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S1067..........................................................by EDUCATION SCHOOL DISTRICT CONSOLIDATION - Amends and adds to existing law to revise school district consolidation plan requirements; to provide for payment of costs for feasibility studies and plans per school district that proposes to consolidate; to provide that the board of trustees of school districts newly formed through consolidation may make severance offers to employees; to provide limits to such severance offers; to provide for an adjustment in the bond levy equalization support program for bonds passed following consolidation; to provide for repayment in the event of deconsolidation; to provide an adjustment to the educational support program for employee severance payments; to provide an adjustment to the support units for new districts formed by the consolidation of former districts after January 1, 2007; and to provide a value index factor for subdistricts. 01/30 Senate intro - 1st rdg - to printing 01/31 Rpt prt - to Educ 02/09 Rpt out - rec d/p - to 2nd rdg 02/12 2nd rdg - to 3rd rdg 02/15 3rd rdg - PASSED - 34-0-1 AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett, Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce, Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk NAYS -- None Absent and excused -- Little Floor Sponsor - President Pro Tempore Geddes Title apvd - to House 02/16 House intro - 1st rdg - to Educ 03/05 Rpt out - rec d/p - to 2nd rdg 03/06 2nd rdg - to 3rd rdg 03/07 3rd rdg - PASSED - 70-0-0 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), Smith(24), Snodgrass, Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker NAYS -- None Absent and excused -- None Floor Sponsor - Jaquet Title apvd - to Senate 03/08 To enrol 03/09 Rpt enrol - Pres signed - Sp signed 03/12 To Governor 03/14 Governor signed Session Law Chapter 79 Effective: 01/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007 IN THE SENATE SENATE BILL NO. 1067 BY EDUCATION COMMITTEE 1 AN ACT 2 RELATING TO SCHOOLS; AMENDING SECTION 33-310, IDAHO CODE, TO REVISE SCHOOL 3 DISTRICT CONSOLIDATION PLAN REQUIREMENTS AND TO MAKE TECHNICAL CORREC- 4 TIONS; AMENDING SECTION 33-310B, IDAHO CODE, TO PROVIDE FOR PAYMENT OF 5 COST FOR FEASIBILITY STUDIES AND PLANS PER EACH SCHOOL DISTRICT THAT PRO- 6 POSES TO CONSOLIDATE; AMENDING CHAPTER 5, TITLE 33, IDAHO CODE, BY THE 7 ADDITION OF A NEW SECTION 33-521, IDAHO CODE, TO PROVIDE THAT THE BOARD OF 8 TRUSTEES OF SCHOOL DISTRICTS NEWLY FORMED THROUGH CONSOLIDATION MAY MAKE 9 SEVERANCE OFFERS TO EMPLOYEES AND TO PROVIDE LIMITS TO SUCH SEVERANCE 10 OFFERS; AMENDING SECTION 33-906, IDAHO CODE, TO PROVIDE FOR AN ADJUSTMENT 11 IN THE BOND LEVY EQUALIZATION SUPPORT PROGRAM FOR BONDS PASSED FOLLOWING 12 CONSOLIDATION AND TO PROVIDE FOR REPAYMENT IN THE EVENT OF 13 DECONSOLIDATION; AMENDING SECTION 33-1002, IDAHO CODE, TO PROVIDE AN 14 ADJUSTMENT TO THE EDUCATIONAL SUPPORT PROGRAM FOR EMPLOYEE SEVERANCE PAY- 15 MENTS; AMENDING SECTION 33-1003, IDAHO CODE, TO PROVIDE AN ADJUSTMENT TO 16 THE SUPPORT UNITS FOR NEW DISTRICTS FORMED BY THE CONSOLIDATION OF FORMER 17 DISTRICTS AFTER JANUARY 1, 2007; AMENDING SECTION 33-906B, IDAHO CODE, TO 18 PROVIDE A VALUE INDEX FACTOR FOR SUBDISTRICTS; DECLARING AN EMERGENCY AND 19 PROVIDING RETROACTIVE APPLICATION. 20 Be It Enacted by the Legislature of the State of Idaho: 21 SECTION 1. That Section 33-310, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 33-310. CONSOLIDATION OF SCHOOL DISTRICTS. The boards of trustees of two 24 (2) or more contiguous school districts may submit to the state board of edu- 25 cation a plan for the consolidation of their districts into a single new dis- 26 trict. 27 The plan shall contain as a minimum the following, and in addition any 28 other information required by the state board of education: 29 (1 .) A map or maps showing the boundaries of the proposed new district, 30 the boundaries of the component consolidating districts, the location of 31 existing schoolhouses or other facilities of the component districts, the pro- 32 posed trustee zones, and the proposed transportation routes if any; 33 (2 .) A legal description of the boundaries of the proposed new school 34 district and of the trustee zones proposed, with estimates of the population 35 in each such zone; 36 (3 .) The assessed value of taxable property of each component consolidat- 37 ing district and of the entire proposed new district; 38 (4 .) Outstanding general obligation bonds of any component consolidating 39 district, sinking funds accumulated, and estimated proceeds of sinking fund 40 levies in process of collection; 41 (5 .) Whether any component district has established