CSHB 13(FIN): "An Act relating to reimbursement of municipal bonds for school construction; relating to school funding and adjusting the district cost factors; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 13(FIN) 01 "An Act relating to reimbursement of municipal bonds for school construction; relating 02 to school funding and adjusting the district cost factors; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.11.100(a) is amended to read: 06 (a) During each fiscal year, the state shall allocate to a municipality that is a 07 school district the following sums: 08 (1) payments made by the municipality during the fiscal year two years 09 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 10 indebtedness incurred before July 1, 1977, to pay costs of school construction; 11 (2) 90 percent of 12 (A) payments made by the municipality during the fiscal year 13 two years earlier for the retirement of principal and interest on outstanding 14 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 15 July 1, 1978, to pay costs of school construction;
01 (B) cash payments made after June 30, 1976, and before July 1, 02 1978, by the municipality during the fiscal year two years earlier to pay costs 03 of school construction; 04 (3) 90 percent of 05 (A) payments made by the municipality during the fiscal year 06 two years earlier for the retirement of principal and interest on outstanding 07 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 08 January 1, 1982, to pay costs of school construction projects approved under 09 AS 14.07.020(a)(11); 10 (B) cash payments made after June 30, 1978, and before July 1, 11 1982, by the municipality during the fiscal year two years earlier to pay costs 12 of school construction projects approved under AS 14.07.020(a)(11); 13 (4) subject to (h) and (i) of this section, up to 90 percent of 14 (A) payments made by the municipality during the current 15 fiscal year for the retirement of principal and interest on outstanding bonds, 16 notes, or other indebtedness incurred after December 31, 1981, and authorized 17 by the qualified voters of the municipality before July 1, 1983, to pay costs of 18 school construction, additions to schools, and major rehabilitation projects that 19 exceed $25,000 and are approved under AS 14.07.020(a)(11); 20 (B) cash payments made after June 30, 1982, and before July 1, 21 1983, by the municipality during the fiscal year two years earlier to pay costs 22 of school construction, additions to schools, and major rehabilitation projects 23 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 24 (C) payments made by the municipality during the current 25 fiscal year for the retirement of principal and interest on outstanding bonds, 26 notes, or other indebtedness to pay costs of school construction, additions to 27 schools, and major rehabilitation projects that exceed $25,000 and are 28 submitted to the department for approval under AS 14.07.020(a)(11) before 29 July 1, 1983, and approved by the qualified voters of the municipality before 30 October 15, 1983, not to exceed a total project cost of (i) $6,600,000 if the 31 annual growth rate of average daily membership of the municipality is more
01 than seven percent but less than 12 percent, or (ii) $20,000,000 if the annual 02 growth rate of average daily membership of the municipality is 12 percent or 03 more; payments made by a municipality under this subparagraph on total 04 project costs that exceed the amounts set out in (i) and (ii) of this subparagraph 05 are subject to (5)(A) of this subsection; 06 (5) subject to (h) - (j) of this section, 80 percent of 07 (A) payments made by the municipality during the fiscal year 08 for the retirement of principal and interest on outstanding bonds, notes, or 09 other indebtedness authorized by the qualified voters of the municipality 10 (i) after June 30, 1983, but before March 31, 1990, to 11 pay costs of school construction, additions to schools, and major 12 rehabilitation projects that exceed $25,000 and are approved under 13 AS 14.07.020(a)(11); or 14 (ii) before July 1, 1989, and reauthorized