STATEMENT OF PURPOSE
The constitution of the State of Idaho in Article IX, Section 1,
states in part ". . . it shall be the duty of the legislature of Idaho,
to
establish and maintain a general, uniform and thorough system of
public, free common schools."
Which actually says:
SECTION 1. LEGISLATURE TO ESTABLISH SYSTEM
OF FREE SCHOOLS.
The stability of a republican form of government
depending mainly upon the intelligence
of the people, it shall be the duty of
the legislature of Idaho, to establish and maintain a general, uniform
and thorough system of public, free common schools.
Since school facilities are as integral to a thorough education
system as are teachers and books, and in order to more adequately
comply with this constitutional mandate, (that we complied with last
year)
this legislation is proposed.
While the legislature has provided various means for local school
districts to construct and maintain adequate school facilities, through
various legislative action, there still remains many school facility
inadequacies in Idaho (Because Locals have chosen to spend their
money on other things). In 1974 the legislature came to the rescue
of a
few school districts by passing and funding the Public School Building
Account Law. It was done because a few school districts were
experiencing very rapid growth and needed help from the State. Today
we
have a problem of a larger scale. Many Idaho school districts were
recipients of Federal Forest funds and used those funds to build school
buildings. These funds have diminished almost to the point of
nonexistence.(But other funds have come into play) In addition,
the farm economy is as bad as we have ever
seen it. Also, there are still school districts that are growing
rapidly and require a new bond issue every year or two. In many
instances, and for many of the reasons afore mentioned (and others
like, the Locals don't feel the need the district feels), the property
tax is too great a burden and the bond issue elections fail. This
legislation will remedy that problem by creating an ongoing school
facility support fund of $30,000,000.
(Of your tax dollars)
In addition, in many instances school districts fail to
appropriately prioritize the funding that they presently have
available. The lottery proceeds have been used for projects while
health & safety issues remained unmet. (That is usually the problem
they buy cake, not bread...So come on now cough up more money
so they can have cake and bread and rot the kids teeth.)Each year
school districts receive unanticipated funds from the foundation
support program which are a result of the difference between the
estimated calculated support unit amount and the actual amount based
on final average daily attendance.
Currently these funds are used for various purposes and in
many instances are not used for the highest priority, health and safety
of students. Additionally should we experience extraordinary gains
in
the Public Employee Retirement fund, effective in 2003 these funds
will
also accrue to the school facilities support fund. This legislation
focuses those funds first on health and safety issues and then on other
capital projects. School personnel are often expressing concern about
the lack of funding to repair roofs, light parking lots, replace worn-
out furniture, purchase computers, and fix assorted problems in their
schools. This legislation will remedy these situations.(They can't
remedy
those then they will lose their "poster children" for more money)
Bill Text
SENATE BILL NO. 1070
BY EDUCATION COMMITTEE
1
AN ACT
2 RELATING
TO STATE SUPPORT OF SCHOOL FACILITIES; PROVIDING A STATEMENT OF LEG-
3 ISLATIVE
PURPOSE; AMENDING SECTION 33-905, IDAHO CODE, TO STRIKE
REFER-
4
ENCES TO LOTTERY DIVIDENDS AND GOVERN USE OF FUNDS DISTRIBUTED;
AMENDING
5 CHAPTER
9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-906,
6 IDAHO
CODE, TO CREATE THE SCHOOL FACILITY SUPPORT FUND
AND TO GOVERN THE
7
USES OF THE MONEYS IN THE FUND; AMENDING CHAPTER 9, TITLE
33, IDAHO CODE,
8 BY
THE ADDITION OF A NEW SECTION 33-907, IDAHO CODE, TO GOVERN
THE ALLOCA-
9
TION AND USE OF EXISTING RESOURCES; AMENDING
CHAPTER 9, TITLE 33, IDAHO
10 CODE,
BY THE ADDITION OF A NEW SECTION 33-908, IDAHO CODE, TO
GOVERN DIS-
11
TRIBUTION OF CERTAIN EXISTING RESOURCES; AMENDING
SECTION 33-1009, IDAHO
12 CODE,
TO PROVIDE TRANSFER OF A CERTAIN
REMAINING BALANCE IN THE PUBLIC
13
SCHOOL INCOME FUND; AND AMENDING SECTION
67-7434, IDAHO CODE, TO PROVIDE
14 THE
DISTRIBUTION OF LOTTERY DIVIDENDS.
