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S1238............................................................by FINANCE
APPROPRIATIONS - PUBLIC SCHOOLS - FACILITIES - Appropriates $32,772,600 to
the Educational Support Program/Division of Facilities for fiscal year
2008; provides for the transfer and appropriation of moneys to the Bond
Levy Equalization Fund; limits funds distributed to the General Fund from
the cigarette and tobacco products taxes; authorizing an expenditure to
conduct a study and develop plans regarding school safety and security; and
amends existing law to allow refinancing bonds to qualify for bond levy
equalization funds under certain circumstances and to provide for an
increase in the multiplier for the replacement value of school buildings.
03/16 Senate intro - 1st rdg - to printing
03/19 Rpt prt - to Fin
Rpt out - rec d/p - to 2nd rdg
03/20 2nd rdg - to 3rd rdg
03/27 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword,
Burkett(Cronin), Cameron, Coiner, Corder, Darrington, Davis, Fulcher,
Gannon, Geddes, Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly,
Keough, Langhorst, Little, Lodge, Malepeai, McGee, McKague,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk(Douglas)
NAYS -- None
Absent and excused -- McKenzie, Pearce
Floor Sponsor - Werk(Douglas)
Title apvd - to House
03/27 House intro - 1st rdg - to 2nd rdg
Rls susp - PASSED - 66-1-3
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Crane, Edmunson, Eskridge, Hagedorn, Hart, Harwood, Henbest,
Henderson, Jaquet, Killen, King, Kren, Labrador, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Moyle, Nielsen,
Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo,
Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8),
Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn,
Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- Mortimer
Absent and excused -- Collins, Durst, Lake
Floor Sponsor - Ringo
Title apvd - to Senate
03/28 To enrol - Rpt enrol - Pres signed - Sp signed
To Governor
04/02 Governor signed
Session Law Chapter 354
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1238
BY FINANCE COMMITTEE
1 AN ACT
2 RELATING TO THE APPROPRIATION FOR THE PUBLIC SCHOOLS DIVISION OF FACILITIES;
3 APPROPRIATING FUNDS TO THE EDUCATIONAL SUPPORT PROGRAM/DIVISION OF FACILI-
4 TIES FOR FISCAL YEAR 2008; TRANSFERRING AND APPROPRIATING CERTAIN FUNDS TO
5 THE BOND LEVY EQUALIZATION FUND; LIMITING THE AMOUNT OF CIGARETTE AND
6 TOBACCO PRODUCTS TAX REVENUE DEPOSITED IN THE GENERAL FUND FOR BOND LEVY
7 EQUALIZATION; DIRECTING THAT UP TO $150,000 MAY BE EXPENDED FOR A SCHOOL
8 SAFETY AND SECURITY STUDY; AMENDING SECTION 33-906, IDAHO CODE, TO ALLOW
9 FOR REFINANCING BONDS TO QUALIFY FOR BOND LEVY EQUALIZATION FUNDS UNDER
10 CERTAIN CIRCUMSTANCES; AND AMENDING SECTION 33-1019, IDAHO CODE, TO
11 INCREASE THE MULTIPLIER FOR THE REPLACEMENT VALUE OF SCHOOL BUILDINGS.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. There is hereby appropriated to the Educational Support
14 Program/Division of Facilities, pursuant to law and the provisions of this
15 act, the following amounts to be expended from the listed funds for the period
16 July 1, 2007, through June 30, 2008:
17 FROM:
18 School District Building Account $20,322,600
19 General Fund 12,450,000
20 TOTAL $32,772,600
21 SECTION 2. Of the General Fund moneys appropriated in Section 1 of this
22 act, the amount necessary to fund the provisions of Section 33-906, Idaho
23 Code, is hereby transferred and appropriated from the General Fund to the Bond
24 Levy Equalization Fund.
25 SECTION 3. The provisions of subsection (4) of Section 63-2520, Idaho
26 Code, notwithstanding, the amount of revenue distributed to the General Fund,
27 pursuant to subsection (4) of Section 63-2520, Idaho Code, shall not exceed
28 $6,535,000 for the period July 1, 2007, through June 30, 2008.
