- Introduced -

SB 890 - The School Building Revolving Fund is eliminated and the School Building Construction and Renovation Fund is created. Moneys in the Fund would be used, in equal portions, to fund school construction and school renovation.

To be eligible for a grant, a district must apply to the Department of Elementary and Secondary Education, must meet all criteria for state aid (meets or exceeds minimum school calendar, maintains proper records of attendance, personnel and finance, levies at least a $1.25 tax rate and computes attendance properly under law) and must not be experiencing financial stress.

Priority of construction grants is given to the following categories, in decreasing order:

a) districts with uninsured replacement costs from disaster;

b) districts with at least 12% enrollment growth in the last 3 years;

c) districts with 9% growth in the last 3 years;

d) districts with 6% growth in the last 3 years;

e) overcrowded districts; and

f) districts with certain particular building needs.

Priority of renovation grants is given to the following categories, in decreasing order:

a) districts with uninsured replacement costs from disaster or hazardous waste cleanup;

b) districts renovating buildings which are at least 35 years old; and

c) districts renovating buildings less than 35 years old.

Once a district has received a grant, it shall not be eligible for a new grant from the Fund unless all eligible applications from districts which have yet to receive a grant are funded.

Local matching funds are required to receive a state grant. The local match requirement is 50% for the least wealthy of districts, 75% for the most wealthy of districts and the match percentages for the remaining districts are uniformly spaced across the range from 50% to 75%.

Maximum total state costs per pupil for new construction are $8,000 for high school, $7,000 for middle school and $6,000 for elementary school. Maximum total state costs per pupil for renovation are $5,600 for high school, $4,900 for middle school and $4,200 for elementary school. A school may spend more than the maximum state grant amount plus local match by adding additional local funds.

State grant funds shall not be used for lease purchases.

State grant funds shall be used only for capital expenditures, and shall not be used to retire debt. If a project costs less than the projected amount, the state's share of the remaining funds shall be returned to the state and placed in the Fund.

Upon completion of a project, the district shall submit a report to the Department, and the Department may require an audit. State funds not expended as allowed by this act must be repaid to the state.

All school buildings constructed or renovated with grants under this act shall remain the property and responsibility of the school district.

This act is identical to SS/SB 242 (2001).

DONALD THALHUBER