15 Be It Enacted by the Legislature of the
State of Idaho:
16 SECTION 1.
LEGISLATIVE PURPOSE. It is the purpose of the Legislature,
17 through the establishment of the School
Facility Support Fund, to advance the
18 efforts of local school patrons to provide
school facilities which meet educa-
19 tional needs of children in Idaho. The fund
will constitute an ongoing commit-
20 ment of state appropriations to school
facilities. Because the fund will pro-
21 vide property tax reduction, it will serve
as an incentive to continue to
22 build and expand the school infrastructure.
Through the operation of the fund,
23 greater uniformity, equity
and stability is provided in the distribution of
24 the moneys, including the appropriated money,
the lottery funds, the end of
25 year funds in the foundation program and
the proceeds of an extraordinary gain
26 in the public school retirement system employer's
gain share.
27 SECTION 2.
That Section 33-905, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 33-905.
SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS
TO ACCOUNT -- MONEYS
30 APPROPRIATED
TO STATE BOARD -- APPLICATION FOR MONEYS
-- PAYMENTS TO DISTRICTS
31 -- REPORTS
ON APPLICATIONS -- USES OF MONEYS.
1. The state of Idaho, recogniz-
32 ing its responsibility to establish and
maintain a general, uniform and thor-
33 ough system of public, free common
schools, in an effort to partially fulfill
34 this responsibility, hereby creates and
establishes the school district build-
35 ing account in the state treasury. The school
district building account shall
36 have paid into it such appropriations or
revenues as may be provided by law.
37 2. Moneys
in the school district building account are hereby appropriated
38 to and may be expended
by the state board of education at any time for the
39 purposes provided in this section, any provision
of chapter 35, title 67,
40 Idaho Code, or chapter 36, title 67, Idaho
Code, notwithstanding.
41 3. (a) As
to any moneys in the account other than lottery dividends dis-
42 tributed pursuant
to subsection 4. of this section, tThe board of trustees
2
1 of any school district
may apply to the state board of education
to
2 receive a
payment or payments from the school district building account;
3 provided, a district
demonstrates to the state board of education that it
4 has a
substantial and serious need based upon the district's classroom
5 student-teacher
ratios, past efforts to levy for such construction, physi-
6 cal condition of
existing structures, and the total assessed market value
7 of the
district, all of which shall be further defined by actual
need
8 criteria established
by the state board of education.
9 (b) When an
application for moneys from the account is approved by
the
10 state board of education,
the state board shall inform the school district
11 that the
application has been approved, citing the amount approved for
12 payment and an estimate
of the time when the payment can actually be made
13 to the school district.
14 4. By not
later than August 31, moneys in the account pursuant to distri-
15 bution from section 67-7434,
Idaho Code, the lottery dividends and interest
16 earned thereon, shall be distributed to
each of the several school districts,
17 in the proportion that the average
daily attendance of that district for the
18 previous school year bears to the total
average daily attendance of the state
19 during the previous school year. For
the purposes of this subsection 4. only,
20 the Idaho school for the deaf and blind
shall be considered a school district,
21 and shall receive a distribution based upon
the average daily attendance of
22 the school. Average daily attendance
shall be calculated as provided in sec-
23 tion 33-1002 4., Idaho Code.