a plant facilities 42 reserve fund, and if so the amount on hand in such fund, the obligations 43 against the fund, and the levy being made for such fund together with estimate 2 1 of the proceeds of such levy in process of collection; 2 (6 .) Whether any outstanding and unpaid bonds of any district included in3 the proposal are to be and become the obligations of the proposed consolidated4 district, or shall remain the obligations of the area of the district which5 first incurred the same. If such bonds are proposed to become the obligations6 of the proposed consolidated district, the plan shall show each participating7 district's portion thereof which shall be that portion of the aggregate debt8 as the assessed value of taxable property in each district bears to the aggre-9 gate assessed value of taxable property in the area of the proposed consoli-10 dated districtThe amount of any outstanding and unpaid bonds that will become 11 the obligation of the subdistricts, pursuant to section 33-311, Idaho Code, 12 after the application of any plant facility reserve funds, pursuant to section 13 33-901, Idaho Code. The plan shall also show for each subdistrict the esti- 14 mated amount of state subsidies to be received, the estimated bond levy rate 15 and the year in which the last levy will be made; 16 (7 .) If a joint district, the designation of the home county; 17 (8 .) The official name and number of the proposed new district; and 18 (9 .) How the property, real and personal, of former districts shall vest 19 in the new district. 20 Before submitting any proposal for consolidating school districts to the 21 state board of education, the board of trustees of each proposing district 22 shall first call and cause to be held, within said district, a hearing on the 23 proposal. Notice of the time and place of such hearing shall be given, by each 24 such district, by two (2) publications in a newspaper of general circulation 25 in the district, the first and last publications being not less than six (6) 26 days apart. 27 At such hearings, any school district elector or taxpayer of the district 28 may appear and be heard, and may request any information from the board of 29 trustees, concerning the proposed consolidation. Records of the hearings shall 30 be entered in the minutes of each board of trustees and shall be included with 31 the plan of proposed consolidation if and when it is submitted to the state 32 board of education. 33 Following any hearing, it shall be within the discretion of the board of 34 trustees of any proposing district whether it shall further proceed in the 35 plan for consolidating the districts. 36 SECTION 2. That Section 33-310B, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 33-310B. FEASIBILITY STUDY AND PLAN FOR CONSOLIDATION. All school dis- 39 tricts operating one (1) or more high schools may conduct a feasibility study 40 and prepare a plan for school consolidation, which may also include school 41 district consolidation. The cost of such feasibility studies and plans shall 42 be reimbursed at an amount not to exceed ten thousand dollars ($10,000) per 43 studyeach school district that proposes to consolidate, in accordance with 44 rules promulgated by the state board of education. The state board of educa- 45 tion shall review and act upon all plans for school consolidation. 46 SECTION 3. That Chapter 5, Title 33, Idaho Code, be, and the same is 47 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 48 ignated as Section 33-521, Idaho Code, and to read as follows: 49 33-521. EMPLOYEE SEVERANCE IN CONSOLIDATED DISTRICT. The board of 50 trustees of any school district newly formed within the last twelve (12) 51 months through the consolidation of two (2) or more school districts may offer 3 1 a one (1) time severance payment to a maximum of ten percent (10%) of the 2 employees that were previously employed by the separate school districts. Such 3 severance offers shall be made entirely at the discretion of the board of 4 trustees, and shall not be bound by custom, seniority or contractual commit- 5 ment. Employees are under no obligation to accept a severance offer. Any 6 employee accepting a severance payment shall not be eligible for reemployment 7 by the school district for a one (1) year period thereafter. 8 The severance payment shall consist of fifty-five percent (55%) of the 9 salary-based apportionment funds allocated for the employee in the last year, 10 plus any applicable state paid employee benefits. Such severance shall be 11 reduced by one-half (1/2) for any employee who is simultaneously receiving a 12 disbursement of early retirement incentive funds, pursuant to section 13 33-1004G, Idaho Code. The state department of education shall reimburse eligi- 14 ble school districts for one hundred percent (100%) of such costs, upon appli- 15 cation by the school district. 