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H0188.............................................................by EDUCATION
BOND LEVY EQUALIZATION LEVY - Amends existing law to provide that no school
district which passed a bond levy prior to March 1, 2002, shall be eligible to
participate in the bond levy equalization support program; to provide a time
limit for dispersal of funds by the Department of Education to school
districts which have approved qualifying bonds; to provide an additional
payment in the next fiscal year to qualifying districts which lose a payment
in the current fiscal year due to the eligibility deadline; and to require
annual reporting by school districts on the status of qualifying bonds.
02/06 House intro - 1st rdg - to printing
02/07 Rpt prt - to Educ
02/20 Rpt out - rec d/p - to 2nd rdg
02/21 2nd rdg - to 3rd rdg
02/24 3rd rdg - FAILED - 28-39-3
AYES -- Andersen, Bauer, Bieter, Black, Boe, Campbell, Cannon, Cuddy,
Douglas, Field(23), Henbest, Jaquet, Jones, Lake, Langhorst, Martinez,
Mitchell, Naccarato, Ring, Ringo, Robison, Rydalch, Sayler, Shepherd,
Skippen, Smith(30), Trail, Mr. Speaker
NAYS -- Barraclough, Barrett, Bedke, Bell, Block, Bolz, Bradford, Clark,
Collins, Crow, Deal, Denney, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Gagner, Garrett, Harwood, Kulczyk, Langford, McGeachin,
McKague, Meyer, Miller, Moyle, Nielsen, Ridinger, Roberts, Sali,
Schaefer, Shirley, Smith(24), Smylie, Snodgrass, Stevenson, Tilman,
Wills.
Absent and excused -- Kellogg, Raybould, Wood
Floor Sponsor - Cannon
Filed w/Office of the Chief Clerk
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 188
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO THE BOND LEVY EQUALIZATION SUPPORT PROGRAM FOR SCHOOL FACILITIES;
3 AMENDING SECTION 33-802A, IDAHO CODE, TO PROVIDE AN ADJUSTMENT TO ONE OF
4 THE FACTORS USED BY THE BOARD OF TRUSTEES TO CALCULATE THE ANNUAL SCHOOL
5 LEVY; AND AMENDING SECTION 33-906, IDAHO CODE, TO PROVIDE THAT NO SCHOOL
6 DISTRICT WHICH PASSED A BOND LEVY PRIOR TO MARCH 1, 2002, SHALL BE ELIGI-
7 BLE TO PARTICIPATE IN THE BOND LEVY EQUALIZATION SUPPORT PROGRAM, TO PRO-
8 VIDE A TIME LIMIT FOR DISPERSAL OF FUNDS BY THE DEPARTMENT TO SCHOOL DIS-
9 TRICTS WHICH HAVE APPROVED QUALIFYING BONDS, TO PROVIDE AN ADDITIONAL PAY-
10 MENT IN THE NEXT FISCAL YEAR TO QUALIFYING DISTRICTS WHICH LOSE A PAYMENT
11 IN THE CURRENT FISCAL YEAR DUE TO THE ELIGIBILITY DEADLINE AND TO REQUIRE
12 ANNUAL REPORTING BY SCHOOL DISTRICTS ON THE STATUS OF QUALIFYING BONDS.
13 Be It Enacted by the Legislature of the State of Idaho:
14 SECTION 1. That Section 33-802A, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 33-802A. COMPUTATION OF BOND AND BOND INTEREST LEVIES. When the board of
17 trustees of any school district determines and makes the levy required by sec-
18 tion 33-802, Idaho Code, and incorporates such levy as a part of the school
19 district's budget to service all maturing bond and bond interest payments for
20 the ensuing fiscal year, it shall take into consideration any state bond levy
21 equalization funds provided pursuant to section 33-906, Idaho Code, and any
22 balances remaining or that may remain in its bond interest and redemption fund
23 after meeting its bond and bond interest obligations for its current fiscal
24 year. The levy so made for the ensuing fiscal year shall be an amount which,
25 together with any state bond levy equalization funds provided pursuant to sec-
26 tion 33-906, Idaho Code, and the balance in its bond interest and redemption
27 fund remaining after meeting its current fiscal year bond and bond interest
28 obligations, shall satisfy all maturing bond and bond interest payments for at
29 least the ensuing twelve (12) months, and not to exceed the ensuing nineteen
30 twenty-one (219) months counted from July 1 of the current calendar year.
31 SECTION 2. That Section 33-906, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 33-906. BOND LEVY EQUALIZATION SUPPORT PROGRAM. (1) Pursuant to section
34 33-906B, Idaho Code, school districts with a value index below one (1) shall
35 be eligible to receive additional state financial assistance for the cost of
36 annual bond interest and redemption payments made on bonds passed on or after
37 September 15 March 1, 2002. However, any school district shall receive no less
38 than ten percent (10%) of the interest cost portion of the annual bond inter-
39 est and redemption payment for bonds passed on or after September 15 March 1,
40 2002. The state department of education shall disburse such funds to school
41 districts from moneys appropriated from the bond levy equalization fund. The
2
1 department shall disburse the funds by no later than September 1 of each year
2 for school districts in which voters have approved the issuance of qualifying
3 bonds by no later than January 1 of that calendar year, and are certifying a
4 qualifying bond interest and redemption payment for the fiscal year in which
5 the disbursement is made. For districts with a value index below one (1), the
6 percentage of each annual bond interest and redemption payment that is paid
7 by the state shall be determined by dividing the difference between one (1)
8 and the school district's value index by one (1) provided that the state shall
9 pay for no more than the interest cost portion of the annual bond interest
10 and redemption payment, and each school district shall receive no less than
11 ten percent (10%) of the interest cost portion of the qualifying bond interest
12 and redemption payment.
13 (2) For the purposes of this section, the annual bond interest and
14 redemption payment shall be determined by dividing the total payment amounts
15 by the number of fiscal years in which payments are to be made. The interest
16 cost portion of the annual bond interest and redemption payment shall be
17 determined by dividing the total interest paid by the number of fiscal years
18 in which payments are to be made. For school districts not qualifying for a
19 state payment in the first year of the bond interest and redemption payment
20 schedule due solely to the January 1 eligibility deadline, the state depart-
21 ment of education shall distribute an additional payment in the next fiscal
22 year, in the amount of such funds that the school district would have other-
23 wise qualified for in the current fiscal year.
24 (3) School districts shall annually report the status of all qualifying
25 bonds to the state department of education by January 1 of each year, includ-
26 ing bonds approved by the voters but not yet issued. Information submitted
27 shall include the following:
28 (a) The actual or estimated bond interest and redemption payment sched-
29 ule;
30 (b) Any qualifying bond that has been paid off; and
31 (c) Other information as may be designated by the state department of
32 education.
33 (4) The provisions of this section may not be utilized to refinance
34 existing debt.
STATEMENT OF PURPOSE
RS 12558C1
In the second session of the Fifty-Sixth Legislature SB 1474 was
passed and signed into law on March 21, 2002. The bill
stipulated bonds that passed after September 15, 2002, would be
included in this act. The September date was established to
ensure FY 03 was not impacted. The Purpose of this bill is to
include school bonds which were passed after the Governor's
signature, but before the September 15, 2002 date.
The second purpose of this bill is to establish January 1 as a
cut-off date for bonds which are to be included in the next FY
budget. This will facilitate the Legislature being able to
include this item as a set figure.
FISCAL IMPACT
$196,308.00 per year for twenty years, total cost $3,926,160.00.
Contact
Name: Rep. Cannon
Rep. Lake
Speaker Newcomb
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 188