29 SECTION 4. Of the General Fund moneys appropriated in Section 1 of this
30 act, up to $150,000 may be expended by the Superintendent of Public Instruc-
31 tion to conduct a study and develop plans that address the issue of school
32 safety and security. Such plans shall include, but not be limited to, compil-
33 ing an inventory of security features currently in place in Idaho public
34 schools, the development of security standards for future school buildings
35 built in Idaho, and the development of cost-effective measures for improving
36 school security in existing buildings.
37 SECTION 5. That Section 33-906, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 33-906. BOND LEVY EQUALIZATION SUPPORT PROGRAM. (1) Pursuant to section
2
1 33-906B, Idaho Code, school districts with a value index below one (1) shall
2 be eligible to receive additional state financial assistance for the cost of
3 annual bond interest and redemption payments made on bonds passed on or after
4 September 15, 2002. However, any school district with a value index of less
5 than one and one-half (1.5), shall receive no less than ten percent (10%) of
6 the interest cost portion of the annual bond interest and redemption payment
7 for bonds passed on or after September 15, 2002. The state department of edu-
8 cation shall disburse such funds to school districts from moneys appropriated
9 from the bond levy equalization fund. The department shall disburse the funds
10 by no later than September 1 of each year for school districts in which voters
11 have approved the issuance of qualifying bonds by no later than January 1 of
12 that calendar year, and which are certifying a qualifying bond interest and
13 redemption payment for the fiscal year in which the disbursement is made. For
14 districts with a value index below one (1), the percentage of each annual bond
15 interest and redemption payment that is paid by the state shall be determined
16 by dividing the difference between one (1) and the school district's value
17 index by one (1).
18 (2) For the purposes of this section, the annual bond interest and
19 redemption payment shall be determined by dividing the total payment amounts
20 by the number of fiscal years in which payments are to be made. The interest
21 cost portion of the annual bond interest and redemption payment shall be
22 determined by dividing the total interest paid by the number of fiscal years
23 in which payments are to be made. For school districts not qualifying for a
24 state payment in the first year of the bond interest and redemption payment
25 schedule, due solely to the January 1 eligibility deadline, the state depart-
26 ment of education shall distribute an additional payment in the next fiscal
27 year, in the amount of such funds that the school district would have other-
28 wise qualified for in the current fiscal year.
29 (3) The provisions of this section may not be utilized to refinance
30 existing debt or subsidize projects previously subsidized by state grants,
31 unless the existing debt being refinanced is a bond passed on or after Septem-
32 ber 15, 2002; provided however, that any school district that has issued qual-
33 ifying bonds prior to June 30, 2004, in conformance with this section shall
34 not be deemed to be refinancing existing debt when the qualifying bonds are
35 utilized to finance the acquisition of public school facilities previously
36 leased or financed through means other than the issuance of general obligation
37 bonds approved by a two-thirds (2/3) vote at an election called for that pur-
38 pose subject to subsection (5) of this section.
39 (4) School districts shall annually report the status of all qualifying
40 bonds to the state department of education by January 1 of each year, includ-
41 ing bonds approved by the voters, but not yet issued. Information submitted
42 shall include the following:
43 (a) The actual or estimated bond interest and redemption payment sched-
44 ule;
45 (b) Any qualifying bond that has been paid off;
46 (c) Other information as may be required by the state department of edu-
47 cation.
48 (5) No school district eligible for participation in the bond levy equal-
49 ization support program shall be deemed ineligible for participation due to
50 that school district's eligibility and prior participation in the safe school
51 facilities loan and grant program or the Idaho safe schools facilities program
52 under section 33-804A, 33-1017 or 33-1613, Idaho Code, provided that:
53 (a) Such school district notifies the state department of education of
54 its desire and eligibility to participate in the bond levy equalization
55 support program; and
3
1 (b) Such school district shall receive no state financial assistance
2 under the bond levy equalization support program until the amount to which
3 it would otherwise have been entitled to receive shall equal the amounts
4 received by the school district under the safe school facilities loan and
5 grant program or the Idaho safe schools facilities program under section
6 33-804A, 33-1017 or 33-1613, Idaho Code.