16 SECTION 4. That Section 33-906, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 33-906. BOND LEVY EQUALIZATION SUPPORT PROGRAM. (1) Pursuant to section 19 33-906B, Idaho Code, school districts with a value index below one (1) shall 20 be eligible to receive additional state financial assistance for the cost of 21 annual bond interest and redemption payments made on bonds passed on or after 22 September 15, 2002. However, any school district with a value index of less 23 than one and one-half (1.5), shall receive no less than ten percent (10%) of 24 the interest cost portion of the annual bond interest and redemption payment 25 for bonds passed on or after September 15, 2002. The state department of edu- 26 cation shall disburse such funds to school districts from moneys appropriated 27 from the bond levy equalization fund. The department shall disburse the funds 28 by no later than September 1 of each year for school districts in which voters 29 have approved the issuance of qualifying bonds by no later than January 1 of 30 that calendar year, and which are certifying a qualifying bond interest and 31 redemption payment for the fiscal year in which the disbursement is made. For 32 districts with a value index below one (1), the percentage of each annual bond 33 interest and redemption payment that is paid by the state shall be determined 34 by dividing the difference between one (1) and the school district's value 35 index by one (1). 36 (2) For the purposes of this section, the annual bond interest and 37 redemption payment shall be determined by dividing the total payment amounts 38 by the number of fiscal years in which payments are to be made. The interest 39 cost portion of the annual bond interest and redemption payment shall be 40 determined by dividing the total interest paid by the number of fiscal years 41 in which payments are to be made. For school districts not qualifying for a 42 state payment in the first year of the bond interest and redemption payment 43 schedule, due solely to the January 1 eligibility deadline, the state depart- 44 ment of education shall distribute an additional payment in the next fiscal 45 year, in the amount of such funds that the school district would have other- 46 wise qualified for in the current fiscal year. 47 (3) The provisions of this section may not be utilized to refinance 48 existing debt or subsidize projects previously subsidized by state grants; 49 provided however, that any school district that has issued qualifying bonds 50 prior to June 30, 2004, in conformance with this section shall not be deemed 51 to be refinancing existing debt when the qualifying bonds are utilized to 52 finance the acquisition of public school facilities previously leased or 53 financed through means other than the issuance of general obligation bonds 4 1 approved by a two-thirds (2/3) vote at an election called for that purpose 2 subject to subsection (5) of this section. 3 (4) School districts shall annually report the status of all qualifying 4 bonds to the state department of education by January 1 of each year, includ- 5 ing bonds approved by the voters, but not yet issued. Information submitted 6 shall include the following: 7 (a) The actual or estimated bond interest and redemption payment sched- 8 ule; 9 (b) Any qualifying bond that has been paid off; 10 (c) Other information as may be required by the state department of edu- 11 cation. 12 (5) No school district eligible for participation in the bond levy equal- 13 ization support program shall be deemed ineligible for participation due to 14 that school district's eligibility and prior participation in the safe school 15 facilities loan and grant program or the Idaho safe schools facilities program 16 under section 33-804A, 33-1017 or 33-1613, Idaho Code, provided that: 17 (a) Such school district notifies the state department of education of 18 its desire and eligibility to participate in the bond levy equalization 19 support program; and 20 (b) Such school district shall receive no state financial assistance 21 under the bond levy equalization support program until the amount to which 22 it would otherwise have been entitled to receive shall equal the amounts 23 received by the school district under the safe school facilities loan and 24 grant program or the Idaho safe schools facilities program under section 25 33-804A, 33-1017 or 33-1613, Idaho Code. 26 (6) Any school district formed as a result of the consolidation of two 27 (2) or more school districts that passes an eligible bond within three (3) 28 years of the