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S1174.........................................................by STATE AFFAIRS
SCHOOL DISTRICT - VALUE INDEX CALCULATION - Amends and adds to existing law to
provide an alternative as to how a school district's value index is calculated
based on the school district's free and reduced lunch rate; and to allow the
board of trustees the option of utilizing the value index calculation that is
most advantageous to that district.
03/25 Senate intro - 1st rdg - to printing
03/26 Rpt prt - to Educ
03/28 Rpt out - rec d/p - to 2nd rdg
03/31 2nd rdg - to 3rd rdg
04/01 3rd rdg - PASSED - 31-3-1
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett(Roberts),
Burtenshaw, Calabretta, Cameron, Compton, Darrington, Davis, Gannon,
Geddes, Goedde, Ingram, Kennedy, Keough, Little, Lodge, Malepeai,
Marley, McKenzie, McWilliams, Noble, Noh, Pearce, Schroeder, Sorensen,
Stennett, Sweet, Werk. Total - 31.
NAYS -- Hill, Richardson, Williams
Absent and excused -- Stegner
Floor Sponsor - Goedde
Title apvd - to House
04/02 House intro - 1st rdg - to Educ
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE SENATE
SENATE BILL NO. 1174
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE VALUE INDEX CALCULATION FOR SCHOOL DISTRICTS; AMENDING SECTION
3 33-906, IDAHO CODE, TO PROVIDE A SCHOOL WITH AN ALTERNATIVE AS TO HOW ITS
4 VALUE INDEX IS CALCULATED; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY
5 THE ADDITION OF A NEW SECTION 33-906C, IDAHO CODE, TO PROVIDE AN ALTERNA-
6 TIVE AS TO HOW A SCHOOL DISTRICT'S VALUE INDEX IS CALCULATED BASED ON THE
7 SCHOOL DISTRICT'S FREE AND REDUCED LUNCH RATE AND TO ALLOW THE BOARD OF
8 TRUSTEES THE OPTION OF UTILIZING THE VALUE INDEX CALCULATION THAT IS MOST
9 ADVANTAGEOUS TO THAT DISTRICT; AND PROVIDING AN EFFECTIVE DATE.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 33-906, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 33-906. BOND LEVY EQUALIZATION SUPPORT PROGRAM. Pursuant to section
14 33-906B or 33-906C, Idaho Code, school districts with a value index below one
15 (1) shall be eligible to receive additional state financial assistance for the
16 cost of annual bond interest and redemption payments made on bonds passed on
17 or after September 15, 2002, pursuant to either section 33-906B or 33-906C,
18 Idaho Code, as determined by the board of trustees of the school district.
19 However, any school district shall receive no less than ten percent (10%) of
20 the interest cost portion of the annual bond interest and redemption payment
21 for bonds passed on or after September 15, 2002. The state department of edu-
22 cation shall disburse such funds to school districts from moneys appropriated
23 from the bond levy equalization fund. The department shall disburse the funds
24 by no later than September 1 of each year for school districts certifying a
25 qualifying bond interest and redemption payment for the fiscal year in which
26 the disbursement is made. For districts with a value index below one (1), the
27 percentage of each annual bond interest and redemption payment that is paid by
28 the state shall be determined by dividing the difference between one (1) and
29 the school district's value index by one (1) provided that the state shall pay
30 for no more than the interest cost portion of the annual bond interest and
31 redemption payment, and each school district shall receive no less than ten
32 percent (10%) of the interest cost portion of the qualifying bond interest and
33 redemption payment.
34 For the purposes of this section, the annual bond interest and redemption
35 payment shall be determined by dividing the total payment amounts by the num-
36 ber of fiscal years in which payments are to be made. The interest cost por-
37 tion of the annual bond interest and redemption payment shall be determined
38 by dividing the total interest paid by the number of fiscal years in which
39 payments are to be made.
40 The provisions of this section may not be utilized to refinance existing
41 debt.
42 SECTION 2. That Chapter 9, Title 33, Idaho Code, be, and the same is
2
1 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
2 ignated as Section 33-906C, Idaho Code, and to read as follows:
3 33-906C. ALTERNATIVE VALUE INDEX CALCULATION. As an alternative to sec-
4 tion 33-906B, Idaho Code, the state department of education shall establish a
5 value index for each school district, based on each school district's market
6 value per support unit for equalization purposes, the free and reduced lunch
7 rate in the school district and the state average of free and reduced lunch
8 rates. The value index for each school district shall be calculated as the sum
9 of the following two (2) components:
10 (1) The state department of education shall annually calculate the market
11 value per support unit that is used to equalize school funding for each school
12 district in the state, and the statewide average. The first portion of the
13 value index shall be calculated by dividing the school district's market value
14 for equalization purposes per support unit by the statewide average market
15 value for equalization per support unit and dividing the result of this calcu-
16 lation by two (2).
17 (2) The second portion of the value index shall be calculated by dividing
18 the statewide free and reduced lunch rate average rate by the school
19 district's free and reduced lunch rate, and dividing the result of this calcu-
20 lation by two (2). For the purposes of this subsection, the statewide free
21 and reduced lunch rate and school district free and reduced lunch rates shall
22 be calculated annually by the state department of education when such figures
23 are available.
24 (3) The board of trustees of a school district shall have the option of
25 utilizing the value index calculation, in this section or in section 33-906B,
26 Idaho Code, that is most advantageous to that district via adopted motion by
27 the board of trustees.
28 SECTION 3. This act shall be in full force and effect on and after Janu-
29 ary 1, 2005.
STATEMENT OF PURPOSE
RS 13216
This amendment to 33-906 allows a school district to choose
the option most advantageous to them in determining the amount
of state support under the bond equalization program. The
existence language only provides for the use of market value,
unemployment, and per capita income as the support amount
factors. The new option allows for the use of free and
reduced lunch price data to be used as an alternative to
unemployment and per capita income, which ever is most
advantageous to the district.
FISCAL IMPACT
No impact for FY04. Beginning in FY05, there will be an
estimated impact of approximately $120,000 escalating to
approximately $2,000,000 in FY23.
Contact
Sen. Gary Schroeder (332-1323)
Dr. Darrel Deide (334-2100)
STATEMENT OF PURPOSE/FISCAL NOTE S 1174