SENATE 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.

Senate Committee on Education

Senate Hearing Date(s):January 24, 1990; January 29, 1990

Majority Report:  Do pass.

      Signed by Senators Bailey, Chairman; Lee, Vice Chairman; Bender, Benitz, Craswell, Fleming, Gaspard, Metcalf, Murray, Rinehart.

Senate Staff:Leslie Goldstein (786-7424)

                  February 13, 1990

AS PASSED SENATE, FEBRUARY 12, 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Don Johnson, Office of Superintendent of Public Instruction (for)