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SENATE BILL NO. 1217
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S1217............................................................by FINANCE
APPROPRIATIONS - Appropriates an additional $3,892,600 to the Educational
Support Program/Division of Operations for fiscal year 2007; provides for
distribution of the moneys to the school districts; and provides
legislative intent regarding a phase-out reduction of state replacement
funding provided in lieu of personal property taxes on agricultural
equipment.
03/12 Senate intro - 1st rdg - to printing
03/13 Rpt prt - to Fin
Rpt out - rec d/p - to 2nd rdg
03/14 2nd rdg - to 3rd rdg
03/19 3rd rdg - PASSED - 26-4-5
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Cameron,
Coiner, Corder, Darrington, Davis, Geddes, Hammond, Heinrich, Hill,
Jorgenson, Keough, Little, Lodge, McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner
NAYS -- Burkett, Kelly, Langhorst, Werk
Absent and excused -- Fulcher, Gannon, Goedde, Malepeai, Stennett
Floor Sponsor - Bair
Title apvd - to House
03/20 House intro - 1st rdg - to 2nd rdg
03/21 2nd rdg - to 3rd rdg
Rls susp - PASSED - 69-0-1
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
Raybould, Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Shively, Smith(30), Snodgrass,
Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr.
Speaker
NAYS -- None
Absent and excused -- Smith(24)
Floor Sponsor - Wood(27)
Title apvd - to Senate
03/22 To enrol
03/23 Rpt enrol - Pres signed
03/26 Sp signed - To Governor
03/30 Governor signed
Session Law Chapter 325
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1217
BY FINANCE COMMITTEE
1 AN ACT
2 RELATING TO THE APPROPRIATION FOR THE PUBLIC SCHOOLS DIVISION OF OPERATIONS;
3 APPROPRIATING MONEYS FOR TRANSFER TO THE PUBLIC SCHOOL INCOME FUND; APPRO-
4 PRIATING MONEYS TO THE EDUCATIONAL SUPPORT PROGRAM/DIVISION OF OPERATIONS
5 FOR FISCAL YEAR 2007; DIRECTING THAT MONEYS BE DISTRIBUTED TO REPLACE CER-
6 TAIN LEVIES; DIRECTING DISTRIBUTION OF CERTAIN AMOUNTS FOR REPLACEMENT OF
7 SCHOOL MAINTENANCE AND OPERATION LEVY FUNDS; AND STATING LEGISLATIVE FIND-
8 INGS AND EXPRESSING LEGISLATIVE INTENT WITH REGARDS TO FUTURE DISTRIBU-
9 TIONS OF REPLACEMENT FUNDING PROVIDED IN LIEU OF PERSONAL PROPERTY TAXES
10 ON AGRICULTURAL EQUIPMENT.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. Any other provision of law notwithstanding, there is hereby
13 appropriated the following amount to be transferred to the Public School
14 Income Fund for the period July 1, 2006, through June 30, 2007:
15 FROM:
16 Public Education Stabilization Fund $3,892,600
17 SECTION 2. In addition to the appropriation made in Section 3, Chapter
18 418, Laws of 2006 and Section 23, House Bill No. 1, as enacted by the First
19 Extraordinary Session of the Fifty-eighth Idaho Legislature, there is hereby
20 appropriated to the Educational Support Program/Division of Operations the
21 following amount for the period July 1, 2006, through June 30, 2007:
22 FROM:
23 Public School Income Fund $3,892,600
24 SECTION 3. The Superintendent of Public Instruction shall distribute
25 $121,300 of the moneys appropriated in Section 2 of this act to school dis-
26 tricts in the amount of any unequalized school maintenance and operation levy
27 funds that would have been used to calculate such levies for tax year 2006,
28 under the laws of the state of Idaho as they existed prior to the First
29 Extraordinary Session of the Fifty-eighth Idaho Legislature, provided that the
30 school district did not levy a budget stabilization levy for tax year 2006.
31 SECTION 4. The Superintendent of Public Instruction shall distribute
32 $3,771,300 of the moneys appropriated in Section 2 of this act to school dis-
33 tricts, in like amounts as the moneys distributed in fiscal year 2006, pursu-
34 ant to Section 63-3638(10), Idaho Code, for the replacement of school mainte-
35 nance and operation levy funds.