7 SECTION 6. That Section 33-1019, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 33-1019. ALLOCATION FOR SCHOOL BUILDING MAINTENANCE REQUIRED. (1) School
10 districts shall annually deposit to a school building maintenance fund moneys
11 from any source available to the district equal to at least two percent (2%)
12 of the replacement value of school buildings, less the deposit of state funds
13 as provided in this section. The state shall annually provide funds to be
14 deposited into the school building maintenance fund as follows:
15 (a) Divide one (1) by the school district's value index for the fiscal
16 year, as calculated pursuant to section 33-906B, Idaho Code; and
17 (b) Multiply the result by one-half of one percent (0.5%) of the replace-
18 ment value of school buildings.
19 (c) For purposes of the calculation in this subsection (1), public
20 charter schools shall be assigned a value index of one (1).
21 (2) State funds shall be appropriated through the educational support
22 program/division of facilities, and disbursed from the school district build-
23 ing account. The order of funding sources used to meet the state funding
24 requirements of this section shall be as follows:
25 (a) State lottery funds distributed pursuant to section 33-905(2), Idaho
26 Code;
27 (b) If state lottery funds are insufficient to meet the state funding
28 requirements of this section, then other state funds available pursuant to
29 section 33-905(3), Idaho Code, shall be utilized; and
30 (c) If the funds in paragraphs (a) and (b) of this subsection (2) are
31 insufficient to meet the state funding requirements of this section, then
32 funds available pursuant to section 33-1018B, Idaho Code, shall be uti-
33 lized.
34 (3) Moneys in a school district's school building maintenance fund shall
35 be used exclusively for the maintenance and repair of school buildings, and
36 shall be utilized, first, to abate serious or imminent safety hazards, as
37 identified pursuant to chapter 80, title 39, Idaho Code. Unexpended moneys in
38 a school district's school building maintenance fund shall be carried over
39 from year to year. The replacement value of school buildings shall be deter-
40 mined by multiplying the number of square feet of building floor space in
41 school buildings by eighty-one dollars and forty-five cents ($80.001.45). The
42 joint finance-appropriations committee shall annually review the replacement
43 value per square foot when setting appropriations for the educational support
44 program, and may make adjustments to this figure as necessary. School dis-
45 tricts shall submit the following to the state department of education by not
46 later than December 1:
47 (a) The number of square feet of school building floor space; and
48 (b) The funds and fund sources deposited into the school district's
49 school building maintenance fund and the fund balance carried forward from
50 the prior fiscal year; and
51 (c) The projects on which moneys from the school district's school build-
52 ing maintenance fund were expended, and the amount and categories of
53 expenditures from the fund; and
4
1 (d) The planned uses of moneys in the school district's school building
2 maintenance fund.
3 The state department of education shall transmit a summary of such reports to
4 the legislature by not later than January 15 of the following year.
5 (4) For the purposes of this section:
6 (a) "School building" means buildings that are owned by the school dis-
7 trict or leased by the school district through a lease-purchase agreement
8 and are occupied by students.
9 (b) "School district" means a school district or public charter school.
| STATEMENT OF PURPOSE |
| RS16427 |
|
This is the Fiscal Year 2008 appropriation for the Division of Facilities portion of the Public Schools budget. The pieces of the Public Schools budget that are part of this division's appropriation include: 1.) Funding for the Bond Levy Equalization program; 2.) The regular distribution to Idaho school districts of all lottery proceeds; 3.) One-time funding for the Superintendent of Public Instruction to conduct a study and develop plans to address school security (Section 4); and 4.) Additional funds distributed to meet the state's matching fund obligations for school facilities maintenance, as required by the School Facilities Improvement Act of 2006 (HB 743). These additional funds will be distributed to any school district in which the state's Lottery distribution is insufficient to meet the state's maintenance match requirement.
