Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
Capital Budget Committee | |
HB 2357
Brief Description: Allowing a school district to transfer certain revenue into the district's capital projects account.
Sponsors: Representatives McIntire and Fromhold.
Brief Summary of Bill |
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Hearing Date: 3/1/07
Staff: Susan Howson (786-7142).
Background:
School districts are required to establish several funds, including a general fund, a debt service
fund, and a capital projects fund. Districts may use each fund for particular purposes, subject to
statutory restrictions. A school district may issue general obligation bonds that are payable from
the district's tax revenues and from other moneys lawfully available and pledged for that purpose.
Proceeds from a district's bond levies must be deposited in the district's debt service fund.
The state holds certain forest lands in trust for counties. Net revenues from these state forest
lands are distributed to counties in the same manner as general taxes are paid and prorated during
the year of payment. As junior taxing districts, school districts thus receive a portion of state
forest land revenue distributions. The distribution of state forest lands revenue that a school
district receives depends on the types of tax levies that the school district has passed. For
example, if the district has passed a capital levy for construction or remodeling, a portion of the
state forest lands revenue is deposited in the district's capital projects fund, where capital levy
proceeds are deposited. If the district has passed a bond levy, a portion of the state forest lands
revenue is deposited in the district's debt service fund, where district revenues dedicated to debt
service on bond levies are deposited.
A 1998 informal opinion of the Attorney General's office advises that school districts do not have
statutory authority to transfer state forest lands revenue distributed to their debt service funds into
their capital projects funds. This is because the statute that distributes the forest land revenues to
junior taxing districts operates as a dedication of that revenue to the respective local funds that
receive tax revenues. For this reason, school districts may not spend distributions of state forest
land revenues directly from their debt service funds for capital purposes.
Summary of Bill:
School districts are authorized to transfer distributions of state forest land revenues from their
debt service funds to their capital projects funds, so long as those revenues have not been pledged
for debt service on school district bonds.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.