View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
S1144..........................................................by EDUCATION
NEW SCHOOL FACILITY SUPPORT - Adds to and amends existing law relating to
the education support program to provide a new school facility support
factor; to specify the method of calculation of the support factor; and to
provide allocation of moneys from the sales tax distribution fund.
02/14 Senate intro - 1st rdg - to printing
02/15 Rpt prt - to Educ
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE SENATE
SENATE BILL NO. 1144
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO THE EDUCATION SUPPORT PROGRAM; AMENDING CHAPTER 10, TITLE 33,
3 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-1002H, IDAHO CODE, TO PRO-
4 VIDE A NEW SCHOOL FACILITY SUPPORT FACTOR, TO SPECIFY THE METHOD OF CALCU-
5 LATION OF THE SUPPORT FACTOR AND TO PROVIDE ALLOCATION OF MONEYS FROM THE
6 SALES TAX DISTRIBUTION FUND; AMENDING SECTION 63-3638, IDAHO CODE, AS
7 AMENDED BY SECTION 3, CHAPTER 104, LAWS OF 2004, TO PROVIDE THAT THE
8 AMOUNT REQUIRED BY THE PROVISIONS OF THE NEW SCHOOL FACILITY SUPPORT FAC-
9 TOR BE TRANSFERRED FROM THE STATE TAX DISTRIBUTION FUND AND TO PROVIDE
10 CORRECT CODE REFERENCES; AMENDING SECTION 63-316, IDAHO CODE, TO PROVIDE
11 CORRECT CODE REFERENCES; AND PROVIDING EFFECTIVE DATES.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Chapter 10, Title 33, Idaho Code, be, and the same is
14 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
15 ignated as Section 33-1002H, Idaho Code, and to read as follows:
16 33-1002H. NEW SCHOOL FACILITY SUPPORT FACTOR. The purpose of this section
17 is to recognize and support the unusual costs incurred in the first years of
18 operation of a new school facility. A district shall receive this additional
19 support in bringing the new facility into full service for the first three (3)
20 years after the school opens.
21 The new school facility support factor shall be calculated as follows: The
22 per pupil expenditure for the district in the previous school year shall be
23 multiplied by two-tenths (.2), and the resulting figure shall be multiplied by
24 the projected capacity of the new school facility. The amount so determined
25 shall be the additional support distributed to the district in the first year
26 of operation of the new facility. In the second year of operation, the amount
27 distributed shall be fifty percent (50%) of the first year distribution, and
28 in the third year, the amount distributed shall be twenty-five percent (25%)
29 of the first year distribution. Thereafter, no additional distribution shall
30 be provided based upon the specific new school.
31 Calculation of the new school facility support factor shall be in addition
32 to and not a replacement for any other support calculations pursuant to the
33 education support program. Funds for the new school facility support factor
34 shall be paid upon certification of the department of education to the state
35 tax commission pursuant to the provisions of section 63-3638(8), Idaho Code.
36 SECTION 2. That Section 63-3638, Idaho Code, as amended by Section 3,
37 Chapter 104, Laws of 2004, be, and the same is hereby amended to read as fol-
38 lows:
39 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
40 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
41 be distributed by the tax commission as follows:
2
1 (1) An amount of money shall be distributed to the state refund account
2 sufficient to pay current refund claims. All refunds authorized under this
3 chapter by the commission shall be paid through the state refund account, and
4 those moneys are continuously appropriated.
5 (2) Five million dollars ($5,000,000) per year is continuously appropri-
6 ated and shall be distributed to the permanent building fund, provided by sec-
7 tion 57-1108, Idaho Code.
8 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
9 continuously appropriated and shall be distributed to the water pollution con-
10 trol account established by section 39-3605, Idaho Code.
11 (4) An amount equal to the sum required to be certified by the chairman
12 of the Idaho housing and finance association to the state tax commission pur-
13 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
14 ated and shall be paid to any capital reserve fund, established by the Idaho
15 housing and finance association pursuant to section 67-6211, Idaho Code. Such
16 amounts, if any, as may be appropriated hereunder to the capital reserve fund
17 of the Idaho housing and finance association shall be repaid for distribution
18 under the provisions of this section, subject to the provisions of section
19 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
20 possible, from any moneys available therefor and in excess of the amounts
21 which the association determines will keep it self-supporting.
