SENATE BILL REPORT

                                    SB 5420

             AS REPORTED BY COMMITTEE ON EDUCATION, MARCH 6, 1991

Brief Description:  Authorizing special needs grants.

SPONSORS:Senators Barr, Bailey, McCaslin, Saling, Amondson, Patterson, Conner, Owen, Sutherland, Hansen, Snyder and Sellar.

SENATE COMMITTEE ON EDUCATION

Majority Report:  That Substitute Senate Bill No. 5420 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Bailey, Chairman; Anderson, Craswell, Metcalf, Murray, Oke, Pelz, Rinehart, and A. Smith. 

Staff:  Leslie Goldstein (786‑7424)

Hearing Dates:February 26, 1991; March 6, 1991

BACKGROUND:

A number of small school districts in the state are located in areas that have suffered economic hardship.  Some of these districts may have difficulty raising local funds.

A grant program to provide funding to small districts is a way to respond to the special needs of students in some school districts.

SUMMARY:

The Superintendent of Public Instruction shall establish a grant program to assist eligible small school districts in meeting their special needs.  The grant funds and new or existing programs enhanced by the funds shall not become part of the state's basic program of education.

Second class school districts are eligible to apply for funds if they meet six criteria relating to:  below state average median household income; unemployment above the statewide average; number of persons receiving Aid to Families with Dependent Children is above the statewide average; assessed valuation of property would require a $2/$1,000 rate or higher to raise a 10 percent levy; receipt of federal forest moneys does not exceed the district's basic education allocation; and receipt of federal impact aid does not exceed the maximum amount the district could raise with a 10 percent levy.

Eligible districts may receive grant funds not to exceed the maximum amount the district could raise under a 10 percent levy less any federal impact funds actually received by the district.

Districts submit a grant application which must identify budgeted expenditures; a description of the services, programs, or activities to be funded; and a description of how the use of the grant funds will be evaluated for effectiveness.  Districts must document that at least one public hearing was held regarding the proposed application.

Districts must submit a biennial report to the Superintendent of Public Instruction on the use of the funds.  The Superintendent must report to the Legislature biennially on the grant program.  The first report is due December 1, 1991.

EFFECT OF PROPOSED SUBSTITUTE:

The appropriation of $11,778,660 to SPI is struck and implementation of the bill is contingent upon an appropriation in the budget.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested February 20, 1991

TESTIMONY FOR:

In several areas of the state, the economic conditions are such that students and employees are deprived of the educational opportunities enjoyed in the rest of the state.  These students need immediate assistance.

TESTIMONY AGAINST:  None

TESTIFIED:  PRO:  Senator Scott Barr, sponsor; Jerry M. Wilson, Riverside School District; Neil S. Hutchens, Northport School District; Dennis Justice, Onalaska School District