24 5. All payments
from the school district building account shall be paid
25 out directly to the school district
in warrants drawn by the state controller
26 upon presentation of proper vouchers from
the state board of education. Pend-
27 ing payments out of the
school district building account, the moneys in the
28 account shall be invested by the state treasurer
in the same manner as pro-
29 vided under section 67-1210, Idaho
Code, with respect to other idle moneys in
30 the state treasury. Interest earned on the
investments shall be returned to
31 the school district building account.
32 65. Payments
from the school district building account received
by a
33 school district may shall be used by the
school district for the purposes
34 authorized in section 33-1102,
Idaho Code for purposes described by the dis-
35 trict in the application.
36 76. (a) By
not later than December 1, each school district shall report
37 to the state department
of education the projects on which moneys received
38 from the school
district building account were expended. The state depart-
39 ment of education
shall transmit a summary of such reports to the legisla-
40 ture by not later
than January 15 of the following year.
41 (b) By
not later than December 1, each school district shall report
to
42 the state department
of education the planned uses for the moneys received
43 from the school
district building account. The state department of educa-
44 tion shall transmit
a summary of the reports to the legislature by
not
45 later than January
15 of the following year.
46 SECTION 3.
That Chapter 9, 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 33-906, Idaho Code, and
to read as follows:
49 33-906. SCHOOL
FACILITY SUPPORT FUND. There is hereby created and estab-
50 lished the "School Facility Support Fund."
The fund shall have paid into it
51 such appropriations or revenues as may be
provided by law.
52 Moneys in
the school facility support fund are hereby appropriated to and
53 may be expended by the state department
of education at any time for the pur-
3
1 poses provided in this section, the
provisions of chapter 35 or 36, title 67,
2 Idaho Code, notwithstanding. Payments from
the school facility support fund
3 shall be paid out directly to school
districts in warrants drawn by the state
4 controller upon presentation of proper vouchers
from the department of educa-
5 tion. Pending payments
out of the fund, the moneys in the fund shall be
6 invested by the state treasurer in the same
manner as provided under section
7 67-1210, Idaho Code, with respect
to other idle moneys in the state treasury.
8 Interest earned on the investment shall
be returned to the school facility
9 support fund.
10 By not
later than July 15 of each year, moneys in the fund shall be dis-
11 tributed to the school district in the same
proportion that funds were dis-
12 tributed to that district for
the previous school year from the state school
13 foundation program.
14 Moneys received
by a school district from a distribution of the moneys in
15 the school facility support fund by
appropriation shall be used by the school
16 district as follows:
17 (1) If the
district has bonded indebtedness or has a school plant facili-
18 ties levy, the moneys shall be used by the
district to reduce the dollar cer-
19 tification for bond interest and redemption
for the ensuing year to the extent
20 of the funds available and then to
reduce the dollar certification for school
21 plant facilities levy. If the amount received
by the district exceeds the
22 annual bond interest and redemption
certification and school plant facilities
23 levy certification, the balance shall be
used to reduce principal, if possi-
24 ble. If principal reduction
is not possible, the excess shall revert to the
25 fund and accumulate in a line of credit
account as provided in subsection (2)
26 of this section.
27 (2) If
the school district has no bonded indebtedness nor school plant
28 facilities levy, or if there is money returned
as provided in subsection (1)
29 of this section, the amount due the district
shall be retained in the fund and
30 shall accumulate to the
credit of that district to be applied to bonded
31 indebtedness or school plant facilities
levy reduction as they may be subse-
32 quently incurred. After the fifth year of
accumulation, the amount retained in
33 the first year shall be returned to
the fund for distribution to other school
34 districts, and thereafter, the initial year
of accumulation shall annually be
35 returned so that the
amount retained on behalf of a school district shall
36 total an accumulation of five (5) years'
distribution.