22 (5) An amount equal to the sum required by the provisions of section
23 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
24 by section 63-709, Idaho Code.
25 (6) An amount required by the provisions of chapter 53, title 33, Idaho
26 Code.
27 (7) An amount required by the provisions of chapter 87, title 67, Idaho
28 Code.
29 (8) An amount required by the provisions of section 33-1002H, Idaho Code.
30 (9) One dollar ($1.00) on each application for certificate of title or
31 initial application for registration of a motor vehicle, snowmobile, all-
32 terrain vehicle or other vehicle processed by the county assessor or the Idaho
33 transportation department excepting those applications in which any sales or
34 use taxes due have been previously collected by a retailer, shall be a fee for
35 the services of the assessor of the county or the Idaho transportation depart-
36 ment in collecting such taxes, and shall be paid into the current expense fund
37 of the county or state highway account established in section 40-702, Idaho
38 Code.
39 (910) Thirteen and three-quarters percent (13.75%) is continuously appro-
40 priated and shall be distributed to the revenue sharing account which is cre-
41 ated in the state treasury, and the moneys in the revenue sharing account will
42 be paid in installments each calendar quarter by the tax commission as fol-
43 lows:
44 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
45 ious cities as follows:
46 (i) Fifty percent (50%) of such amount shall be paid to the various
47 cities, and each city shall be entitled to an amount in the propor-
48 tion that the population of that city bears to the population of all
49 cities within the state; and
50 (ii) Fifty percent (50%) of such amount shall be paid to the various
51 cities, and each city shall be entitled to an amount in the propor-
52 tion that the preceding year's market value for assessment purposes
53 for that city bears to the preceding year's market value for assess-
54 ment purposes for all cities within the state.
55 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
3
1 ious counties as follows:
2 (i) One million three hundred twenty thousand dollars ($1,320,000)
3 annually shall be distributed one forty-fourth (1/44) to each of the
4 various counties; and
5 (ii) The balance of such amount shall be paid to the various coun-
6 ties, and each county shall be entitled to an amount in the propor-
7 tion that the population of that county bears to the population of
8 the state;
9 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
10 ated in this subsection (910) shall be paid to the several counties for
11 distribution to the cities and counties as follows:
12 (i) Each city and county which received a payment under the provi-
13 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
14 calendar year 1999, shall be entitled to a like amount during suc-
15 ceeding calendar quarters.
16 (ii) If the dollar amount of money available under this subsection
17 (910)(c) in any quarter does not equal the amount paid in the fourth
18 quarter of calendar year 1999, each city's and county's payment shall
19 be reduced proportionately.
20 (iii) If the dollar amount of money available under this subsection
21 (910)(c) in any quarter exceeds the amount paid in the fourth quarter
22 of calendar year 1999, each city and county shall be entitled to a
23 proportionately increased payment, but such increase shall not exceed
24 one hundred five percent (105%) of the total payment made in the
25 fourth quarter of calendar year 1999.
26 (iv) If the dollar amount of money available under this subsection
27 (910)(c) in any quarter exceeds one hundred five percent (105%) of
28 the total payment made in the fourth quarter of calendar year 1999,
29 any amount over and above such one hundred five percent (105%) shall
30 be paid fifty percent (50%) to the various cities in the proportion
31 that the population of the city bears to the population of all cities
32 within the state, and fifty percent (50%) to the various counties in
33 the proportion that the population of a county bears to the popula-
34 tion of the state; and
35 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
36 this subsection (910) shall be paid to the several counties for distribu-
37 tion to special purpose taxing districts as follows:
38 (i) Each such district which received a payment under the provi-
39 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
40 calendar year 1999, shall be entitled to a like amount during suc-
41 ceeding calendar quarters.
42 (ii) If the dollar amount of money available under this subsection
43 (910)(d) in any quarter does not equal the amount paid in the fourth
44 quarter of calendar year 1999, each special purpose taxing district's
45 payment shall be reduced proportionately.