FY 2008 represents the first year in which Bond Levy Equalization will be funded entirely from the General Fund. In FY 2007, it was funded by a mix of General Fund dollars and one-time Lottery funds. Prior to FY 2007, it was funded by the Public Schools' share of State Lottery proceeds. Section 5 amends Section 33-906, Idaho Code, to allow refinancing bonds to be subsidized by the state through Bond Levy Equalization if the bond being refinanced is already subsidized by the state through Bond Levy Equalization. Section 6 discharges JFAC's statutory duty, by amending Section 33-1019, Idaho Code, to provide for an inflationary adjustment in the replacement value of school buildings, from $80.00 per square foot to $81.45 per square foot. This is equal to the 1.81% inflationary forecast provided for FY 2008 by the Division of Financial Management. |
FISCAL NOTE |
| FY 2007 Approp. |
FY 2008 Approp. |
Div. of Facilities | ||
| I. | STATE APPROPRIATION | |||
| A. | Sources of Funds | |||
| 1. | General Fund | $1,291,587,000 | $1,367,363,800 | $12,450,000 |
| 2. | Dedicated Funds | $51,366,800 | $62,334,600 | $20,322,600 |
| 3. | Federal Funds | $175,000,000 | $215,000,000 | $0 |
| 4. | TOTAL STATE APPROPRIATIONS | $1,517,953,800 | $1,644,698,400 | $32,772,600 |
General Fund Percent Increase: |
30.8% | 5.9% | 123.6% | |
Total Funds Percent Increase: |
26.8% | 8.3% | 43.6% | |
| II. | PROGRAM DISTRIBUTION | |||
| A. | Statutory Requirements | |||
| 1. | Transportation | $64,316,700 | $67,032,300 | $0 |
| 2. | Border Contracts | $800,000 | $1,000,000 | $0 |
| 3. | Exceptional Contracts/Tuition Equivalents | $5,750,000 | $6,075,000 | $0 |
| 4. | Program Adjustments | $435,000 | $480,000 | $0 |
| 5. | Salary-based Apportionment | $740,842,100 | $774,788,600 | $0 |
| 6. | Teacher Incentive Award | $313,200 | $166,100 | $0 |
| 7. | State Paid Employee Benefits | $133,897,900 | $139,771,900 | $0 |
| 8. | Early Retirement Program | $4,750,000 | $4,750,000 | $0 |
| 9. | Bond Levy Equalization | $6,300,000 | $11,200,000 | $11,200,000 |
| 10. | Idaho Safe & Drug-Free Schools | $5,500,000 | $7,000,000 | $0 |
| 11. | Sub-total -- Statutory Requirements | $962,904,900 | $1,012,263,900 | $11,200,000 |
| B. | Other Program Distributions | |||
1. |
Technology | $9,800,000 | $9,800,000 | $0 |
| 2. | Idaho Reading Initiative | $2,800,000 | $2,800,000 | $0 |
| 3. | Limited English Proficiency (LEP) | $6,040,000 | $6,040,000 | $0 |
| 4. | High School Redesign (Gifted & Talented) | $500,000 | $1,000,000 | $0 |
| 5. | High School Redesign (IDLA) | $1,100,000 | $2,800,000 | $0 |
| 6. | School Facilities Funding (Lottery) | $10,772,900 | $19,122,600 | $19,122,600 |
| 7. | School Facilities Maintenance Match | $5,650,000 | $2,300,000 | $2,300,000 |
| 8. | Classroom Supplies | $0 | $5,180,000 | $0 |
| 9. | Textbook Allowance | $0 | $9,950,000 | $0 |
| 10. | ISAT Remediation | $0 | $5,000,000 | $0 |
| 11. | Dual Credit Class Allowance | $0 | $0 | $0 |
| 12. | Math Initiative | $0 | $350,000 | $0 |
| 13. | Ag Replacement Phase-out | $0 | $3,017,000 | $0 |
| 14. | Safe School Study | $0 | $150,000 | $150,000 |
| 15. | Rural School Initiative | $0 | $100,000 | $0 |
| 16. | Federal Funds for Local School Districts | $175,000,000 | $215,000,000 | $0 |
| 17. | Sub-total -- Other Program Distributions | $211,662,900 | $282,609,600 | $21,572,600 |
| TOTAL CATEGORICAL EXPENDITURES | $1,174,567,800 | $1,294,873,500 | $32,772,600 | |
| III. | EDUCATION STABILIZATION FUNDS | $0 | $0 | |
| IV. | STATE DISCRETIONARY FUNDS | $343,386,000 | $349,824,900 | |
| V. | ESTIMATED SUPPORT UNITS | 13,500 | 13,750 | |
| VI. | STATE DISCRETIONARY PER SUPPORT | $25,436 | $25,442 | |
| VII. | LOCAL DISCRETIONARY PER SUPPOR | $0 | $0 | |
| VIII. | TOTAL DISCRETIONARY PER SUPPORT | $25,436 | $25,442 |
Contact:Jason Hancock
LegislativeServices Office
Budgetand Policy Analysis
Telephone:334-3531
S 1238