2003 Legislation
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HOUSE BILL NO. 189 – School dist, value index calculatn

HOUSE BILL NO. 189

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Daily Data Tracking History



H0189.............................................................by EDUCATION
SCHOOL DISTRICTS - Amends existing law to revise how a school district's value
index is calculated by using the free and reduced lunch rate in the school
compared to the state average of free and reduced lunch rates.
                                                                        
02/06    House intro - 1st rdg - to printing
02/07    Rpt prt - to Educ

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 189
                                                                        
                                   BY EDUCATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE VALUE INDEX CALCULATION FOR SCHOOL DISTRICTS; AMENDING SECTION
  3        33-906B, IDAHO CODE, TO REVISE HOW A SCHOOL DISTRICT'S VALUE INDEX IS CAL-
  4        CULATED; AND DECLARING AN EMERGENCY.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION 1.  That Section 33-906B, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
                                                                        
  8        33-906B.  VALUE INDEX CALCULATION. The state department of education shall
  9    establish  a  value  index  for  each  school  district,  based on each school
 10    district's market value per support unit for equalization purposes, the  aver-
 11    age annual seasonally-adjusted unemployment rate in the county in which a plu-
 12    rality  of  the school district's market value for assessment purposes of tax-
 13    able property is located and the per capita income free and reduced lunch rate
 14    in the county in which a plurality of the school district's market  value  for
 15    assessment  purposes  is located school district and the state average of free
 16    and reduced lunch rates. The value index for each  school  district  shall  be
 17    calculated as the sum of the following three (3) two (2) components:
 18        (1)  The state department of education shall annually calculate the market
 19    value per support unit that is used to equalize school funding for each school
 20    district  in  the  state,  and  one  hundred twenty-five percent (125%) of the
 21    statewide average. The first portion of the value index shall be calculated by
 22    dividing the school district's market value for equalization purposes per sup-
 23    port unit by the statewide average market value for equalization  per  support
 24    unit and dividing the result of this calculation by two (2).
 25        (2)  The second portion of the value index shall be calculated by dividing
 26    the  statewide  unemployment  rate  by  the unemployment rate in the county in
 27    which a plurality of the school district's market value  for  assessment  pur-
 28    poses  of taxable property is located free and reduced lunch rate average rate
 29    by one hundred twenty-five percent (125%) of  the school district's  free  and
 30    reduced  lunch  rate,  and dividing the result of this calculation by four two
 31    (42). For the purposes of this subsection, the statewide unemployment free and
 32    reduced lunch rate and county unemployment school district  free  and  reduced
 33    lunch  rates  shall  be  based  on  the most recent average annual seasonally-
 34    adjusted unemployment rate data reported by the United  States  department  of
 35    labor, for which there is a complete calendar year of data calculated annually
 36    by the state department of education when such figures are available.
 37        (3)  The  third portion of the value index shall be calculated by dividing
 38    the county per capita income in the county in which a plurality of the  school
 39    district's market value for assessment purposes of taxable property is located
 40    by  the  statewide per capita income, and dividing the result of this calcula-
 41    tion by four (4). For the purposes of this subsection, the statewide per  cap-
 42    ita income and county per capita income shall be based on the most recent data
 43    reported  by  the  United  States department of commerce, for which there is a
                                                                        
                                           2
                                                                        
  1    complete calendar year of data.
                                                                        
  2        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
  3    declared to exist, this act shall be in full force and effect on and after its
  4    passage and approval.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                            RS 12476C1

The purpose of this legislation is to amend the value index
calculation in Section 33-906B, Idaho Code, providing a subsidy to
school districts passing bond issues after September 15, 2002.  Each
school districts free and reduced lunch rates will replace the county
unemployment rate data reported by the United States Department of
Labor and the county per capita income as determined by the United
States Department of Commerce in determining the value index
calculation.  The second component is the market value per support
unit determined by the State Department of Education that is used to
equalize school funding for each school district in the state, and
the statewide average.  This change ensures that all data used in
calculating the value index is school district specific.
                               FISCAL IMPACT
The original legislation SB1474 estimated that in FY '04, the impact
will be approximately $1,000,000, in FY '05,$1,5000,000 and
escalating each year for 20 years reaching a maximum plateau of $16 -
$20,000,000 in 20 years.  It is estimated that the change in the
value index will yield an economic impact consistent with the above 
figure. 
Contact:                        
Name:    Rep. Tom Trail
Phone:   332-1202                


STATEMENT OF PURPOSE/FISCAL NOTE                           H 189