46 (iii) If the dollar amount of money available under this subsection
47 (910)(d) in any quarter exceeds the amount distributed under para-
48 graph (i) of this subsection (910)(d), each special purpose taxing
49 district shall be entitled to a share of the excess based on the pro-
50 portion each such district's current property tax budget bears to the
51 sum of the current property tax budgets of all such districts in the
52 state. The state tax commission shall calculate district current
53 property tax budgets to include any unrecovered foregone amounts as
54 determined under section 63-802(1)(e), Idaho Code. When a special
55 purpose taxing district is situated in more than one (1) county, the
4
1 tax commission shall determine the portion attributable to the spe-
2 cial purpose taxing district from each county in which it is situ-
3 ated.
4 (iv) If special purpose taxing districts are consolidated, the
5 resulting district is entitled to a base amount equal to the sum of
6 the base amounts which were received in the last calendar quarter by
7 each district prior to the consolidation.
8 (v) If a special purpose taxing district is dissolved or
9 disincorporated, the state tax commission shall continuously distrib-
10 ute to the board of county commissioners an amount equal to the last
11 quarter's distribution prior to dissolution or disincorporation. The
12 board of county commissioners shall determine any redistribution of
13 moneys so received.
14 (vi) Taxing districts formed after January 1, 2001, are not entitled
15 to a payment under the provisions of this subsection (910)(d).
16 (vii) For purposes of this subsection (910)(d), a special purpose
17 taxing district is any taxing district which is not a city, a county
18 or a school district.
19 (101) Amounts calculated in accordance with section 2, chapter 356, Llaws
20 of 2001, for annual distribution to counties and other taxing districts begin-
21 ning in October 2001 for replacement of property tax on farm machinery and
22 equipment exempted pursuant to section 63-602EE, Idaho Code. For nonschool
23 districts, the state tax commission shall distribute one-fourth (1/4) of this
24 amount certified quarterly to each county. For school districts, the state tax
25 commission shall distribute one-fourth (1/4) of the amount certified quarterly
26 to each school district. For nonschool districts, the county auditor shall
27 distribute to each district within thirty (30) calendar days from receipt of
28 moneys from the tax commission. Moneys received by each taxing district for
29 replacement shall be utilized in the same manner and in the same proportions
30 as revenues from property taxation. The moneys remitted to the county trea-
31 surer for replacement of property exempt from taxation pursuant to section
32 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
33 tricts and budgeted at the same time, in the same manner and in the same year
34 as revenues from taxation on personal property which these moneys replace. If
35 taxing districts are consolidated, the resulting district is entitled to an
36 amount equal to the sum of the amounts which were received in the last calen-
37 dar quarter by each district pursuant to this subsection prior to the consoli-
38 dation. If a taxing district is dissolved or disincorporated, the state tax
39 commission shall continuously distribute to the board of county commissioners
40 an amount equal to the last quarter's distribution prior to dissolution or
41 disincorporation. The board of county commissioners shall determine any redis-
42 tribution of moneys so received. If a taxing district annexes territory, the
43 distribution of moneys received pursuant to this subsection shall be unaf-
44 fected. Taxing districts formed after January 1, 2001, are not entitled to a
45 payment under the provisions of this subsection. School districts shall
46 receive an amount determined by multiplying the sum of the year 2000 school
47 district levy plus .001 times the market value on December 31, 2000, in the
48 district of the property exempt from taxation pursuant to section 63-602EE,
49 Idaho Code. For school districts, beginning January 1, 2002, only the portion
50 of property tax replacement received to replace property exempt from taxation
51 pursuant to section 63-602EE, Idaho Code, based on the tax year 2000 tax
52 charges for maintenance and operation as limited by sections 33-802 2. and
53 33-1002D, Idaho Code, shall not be subtracted from the maximum school district
54 maintenance and operation property taxes permitted in accordance with section
55 33-802 2., Idaho Code. For purposes of the limitation provided by section
5
1 63-802, Idaho Code, moneys received pursuant to this section as property tax
2 replacement for property exempt from taxation pursuant to section 63-602EE,
3 Idaho Code, shall be treated as property tax revenues.
4 (112) Any moneys remaining over and above those necessary to meet and
5 reserve for payments under other subsections of this section shall be distrib-
6 uted to the general fund.
