HOUSE BILL REPORT

HB 1326

BYRepresentatives Bristow, Betrozoff, Peery, Fuhrman and Brough

Revising provisions for local funding requirements for school construction projects.

House Committe on Education

Majority Report:  Do pass with amendments.  (19)

      Signed by Representatives Peery, Chair; G. Fisher, Vice Chair; Betrozoff, Ranking Republican Member; Brumsickle, Cole, Dorn, Fuhrman, Holland, Horn, Jones, P. King, Phillips, Pruitt, Rasmussen, Rayburn, Schoon, Valle, Walker and K. Wilson.

House Staff:Susan Patrick (786-7111)

Rereferred House Committee on Capital Facilities & Financing

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives H. Sommers, Chair; Rasmussen, Vice Chair; Schoon, Ranking Republican Member; Beck, Betrozoff, Bowman, Braddock, Bristow, Fraser, Jacobsen, Peery, Wang and Winsley.

AS REPORTED BY COMMITTEE ON CAPITAL FACILITIES & FINANCING

FEBRUARY 28, 1989

BACKGROUND:

Currently, in determining the percentage of state assistance for nonhigh school district construction and modernization projects, a nonhigh school district may count only those students actually attending school in their district. This is based on the assumption that the nonhigh school district bears no cost for the construction of high school facilities.  At the same time, however, a nonhigh school district is required to contribute payment for bonds or excess tax levies to provide capital funds for building programs in the adjacent designated high school district receiving their students.

While statutes on the state matching ratio for school construction projects refer to full time equivalent enrollment, the Office of the Superintendent of Public Instruction currently uses October head count enrollment, with kindergarten students counted as half, for determining state funding.

SUMMARY:

BILL AS AMENDED:  The method of determining enrollment for purposes of calculating the adjusted valuation per pupil for allotment of state matching funds from the common school construction fund shall be based on a head count of pupils enrolled rather than the number of full time equivalent students.  However, the number of preschool handicapped and kindergarten students included in the enrollment count shall be multiplied by one-half.

Nonhigh school districts shall be allowed to count students who reside in their district, but attend a designated high school serving district, for the purposes of determining the percentage of state assistance for school construction and modernization for which the nonhigh district is eligible.

In the case of construction or modernization of high school facilities in high school districts serving students from nonhigh school districts, the adjusted valuation per pupil shall be computed using the combined adjusted valuations and enrollment of each district, each weighted by the percentage of the district's resident high school students served by the high school district.

No state funds shall be allotted until a district has provided matching funds equal to or greater than the difference between the total approved project cost and the state's share of the project cost computed using this state matching percentage. However, this rule may be waived for school districts that are at their statutory debt ceiling.

A district that is providing a high school program for at least 33 1/3 percent of the students from the nonhigh school district, must be made a designated district.  The nonhigh school district is required to make contributions for construction of high school facilities in the designated school district, if the district was a designated district at the time the county auditor was requested to place a bond or tax levy measure on the ballot.

AMENDED BILL COMPARED TO ORIGINAL:  The reference to serving high school districts was made consistent.  The language makes clear that districts whose funding was approved prior to the effective date of this act are not affected.  The legislation is prospective in application.

CHANGES PROPOSED BY COMMITTEE ON CAPITAL FACILITIES & FINANCING:  The substitute bill incorporates the changes proposed by the House Committee on Education and further changes to correct statutory inconsistencies.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Education)  Mile Roberts, State Board of Education.

(Capital Facilities & Financing)  Terry Michaelson, Office of the Superintendent of Public Instruction.

House Committee - Testified Against:      (Education)  None Presented.

(Capital Facilities & Financing)  None Presented.

House Committee - Testimony For:    (Education)  The purpose of the bill is to assure that statutory language conforms with actual practice and to clarify how high school students from nonhigh school districts will be counted.  We also recommend that the bill be prospective in its application so that we do not affect districts which have already determined their eligibility for state matching funds and are on the waiting list for dispersal of state funds.

(Capital Facilities & Financing)  Technical concerns have been addressed in the substitute bill.

House Committee - Testimony Against:      (Education)  None Presented.

(Capital Facilities & Financing)  None Presented.