act shall be in full force and effect on
 32    and after passage and approval; the remaining provisions of this act shall  be
 33    in full force and effect on and after July 1, 2003.

Statement of Purpose / Fiscal Impact


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                       STATEMENT OF PURPOSE
                            RS 13336C1
This is the Fiscal Year 2004 appropriation for the Division of Operations
portion of the Public Schools budget.  The pieces of the Public Schools budget
that are part of this division's appropriation include:  1.)  Property Tax
Replacement funds;  2.)  Pupil transportation cost reimbursements to school
districts;  3.)  The "Flooring" program for school districts, which guarantees
each school district at least 90% of what they got from the state, on an
equalized basis, for the previous year;  4.)  The classified staff portion of
the salary-based apportionment formula;  5.)  State paid employee benefits for
classified staff, which include PERSI and FICA;  6.)  Technology funding;  7.) 
The portion of Achievement Standards implementation that is spent by the state
department of education to provide centralized training opportunities;  8.) 
The operations portion of federal pass-through funding to local school
districts;  and 9.)  Discretionary funds for school districts.

Non-Standard Adjustments include an upwards adjustment of $1,026,400 for the
classified staff portion of the increase in the number of classroom units (or
support units), an upwards adjustment of $4,087,000 for Property Tax
Replacement, and a net upward adjustment of $808,500 in Transportation costs,
after the implementation of reforms.  This budget does not include money for
an endowment fund shift.

This budget includes five funded items in the enhancement area.  The first
provides $10,164,000 for discretionary funds.  It is the addition of these
funds, in conjunction with all the other statutory changes, that allows enough
money to flow through to the bottom line in this budget to keep the total
discretionary funds per support unit, or classroom unit, at the same $24,447
per unit that school districts are receiving this year.

The second provides $134,700 for the third and final phase of Achievement
Standards implementation.  One-quarter of the money is from General Funds,
while three-quarters comes from federal funds.  

The third enhancement provides $5,000,000 in one-time funding for Technology. 
When added to the $3.4 million already in the base portion of this budget for
Technology, it would provide $8.4 million for Technology.

The fourth enhancement reflects an earlier action of the Legislature, in which
the federal funds that are passed through to local school districts will be
housed in the public schools budget, rather than the state department of
education.  These dollars represent the portion of these funds that are
allocated to school district operations costs.

The fifth enhancement provides approximately $9.8 million for the initial
funding of a new fund, called the Public Education Stabilization Fund.  Money
can be distributed from the fund in four different ways:  The first way is
that the Board of Examiners can tap this fund for the public schools
proportional share of a General Fund shortfall.  This will help prevent from
happening what happened last year, when public schools were forced to absorb a
mid-year budget reduction.   This will allow the public schools portion of the
shortfall to be taken from this fund, and not their operating budgets, which
have already been set.

The second way money can come out of this fund is in the event of declining
endowment distributions.  If endowment distributions to schools decline, and
we expect they will, at least in the near term, the Governor can recommend,
and the Legislature can appropriate, money from this fund to cover the amount
of the shortfall.

The third way money can come out of the fund is if we underestimate the cost
of statutory rollup costs.  The greatest unknown in this area is typically our
estimate of the growth in classroom units (or support units).  We are
currently estimating that there will be more enrollment next year than we have
this year, mostly due to growth in areas such as Meridian and Nampa, and that
growth will result in 125 new classroom units.  But if the estimate is wrong,
and there are 150 new units, then the funding provided in this budget would be
insufficient to distribute the promised $24,447 in discretionary funds per
classroom unit out to the districts.  Under this circumstance, the state
department of education could draw the amount of money necessary out of this
fund to provide the $24,447 per classroom unit that the Legislature promised,
and school districts set their budget based on.

The reverse of this is also true, of course, and if there is an overestimate
of the growth of classroom units, and not as much money as was projected is
needed to provide $24,447 per classroom unit, the savings, commonly referred
to as "Angel Money", is deposited in this education stabilization fund.

This budget also includes seven sections that add to or amend Idaho Code. 
Sections 8, 12, 13, and 14 deal with the Public Education Stabilization Fund,
which is outlined above.  As for the other three, sections 9 and 10 deal with
the capping of Property Tax Replacement at $75 million.  This will not affect
the FY04 budget, where Property Tax Replacement will cost us about $73
million.  It will likely reach that cap, however, in FY05.

The last amendment is in section 11, which deals with the Transportation
program.  These amendments state that the state will only reimburse for a
Basic Bus, plus the addition of essential safety features and features
necessary for the transportation of students with disabilities.  The
amendments also include a provision that the state will only reimburse costs
up to 103% of the statewide average, either per student or per mile, whichever
measurement works out better for the district.  Section 18, however, allows
the cap to operate at the 110% level for FY 2004, and the 105% level for FY
2005.

Districts that are over this cap will have the opportunity, if they can make
their case to the state board of education that they have to deal with
difficult geographic factors, or one-time circumstances beyond their control,
they can be granted an exemption from the application of this provision.

In addition, districts that are unable to cope with the financial consequences
of the application of this law, either through becoming more efficient or
utilizing fund balances, which creates cash flow problems for them - can apply
to the state board of education for a no interest loan from the Public
Education Stabilization Fund, to be paid back from their Transportation
reimbursement in the following year.

Other, non-codified sections in this bill includes section 17, which transfers
funds to the Public Education Stabilization Fund.  Section 15 states the
intent of the Legislature that the Endowment Fund Investment Board follow the
law passed in 2001 dealing with the allocation of investment gains and losses,
and correcting the FY 2001 allocation.  This will alleviate some of the
state's current cash flow problems in the endowments.

Section 16 states the amount of discretionary funding that is being provided
per support unit, as per the requirements of the Public Education
Stabilization Fund language in this bill.

Contact
Name: Jason Hancock 
Phone: 334-4739

STATEMENT OF PURPOSE/FISCAL NOTE                           H 463 







STATEMENT OF PURPOSE




STATEMENT OF PURPOSE

RS13336C1

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

$58,463,000

$58,463,000

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

$8,400,000

$8,400,000

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

$450,000

$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

$9,785,000

$9,785,000

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