2006 Legislation
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HOUSE BILL NO. 479 – Public school financing

HOUSE BILL NO. 479

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H0479...............................................by REVENUE AND TAXATION
PUBLIC SCHOOL FINANCING - Amends and adds to existing law to revise how
maximum school maintenance and operation levies are calculated for tax year
2006 and thereafter; to revise the local districts' contribution
calculation; to provide that charter school districts must reduce property
tax levies to be eligible to receive state funds; to provide that the
purpose of section 33-1002D, Idaho Code, is to provide ongoing property tax
relief; to provide that moneys in the fund shall be state discretionary
funds; to provide for transfer of excess revenues of the General Fund upon
certain circumstances occurring; and to provide for transfers to the Public
School Income Fund for property tax relief purposes.
                                                                        
01/26    House intro - 1st rdg - to printing
01/27    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 479
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO FINANCING OF THE PUBLIC SCHOOLS; AMENDING  SECTION  33-802,  IDAHO
  3        CODE,  TO  REVISE  HOW MAXIMUM SCHOOL MAINTENANCE AND OPERATION LEVIES ARE
  4        CALCULATED FOR TAX YEAR 2006 AND  THEREAFTER;  AMENDING  SECTION  33-1002,
  5        IDAHO CODE, TO REVISE THE LOCAL DISTRICTS' CONTRIBUTION CALCULATION AND TO
  6        PROVIDE  THAT  CHARTER SCHOOL DISTRICTS MUST REDUCE PROPERTY TAX LEVIES TO
  7        BE ELIGIBLE TO RECEIVE STATE FUNDS; AMENDING SECTION 33-1002D, IDAHO CODE,
  8        TO PROVIDE THAT THE PURPOSE OF THE SECTION IS TO PROVIDE ONGOING  PROPERTY
  9        TAX  RELIEF  AND TO PROVIDE THAT MONEYS IN THE FUND SHALL BE STATE DISCRE-
 10        TIONARY FUNDS; AND AMENDING CHAPTER 68, TITLE 67, IDAHO CODE, BY THE ADDI-
 11        TION OF A NEW SECTION 67-6804, IDAHO CODE,  TO  PROVIDE  FOR  TRANSFER  OF
 12        EXCESS  REVENUES OF THE GENERAL FUND  UPON CERTAIN CIRCUMSTANCES OCCURRING
 13        AND TO PROVIDE FOR TRANSFERS TO THE PUBLIC SCHOOL INCOME FUND.
                                                                        
 14    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 15        SECTION 1.  That Section 33-802, Idaho Code, be, and the  same  is  hereby
 16    amended to read as follows:
                                                                        
 17        33-802.  SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
 18    on  the  property against which the tax is levied. The board of trustees shall
 19    determine the levies upon each dollar of taxable property in the district  for
 20    the ensuing fiscal year as follows:
 21        1.  Bond, Interest and Judgment Obligation Levies. Such levies as shall be
 22    required  to  satisfy  all  maturing bond, bond interest, and judgment obliga-
 23    tions.
 24        2.  Maximum School Maintenance and Operation Levies. Such levies for main-
 25    taining and operating the schools of the  district  and  for  the  payment  of
 26    tuition  and transportation, that do not exceed an amount equal to four-tenths
 27    of one percent (.4%) during tax year 1994, and do not exceed an  amount  equal
 28    to three-tenths of one percent (.3%) during tax year 1995 and thereafter 2005,
 29    applied  to the actual or adjusted market value for assessment purposes of the
 30    district as such valuation existed on December 31 of the  previous  year,  but
 31    allowances  necessary  as  a  credit for prepaid taxes, as provided in section
 32    63-1607, Idaho Code, shall not be included in such  maximum  levies.  Provided
 33    however,  that  in  the  event property within a district's boundaries is con-
 34    tained in a revenue allocation area established under chapter  29,  title  50,
 35    Idaho  Code,  and such revenue allocation area has given notice of termination
 36    thereunder, then, only for the purpose of determining the  levy  described  in
 37    this  subsection, the district may add the increment value, as defined in sec-
 38    tion 50-2903, Idaho Code, to the actual or adjusted market value  for  assess-
 39    ment purposes of the district as such value existed on December 31 of the pre-
 40    vious year. For tax year 2006 and thereafter, the levy rate limitation of this
 41    subsection shall be modified as follows:
 42        (a)  Multiply the amount of money raised statewide in the prior year, pur-
 43        suant to this section, by 1.03;
                                                                        
