2005 Legislation
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HOUSE BILL NO. 367 – School, maintenance&operations levy

HOUSE BILL NO. 367

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H0367.....................................................by WAYS AND MEANS
SCHOOL MAINTENANCE AND OPERATIONS LEVY - Amends existing law to increase
the maximum school maintenance and operations levy for property tax
replacement purposes when property tax replacement moneys fall below a
certain amount; and to incorporate the amended amount of maximum school
maintenance and operation levy into the local districts' contribution.
                                                                        
03/21    House intro - 1st rdg - to printing
03/22    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 367
                                                                        
                                BY WAYS AND MEANS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SCHOOL LEVIES; AMENDING SECTION 33-802, IDAHO  CODE,  TO  INCREASE
  3        THE  MAXIMUM  SCHOOL  MAINTENANCE  AND  OPERATIONS  LEVY  FOR PROPERTY TAX
  4        REPLACEMENT PURPOSES WHEN PROPERTY TAX REPLACEMENT  MONEYS  FALL  BELOW  A
  5        CERTAIN  AMOUNT;  AMENDING SECTION 33-1002, IDAHO CODE, TO INCORPORATE THE
  6        AMENDED AMOUNT OF MAXIMUM SCHOOL MAINTENANCE AND OPERATIONS LEVY INTO  THE
  7        LOCAL DISTRICTS' CONTRIBUTION; DECLARING AN EMERGENCY AND PROVIDING RETRO-
  8        ACTIVE APPLICATION.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section  33-802, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        33-802.  SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
 13    on the property against which the tax is levied. The board of  trustees  shall
 14    determine  the levies upon each dollar of taxable property in the district for
 15    the ensuing fiscal year as follows:
 16        1.  Bond, Interest and Judgment Obligation Levies. Such levies as shall be
 17    required to satisfy all maturing bond, bond  interest,  and  judgment  obliga-
 18    tions.
 19        2.  Maximum School Maintenance and Operation Levies. Such levies for main-
 20    taining  and  operating  the  schools  of  the district and for the payment of
 21    tuition and transportation, that do not exceed an amount equal to  four-tenths
 22    of  one  percent (.4%) during tax year 1994, and do not exceed an amount equal
 23    to three-tenths of one percent (.3%) during  tax  year  1995  and  thereafter,
 24    applied  to the actual or adjusted market value for assessment purposes of the
 25    district as such valuation existed on December 31 of the previous  year,  plus
 26    the  difference  between  one-tenth  of  one  percent  (.1%) multiplied by the
 27    district's actual or adjusted market value for  assessment  purposes  as  such
 28    valuation  existed  on  December  31  of the previous year less the amount the
 29    school district received pursuant to section 33-1002D, Idaho Code,  for  prop-
 30    erty  tax  replacement purposes, but allowances necessary as a credit for pre-
 31    paid taxes, as provided in section 63-1607, Idaho Code, shall not be  included
 32    in such maximum levies.
 33        3.  Authorized  School  Maintenance  and Operation Levies. Such levies for
 34    maintaining and operating the schools of the district and for the  payment  of
 35    tuition  and  transportation  that  do  not  exceed one hundred eleven percent
 36    (111%) of the local district's contribution authorized  in  subsection  2.  of
 37    section  33-1002, Idaho Code. Implementation of the provisions of this subsec-
 38    tion shall be authorized only after approval by a majority of  the  district's
 39    electors  voting on the question. Levies otherwise authorized by law shall not
 40    require an election.
 41        4.  Supplemental Maintenance and Operation Levies. No levy  in  excess  of
 42    the  levy  permitted by subsection 2. or 3. of this section shall be made by a
 43    noncharter school district unless such a  supplemental  levy  in  a  specified
                                                                        