37 SECTION 4.
That Chapter 9, Title 33, Idaho Code, be, and the
same is
38 hereby amended by the addition thereto
of a NEW SECTION, to be known and des-
39 ignated as Section 33-907, Idaho Code, and
to read as follows:
40 33-907. ALLOCATION
OF EXISTING RESOURCES. In addition to moneys in the
41 school facility support fund
from appropriation, the fund shall also provide
42 for allocation of existing resources as
follows:
43 (1) One-half
(1/2) of the lottery dividends distributed pursuant to sec-
44 tion 67-7434, Idaho Code;
45 (2) That
portion of foundation support moneys, if any, existing
as a
46 result of the difference between the calculation
of per unit support based
47 upon November average
daily attendance and the calculation based upon final
48 average daily attendance and subsequently
available as a residual in the foun-
49 dation support fund.
50 (3) In any
fiscal year beginning 2003 or thereafter, in which the exis-
51 tence of extraordinary gains
causes the board of the public employee retire-
52 ment system to order an allocation of extraordinary
gains, the school dis-
53 tricts' employer's share shall
be transferred by the public employee retire-
4
1 ment system to the fund created by this
section.
2 SECTION 5.
That Chapter 9, Title 33, Idaho Code, be, and the
same is
3 hereby amended by the addition thereto
of a NEW SECTION, to be known and des-
4 ignated as Section 33-908, Idaho Code, and
to read as follows:
5 33-908. ADDITIONAL
DISTRIBUTIONS. By not later than July 15 of each year,
6 moneys in the fund pursuant to section 33-907,
Idaho Code, shall be distrib-
7 uted to the school district in the same
proportion that funds were distributed
8 to that district for the previous school
year from the state school foundation
9 program. These moneys
shall be used by the district first to address any
10 existing health or safety issue, and thereafter
may be used for any purpose
11 consistent with the provisions of section
33-1102, Idaho Code.
12 SECTION 6.
That Section 33-1009, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 33-1009. PAYMENTS
FROM THE PUBLIC SCHOOL INCOME FUND.
15 1. a. Payments
of the state general account appropriation for
public
16 school support
shall be made each year by the state board of education to
17 the public school
districts of the state in five (5) payments. Payments to
18 the districts shall
be made not later than the fifteenth day of August,
19 the first day of
October, the fifteenth day of November, the fifteenth day
20 of February,
and the fifteenth day of May each year. Each payment by the
21 state board of education
shall be approximately twenty percent (20%) of
22 the total
general account appropriation for the fiscal year.
Amounts
23 apportioned due
to a special transfer to the public school income fund to
24 restore or
reduce a deficiency in the prior year's transfer pursuant to
25 subsection 4. of
this section shall not be subject to this limitation.
26 b. Payments
of moneys, other than the state general account appropria-
27 tion, that
accrue to the public school income fund shall be made by the
28 state board of education
to the school districts of the state on the fif-
29 teenth day of November,
February, May and July each year. The total amount
30 of such payments
shall be determined by the state department of education
31 and shall not exceed
the amount of moneys available and on deposit in the
32 public school income
fund at the time such payment is made.
33 c. Amounts
apportioned due to a special transfer to the public school
34 income fund to restore
or reduce a deficiency in the prior year's transfer
35 pursuant to subsection
4. of this section shall not be subject to the lim-
36 itation imposed
by paragraphs a. and b.
37 2. Payments
made to the school districts in August, October and November
38 are advance payments for the current year
and will be based upon payments from
39 the public school income fund for
the preceding school year. Each school dis-
40 trict shall receive its proportionate share
of the advance payments in the
41 same ratio that its total payment for the
preceding year was to the total pay-
42 ments to all school districts for the preceding
year.
43 3. No
later than the fifteenth day of February in each year, the
state
44 department of education shall compute the
state distribution factor based on
45 the total average daily attendance
through the first Friday in November. The
46 factor will be used in payments of state
funds in February and May. Attendance
47 shall be reported in a format and at a time
specified by the state department
48 of education.