                                           2
                                                                        
  1        (b)  Subtract  the  value  of  any  increase in statewide market value for
  2        assessment purposes resulting from new construction or change of land  use
  3        classification  as  evidenced  by  the value shown on the new construction
  4        roll compiled pursuant to section 63-301A, Idaho Code, from the actual  or
  5        adjusted  statewide  market value as such valuation existed on December 31
  6        of the previous year;
  7        (c)  Divide the amount in subsection 2.(a) of this section by  the  amount
  8        in subsection 2.(c) of this section;
  9        (d)  Reduce the rate resulting from the calculation in subsection 2.(c) of
 10        this  section  by  an  amount equal to the moneys appropriated pursuant to
 11        section 33-1002D, Idaho Code.
 12        3.  Authorized School Maintenance and Operation Levies.  Such  levies  for
 13    maintaining  and  operating the schools of the district and for the payment of
 14    tuition and transportation that do  not  exceed  one  hundred  eleven  percent
 15    (111%)  of  the  local  district's contribution authorized in subsection 2. of
 16    section 33-1002, Idaho Code. Implementation of the provisions of this  subsec-
 17    tion  shall  be authorized only after approval by a majority of the district's
 18    electors voting on the question. Levies otherwise authorized by law shall  not
 19    require an election.
 20        4.  Supplemental  Maintenance  and  Operation Levies. No levy in excess of
 21    the levy permitted by subsection 2. or 3. of this section shall be made  by  a
 22    noncharter  school  district  unless  such  a supplemental levy in a specified
 23    amount and for a specified time not to exceed two (2) years  be  first  autho-
 24    rized  through  an  election held pursuant to chapter 4, title 33, Idaho Code,
 25    and approved by a majority of the district electors voting in such election. A
 26    levy approved pursuant to this subsection may be reduced by a majority vote of
 27    the board of trustees in the second year.
 28        5.  Charter District Supplemental Maintenance and Operation. Levies pursu-
 29    ant to the respective charter of any such  charter  district  shall  be  first
 30    authorized  through  an  election  held pursuant to chapter 4, title 33, Idaho
 31    Code, and approved by a majority of the district electors voting in such elec-
 32    tion.
 33        6.  The Local District Contribution. The local school  district  contribu-
 34    tion  levy is the amount utilized for calculating local district participation
 35    in the educational foundation program, which is applied to the adjusted market
 36    value for assessment purposes, as such valuation existed on December 31 of the
 37    previous year, together with  the  increment  value,  as  defined  in  section
 38    50-2903, Idaho Code, if applicable under the circumstance described in subsec-
 39    tion 2. of this section, relating to termination of a revenue allocation area.
 40        7.  The  board  of  trustees of any school district that has, for at least
 41    seven (7) consecutive years, been authorized through an election held pursuant
 42    to chapter 4, title 33, Idaho Code, to certify a supplemental  levy  that  has
 43    annually  been equal to or greater than twenty percent (20%) of the total gen-
 44    eral maintenance and operation fund, may submit the question of an  indefinite
 45    term  supplemental  levy to the electors of the school district. Such question
 46    shall clearly state the dollar amount that will be certified annually and that
 47    the levy will be for an indefinite number  of  years.  The  question  must  be
 48    approved  by  a majority of the district electors voting on the question in an
 49    election held pursuant to chapter 4, title 33, Idaho Code. The  levy  approved
 50    pursuant  to this subsection may be reduced by a majority vote of the board of
 51    trustees during any fiscal year.
                                                                        