successful consolidation election shall participate in the bond 29 levy equalization support program at the district's actual value index minus 30 twenty-five hundredths (.25). This adjustment shall apply for the duration of 31 the bond interest and redemption payment schedule. If a school district 32 advantaged by this subsection (6) deconsolidates either during the applicable 33 bond interest and redemption payment schedule, or within a three (3) year 34 period thereafter, each deconsolidated district shall, upon deconsolidation, 35 repay to the bond levy equalization fund all additional subsidies received 36 pursuant to this subsection (6). The proportions owed by each deconsolidated 37 district shall be determined by the proportion that each district's market 38 value for assessment purposes bears to the whole. 39 SECTION 5. That Section 33-1002, Idaho Code, be, and the same is hereby 40 amended to read as follows: 41 33-1002. EDUCATIONAL SUPPORT PROGRAM. The educational support program is 42 calculated as follows: 43 (1) State Educational Support Funds. Add the state appropriation, includ- 44 ing the moneys available in the public school income fund, together with all 45 miscellaneous revenues to determine the total state funds. 46 (2) From the total state funds subtract the following amounts needed for 47 state support of special programs provided by a school district: 48 (a) Pupil tuition-equivalency allowances as provided in section 33-1002B, 49 Idaho Code; 50 (b) Transportation support program as provided in section 33-1006, Idaho 51 Code; 52 (c) Feasibility studies allowance as provided in section 33-1007A, Idaho 53 Code; 5 1 (d) The approved costs for border district allowance, provided in section 2 33-1403, Idaho Code, as determined by the state superintendent of public 3 instruction; 4 (e) The approved costs for exceptional child approved contract allowance, 5 provided in subsection 2. of section 33-2004, Idaho Code, as determined by 6 the state superintendent of public instruction; 7 (f) Certain expectant and delivered mothers allowance as provided in sec- 8 tion 33-2006, Idaho Code; 9 (g) Salary-based apportionment calculated as provided in sections 33-1004 10 through 33-1004F, Idaho Code; 11 (h) Unemployment insurance benefit payments according to the provisions 12 of section 72-1349A, Idaho Code; 13 (i) For expenditure as provided by the public school technology program; 14 (j) For employee severance payments as provided in section 33-521, Idaho 15 Code; 16 (k) For the support of provisions that provide a safe environment condu- 17 cive to student learning and maintain classroom discipline, an allocation 18 of $300 per support unit; and 19 ( kl) Any additional amounts as required by statute to effect administra- 20 tive adjustments or as specifically required by the provisions of any bill 21 of appropriation; 22 to secure the total educational support distribution funds. 23 (3) Average Daily Attendance. The total state average daily attendance 24 shall be the sum of the average daily attendance of all of the school dis- 25 tricts of the state. The state board of education shall establish rules set- 26 ting forth the procedure to determine average daily attendance and the time 27 for, and method of, submission of such report. Average daily attendance calcu- 28 lation shall be carried out to the nearest hundredth. Computation of average 29 daily attendance shall also be governed by the provisions of section 33-1003A, 30 Idaho Code. 31 (4) Support Units. The total state support units shall be determined by 32 using the tables set out hereafter called computation of kindergarten support 33 units, computation of elementary support units, computation of secondary sup- 34 port units, computation of exceptional education support units, and computa- 35 tion of alternative school secondary support units. The sum of all of the 36 total support units of all school districts of the state shall be the total 37 state support units. 6 1 COMPUTATION OF KINDERGARTEN SUPPORT UNITS 2 Average Daily 3 Attendance Attendance Divisor Units Allowed 4 41 or more .... 40....................... 1 or more as computed 5 31 - 40.99 ADA.... -....................... 1 6 26 - 30.99 ADA.... -....................... .85 7 21 - 25.99 ADA.... -....................... .75 8 16 - 20.99 ADA.... -....................... .6 9 8 - 15.99 ADA.... -....................... .5 10 1 - 7.99 ADA.... -....................... count as elementary 11 COMPUTATION OF ELEMENTARY SUPPORT UNITS 12 Average Daily 13 Attendance Attendance Divisor Minimum Units Allowed 14 300 or more ADA........................................ 15 15 ..23...grades 4,5 & 6.... 