36 SECTION 5. It is the finding of the Legislature that House Bill No. 1,
37 enacted by the First Extraordinary Session of the Fifty-eighth Idaho Legisla-
38 ture, exposed the previously unrecognized lack of equalization of moneys pro-
39 vided to school districts for the replacement of school maintenance and opera-
40 tion levies on agricultural equipment. Prior to House Bill No. 1, school dis-
2
1 tricts received such unequalized funds, in highly varied amounts based, not on
2 the size or needs of the school district, but on the amount of agricultural
3 equipment contained therein. As was constitutionally appropriate, House Bill
4 No. 1 dealt solely with the state replacement of equalized funds.
5 However, many school districts, particularly those in which the local
6 economy is based on agriculture, have grown dependent on these extra,
7 unequalized funds. In addition, school districts had already set fiscal year
8 2007 budgets based on the assumption of receiving these funds, prior to the
9 passage of House Bill No. 1. The immediate removal of such moneys would have a
10 negative and destabilzing effect on many school district budgets. Since House
11 Bill No. 1 provided an additional $100,000,000 to the Public Education Stabi-
12 lization Fund for the express purpose of providing stability in public school
13 budgets, it is legislative intent to provide for the schedule of distribu-
14 tions, pursuant to this section, with appropriations from the Public Education
15 Stabilization Fund.
16 Pursuant to the Legislature's responsibility to maintain a constitution-
17 ally uniform system of public school funding, it is legislative intent that
18 the school maintenance and operation levy-related portion of state replacement
19 funding provided in lieu of personal property taxes on agricultural equipment
20 be phased out according to the following schedule:
21 FY2007: 100% of replacement provided
22 FY2008: 80% of replacement provided
23 FY2009: 60% of replacement provided
24 FY2010: 40% of replacement provided
25 FY2011: 20% of replacement provided
26 FY2012 and thereafter: 0% of replacement provided
| Statement of Purpose |
| RS17134 |
This supplemental appropriation for the Public Schools Division of Operations provides $3,892,600 in additional funding for Fiscal Year 2007. Of this amount, $3,771,300 is provided to fully replace the amount of additional, unequalized state money previously received by school districts prior to the passage of HB 1 in August, 2006. The passage of HB 1 exposed a previously unrecognized flaw in the methodology used by the state for replacing personal property taxes on agricultural equipment. This flaw resulted in the state overfunding school districts, based on the value of agricultural equipment in the district during the year 2000.
This unequalized funding resulted in considerable inequity, with school districts receiving extra money based not on the needs of the district or the number of children, but on factors unrelated to education. However, inasmuch as many school districts are currently dependent on the receipt of these moneys for a portion of their operating budgets, this bill fully replaces these lost funds for Fiscal Year 2007, and provides (in Section 5) a planned schedule of gradual reductions in the amount of replacement funds provided.
This bill also provides $121,300 for two school districts that lost the opportunity to levy unequalized maintenance and operations levy funds for Fiscal Year 2007 as a result of the passage of HB 1. Due to the timing of HB 1, coming after school district budget setting, but prior to the application of property tax levies, these funds had been included in the school district budgets, but were not subsequently captured in a maintenance and operations levy. This replacement, which provides $45,400 to the Cascade School District and $75,900 to the Kootenai Joint School District, is provided on a one-time basis.
.
 
| FY 2007 Original Appropriation |
0.00 |
504,096,100 |
28,643,900 |
5,887,200 |
538,627,200 |
| Operations |
|
|
|
|
|
| 1. Ag Replacement Funds |
0.00 |
0 |
3,892,600 |
0 |
3,892,600 |
| FY 2007 Total Appropriation |
0.00 |
504,096,100 |
32,536,500 |
5,887,200 |
542,519,800 |
| Chg from FY 2007 Orig Approp |
0.00 |
0 |
3,892,600 |
0 |
3,892,600 |
| % Chg from FY 2007 Orig Approp. |
|
0.0% |
13.6% |
0.0% |
0.7% |
Contact: Jason Hancock 334-4739
Legislative Services Office, Budget & Policy Analysis
| Statement of Purpose/Fiscal Note |
Bill No. S1217 |