 52        SECTION 2.  That Section 33-1002, Idaho Code, be, and the same  is  hereby
 53    amended to read as follows:
                                                                        
                                           3
                                                                        
  1        33-1002.  EDUCATIONAL  SUPPORT PROGRAM. The educational support program is
  2    calculated as follows:
  3        1.  State Educational Support Funds. Add the state appropriation,  includ-
  4    ing  the  moneys available in the public school income fund, together with all
  5    miscellaneous revenues to determine the total state funds.
  6        2.  From the total state funds subtract the following amounts  needed  for
  7    state  support of special programs provided by a school district:
  8        a.  Pupil  tuition-equivalency allowances as provided in section 33-1002B,
  9        Idaho Code;
 10        b.  Transportation support program as provided in section  33-1006,  Idaho
 11        Code;
 12        c.  Feasibility  studies  allowance as provided in section 33-1007A, Idaho
 13        Code;
 14        d.  The approved costs for border district allowance, provided in  section
 15        33-1403,  Idaho  Code, as determined by the state superintendent of public
 16        instruction;
 17        e.  The approved costs for exceptional child approved contract  allowance,
 18        provided in subsection 2. of section 33-2004, Idaho Code, as determined by
 19        the state superintendent of public instruction;
 20        f.  Certain  expectant and delivered mothers allowance as provided in sec-
 21        tion 33-2006, Idaho Code;
 22        g.  Salary-based apportionment calculated as provided in sections  33-1004
 23        through 33-1004F, Idaho Code;
 24        h.  Unemployment insurance benefit payments according to the provisions of
 25        section 72-1349A, Idaho Code;
 26        i.  For expenditure as provided by the public school technology program;
 27        j.  For  the  support of provisions that provide a safe environment condu-
 28        cive to student learning and maintain classroom discipline, an  allocation
 29        of $300 per support unit; and
 30        k.  Any additional amounts as required by statute to effect administrative
 31        adjustments  or  as specifically required by the provisions of any bill of
 32        appropriation;
 33    to secure the state educational support funds.
 34        3.  Local  Districts'  Contribution  Calculation.  Without  including  any
 35    allowance as a credit for prepaid taxes as provided by section 63-1607,  Idaho
 36    Code,  the local districts' contribution shall be the amount appropriated pur-
 37    suant to section 33-1002D, Idaho Code, plus three-tenths percent (.3%)  during
 38    fiscal  year 2003-04 and each year thereafter, a percentage of the total state
 39    adjusted market value for assessment purposes for the previous year, with such
 40    percentage being determined pursuant to section 33-802, Idaho Code,  and  with
 41    such  value  being determined by the provisions of section 63-315, Idaho Code,
 42    and four-tenths percent (.4%) during fiscal year 1994-95 and each year  there-
 43    after,  of  the cooperative electrical associations' property values that have
 44    been derived from the taxes paid in lieu of ad valorem taxes for the  previous
 45    year as provided in section 63-3502, Idaho Code.
 46        4.  Educational  Support  Program  Distribution  Funds. Add the local dis-
 47    tricts' contribution, subsection 3. of this section, and the state educational
 48    support program funds, subsection 1. of this section, together to  secure  the
 49    total educational support program distribution funds.
 50        5.  Average  Daily  Attendance.  The  total state average daily attendance
 51    shall be the sum of the average daily attendance of all  of  the  school  dis-
 52    tricts  of  the state. The state board of education shall establish rules set-
 53    ting forth the procedure to determine average daily attendance  and  the  time
 54    for, and method of, submission of such report. Average daily attendance calcu-
 55    lation  shall  be carried out to the nearest hundredth. Computation of average
                                                                        
                                           4
                                                                        
  1    daily attendance shall also be governed by the provisions of section 33-1003A,
  2    Idaho Code.
  3        6.  Support Units. The total state support units shall  be  determined  by
  4    using  the tables set out hereafter called computation of kindergarten support
  5    units, computation of elementary support units, computation of secondary  sup-
  6    port  units,  computation of exceptional education support units, and computa-
  7    tion of alternative school secondary support units. The  sum  of  all  of  the
  8    total  support  units  of all school districts of the state shall be the total
  9    state support units.
 10                      COMPUTATION OF KINDERGARTEN SUPPORT UNITS
 11    Average Daily
 12    Attendance            Attendance Divisor         Units Allowed
 13    41 or more     ....   40.......................  1 or more as computed
 14    31 -  40.99 ADA....    -.......................  1
 15    26 -  30.99 ADA....    -.......................   .85
 16    21 -  25.99 ADA....    -.......................   .75
 17    16 -  20.99 ADA....    -.......................   .6
 18     8 -  15.99 ADA....    -.......................   .5
 19     1 -   7.99 ADA....    -.......................  count as elementary
                                                                        
 20                       COMPUTATION OF ELEMENTARY SUPPORT UNITS
 21    Average Daily
 22    Attendance            Attendance Divisor         Minimum Units Allowed
 23    300 or more ADA........................................  15
 24                        ..23...grades 4,5 & 6....
 25                        ..22...grades 1,2 & 3....1994-95
 26                        ..21...grades 1,2 & 3....1995-96
 27                        ..20...grades 1,2 & 3....1996-97
 28                              and each year thereafter.
 29    160   to  299.99 ADA... 20.....................         8.4
 30    110   to  159.99 ADA... 19.....................         6.8
 31     71.1 to  109.99 ADA... 16.....................         4.7
 32     51.7 to   71.0  ADA... 15.....................         4.0
 33     33.6 to   51.6  ADA... 13.....................         2.8
 34     16.6 to   33.5  ADA... 12.....................         1.4
 35      1.0 to   16.5  ADA... n/a....................         1.0
                                                                        
