SENATE BILL REPORT

SB 5396

BYSenators Barr, Bailey, Owen, DeJarnatt, Amondson, Patterson, Newhouse and Sutherland

Providing state funding assistance to small school districts in distressed areas.

Senate Committee on Education

Senate Hearing Date(s):February 7, 1989

Senate Staff:Larry Davis (786-7422)

AS OF FEBRUARY 6, 1989

BACKGROUND:

A number of small school districts in the state are located in areas that have suffered economic hardship.  Some of these districts may have difficulty raising local funds.

SUMMARY:

The Superintendent of Public Instruction may grant funds to second class school districts (school districts with less than 2,000 pupils) if school districts meet specified criteria.  The criteria include poverty factors such as low median income, unemployment rates and rates of persons receiving aid to families with dependent children.  Other factors include assessed valuation of property, receipt of federal forest moneys and receipt of federal impact aid.  Moneys distributed to eligible school districts are limited to the amount of money a district would be eligible to raise under a 10 percent levy less any federal impact money actually received.

Appropriation:    $10,556,500 to the Superintendent of Public Instruction

Revenue:    none

Fiscal Note:      requested February 1, 1989