49 As of the
thirtieth day of June of each year the state department of edu-
50 cation shall determine final payments to
be made on July fifteenth next suc-
51 ceeding to the several school districts
from the public school income fund for
5
1 the school year ended
June 30. The July payments shall take into consider-
2 ation:
3 a. the average
daily attendance of the several school districts for the
4 twenty-eight
(28) best weeks of the school year completed not later than
5 the thirtieth of
June,
6 b. all funds
available in the public school income fund for the fiscal
7 year ending
on the thirtieth of June the amount of the state distribution
8 factor as determined
pursuant to this subsection,
9 c. all payments
distributed for the current fiscal year to the several
10 school districts,
11 d. payments
made or due for the transportation support program and the
12 exceptional education
support program. The state department of education
13 shall apportion
and direct the payment to the several school districts so
14 much of the moneys
in the public school income fund in each year, taking
15 into account the
advance made under subsection 2. of this section, in such
16 amounts as will
provide in full for each district its support program, and
17 not more than therefor
required, and no school district shall receive less
18 than fifty dollars
($50.00).
19 4. If the
full amount appropriated from the general account by the legis-
20 lature is not transferred to
the public school income fund by the end of the
21 fiscal year, the deficiency resulting therefrom
shall either be restored or
22 reduced through a special transfer from
the general account in the first sixty
23 (60) days of the following
fiscal year, or shall be calculated in computing
24 district levies, and any additional levy
shall be certified by the state
25 superintendent of public instruction
to the board of county commissioners and
26 added to the district's maintenance and
operation levy. If the deficiency is
27 restored or reduced by special transfer,
the amount so transferred shall be in
28 addition to the amount appropriated to be
transferred in such following fiscal
29 year, and shall be apportioned
to each school district in the same amount as
30 each would have received had the transfer
been made in the year the deficiency
31 occurred. The state department of education
shall distribute to the school
32 district the full amount
of the special transfer as soon as practical after
33 such transfer is made. In making the levy
computations required by this sub-
34 section the state department of education
shall take into account and consider
35 the full amount of money receipted into
the public school income fund from all
36 sources for the given fiscal
year. Deficits in the transfer of the appropri-
37 ated amount of general account revenue to
the public school income fund shall
38 be reduced by the amount, if
any, that the total amount receipted from other
39 sources into the public school income
fund exceeds the official estimated
40 amount from those sources.
The official estimate of receipts from other
41 sources shall be the total amount stated
by the legislature in the appropria-
42 tion bill.
43 5. Any
amount remaining in the public school income fund after distribu-
44 tion as provided in subsection 3. of this
section shall be transferred to the
45 school facility support fund as provided
in section 33-907, Idaho Code.
46 6. Any apportionments
in any year, made to any school district, which may
47 within the succeeding
three (3) year period be found to have been in error
48 either of computation or transmittal, may
be corrected during the three (3)
49 year period by reduction
of apportionments to any school district to which
50 over-apportionments may have been made or
received, and corresponding addition
51 to apportionments to any school district
to which under-apportionments may
52 have been made or received.
53 SECTION 7.
That Section 67-7434, Idaho Code, be, and the same is hereby
54 amended to read as follows:
6
1 67-7434. LOTTERY
DIVIDENDS. Annually, on July 1, the lottery shall trans-
2 fer one-half (1/2) of its net income to
the permanent building account and
3 one-half (1/2) of its
net income to the school district building account
4 facility support fund created in section
33-906, Idaho Code, after reserving
5 sufficient moneys to ensure the continuation
of the lottery, as determined by
6 the director and commission.
7 A one (1) time allotment
of two hundred thousand dollars ($200,000) of the
8 lottery's first year dividends shall be
allocated and used by the permanent
9 building fund advisory
council for the construction of a Vietnam veterans
10 memorial in the state.
Statement of Purpose / Fiscal Impact
FISCAL IMPACT
$30, 000, 000
Contact
Name: Darrel Deide
Phone:332-1345
STATEMENT OF PURPOSE/FISCAL NOTE
S 1070