PERFECTED
HCS HB 1265 -- SCHOOL BUILDING REVOLVING FUND (Kreider)
Currently, fines and forfeitures for violations of state penal
laws go into the county school fund of each county to be
distributed to school districts. This substitute redirects the
proceeds of forfeitures distributed for education to the school
building revolving fund. The substitute places a cap of $440
million on the aggregate funds that may be transferred to the
revolving fund.
The substitute narrows the use of revolving fund moneys from
loans and grants to lease-purchases only. A school district may
make application for a lease-purchase when, as in current law,
it meets the minimum criteria for state aid and is accredited
for kindergarten through grade 12, and when it has a bonded
indebtedness of no less than 90% of the constitutional limit and
an equalized assessed valuation per pupil less than the
statewide average. The substitute also allows K-8 districts to
participate. Categories for application priority are created,
in descending order as follows: (1) districts for which capital
replacement costs exceed insurance proceeds in cases of fire or
natural disaster (to be ranked on basis of percentage of bonding
capacity); (2) districts with a cumulative growth percentage in
the third through fifth previous years in excess of 12%; and (3)
districts with less than the statewide average equalized
assessed valuation per pupil and no less than 90% of the bonded
indebtedness limit. These categories replace 5 criteria in the
current law.
Lease-purchases must be repaid within 10 years; unobligated
funds must be returned. Interest charged the district must not
exceed 3%. Districts defaulting on their payments will face
prosecution, and defaulted property may be claimed by the State
Board of Education. Property purchased by lease-purchase from
the revolving fund will remain the property of the state until
the lease-purchase is repaid, but the state will have no
liability for the property unless the State Board of Education
takes possession upon payment default.
FISCAL NOTE: Cost to General Revenue Fund of $48,956 in FY
1999, $51,848 in FY 2000, and $53,175 in FY 2001. Income to
School Building Revolving Fund of $1,300,000 in FY 1999, FY
2000, and FY 2001.
COMMITTEE
HCS HB 1265 -- SCHOOL BUILDING REVOLVING FUND
SPONSOR: Stoll (Kreider)
COMMITTEE ACTION: Voted "do pass" by the Committee on
Education-Elementary and Secondary by a vote of 20 to 1.
Currently, fines and forfeitures for violations of state penal
laws go into the county school fund of each county to be
distributed to school districts. This substitute redirects the
proceeds of forfeitures to the school building revolving fund.
The substitute places a cap of $440 million on the aggregate
funds that may be transferred to the revolving fund.
The substitute narrows the use of revolving fund moneys from
loans and grants to lease-purchases only. A school district may
make application for a lease-purchase when, as in current law,
it meets the minimum criteria for state aid and is accredited
for kindergarten through grade 12, and when it has a bonded
indebtedness of no less than 90% of the constitutional limit and
an equalized assessed valuation per pupil less than the
statewide average. The substitute also allows K-8 districts to
participate. Categories for application priority are created,
in descending order as follows: (1) districts for which
capital replacement costs exceed insurance proceeds in cases of
fire or natural disaster (to be ranked on basis of percentage of
bonding capacity), (2) districts with a cumulative growth
percentage in the third through fifth previous years in excess
of 12%, and (3) districts with less than the statewide average
equalized assessed valuation per pupil and no less than 90% of
the bonded indebtedness limit. These categories replace 5
criteria in the current law.
Lease-purchases must be repaid within 10 years; unobligated
funds must be returned. Interest charged the district must not
exceed 3%. Districts defaulting on their payments will face
prosecution, and defaulted property may be claimed by the State
Board of Education. Property purchased by lease-purchase from
the revolving fund will remain the property of the state until
the lease-purchase is repaid, but the state will have no
liability for the property unless the State Board of Education
takes possession upon payment default.
FISCAL NOTE: Cost to General Revenue Fund of $48,956 in FY
1999, $51,848 in FY 2000, and $53,175 in FY 2001. Income to
School Building Revolving Fund of $1,300,000 in FY 1999, FY
2000, and FY 2001.
PROPONENTS: Supporters say that the building revolving fund was
created by SB 380 but never funded. Last year, this bill made
it over to the Senate and just ran out of time; this year, the
funding source is different and perhaps more problematic in that
the total dollars from forfeitures are low ($1.3 million). The
bill provides a method for districts that have low assessed
valuation and exhausted bonding capacity to build buildings
rather than an addition.
Testifying for the bill were Representative Kreider; Cooperating
School Districts of Greater Kansas City; and Missouri Council of
School Administrators.
OPPONENTS: There was no opposition voiced to the committee.
Becky DeNeve, Legislative Analyst
INTRODUCED
HB 1265 -- School Building Revolving Fund
Sponsor: Kreider
Currently, fines and forfeitures for violations of state penal
laws go into the county school fund of each county to be
distributed to school districts. This bill redirects the
proceeds of forfeitures to the school building revolving fund.
The bill places a cap of $440 million on the aggregate funds
that may be transferred to the revolving fund.
The bill narrows the use of revolving fund moneys from loans and
grants to lease-purchases only. A school district may make
application for a lease-purchase when, as in current law, it
meets the minimum criteria for state aid and is accredited for
kindergarten through grade 12, and when it has a bonded
indebtedness of no less than 9% and an equalized assessed
valuation per pupil less than the statewide average. Categories
for application priority are created, in descending order as
follows: (1) districts for which capital replacement costs
exceed insurance proceeds in cases of fire or natural disaster
(to be ranked on basis of percentage of bonding capacity), (2)
districts with a cumulative growth percentage in the third
through fifth previous years in excess of 12%, and (3)
districts with less than the statewide average equalized
assessed valuation per pupil and more than 9% bonded
indebtedness. These categories replace 5 criteria in the
current law.
Lease-purchases must be repaid within 10 years; unobligated
funds must be returned. Interest charged the district must not
exceed 3%. Districts defaulting on their payments will face
prosecution, and defaulted property may be claimed by the State
Board of Education. Property purchased by lease-purchase from
the revolving fund will remain the property of the state until
the lease-purchase is repaid, but the state will have no
liability for the property unless the State Board of Education
takes possession upon payment default.
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Last Updated November 10, 1998 at 3:33 pm