16 ..22...grades 1,2 & 3....1994-95 17 ..21...grades 1,2 & 3....1995-96 18 ..20...grades 1,2 & 3....1996-97 19 and each year thereafter. 20 160 to 299.99 ADA... 20..................... 8.4 21 110 to 159.99 ADA... 19..................... 6.8 22 71.1 to 109.99 ADA... 16..................... 4.7 23 51.7 to 71.0 ADA... 15..................... 4.0 24 33.6 to 51.6 ADA... 13..................... 2.8 25 16.6 to 33.5 ADA... 12..................... 1.4 26 1.0 to 16.5 ADA... n/a.................... 1.0 27 COMPUTATION OF SECONDARY SUPPORT UNITS 28 Average Daily 29 Attendance Attendance Divisor Minimum Units Allowed 30 750 or more .... 18.5..................... 47 31 400 - 749.99 ADA.... 16....................... 28 32 300 - 399.99 ADA.... 14.5..................... 22 33 200 - 299.99 ADA.... 13.5..................... 17 34 100 - 199.99 ADA.... 12....................... 9 35 99.99 or fewer Units allowed as follows: 36 Grades 7-12 ......................... 8 37 Grades 9-12 ......................... 6 38 Grades 7- 9 ......................... 1 per 14 ADA 39 Grades 7- 8 ......................... 1 per 16 ADA 40 COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS 41 Average Daily 42 Attendance Attendance Divisor Minimum Units Allowed 43 14 or more .... 14.5..................... 1 or more as computed 44 12 - 13.99.... -....................... 1 45 8 - 11.99.... -....................... .75 46 4 - 7.99.... -....................... .5 47 1 - 3.99.... -....................... .25 48 COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS 49 Pupils in Attendance Attendance Divisor Minimum Units Allowed 50 12 or more.......... 12...................... 1 or more as computed 7 1 In applying these tables to any given separate attendance unit, no school 2 district shall receive less total money than it would receive if it had a 3 lesser average daily attendance in such separate attendance unit. In applying 4 the kindergarten table to a kindergarten program of less days than a full 5 school year, the support unit allowance shall be in ratio to the number of 6 days of a full school year. The tables for exceptional education and alterna- 7 tive school secondary support units shall be applicable only for programs 8 approved by the state department of education following rules established by 9 the state board of education. Moneys generated from computation of support 10 units for alternative schools shall be utilized for alternative school pro- 11 grams. School district administrative and facility costs may be included as 12 part of the alternative school expenditures. 13 (5) State Distribution Factor per Support Unit. Divide educational sup- 14 port program distribution funds, after subtracting the amounts necessary to 15 pay the obligations specified in subsection (2) of this section, by the total 16 state support units to secure the state distribution factor per support unit. 17 (6) District Support Units. The number of support units for each school 18 district in the state shall be determined as follows: 19 (a) (i) Divide the actual average daily attendance, excluding students 20 approved for inclusion in the exceptional child educational program, 21 for the administrative schools and each of the separate schools and 22 attendance units by the appropriate divisor from the tables of sup- 23 port units in this section, then add the quotients to obtain the 24 district's support units allowance for regular students, kindergarten 25 through grade 12 including alternative school secondary students. 26 Calculations in application of this subsection shall be carried out 27 to the nearest tenth. 28 (ii) Divide the combined totals of the average daily attendance of 29 all preschool, handicapped, kindergarten, elementary, secondary and 30 juvenile detention center students approved for inclusion in the 31 exceptional child program of the district by the appropriate divisor 32 from the table for computation of exceptional education support units 33 to obtain the number of support units allowed for the district's 34 approved exceptional child program. Calculations for this subsection 35 shall be carried out to the nearest tenth when more than one (1) unit 36 is allowed. 37 (iii) The total number of support units of the district shall be the 38 sum of the total support units for regular students, subsection 39 (6)(a)(i) of this section, and the support units allowance for the 40 approved exceptional child program, subsection (6)(a)(ii) of this 41 section. 42 (b) Total District Allowance Educational Program. Multiply the district's 43 total number of support units, carried out to the nearest tenth, by the 44 state distribution factor per support unit and to this product add the 45 approved amount of programs of the district provided in subsection (2) of 46 this section to secure the district's total allowance for the educational 47 support program. 