                                           2
                                                                        
  1    amount  and  for  a specified time not to exceed two (2) years be first autho-
  2    rized through an election held pursuant to chapter 4, title  33,  Idaho  Code,
  3    and approved by a majority of the district electors voting in such election. A
  4    levy approved pursuant to this subsection may be reduced by a majority vote of
  5    the board of trustees in the second year.
  6        5.  Charter District Supplemental Maintenance and Operation. Levies pursu-
  7    ant  to  the  respective  charter  of any such charter district shall be first
  8    authorized through  an election held pursuant to chapter 4,  title  33,  Idaho
  9    Code, and approved by a majority of the district electors voting in such elec-
 10    tion.
 11        6.  The  Local  District Contribution. The local school district contribu-
 12    tion levy is the amount utilized for calculating local district  participation
 13    in the educational foundation program, which is applied to the adjusted market
 14    value for assessment purposes, as such valuation existed on December 31 of the
 15    previous year.
 16        7.  The  board  of  trustees of any school district that has, for at least
 17    seven (7) consecutive years, been authorized through an election held pursuant
 18    to chapter 4, title 33, Idaho Code, to certify a supplemental  levy  that  has
 19    annually  been equal to or greater than twenty percent (20%) of the total gen-
 20    eral maintenance and operation fund, may submit the question of an  indefinite
 21    term  supplemental  levy to the electors of the school district. Such question
 22    shall clearly state the dollar amount that will be certified annually and that
 23    the levy will be for an indefinite number  of  years.  The  question  must  be
 24    approved  by  a majority of the district electors voting on the question in an
 25    election held pursuant to chapter 4, title 33, Idaho Code. The  levy  approved
 26    pursuant  to this subsection may be reduced by a majority vote of the board of
 27    trustees during any fiscal year.
                                                                        
 28        SECTION 2.  That Section 33-1002, Idaho Code, be, and the same  is  hereby
 29    amended to read as follows:
                                                                        
 30        33-1002.  EDUCATIONAL  SUPPORT PROGRAM. The educational support program is
 31    calculated as follows:
 32        1.  State Educational Support Funds. Add the state appropriation,  includ-
 33    ing  the  moneys available in the public school income fund, together with all
 34    miscellaneous revenues to determine the total state funds.
 35        2.  From the total state funds subtract the following amounts  needed  for
 36    state support of special programs provided by a school district:
 37        a.  Pupil  tuition-equivalency allowances as provided in section 33-1002B,
 38        Idaho Code;
 39        b.  Transportation support program as provided in section  33-1006,  Idaho
 40        Code;
 41        c.  Feasibility  studies  allowance as provided in section 33-1007A, Idaho
 42        Code;
 43        d.  The approved costs for border district allowance, provided in  section
 44        33-1403,  Idaho  Code, as determined by the state superintendent of public
 45        instruction;
 46        e.  The approved costs for exceptional child approved contract  allowance,
 47        provided in subsection 2. of section 33-2004, Idaho Code, as determined by
 48        the state superintendent of public instruction;
 49        f.  Certain  expectant and delivered mothers allowance as provided in sec-
 50        tion 33-2006, Idaho Code;
 51        g.  Salary-based apportionment calculated as provided in sections  33-1004
 52        through 33-1004F, Idaho Code;
 53        h.  Unemployment insurance benefit payments according to the provisions of
                                                                        
                                           3
                                                                        
  1        section 72-1349A, Idaho Code;
  2        i.  For expenditure as provided by the public school technology program;
  3        j.  For  the  support of provisions that provide a safe environment condu-
  4        cive to student learning and maintain classroom discipline, an  allocation
  5        of $300 per support unit;
  6        k.  For  expenditure  necessary  to  support the Idaho student information
  7        management system (ISIMS) as provided  in  section  33-120A,  Idaho  Code,
  8        beginning  with  fiscal    year  2005-2006 and each year thereafter, at an
  9        amount not less than that expended by the state and the J.A.  and  Kathryn
 10        Albertson  foundation combined, on operation of the project in fiscal year
 11        2004-2005; and
 12        l.  Any additional amounts as required by statute to effect administrative
 13        adjustments or as specifically required by the provisions of any  bill  of
 14        appropriation;
 15    to secure the state educational support funds.
 16        3.  Local  Districts'  Contribution  Calculation.  Without  including  any
 17    allowance  as a credit for prepaid taxes as provided by section 63-1607, Idaho
 18    Code, the local districts' contribution shall be the amount appropriated  pur-
 19    suant  to section 33-1002D, Idaho Code, plus three-tenths percent (.3%) during
 20    fiscal year 2003-04 and each year thereafter, of the total state adjusted mar-
 21    ket value for assessment purposes for the previous year with such value  being
 22    determined  by  the  provisions  of  section  63-315 the amount of the maximum
 23    school maintenance and operation levy pursuant to  section  33-802  2.,  Idaho
 24    Code,  and  four-tenths percent (.4%) during fiscal year 1994-95 and each year
 25    thereafter, of the cooperative electrical associations' property  values  that
 26    have been derived from the taxes paid in lieu of ad valorem taxes for the pre-
 27    vious year as provided in section 63-3502, Idaho Code.
 28        4.  Educational  Support  Program  Distribution  Funds. Add the local dis-
 29    tricts' contribution, subsection 3. of this section, and the state educational
 30    support program funds, subsection 1. of this section, together to  secure  the
 31    total educational support program distribution funds.
 32        5.  Average  Daily  Attendance.  The  total state average daily attendance
 33    shall be the sum of the average daily attendance of all  of  the  school  dis-
 34    tricts  of  the state. The state board of education shall establish rules set-
 35    ting forth the procedure to determine average daily attendance  and  the  time
 36    for, and method of, submission of such report. Average daily attendance calcu-
 37    lation  shall  be carried out to the nearest hundredth. Computation of average
 38    daily attendance shall also be governed by the provisions of section 33-1003A,
 39    Idaho Code.
 40        6.  Support Units. The total state support units shall  be  determined  by
 41    using  the tables set out hereafter called computation of kindergarten support
 42    units, computation of elementary support units, computation of secondary  sup-
 43    port  units,  computation of exceptional education support units, and computa-
 44    tion of alternative school secondary support units. The  sum  of  all  of  the
 45    total  support  units  of all school districts of the state shall be the total
 46    state support units.
                                                                        