 36                        COMPUTATION OF SECONDARY SUPPORT UNITS
 37    Average Daily
 38    Attendance            Attendance Divisor         Minimum Units Allowed
 39    750 or more      .... 18.5.....................        47
 40    400 -  749.99 ADA.... 16.......................        28
 41    300 -  399.99 ADA.... 14.5.....................        22
 42    200 -  299.99 ADA.... 13.5.....................        17
 43    100 -  199.99 ADA.... 12.......................         9
 44     99.99 or fewer       Units allowed as follows:
 45             Grades 7-12  .........................         8
 46             Grades 9-12  .........................         6
 47             Grades 7- 9  .........................         1 per 14 ADA
 48             Grades 7- 8  .........................         1 per 16 ADA
                                                                        
                                           5
                                                                        
  1                  COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
  2    Average Daily
  3    Attendance            Attendance Divisor         Minimum Units Allowed
  4    14 or more ....       14.5.....................  1 or more as computed
  5    12 -  13.99....        -.......................  1
  6     8 -  11.99....        -.......................   .75
  7     4 -   7.99....        -.......................   .5
  8     1 -   3.99....        -.......................   .25
                                                                        
  9              COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
 10    Pupils in Attendance  Attendance Divisor         Minimum Units Allowed
 11    12 or more..........  12......................   1 or more as computed
                                                                        
 12        In applying these tables to any given separate attendance unit, no  school
 13    district  shall  receive  less  total  money than it would receive if it had a
 14    lesser average daily attendance in such separate attendance unit. In  applying
 15    the  kindergarten  table  to  a  kindergarten program of less days than a full
 16    school year, the support unit allowance shall be in ratio  to  the  number  of
 17    days  of a full school year. The tables for exceptional education and alterna-
 18    tive school secondary support units shall  be  applicable  only  for  programs
 19    approved  by  the state department of education following rules established by
 20    the state board of education. Moneys generated  from  computation  of  support
 21    units  for  alternative  schools shall be utilized for alternative school pro-
 22    grams. School district administrative and facility costs may  be  included  as
 23    part of the alternative school expenditures.
 24        7.  State Distribution Factor per Support Unit. Divide educational support
 25    program distribution funds, after subtracting the amounts necessary to pay the
 26    obligations  specified  in  subsection  2. of this section, by the total state
 27    support units to secure the state distribution factor per support unit.
 28        8.  District Share of State Funds for Educational Support Program.  Ascer-
 29    tain  a district's share of state funds for the educational support program as
 30    follows:
 31        a.  District Contribution Calculation. Without including any allowance  as
 32        a  credit  for  prepaid taxes, as provided in section 63-1607, Idaho Code,
 33        the district contribution calculation shall be the rate  determined  under
 34        subsection 3. of this section.
 35        b.  District  Support  Units.  The number of support units for each school
 36        district in the state shall be determined as follows:
 37             (1)  Divide the actual average daily attendance,  excluding  students
 38             approved  for inclusion in the exceptional child educational program,
 39             for the administrative schools and each of the separate  schools  and
 40             attendance  units  by the appropriate divisor from the tables of sup-
 41             port units in this section, then add  the  quotients  to  obtain  the
 42             district's support units allowance for regular students, kindergarten
 43             through  grade  12  including  alternative school secondary students.
 44             Calculations in application of this subsection shall be  carried  out
 45             to the nearest tenth.
 46             (2)  Divide  the  combined  totals of the average daily attendance of
 47             all preschool, handicapped, kindergarten, elementary,  secondary  and
 48             juvenile  detention  center  students  approved  for inclusion in the
 49             exceptional child program of the district by the appropriate  divisor
 50             from the table for computation of exceptional education support units
 51             to  obtain  the  number  of  support units allowed for the district's
 52             approved exceptional child program. Calculations for this  subsection
 53             shall be carried out to the nearest tenth when more than one (1) unit
                                                                        