48 (c) District Share. The district's share of state apportionment is the 49 amount of the total district allowance, subsection (6)(b) of this sec- 50 tion. 51 (d) Adjustment of District Share. The contract salary of every noncerti- 52 ficated teacher shall be subtracted from the district's share as calcu- 53 lated from the provisions of subsection (6)(c) of this section. 54 (7) Property Tax Computation Ratio. In order to receive state funds pur- 55 suant to this section a charter district shall utilize a school maintenance 8 1 and operation property tax computation ratio for the purpose of calculating 2 its maintenance and operation levy, that is no greater than that which it uti- 3 lized in tax year 1994, less four-tenths of one percent (.4%). As used herein, 4 the term "property tax computation ratio" shall mean a ratio determined by 5 dividing the district's certified property tax maintenance and operation bud- 6 get by the actual or adjusted market value for assessment purposes as such 7 values existed on December 31, l993. Such maintenance and operation levy shall 8 be based on the property tax computation ratio multiplied by the actual or 9 adjusted market value for assessment purposes as such values existed on Decem- 10 ber 31 of the prior calendar year. 11 SECTION 6. That Section 33-1003, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 33-1003. SPECIAL APPLICATIONS OF EDUCATIONAL SUPPORT PROGRAM. (1) 14 Decrease in Average Daily Attendance. -- Any school district which has a 15 decrease in total average daily attendance of one percent (1%) of its average 16 daily attendance in the then current school year from the total average daily 17 attendance used for determining the allowance in the educational support pro- 18 gram for the school year immediately preceding, the allowance of funds from 19 the educational support program may be based on the average daily attendance 20 of the school year immediately preceding, less one percent (1%). When this 21 provision is applied, the decrease in average daily attendance shall be pro- 22 portionately distributed among the various categories of support units that 23 are appropriate for the district. 24 (2) Application of Support Program to Separate Schools/Attendance Units 25 in District. 26 (a) Separate Elementary School. -- Any separate elementary school shall 27 be allowed to participate in the educational support program as though 28 the school were the only elementary school operated by the district. 29 (b) Hardship Elementary School. -- Upon application of the board of 30 trustees of a school district, the state board of education is empowered 31 to determine that a given elementary school or elementary schools within 32 the school district, not otherwise qualifying, are entitled to be counted 33 as a separate elementary school as defined in section 33-1001, Idaho Code, 34 when, in the discretion of the state board of education, special condi- 35 tions exist warranting the retention of the school as a separate atten- 36 dance unit and the retention results in a substantial increase in cost per 37 pupil in average daily attendance above the average cost per pupil in 38 average daily attendance of the remainder of the district's elementary 39 grade school pupils. An elementary school operating as a previously 40 approved hardship elementary school shall continue to be considered as a 41 separate attendance unit, unless the hardship status of the elementary 42 school is rescinded by the state board of education. 43 (c) Separate Secondary School. -- Any separate secondary school shall be 44 allowed to participate in the educational support program as though the 45 school were the only secondary school operated by the district. 46 (d) Elementary/Secondary School Attendance Units. -- Elementary grades in 47 an elementary/secondary school will be funded as a separate attendance 48 unit if all elementary grades served are situated more than ten (10) miles 49 distance from both the nearest like elementary grades within the same 50 school district and from the location of the office of the superintendent 51 of schools of such district, or from the office of the chief administra- 52 tive officer of such district if the district employs no superintendent of 53 schools. Secondary grades in an elementary/secondary school will be funded 9 1 as a separate attendance unit if all secondary grades served are located 2 more than fifteen (15) miles by an all-weather road from the nearest like 3 secondary grades operated by the district. 