HOUSE BILL REPORT

HB 2054

BYRepresentatives Grimm and Peery

Authorizing waivers of state matching requirements for school construction projects.

House Committe on Ways & Means

Majority Report:  The substitute bill be substituted therefore and the substitute bill do pass.  (25)

      Signed by Representatives Grimm, Chair; Bristow, Vice Chair; Basich, Belcher, Braddock, Brekke, Brough, Butterfield, Dellwo, Ebersole, Grant, Hine, Holland, Locke, McLean, Nealey, Rust, Sayan, H. Sommers, Spanel, Sprenkle, Valle, Wang, B. Williams and Winsley.

House Staff:Janet Peterson (786-7136)

AS REPORTED BY COMMITTEE ON WAYS & MEANS FEBRUARY 27, 1988

BACKGROUND:

Currently, the state requires a local match for school construction funding except in the following circumstances:  for school districts which are at their statutory debt ceiling, and for projects to bring facilities into compliance with handicapped access requirements.  Except for certain kinds of projects, the state matching ratio for school construction differs according to the school district's assessed valuation per pupil.  That is, school districts with higher per pupil assessed valuations are required to pay a higher local share.

SUMMARY:

SUBSTITUTE BILL:  The State Board of Education would be authorized to waive the state matching requirement for a school district which has held bond elections at least twice each year in the previous two years and been unable to pass the bonds, which has a per pupil assessed valuation that is below the statewide average, and which exceeds the pupil capacity of its facilities by at least fifty percent.  However, in this case, the amount of state assistance is still limited to the maximum matchable cost for the square footage of the project, multiplied by the regular state matching percentage for the district.  After the State Board has granted such a waiver, the school district may raise additional local funds without affecting the amount of state assistance provided.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Districts with per pupil assessed valuations which are above the statewide average would not be eligible for waiver of matching requirements.  Eligible districts would have to exceed their facilities' capacity by at least fifty rather than ten percent, and the requirement that districts fail bond measures twice in the past year is increased to twice in each of the previous two years.  Districts which have been granted a waiver may then raise additional local funds for the project without affecting the amount of state assistance provided.

Fiscal Note:      Requested February 27, 1988.

House Committee ‑ Testified For:    Senator Jack Metcalf.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The state should increase assistance available to areas of the state with low property tax values, which have a difficult time raising local funds.

House Committee - Testimony Against:      None Presented.