HOUSE BILL REPORT

SB 6224

BYSenators Bailey, Bender, Lee, Gaspard, Murray, Talmadge and Craswell;by request of Superintendent of Public Instruction

Allowing the SPI to withhold basic education moneys from school districts owing repayment of moneys to the federal government.

House Committe on Education

Majority Report:  Do pass.  (18)

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

House Staff:Susan Patrick (786-7111)

AS PASSED HOUSE MARCH 1, 1990

BACKGROUND:

Most federal dollars received in this state for education are received by the Superintendent of Public Instruction and distributed to school districts according to the terms of the federal grant.  If a school district does not spend the federal dollars according to the terms of the grant, the state could be held responsible for repaying the federal government.  The state does not have the statutory authority to force the school district to reimburse the state in such cases.

SUMMARY:

Each school district receiving federal funds through the Superintendent of Public Instruction must comply with federal requirements.  The school district shall repay expenditures disallowed by the federal government and any interest assessed.

The Superintendent of Public Instruction may withhold basic education allocation amounts to facilitate payment of principal and interest to the federal government.  The withheld dollars may be:  1) prepaid to the federal government, or 2) repaid to the school district when the school district pays the federal government or the school district makes a commitment to an acceptable repayment plan.

The Superintendent of Public Instruction may withhold basic education dollars only if the district's ability to provide the basic education program offerings will not be impaired.

Fiscal Note:      No Impact.

House Committee ‑ Testified For:    Perry Keithley, Superintendent of Public Instruction.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This is a bill that allows us to be sure that if there are problems created by a school district resulting from improper use of federal funds that we can be sure the district repays the funds and minimizes interest charges that may be assessed for non payment.

House Committee - Testimony Against:      None.