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S1377..........................................................by EDUCATION
SCHOOLS - SUPPORT FACTOR - Adds to existing law to provide a new school
facility support factor or an addition to an existing school facility
support factor; to specify the method of calculation of the support factor;
and to allow for appropriation of moneys.
02/10 Senate intro - 1st rdg - to printing
02/13 Rpt prt - to Educ
03/22 Rpt out - rec d/p - to 2nd rdg
03/23 2nd rdg - to 3rd rdg
03/24 3rd rdg - FAILED - 16-18-1
AYES -- Andreason, Bunderson, Burkett(Clark), Coiner, Corder,
Fulcher, Gannon, Goedde, Kelly, Langhorst, Little, Malepeai, Marley,
Stennett, Sweet, Werk
NAYS -- Brandt, Broadsword, Burtenshaw, Cameron, Compton, Darrington,
Davis, Geddes, Hill, Jorgenson, Keough, Lodge, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Williams
Absent and excused -- McGee
Floor Sponsors - Andreason & Bunderson
Filed in Office of the Secretary of Senate
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1377
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 OR AN ADDITION TO AN EXISTING
5 SCHOOL FACILITY SUPPORT FACTOR, TO SPECIFY THE METHOD OF CALCULATION OF
6 THE SUPPORT FACTOR AND TO ALLOW FOR APPROPRIATION OF MONEYS.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Chapter 10, Title 33, Idaho Code, be, and the same is
9 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
10 ignated as Section 33-1002H, Idaho Code, and to read as follows:
11 33-1002H. NEW SCHOOL FACILITY OR ADDITION TO AN EXISTING SCHOOL FACILITY
12 SUPPORT FACTOR. The purpose of this section is to recognize and support the
13 unusual costs incurred in the first year of operation of a new school facility
14 or an addition to an existing school, which is permanently constructed to
15 accommodate increased student enrollment. A district shall receive this addi-
16 tional support in bringing the new facility or the addition to the existing
17 school into full service for the first year the school or the addition
18 opens.
19 The new school facility support factor or addition to an existing school
20 facility support factor shall be calculated as follows: The per pupil expendi-
21 ture for the district in the previous school year shall be multiplied by two-
22 tenths (.2), and the resulting figure shall be multiplied by the projected
23 capacity of the new school facility or the addition to the existing facility.
24 The amount so determined shall be the additional support distributed to the
25 district in the first year of operation of the new school building or school
26 addition. Thereafter, no additional distribution shall be provided based upon
27 the specific new school or school addition.
28 Calculation of the new school facility support factor shall be in addition
29 to, and not a replacement for, any other support calculations pursuant to the
30 education support program. Funds for the new school facility support factor
31 shall be paid following appropriation by the legislature and upon certifica-
32 tion by the department of education of the opening of a new school facility or
33 an addition to an existing school. The district qualifying to receive the new
34 school facility factor shall receive the one-time payment in the district's
35 regular August payment in the fiscal year in which the school will open.
STATEMENT OF PURPOSE
RS 15774
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 has required the construction of numerous new school facilities and
exposed a significant inequity in the law. Specifically, the funding formula
for education did not provide for the start-up cost 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 2000 students enrolled at the start
of school last fall, a 5.5% increase in enrollment.
These rapid increases in school enrollment necessitate continued bond
elections to build new school facilities. Next fall, the Fruitland School
District will open a new elementary school; the Bonneville School District
will open two elementary schools; the Kuna School District will open one
elementary school; the Nampa School District will open a new high school; and
the Meridian School District will open two new elementary schools. Within the
next several months, the Vallivue and Twin Falls school districts will ask
voters to approve bonds to build new school facilities. In FY08, the Lakeland
School District will open a new elementary school, the Kuna School District
will open a new elementary school and the Nampa School District will open a
new middle school and elementary school in the next several years. The
Meridian School District will open seven new schools during the next three
years.
The on-going operational costs associated with the opening of school
facilities places 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,
etc).
This legislation provides a reasonable solution to the problems faced by
rapidly-growing school districts, problems that were overlooked when the
funding formula was passed in 1994.
Specifically, based on each district's cost-per-pupil, Section 33-1002H would
provide funding in a new school's first year of operation equal to 100% of the
operating costs. After the first year of operation, the school would receive
no additional funding.
In regard to this legislation's fiscal impact, the construction of new schools
around the state generates considerable revenue for the State's general fund.
For example, the Meridian Joint School District passed a bond this past fall
for $139,825,000. Of that total, approximately $110,000,000 will go toward
construction costs. Approximately $55,000,000 will be subject to state sales
tax generated with the purchase of construction materials by building
contractors, generating $2,750,000 in general fund sales tax revenue. The
remaining $55,000,0000 will be paid to the architects, contractors and
laborers who will construct or manage the construction of the school bond
projects, resulting in significant additional state revenue from both
corporate and personal income tax. Estimated using an average Idaho State
income tax rate of 5.5%, the construction of new schools in the example of the
Meridian School District would generate an additional $3,025,000 in income tax
to the State's general fund.
FISCAL NOTE
The FY07 cost of funding the start-up costs of new school facilities that
would open in FY07 is estimated at $5 million.
Contact:
Senator Bunderson
(208) 332-1319
Senator Andreason
(208) 332-1333
Senator Burkett
(208) 332-1352
Representative Snodgrass
(208) 332-1217
Representative Bastian
(208) 332-1241
Representative Smylie
(208) 332-1249
STATEMENT OF PURPOSE/FISCAL NOTE S 1377