                                           6
                                                                        
  1             is allowed.
  2             (3)  The  total  number of support units of the district shall be the
  3             sum of the total  support  units  for  regular  students,  subsection
  4             8.b.(1)  of  this  section,  and  the support units allowance for the
  5             approved exceptional child program, subsection 8.b.(2) of  this  sec-
  6             tion.
  7        c.  Total  District Allowance Educational Program. Multiply the district's
  8        total number of support units, carried out to the nearest  tenth,  by  the
  9        state  distribution  factor  per  support unit and to this product add the
 10        approved amount of programs of the district provided in subsection  2.  of
 11        this  section to secure the district's total allowance for the educational
 12        support program.
 13        d.  District Share. To secure the district's share of state apportionment,
 14        subtract the amount of the local district contribution  calculation,  sub-
 15        section  3.  of this section, from the amount of the total district allow-
 16        ance, subsection 8.c. of this section.
 17        e.  Adjustment of District Share. The contract salary of every noncertifi-
 18        cated teacher shall be subtracted from the district's share as  calculated
 19        from the provisions of subsection 8.d. of this section.
 20        9.  In  order  to receive state funds, pursuant to this section, a charter
 21    district shall utilize a school maintenance and operation property  tax  levy,
 22    for  the  purposes  of calculating the moneys to be raised, that is no greater
 23    than that which it levied in tax year 1994, less the  difference  between  the
 24    maximum  levy rate permitted by section 33-802, Idaho Code, and four-tenths of
 25    one percent (.4%).
                                                                        
 26        SECTION 3.  That Section 33-1002D, Idaho Code, be, and the same is  hereby
 27    amended to read as follows:
                                                                        
 28        33-1002D.  PROPERTY TAX REPLACEMENT RELIEF. The purpose of this section is
 29    to  provide ongoing property tax relief. All moneys transferred  to the public
 30    school income fund, pursuant to section 67-6804, Idaho Code, shall be annually
 31    appropriated by the legislature to the educational support program/division of
 32    operations as state discretionary funds. replace a portion of  the  authorized
 33    school  maintenance  and  operation  property  tax  levy  with state sales tax
 34    receipts. As used in this section, the term "property tax  computation  ratio"
 35    shall  mean  a  ratio determined by dividing the district's certified property
 36    tax maintenance and operation budget by the actual or  adjusted  market  value
 37    for  assessment purposes as such values existed on December 31 of the previous
 38    calendar year, together with  the  increment  value,  as  defined  in  section
 39    50-2903, Idaho Code, if applicable under the circumstance described in section
 40    33-802 2., Idaho Code, relating to termination of a revenue allocation area.
 41        (1)  (a) In the case of a school district that had a property tax computa-
 42        tion  ratio  of not less than four-tenths of one percent (.4%) in tax year
 43        1994, that school district shall receive from the appropriations made  for
 44        that  purpose,  an amount equal to the greater of the district's actual or
 45        adjusted market value for assessment purposes as such valuation existed on
 46        December 31 of the previous calendar year,  together  with  the  increment
 47        value,  as defined in section 50-2903, Idaho Code, if applicable under the
 48        circumstance described in section 33-802 2., Idaho Code, relating to  ter-
 49        mination of a revenue allocation area, multiplied by one-tenth of one per-
 50        cent (.1%).
 51        (b)  In  the case of a school district that had a property tax computation
 52        ratio of less than four-tenths of one percent (.4%) in tax year 1994,  the
 53        greater  of  the  1992,  1993  or 1994 property tax computation ratio less
                                                                        