7 SECTION 3. That Section 63-316, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-316. ADJUSTMENT OF ASSESSED VALUE -- COMPLETION OF ASSESSMENT PROGRAM
10 BY STATE TAX COMMISSION -- PAYMENT OF COSTS. (1) Whenever the state tax com-
11 mission, after a hearing, determines that any county assessor or the county
12 commissioners in assessing property in the county subject to taxation have
13 failed to abide by, adhere to and conform with the laws of the state of Idaho
14 and the rules of the state tax commission in determining market value for
15 assessment purposes, the state tax commission shall order the county assessor
16 and county commissioners of such county to make the necessary changes or cor-
17 rections in such assessments and if the county assessor and the county commis-
18 sioners refuse or neglect to comply with such order, the state tax commission
19 is authorized to and shall forthwith adjust or change the property roll in
20 such county.
21 (2) In lieu of the hearings and actions permitted in subsection (1) of
22 this section, the state tax commission shall monitor each county's implementa-
23 tion of the continuing appraisal required in section 63-314, Idaho Code, and
24 may require each county to file such reports of its progress at implementation
25 of such continuing appraisals as the commission may find necessary. In the
26 event that the commission finds that any county is failing to meet the
27 requirements of section 63-314, Idaho Code, the commission may order that
28 county's indexing or appraisal or reappraisal programs be conducted under the
29 exclusive and complete control of the state tax commission and the results of
30 such programs shall be binding upon the county officers of the county for
31 which ordered. Payments for the actual cost of such programs shall be made
32 from the sales tax distribution created in section 63-3638, Idaho Code, and
33 the amount of such payments shall be withheld from the payments otherwise made
34 under the provisions of section 63-3638(910)(c) and (910)(d), Idaho Code, to
35 the county for which indexing, appraisal or reappraisal has been ordered, and
36 this subsection shall constitute the necessary appropriation to accomplish
37 such payments, any other provision of law notwithstanding.
38 SECTION 4. Section 1 of this act shall be in full force and effect on and
39 after July 1, 2005. Sections 2 and 3 of this act shall be in full force and
40 effect on and after August 1, 2005.
STATEMENT OF PURPOSE
RS 14902
When the public school funding formula became law in 1994, the rapid
population growth in many parts of the state was not anticipated. This rapid
growth required numerous new school facilities and exposed a significant
iniquity in the law. There was not adequate provision for funding start-up
costs of new facilities in fast growing districts. Enrollment increases in
some districts have been so great, it is crippling district budgets. For
example, in Joint School District No. 2 ("Meridian School District") an
additional 1500 students enrolled at the start of school last fall. Since the
start of the school year, an additional 500 students have enrolled, bringing
this year's growth to 2,000 or over 7%.
These rapid increases in enrollment necessitate continued bond elections to
build new school facilities. Combined, the Kuna and Nampa School District are
bonding to build three elementary schools and a high school. In the last four
years Meridian School District has opened eight schools with two more under
construction. An additional six schools are needed by 2008. Other districts,
including Vallivue, Coeur D'Alene, and Middleton, are also experiencing rapid
growth.
The on-going operational costs associated with the opening of school
facilities place a unique financial burden on rapidly-growing school
districts. As new schools open, districts incur significant additional
operating and maintenance costs for each new facility (heat, electricity,
counselors, librarians, custodial staff, specialized class-room instructors,
school principals, etc).
This legislation provides a reasonable solution to the problems of rapidly
growing school districts, problems that were overlooked when the funding
formula law was passed in 1994.
Specifically, based on each district's cost-per-pupil, Section 33-1002F would
provide funding in a new school's first year of operation equal to 100% of the
operating costs. In the second year of operation, the funding would decrease
to 50%. In year three, the costs would decrease to 25%. After year three, no
additional funding would be provided.
FISCAL NOTE
The FY06 cost of funding the start-up costs of new school facilities that will
open in FY06 is estimated at $2.4 million.
Contacts:
Board Chairman Mike Vuittonet Meridian Joint School District Phone: 870-9981
Eric Exline Meridian Joint School District
Phone:855-4500
Rep. Ann Rydalch
Sen. Hal Bunderson
STATEMENT OF PURPOSE/FISCAL NOTE S 1144