4 (e) Hardship Secondary School. -- Any district which operated two (2) 5 secondary schools separated by less than fifteen (15) miles, but which 6 district was created through consolidation subsequent to legislative 7 action pursuant to chapter 111, laws of 1947, and which school buildings 8 were constructed prior to 1935, shall be entitled to count the schools as 9 separate attendance units. 10 (f) Minimum Pupils Required. -- Any elementary school having less than 11 ten (10) pupils in average daily attendance shall not be allowed to par- 12 ticipate in the state or county support program unless the school has been 13 approved for operation by the state board of education. 14 (3) Remote Schools. -- The board of trustees of any Idaho school district 15 which operates and maintains a school which is remote and isolated from the 16 other schools of the state because of geographical or topographical conditions 17 may petition the state board of education to recognize and approve the school 18 as a remote and necessary school. The petition shall be in form and content 19 approved by the state board of education and shall provide such information as 20 the state board of education may require. Petitions for the recognition of a 21 school as a remote and necessary school shall be filed annually at least 22 ninety (90) days prior to the date of the annual meeting of the board of 23 trustees as established in section 33-510, Idaho Code. 24 Within forty-five (45) days after the receipt of a petition for the recog- 25 nition of a remote and necessary school, the state board of education shall 26 either approve or disapprove the petition and notify the board of trustees of 27 its decision. Schools which the state board of education approves as being 28 necessary and remote shall be allowed adequate funding within the support pro- 29 gram for an acceptable educational program for the students of the school. In 30 the case of a remote and necessary secondary school, grades 7-12, the educa- 31 tional program shall be deemed acceptable when, in the opinion of the state 32 board of education, the accreditation standard relating to staff size, estab- 33 lished in accordance with section 33-119, Idaho Code, has been met. The final 34 determination of an acceptable program and adequate funding in the case of a 35 remote and necessary elementary school shall be made by the state board of 36 education. 37 (4) Support Program When District Boundaries are Changed. 38 (a) In new districts formed by the division of a district, the support 39 program computed for the district divided in its last year of operation, 40 shall be apportioned to the new districts created by the division, in the 41 proportion that the average daily attendance of pupils, elementary and 42 secondary combined, residing in the area of each new district so created, 43 is to the average daily attendance of all pupils, elementary and secondary 44 combined, in the district divided in its last year of operation before the 45 division. 46 (b) When boundaries of districts are changed by excision or annexation of 47 territory, the support program of any district from which territory is 48 excised for the last year of operation before such excision shall be 49 divided, and apportioned among the districts involved, as prescribed in 50 subsection (4)(a) of this section. 51 (c) In new districts formed by consolidation of former districts after 52 January 1, 2007, the support program allowance for a seven (7) year period 53 following the formation of the new district, shall not be less than the 54 combined support program allowances of the component districts in the 55 last year of operation before consolidation. After the expiration of this 10 1 period, the state department of education shall annually calculate the 2 number of support units that would have been generated had the previous 3 school districts not consolidated. All applicable state funding to the 4 consolidated district shall then be provided based on a support unit num- 5 ber that is halfway between this figure and the actual support units, pro- 6 vided that it cannot be less than the actual support units. 7 SECTION 7. That Section 33-906B, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 33-906B. VALUE INDEX CALCULATION. The state department of education shall 10 establish a value index for each school district, based on each school 11 district's market value per support unit for equalization purposes, the aver- 12 age annual seasonally-adjusted unemployment rate in the county in which a plu- 13 rality of the school district's market value for assessment purposes of tax- 14 able property is located and the per capita income in the county in which a 15 plurality of the school district's market value for assessment purposes is 16 located. The value index for each school district shall be calculated as the 17 sum of the following three (3) components: 18 (1) The state department of education shall annually calculate the market 19 value per support unit that is used to equalize school funding for each school 20 district in the state, and the statewide average. The first portion of the 21 value index shall be calculated by dividing the school district's market value 22 for equalization purposes per support unit by the statewide average market 23 value for equalization per support unit and dividing the result of this calcu- 24 lation by two (2). 