HOUSE BILL REPORT

ESHB 1518 - CC

BYHouse Committee on Education (originally sponsored by Representatives Bristow and Grant)

Revising allocations for small school district capital construction.

House Committe on Education

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (20)

      Signed by Representatives Peery, Chair; Spanel, Vice Chair; Appelwick, Betrozoff, Butterfield, Cole, Cooper, Ebersole, Fuhrman, Holland, Holm, Pruitt, Rasmussen, Rayburn, Rust, Schoon, Taylor, Todd, Valle and Walker.

House Staff:Susan Patrick (786-7111)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:  The substitute bill by Committee on Education as amended by Committee on Ways & Means/Appropriation do pass.  (18)

      Signed by Representatives Locke, Chair; Belcher, Braddock, Brekke, Bristow, Butterfield, Furhman, Grant, Grimm, McLean, Nealey, Perry, Sayan, Silver, H. Sommers, Spanel, Sprenkle and Wang.

House Staff:      Susan Kavanaugh (786-7136)

AS PASSED HOUSE FEBRUARY 12, 1988

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.

SUMMARY:

Nonhigh school districts shall be allowed to count students who reside in their district, but attend a high school outside the district, as a resident student for the purposes of determining the percentage of state assistance for school construction and modernization for which the district is eligible.  If a school district has passed bonds for a project prior to the effective date of this act, the state percentage of assistance for the project will not change.

A district, which is providing a high school program for more than thirty-three and one-third percent of the students from the nonhigh school district, must be made a designated district.  The nonhigh school district is required to make contributions to bonds and excess tax levies in the designated school district, only if the district was a designated district at the time the county auditor was requested to place the bond or tax levy measure on the ballot.  Students attending nondesignated high schools shall be counted by the nondesignated high school for purposes of determining the percentage of state assistance for school construction.

The act shall take effect immediately.

EFFECT OF SENATE AMENDMENT(S):  A new category of eligibility for a 90 percent match from state funds for school construction is established for certain small school districts. School districts are eligible for a 90 percent state match for approved school construction projects if they meet each of the following criteria:  (1) In the current and preceding two school years the district's annual average enrollment of fulltime equivalent students does not exceed 600; (2) In the current school year at least 45 percent of the lunches served in the district are free and reduced price meals; (3) The district's special levy assessed valuation per resident student does not exceed $200,000.00 for special levies collectible in the current and preceding two years; and (4) More than 50 percent of the total acreage comprising the district is exempt from school district special levy taxation.

Fiscal Note:      Requested January 19, 1988.

Effective Date:The bill takes effect immediately.

House Committee ‑ Testified For:    (Education)Suellen White, Superintendent Onion Creek and Summit Valley School Districts; Robert LaLonde, Superintendent Nine Mile Falls School District;  Ray Smith, Rural Education Center.

(Ways & Means/Appropriations)  Suellen White, Superintendent Onion Creek and Summit Valley School; Robert LaLonde, Superintendent Nine Mile Falls School District.

House Committee - Testified Against:      Bruce Mrkvicka, Superintendent of Public Instruction.

House Committee - Testimony For:    (Education)  It is important that nonhigh school districts be treated in a manner that allows them to provide the facilities necessary for their elementary school program.  They are providing financing for the facilities necessary in designated districts for their high school students and should be able to count their high school students in determining the percentage of state assistance they will receive for construction of an elementary school.

(Ways & Means/Appropriations)  This bill corrects an inequity.  It allows nonhigh districts to count high school students in calculating the state match for school construction, in instances where the nonhigh districts held pay for the capital facilities their high school students use.

House Committee - Testimony Against:      (Education)  There are a series of bills dealing with individual school construction problems.  We should deal with the larger issue of funding school construction rather than providing a larger drain on the existing funding mechanism.

(Ways & Means/Appropriations)  Expressed concern regarding districts that have already passed bonds.  This is not a comprehensive solution to the problem of school facilities construction & modernization.

VOTE ON FINAL PASSAGE:

      Yeas 97; Excused 1

Excused:    Representative Locke