                                           4
                                                                        
  1                      COMPUTATION OF KINDERGARTEN SUPPORT UNITS
  2    Average Daily
  3    Attendance            Attendance Divisor         Units Allowed
  4    41 or more     ....   40.......................  1 or more as computed
  5    31 -  40.99 ADA....    -.......................  1
  6    26 -  30.99 ADA....    -.......................   .85
  7    21 -  25.99 ADA....    -.......................   .75
  8    16 -  20.99 ADA....    -.......................   .6
  9     8 -  15.99 ADA....    -.......................   .5
 10     1 -   7.99 ADA....    -.......................  count as elementary
                                                                        
 11                       COMPUTATION OF ELEMENTARY SUPPORT UNITS
 12    Average Daily
 13    Attendance            Attendance Divisor         Minimum Units Allowed
 14    300 or more ADA........................................  15
 15                        ..23...grades 4,5 & 6....
 16                        ..22...grades 1,2 & 3....1994-95
 17                        ..21...grades 1,2 & 3....1995-96
 18                        ..20...grades 1,2 & 3....1996-97
 19                              and each year thereafter.
 20    160   to  299.99 ADA... 20.....................         8.4
 21    110   to  159.99 ADA... 19.....................         6.8
 22     71.1 to  109.99 ADA... 16.....................         4.7
 23     51.7 to   71.0  ADA... 15.....................         4.0
 24     33.6 to   51.6  ADA... 13.....................         2.8
 25     16.6 to   33.5  ADA... 12.....................         1.4
 26      1.0 to   16.5  ADA... n/a....................         1.0
                                                                        
 27                        COMPUTATION OF SECONDARY SUPPORT UNITS
 28    Average Daily
 29    Attendance            Attendance Divisor         Minimum Units Allowed
 30    750 or more      .... 18.5.....................        47
 31    400 -  749.99 ADA.... 16.......................        28
 32    300 -  399.99 ADA.... 14.5.....................        22
 33    200 -  299.99 ADA.... 13.5.....................        17
 34    100 -  199.99 ADA.... 12.......................         9
 35     99.99 or fewer       Units allowed as follows:
 36             Grades 7-12  .........................         8
 37             Grades 9-12  .........................         6
 38             Grades 7- 9  .........................         1 per 14 ADA
 39             Grades 7- 8  .........................         1 per 16 ADA
                                                                        
 40                  COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
 41    Average Daily
 42    Attendance            Attendance Divisor         Minimum Units Allowed
 43    14 or more ....       14.5.....................  1 or more as computed
 44    12 -  13.99....        -.......................  1
 45     8 -  11.99....        -.......................   .75
 46     4 -   7.99....        -.......................   .5
 47     1 -   3.99....        -.......................   .25
                                                                        
 48              COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
 49    Pupils in Attendance  Attendance Divisor         Minimum Units Allowed
 50    12 or more..........  12......................   1 or more as computed
                                                                        