25 (2) The second portion of the value index shall be calculated by dividing 26 the statewide unemployment rate by the unemployment rate in the county in 27 which a plurality of the school district's market value for assessment pur- 28 poses of taxable property is located, and dividing the result of this calcula- 29 tion by four (4). For the purposes of this subsection, the statewide unemploy- 30 ment rate and county unemployment rates shall be based on the most recent 31 average annual seasonally-adjusted unemployment rate data reported by the 32 United States department of labor, for which there is a complete calendar year 33 of data. 34 (3) The third portion of the value index shall be calculated by dividing 35 the county per capita income in the county in which a plurality of the school 36 district's market value for assessment purposes of taxable property is located 37 by the statewide per capita income, and dividing the result of this calcula- 38 tion by four (4). For the purposes of this subsection, the statewide per cap- 39 ita income and county per capita income shall be based on the most recent data 40 reported by the United States department of commerce, for which there is a 41 complete calendar year of data. 42 If a bond is passed by a subdistrict created pursuant to section 33-351, 43 Idaho Code, the index used shall be that of the school district. For subdis- 44 tricts created as a result of consolidation, for the purposes of retiring 45 prior bonded indebtedness, pursuant to section 33-311, Idaho Code, the subdis- 46 trict shall retain the value index factor calculated in subsection (1) of this 47 section, as such factor was calculated in the subdistrict's last fiscal year 48 as a separate school district. The remaining components of the subdistrict's 49 value index calculation shall be that of the consolidated school district, as 50 calculated each year. 51 SECTION 8. An emergency existing therefor, which emergency is hereby 52 declared to exist, this act shall be in full force and effect on and after its 11 1 passage and approval, and retroactively to January 1, 2007.
STATEMENT OF PURPOSE RS 16564C1 The purpose of this legislation is to provide additional financial incentives for school district consolidation. Idaho's current system, in which 114 school districts provide educational services for approximately 250,000 students, is not always an efficient one. This is especially true in areas where multiple districts, in close geographic proximity, serve small student populations. In these cases, money is spent duplicating administrative functions that could otherwise be spent in the classroom. This legislation provides four new or expanded incentives for school district consolidation: 1. Increases the amount of state money available for school districts to conduct consolidation plans and studies, from $10,000 per study to $10,000 per school district involved. 2. Because consolidation results in the opportunity to eliminate the duplication of certain functions, this legislation makes one-time employee severance payments available to a maximum of 10% of the employees, on a willing-employer-willing-employee basis. 3. Increases the amount of state subsidies paid on any bond passed within three years after the successful consolidation election. 4. After the 7-year post-consolidation funding protection period has expired, the new district would get to keep half of the funding formula savings resulting from consolidation (the state currently receives 100% of the savings from consolidation after 7 years). FISCAL IMPACT There is no automatic fiscal impact that would result from this legislation since there is no requirement that any school districts consolidate. Any fiscal impacts from consolidations would have to be evaluated on a case-by-case basis. Any short- term cost increases for the state from items #1 through #3 above, however, would eventually be offset by the cost savings the state would realize through the half-savings it would realize under item #4. Contact Name: Sen. Robert Geddes Rep. Wendy Jaquet Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE S 1067