before 15 November 1, 1989, to pay costs of school construction, additions to 16 schools, and major rehabilitation projects that exceed $25,000 and are 17 approved under AS 14.07.020(a)(11); and 18 (B) cash payments made after June 30, 1983, by the 19 municipality during the fiscal year two years earlier to pay costs of school 20 construction, additions to schools, and major rehabilitation projects that exceed 21 $25,000 and are approved by the department before July 1, 1990, under 22 AS 14.07.020(a)(11); 23 (6) subject to (h) - (j) and (m) of this section, 70 percent of payments 24 made by the municipality during the fiscal year for the retirement of principal and 25 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified 26 voters of the municipality on or after April 30, 1993, but before July 1, 1996, to pay 27 costs of school construction, additions to schools, and major rehabilitation projects 28 that exceed $200,000 and are approved under AS 14.07.020(a)(11); 29 (7) subject to (h) - (j) and (m) of this section, 70 percent of payments 30 made by the municipality during the fiscal year for the retirement of principal and 31 interest on outstanding bonds, notes, or other indebtedness authorized by the qualified
01 voters of the municipality after March 31, 1990, but before April 30, 1993, to pay 02 costs of school construction, additions to schools, and major rehabilitation projects; 03 (8) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 04 projects funded by the bonds, notes, or other indebtedness have been approved by the 05 commissioner, 70 percent of payments made by the municipality during the fiscal year 06 for the retirement of principal and interest on outstanding bonds, notes, or other 07 indebtedness authorized by the qualified voters of the municipality on or after July 1, 08 1995, but before July 1, 1998, to pay costs of school construction, additions to 09 schools, and major rehabilitation projects that exceed $200,000 and are approved 10 under AS 14.07.020(a)(11); 11 (9) subject to (h), (i), (j)(2) - (5), and (n) of this section and after 12 projects funded by the bonds, notes, or other indebtedness have been approved by the 13 commissioner, 70 percent of payments made by the municipality during the fiscal year 14 for the retirement of principal and interest on outstanding bonds, notes, or other 15 indebtedness authorized by the qualified voters of the municipality on or after July 1, 16 1998, but before July 1, 2006, to pay costs of school construction, additions to 17 schools, and major rehabilitation projects that exceed $200,000 and are approved 18 under AS 14.07.020(a)(11); 19 (10) subject to (h), (i), (j)(2) - (5), and (o) of this section, and after 20 projects funded by the bonds, notes, or other indebtedness have been approved by the 21 commissioner, 70 percent of payments made by the municipality during the fiscal year 22 for the retirement of principal and interest on outstanding bonds, notes, or other 23 indebtedness authorized by the qualified voters of the municipality on or after June 30, 24 1998, to pay costs of school construction, additions to schools, and major 25 rehabilitation projects that exceed $200,000, are approved under AS 14.07.020(a)(11), 26 and are not reimbursed under (n) of this section; 27 (11) subject to (h), (i), and (j)(2) - (5) of this section, and after projects 28 funded by the bonds, notes, or other indebtedness have been approved by the 29 commissioner, 70 percent of payments made by a municipality during the fiscal year 30 for the retirement of principal and interest on outstanding bonds, notes, or other 31 indebtedness authorized by the qualified voters of the municipality on or after June 30,