                                           5
                                                                        
  1        In applying these tables to any given separate attendance unit, no  school
  2    district  shall  receive  less  total  money than it would receive if it had a
  3    lesser average daily attendance in such separate attendance unit. In  applying
  4    the  kindergarten  table  to  a  kindergarten program of less days than a full
  5    school year, the support unit allowance shall be in ratio  to  the  number  of
  6    days  of a full school year. The tables for exceptional education and alterna-
  7    tive school secondary support units shall  be  applicable  only  for  programs
  8    approved  by  the state department of education following rules established by
  9    the state board of education. Moneys generated  from  computation  of  support
 10    units  for  alternative  schools shall be utilized for alternative school pro-
 11    grams. School district administrative and facility costs may  be  included  as
 12    part of the alternative school expenditures.
 13        7.  State Distribution Factor per Support Unit. Divide educational support
 14    program distribution funds, after subtracting the amounts necessary to pay the
 15    obligations  specified  in  subsection  2. of this section, by the total state
 16    support units to secure the state distribution factor per support unit.
 17        8.  District Share of State Funds for Educational Support Program.  Ascer-
 18    tain  a district's share of state funds for the educational support program as
 19    follows:
 20        a.  District Contribution Calculation. Without including any allowance  as
 21        a  credit  for  prepaid taxes, as provided in section 63-1607, Idaho Code,
 22        the district contribution  calculation shall be the rate determined  under
 23        subsection 3. of this section.
 24        b.  District  Support  Units.  The number of support units for each school
 25        district in the state shall be determined as follows:
 26             (1)  Divide the actual average daily attendance,  excluding  students
 27             approved  for inclusion in the exceptional child educational program,
 28             for the administrative schools and each of the separate  schools  and
 29             attendance  units  by the appropriate divisor from the tables of sup-
 30             port units in this section, then add  the  quotients  to  obtain  the
 31             district's support units allowance for regular students, kindergarten
 32             through  grade  12  including  alternative school secondary students.
 33             Calculations in application of this subsection shall be  carried  out
 34             to the nearest tenth.
 35             (2)  Divide  the  combined  totals of the average daily attendance of
 36             all preschool, handicapped, kindergarten, elementary,  secondary  and
 37             juvenile  detention  center  students  approved  for inclusion in the
 38             exceptional child program of the district by the appropriate  divisor
 39             from the table for computation of exceptional education support units
 40             to  obtain  the  number  of  support units allowed for the district's
 41             approved exceptional child program. Calculations for this  subsection
 42             shall be carried out to the nearest tenth when more than one (1) unit
 43             is allowed.
 44             (3)  The  total  number of support units of the district shall be the
 45             sum of the total  support  units  for  regular  students,  subsection
 46             8.b.(1)  of  this  section,  and  the support units allowance for the
 47             approved exceptional child program, subsection 8.b.(2) of  this  sec-
 48             tion.
 49        c.  Total  District Allowance Educational Program. Multiply the district's
 50        total number of support units, carried out to the nearest  tenth,  by  the
 51        state  distribution  factor  per  support unit and to this product add the
 52        approved amount of programs of the district provided in subsection  2.  of
 53        this  section to secure the district's total allowance for the educational
 54        support program.
 55        d.  District Share. To secure the district's share of state apportionment,
                                                                        
                                           6
                                                                        
  1        subtract the amount of the local district contribution  calculation,  sub-
  2        section  3.  of this section, from the amount of the total district allow-
  3        ance, subsection 8.c. of this section.
  4        e.  Adjustment of District Share. The contract salary of every noncertifi-
  5        cated teacher shall be subtracted from the district's share as  calculated
  6        from the provisions of subsection 8.d. of this section.
                                                                        
  7        SECTION  3.  An  emergency  existing  therefor,  which emergency is hereby
  8    declared to exist, this act shall be in full force and effect on and after its
  9    passage and approval, and retroactively to January 1, 2005.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15176

This legislation permits school districts to levy property tax to
make up the difference between the annual $75 million state
appropriation for school property tax replacement and the actual
amount needed to fully fund up to 0.001 multiplied by the prior
year's actual or adjusted market value for assessment purposes of
the school district.  This retains the guarantee that the 0.001
will be met, as promised, in legislation enacted by the
legislature in 1995.


                           FISCAL NOTE 
      
Some increases in property taxes to offset lost school funding.




Contact
Name:  Representative Wendy Jaquet
Phone: 208-332-1000




STATEMENT OF PURPOSE/FISCAL NOTE                    H 367