SENATE BILL REPORT

ESHB 1655

BYHouse Committee on Education (originally sponsored by Representatives Peery, Betrozoff, Grimm, H. Sommers, Walker and D. Sommers) 

Specifying the uses of capital funds by school districts.

House Committe on Education

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Education

Senate Hearing Date(s):February 25, 1988

Majority Report:  Do pass as amended.

      Signed by Senators Bailey, Chairman; Kiskaddon, Vice Chairman; Bauer, Bender, Gaspard, Rinehart.

Senate Staff:Don Bennett (786-7424)

                  February 29, 1988

AS REPORTED BY COMMITTEE ON EDUCATION, FEBRUARY 25, 1988

BACKGROUND:

School districts are authorized to issue bonds and collect excess tax levies for capital purposes.  In 1986, the voters approved House Joint Resolution 55 which authorized levies for up to six years for construction, modernization, or remodeling of school facilities.

Earlier this year, several school districts submitted six- year levy requests to voters which included purchases of computers and other equipment which was not specifically related to construction, modernization, or remodeling projects.

SUMMARY:

Money generated by a six year capital levy may be used for the purchase of computers, portable equipment and furnishings only if the purchases are included in a school district construction or modernization project and do not exceed 10 percent of the total cost of the construction or modernization of the facility or do not exceed 20 percent of the total cost of a construction or modernization project for a vocational technical institute or vocational skills center cooperative.  These provisions shall apply to six year capital levies passed after February 2, 1988.

Facility means a building, portion of a building or building complex or a permanent athletic structure.

SUMMARY OF PROPOSED COMMITTEE AMENDMENT:

Tax revenues from multi-year capital levies approved after February 2, 1988 may not be used for any additional purpose other than the purchase and installation of fixtures, fittings, furnishings, and service systems incidental to the construction, modernization, or remodeling of a facility. 

An exception is provided which authorizes the use of such tax revenues to the extent that the aggregate cost of the purchase and installation of portable equipment and furniture incidental to the construction, modernization, or remodeling does not exceed 20 percent of the total cost of the project.

"Total cost of the project" is the sum of the costs of construction, modernization, or remodeling of the facility and the aggregate cost of the purchase and installation of portable equipment and furniture incidental thereto, but does not include the costs of land acquisition and site preparation.

"Modernization" is defined as major structural changes in existing facilities as further defined in RCW 28A.47.073.  "Portable equipment and furniture" is defined as any readily movable item which is not a fixture such as a personal computer and associated or peripheral software and hardware, instructional materials and equipment, or furniture.  "Facility" is defined as a building or building complex, a portion of a building, or a permanent athletic structure.

Tax revenues derived from multi-year levies shall be deposited in the district capital projects fund and may only be used for the above-stated purposes.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Representative John Betrozoff (for);  Dr. George Daniel, Kent School District (for);  Dr. Roy Duncan, Shoreline School District (for);  Kris Van Gorkum, Washington Association of School Administrators (for);  Dwayne Slate, Washington State School Directors' Association (for)