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H0349.....................................................by APPROPRIATIONS BOND LEVY EQUALIZATION PROGRAM - Amends existing law relating to school funds to provide a date by which bonds must be passed for purposes of receiving the minimum of the interest cost portion in the Bond Levy Equalization Support Program; and to provide a reference to each qualifying school district. 03/15 House intro - 1st rdg - to printing 03/16 Rpt prt - to 2nd rdg 03/17 2nd rdg - to 3rd rdg 03/18 Ref'd to Educ
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 349 BY APPROPRIATIONS COMMITTEE 1 AN ACT 2 RELATING TO SCHOOL FUNDS; AMENDING SECTION 33-906, IDAHO CODE, TO PROVIDE A 3 DATE BY WHICH BONDS MUST BE PASSED FOR PURPOSES OF RECEIVING THE MINIMUM 4 OF THE INTEREST COST PORTION IN THE BOND LEVY EQUALIZATION SUPPORT PROGRAM 5 AND TO PROVIDE A REFERENCE TO EACH QUALIFYING SCHOOL DISTRICT; AND DECLAR- 6 ING AN EMERGENCY. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 33-906, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 33-906. BOND LEVY EQUALIZATION SUPPORT PROGRAM. (1) Pursuant to section 11 33-906B, Idaho Code, school districts with a value index below one (1) shall 12 be eligible to receive additional state financial assistance for the cost of 13 annual bond interest and redemption payments made on bonds passed on or after 14 September 15, 2002. However, any school district shall receive no less than 15 ten percent (10%) of the interest cost portion of the annual bond interest and 16 redemption payment for bonds passed on or after September 15, 2002 and prior 17 to July 1, 2005. The state department of education shall disburse such funds 18 to school districts from moneys appropriated from the bond levy equalization 19 fund. The department shall disburse the funds by no later than September 1 of 20 each year for school districts in which voters have approved the issuance of 21 qualifying bonds by no later than January 1 of that calendar year, and which 22 are certifying a qualifying bond interest and redemption payment for the fis- 23 cal year in which the disbursement is made. For districts with a value index 24 below one (1), the percentage of each annual bond interest and redemption pay- 25 ment that is paid by the state shall be determined by dividing the difference 26 between one (1) and the school district's value index by one (1) provided that 27 the state shall pay for no more than the interest cost portion of the annual 28 bond interest and redemption payment, and each qualifying school district 29 shall receive no less than ten percent (10%) of the interest cost portion of 30 the qualifying bond interest and redemption payment. 31 (2) For the purposes of this section, the annual bond interest and 32 redemption payment shall be determined by dividing the total payment amounts 33 by the number of fiscal years in which payments are to be made. The interest 34 cost portion of the annual bond interest and redemption payment shall be 35 determined by dividing the total interest paid by the number of fiscal years 36 in which payments are to be made. For school districts not qualifying for a 37 state payment in the first year of the bond interest and redemption payment 38 schedule, due solely to the January 1 eligibility deadline, the state depart- 39 ment of education shall distribute an additional payment in the next fiscal 40 year, in the amount of such funds that the school district would have other- 41 wise qualified for in the current fiscal year. 42 (3) The provisions of this section may not be utilized to refinance 43 existing debt or subsidize projects previously subsidized by state grants; 2 1 provided however, that any school district that has issued qualifying bonds 2 prior to June 30, 2004, in conformance with this section shall not be deemed 3 to be refinancing existing debt when the qualifying bonds are utilized to 4 finance the acquisition of public school facilities previously leased or 5 financed through means other than the issuance of general obligation bonds 6 approved by a two-thirds (2/3) vote at an election called for that purpose 7 subject to subsection (5) of this section. 8 (4) School districts shall annually report the status of all qualifying 9 bonds to the state department of education by January 1 of each year, includ- 10 ing bonds approved by the voters, but not yet issued. Information submitted 11 shall include the following: 12 (a) The actual or estimated bond interest and redemption payment sched- 13 ule; 14 (b) Any qualifying bond that has been paid off; 15 (c) Other information as may be required by the state department of edu- 16 cation. 17 (5) No school district eligible for participation in the bond levy equal- 18 ization support program shall be deemed ineligible for participation due to 19 that school district's eligibility and prior participation in the safe school 20 facilities loan and grant program or the Idaho safe schools facilities program 21 under section 33-804A, 33-1017 or 33-1613, Idaho Code, provided that: 22 (a) Such school district notifies the state department of education of 23 its desire and eligibility to participate in the bond levy equalization 24 support program; and 25 (b) Such school district shall receive no state financial assistance 26 under the bond levy equalization support program until the amount to which 27 it would otherwise have been entitled to receive shall equal the amounts 28 received by the school district under the safe school facilities loan and 29 grant program or the Idaho safe schools facilities program under section 30 33-804A, 33-1017 or 33-1613, Idaho Code. 31 SECTION 2. An emergency existing therefor, which emergency is hereby 32 declared to exist, this act shall be in full force and effect on and after its 33 passage and approval.
REPRINT REPRINT REPRINT REPRINT STATEMENT OF PURPOSE RS 15140C1 The purpose of this legislation is to remove the requirement that the state’s Bond Levy Equalization program must provide a minimum 10% interest subsidy on school bonds passed by the school districts ranked as most prosperous on a “value index” that takes into account property values, personal income, and unemployment rates. It will not impact current or future subsidies for prosperous school districts that have already passed bonds, or pass bonds prior to July 1, 2005, nor will it impact the over two-thirds of school districts whose low value indices cause them to qualify for larger interest subsidies. FISCAL IMPACT Future state costs avoids, under the Bond Levy Equalization program, will be approximately $25 million over the period from FY07 to FY26, with annual cost avoidance rising to approximately $2.4 million by FY26. Contact Name: Representatives Bedke, Bell, Field, Bolz, Eskridge, Harwood, Skippen, Bayer Phone: (208) 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 349