SENATE BILL REPORT

SB 5981

BYSenators Bailey, Rinehart, Smith, Lee, Murray, Nelson, Bender, Bauer, Sellar, Warnke, Bluechel, Amondson, Anderson, Saling, Owen and Thorsness

Regarding school construction.

Senate Committee on Education

Senate Hearing Date(s):February 27, 1989

Majority Report:  Do pass as amended and be referred to Committee on Ways & Means.

      Signed by Senators Bailey, Chairman; Lee, Vice Chairman; Anderson, Bender, Fleming, Murray, Rinehart.

Senate Staff:Leslie Goldstein (786-7424)

                  February 28, 1989

AS REPORTED BY COMMITTEE ON EDUCATION, FEBRUARY 27, 1989

BACKGROUND:

There is a backlog of approximately $320 million in unfunded common school construction projects.  This sum represents the state share of funds needed by local districts before they can begin construction on projects already approved by the State Board of Education. 

Money for common school construction projects is appropriated by the Legislature to the State Board of Education from the common school construction fund.  The major source of revenue in the common school construction fund is from the sale of timber on state lands.  Approximately $75 million is generated each year.  The common school construction fund is established in the state Constitution and currently can only be spent on a cash basis.

SUMMARY:

School Plant Facilities:  A bond issue of $300 million is authorized for the construction and modernization of school plant facilities.  The bonds are state general obligation reimbursable bonds.  The principal and interest on the bonds are paid from the state treasury and the state treasury is reimbursed from the common school construction fund. 

The proceeds from the sale of the bonds shall be used for projects approved before January 31, 1989, as follows:  (1) $150 million for the construction of common school facilities for unhoused students due to enrollment growth or condemnation of facilities; and (2) $150 million for the construction of grandfathered projects and modernization of existing facilities.

Common School Construction Financial Coordinating Board: The Common School Construction Financial Coordinating Board is created to assist the State Board of Education in planning and implementing a long-range plan for financing the construction and modernization of common schools.  The board is composed of the following members: (1) one member appointed by the Superintendent of Public Instruction, (2) one member appointed by the Commissioner of Public Lands, (3) one member appointed by the State Treasurer, and (4) two public members appointed by the state elected officials serving on the board.

The board's duties include developing a six-year financial plan and reviewing, evaluating and making recommendations on policies governing allocations of moneys for school construction and affecting management of the common school construction fund.  The board may adopt rules.

Any rules adopted by the State Board of Education regarding common school construction shall be consistent with rules adopted by the Common School Construction Financial Coordinating Board.  After January 1, 1990, rules adopted by the State Board of Education which impact the state funding of common school construction or modernization projects shall not be effective until expressly ratified by the Legislature.

SUMMARY OF PROPOSED COMMITTEE AMENDMENT:

The provisions establishing the Common School Construction Financial Coordinating Board are deleted including the emergency clause.

Appropriation:    $300 million

Revenue:    yes

Fiscal Note:      requested February 22, 1989

Effective Date:Upon voter approval of Senate Joint Resolution 8222

Senate Committee - Testified: CON:  Gerald Hosman, Bethel School District; Grant L. Anderson, State Board of Education