01 1999, but before January 1, 2005, to pay costs of school construction, additions to 02 schools, and major rehabilitation projects and education-related facilities that exceed 03 $200,000, are approved under AS 14.07.020(a)(11), and are not reimbursed under (n) 04 or (o) of this section; 05 (12) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 percent 06 of payments made by a municipality during the fiscal year for the retirement of 07 principal and interest on outstanding bonds, notes, or other indebtedness authorized by 08 the qualified voters of the municipality on or after June 30, 1999, but before January 1, 09 2005, to pay costs of school construction, additions to schools, and major 10 rehabilitation projects and education-related facilities that exceed $200,000, are 11 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 12 section; 13 (13) subject to (h), (i), and (j)(2) - (5) of this section, and after 14 projects funded by the tax exempt bonds, notes, or other indebtedness have been 15 approved by the commissioner, 70 percent of payments made by a municipality 16 during the fiscal year for the retirement of principal and interest on outstanding 17 tax exempt bonds, notes, or other indebtedness authorized by the qualified voters 18 of the municipality on or after June 30, 1999, but before July 1, 2006, to pay costs 19 of school construction, additions to schools, and major rehabilitation projects and 20 education-related facilities that exceed $200,000, are approved under 21 AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this section; 22 (14) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 23 percent of payments made by a municipality during the fiscal year for the 24 retirement of principal and interest on outstanding tax exempt bonds, notes, or 25 other indebtedness authorized by the qualified voters of the municipality on or 26 after June 30, 1999, but before July 1, 2006, to pay costs of school construction, 27 additions to schools, and major rehabilitation projects and education-related 28 facilities that exceed $200,000, are reviewed under AS 14.07.020(a)(11), and are 29 not reimbursed under (n) or (o) of this section. 30 * Sec. 2. AS 14.11.100(j) is amended to read: 31 (j) Except as provided in (l) of this section, the state may not allocate money
01 to a municipality for a school construction project under (a)(5), (6), or (7) of this 02 section unless the municipality complies with the requirements of (1) - (5) of this 03 subsection, the project is approved by the commissioner before the local vote on the 04 bond issue for the project or for bonds authorized after March 31, 1990, but on or 05 before April 30, 1993, the bonds are approved by the commissioner before 06 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 07 June 30, 1988. In approving a project under this subsection, and to the extent required 08 under (a)(8) - (14) [(a)(8) - (12)] of this section, the commissioner shall require 09 (1) the municipality to include on the ballot for the bond issue, for 10 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 11 total cost of each project including estimated total interest, estimated annual operation 12 and maintenance costs, the estimated amounts that will be paid by the state and by the 13 municipality, and the approximate amount that would be due in annual taxes on 14 $100,000 in assessed value to retire the debt; 15 (2) that the bonds may not be refunded unless the annual debt service 16 on the refunding issue is not greater than the annual debt service on the original issue; 17 (3) that the bonds must be repaid in approximately equal annual 18 principal payments or approximately equal debt service payments over a period of at 19 least 10 years; 20 (4) the municipality to demonstrate need for the project by establishing 21 that the school district has 22 (A) projected long-term student enrollment that indicates the 23 district has inadequate facilities to meet present or projected enrollment; 24 (B) facilities that require repair or replacement in order to meet 25 health and safety laws or regulations or building codes; 26 (C) demonstrated that the project will result in a reduction in 27 annual operating costs that economically justifies the cost of the project; or 28 (D) facilities that require modification or rehabilitation for the 29 purpose of improving the instructional program; 30 (5) evidence acceptable to the department that the district 31 (A) has a preventive maintenance plan that