                                           7
                                                                        
  1        three-tenths of one percent (.3%) shall be designated the district's  base
  2        multiplier.  In  no  case shall the base multiplier be less than zero (0).
  3        Four-tenths of one percent (.4%) less the greater of the district's  1992,
  4        1993  or  1994  property  tax  computation  ratio  shall be designated the
  5        district's adjustment factor. In no case shall the  adjustment  factor  be
  6        greater  than  one-tenth  of one percent (.1%) or less than zero (0). Each
  7        school district's actual multiplier shall be the base multiplier plus one-
  8        fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
  9        plus two-fifths (2/5) of the adjustment factor in tax year 1996, the  base
 10        multiplier  plus  three-fifths  (3/5) of the adjustment factor in tax year
 11        1997, the base multiplier plus four-fifths (4/5) of the adjustment  factor
 12        in  tax  year  1998, and the base multiplier plus the adjustment factor in
 13        tax year 1999 and beyond. Each school district  shall  receive,  from  the
 14        appropriations  made  for  that purpose, an amount equal to the district's
 15        actual or adjusted market value for assessment purposes as such  valuation
 16        existed  on  December  31 of the previous calendar year, together with the
 17        increment value, as defined in section 50-2903, Idaho Code, if  applicable
 18        under  the circumstance described in section 33-802 2., Idaho Code, relat-
 19        ing to termination  of  a  revenue  allocation  area,  multiplied  by  the
 20        district's actual multiplier.
 21        (c)  The  preceding  provisions of this subsection notwithstanding, appro-
 22        priations from the state for the value of one-tenth of one  percent  (.1%)
 23        of  the  greater  of  the  district's  actual or adjusted market value for
 24        assessment purposes as such valuation existed on December 31 of the previ-
 25        ous calendar year, together with the increment value, as defined  in  sec-
 26        tion  50-2903,  Idaho Code, if applicable under the circumstance described
 27        in section 33-802 2., Idaho Code, relating to  termination  of  a  revenue
 28        allocation   area,   shall   not   exceed   seventy-five  million  dollars
 29        ($75,000,000) in any fiscal year. If the  amount  school  districts  would
 30        otherwise  be  entitled to receive pursuant to the preceding provisions of
 31        this subsection exceeds seventy-five million dollars  ($75,000,000),  then
 32        each  school district shall receive its share of seventy-five million dol-
 33        lars ($75,000,000) based on the formulas contained in this section.
 34        (2)  (a) Participation in this property tax reduction program is voluntary
 35        for a charter district. If a charter district participates, in addition to
 36        the provisions of subsection (1) of this section it shall not have a prop-
 37        erty tax computation ratio that is above three-tenths of one percent (.3%)
 38        or the district's property tax computation ratio in tax  year  1994,  less
 39        one-tenth of one percent (.1%), whichever is greater.
 40        (b)  If  in any year the charter district's property tax computation ratio
 41        used to calculate its maintenance and operation budget is increased  above
 42        the  limit specified in this subsection the district shall not be eligible
 43        for the distribution pursuant to subsection (1) of this section  for  that
 44        year.
 45        (3)  Limitations imposed upon a school district's property tax computation
 46    ratio  under  the provisions of this section do not apply to any levy approved
 47    by electors of the school district as provided by law.
 48        (4)  Distributions calculated as provided in this section shall be made to
 49    school districts of this state in two (2) equal installments on the due  dates
 50    as  specified  in  section 63-903(1), Idaho Code, for the property taxes being
 51    replaced.
 52        (5)  For purposes of section 33-1002, Idaho Code, moneys distributed  pur-
 53    suant to this section shall not be included in determining total state funds.
                                                                        
 54        SECTION  4.  That  Chapter  68,  Title 67, Idaho Code, be, and the same is
                                                                        
                                           8
                                                                        
  1    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  2    ignated as Section 67-6804, Idaho Code, and to read as follows:
                                                                        
  3        67-6804.  TRANSFER  OF  EXCESS REVENUES. (1) The legislature finds that it
  4    is in the best interest of the taxpayers of the state of Idaho to establish  a
  5    state  budget system that captures surplus revenues for the purposes described
  6    herein.
  7        (2)  If the state controller certifies that the receipts  to  the  general
  8    fund  for the fiscal year just ending have exceeded the receipts of the previ-
  9    ous fiscal year by more than eight percent (8%),  then  the  state  controller
 10    shall  transfer  all  general  fund collection in excess of said eight percent
 11    (8%) increase to the public school income fund.
 12        (3)  Once a transfer has been made, pursuant to this  section,  the  state
 13    controller  shall  transfer the same dollar amount to the public school income
 14    fund in each subsequent fiscal year. If the provisions of  subsection  (2)  of
 15    this section cause further transfers to be made, then the annual transfer made
 16    by the state controller shall be increased by a like amount.
 17        (4)  All  transfers  to  the  public school income fund authorized by this
 18    section shall be expended pursuant to  the  provisions  of  section  33-1002D,
 19    Idaho Code.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15817

The legislation allows for M&O to grow at three percent (3%) per
year and replaces all M&O property taxes with any state-generated
revenues over eight percent (8%) growth per year.


                           FISCAL NOTE

There is no fiscal impact.






Contact
Name: Rep. Mike Moyle 
      Rep. Dolores Crow
      Rep. Jim Clark
Phone: (208) 332-1000




STATEMENT OF PURPOSE/FISCAL NOTE                         H 479