01 (i) includes a computerized maintenance management 02 program, cardex system, or other formal systematic means of tracking 03 the timing and costs associated with planned and completed 04 maintenance activities, including scheduled preventive maintenance; 05 (ii) addresses energy management for buildings owned 06 or operated by the district; 07 (iii) includes a regular custodial care program for 08 buildings owned or operated by the district; 09 (iv) includes preventive maintenance training for 10 facility managers and maintenance employees; and 11 (v) includes renewal and replacement schedules for 12 electrical, mechanical, structural, and other components of facilities 13 owned or operated by the district; and 14 (B) is adequately following the preventive maintenance plan. 15 * Sec. 3. AS 14.17.460(a) is repealed and reenacted to read: 16 (a) For purposes of calculating a district's adjusted ADM under 17 AS 14.17.410(b)(1), the district cost factor for a school district is (1) for the school 18 year beginning July 1, 2005, the factor set out under column (A) of this subsection, (2) 19 for the school year beginning July 1, 2006, the factor set out under column (B) of this 20 subsection, (3) for the school year beginning July 1, 2007, the factor set out under 21 column (C) of this subsection, and (4) for school years beginning on or after July 1, 22 2008, the factor set out under column (D) of this subsection: 23 DISTRICT COST FACTOR 24 DISTRICT (A) (B) (C) (D) 25 Alaska Gateway 1.367 1.443 1.518 1.594 26 Aleutians East 1.565 1.707 1.849 1.991 27 Aleutians Region 1.787 1.838 1.888 1.939 28 Anchorage 1.000 1.000 1.000 1.000 29 Annette Island 1.093 1.175 1.256 1.338 30 Bering Strait 1.643 1.762 1.880 1.998 31 Bristol Bay 1.316 1.370 1.424 1.478
01 Chatham 1.234 1.348 1.462 1.576 02 Chugach 1.345 1.395 1.446 1.496 03 Copper River 1.211 1.246 1.281 1.316 04 Cordova 1.131 1.165 1.200 1.234 05 Craig 1.059 1.108 1.157 1.206 06 Delta/Greely 1.140 1.174 1.207 1.241 07 Denali 1.318 1.323 1.327 1.332 08 Dillingham 1.277 1.300 1.323 1.346 09 Fairbanks 1.047 1.055 1.062 1.070 10 Galena 1.359 1.370 1.380 1.391 11 Haines 1.056 1.104 1.152 1.200 12 Hoonah 1.141 1.227 1.313 1.399 13 Hydaburg 1.190 1.295 1.399 1.504 14 Iditarod 1.564 1.658 1.752 1.846 15 Juneau 1.040 1.075 1.110 1.145 16 Kake 1.134 1.242 1.351 1.459 17 Kashunamiut 1.447 1.504 1.562 1.619 18 Kenai Peninsula 1.046 1.088 1.129 1.171 19 Ketchikan 1.043 1.085 1.128 1.170 20 Klawock 1.088 1.160 1.231 1.302 21 Kodiak Island 1.142 1.191 1.240 1.289 22 Kuspuk 1.509 1.584 1.659 1.734 23 Lake and Peninsula 1.667 1.776 1.885 1.994 24 Lower Kuskokwim 1.534 1.577 1.620 1.663 25 Lower Yukon 1.544 1.650 1.755 1.861 26 Matanuska-Susitna 1.025 1.040 1.055 1.070 27 Mt. Edgecumbe 1.049 1.098 1.146 1.195 28 Nenana 1.287 1.304 1.321 1.338 29 Nome 1.352 1.385 1.417 1.450 30 North Slope 1.576 1.648 1.719 1.791 31 Northwest Arctic 1.618 1.686 1.755 1.823
01 Pelican 1.337 1.384 1.430 1.477 02 Petersburg 1.061 1.122 1.183 1.244 03 Pribilof 1.487 1.555 1.623 1.691 04 Sitka 1.049 1.098 1.146 1.195 05 Skagway 1.151 1.159 1.166 1.174 06 Southeast Island 1.194 1.264 1.333 1.403 07 Southwest Region 1.489 1.554 1.620 1.685 08 St. Mary's 1.419 1.488 1.556 1.624 09 Tanana 1.569 1.641 1.714 1.786 10 Unalaska 1.294 1.343 1.392 1.441 11 Valdez 1.114 1.133 1.151 1.170 12 Wrangell 1.040 1.080 1.119 1.159 13 Yakutat 1.138 1.229 1.321 1.412 14 Yukon Flats 1.780 1.892 2.004 2.116 15 Yukon/Koyukuk 1.585 1.669 1.752 1.835 16 Yupiit 1.533 1.596 1.660 1.723. 17 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 CONTINGENT EFFECT. Section 3 of this Act shall only apply if all school districts 20 receive funding that is at least the equivalent of the funding they would have received under a 21 base student allocation of $4,919 per student, in 2005 inflation-adjusted dollars, under the 22 formula of state aid to public school districts in effect as of April 1, 2004. Inflation shall be 23 calculated under this section as reflected by the United States Department of Labor's 24 Consumer Price Index for Anchorage, Alaska. 25 * Sec. 5. This Act takes effect July 1, 2005.