CSHB 13(RLS): "An Act relating to reimbursement of municipal bonds for school construction; increasing the base student allocation used in the formula for state financing of public education; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 13(RLS) 01 "An Act relating to reimbursement of municipal bonds for school construction; 02 increasing the base student allocation used in the formula for state financing of public 03 education; and providing for an effective 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), (j)(2) - (5), and (p) 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 during 16 the fiscal year for the retirement of principal and interest on outstanding tax exempt 17 bonds, notes, or other indebtedness authorized by the qualified voters of the 18 municipality on or after June 30, 1999, but before October 31, 2006, to pay costs of 19 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), (j)(2), (3), and (5), and (p) of this section, 60 23 percent of payments made by a municipality during the fiscal year for the retirement 24 of principal and interest on outstanding tax exempt bonds, notes, or other indebtedness 25 authorized by the qualified voters of the municipality on or after June 30, 1999, but 26 before October 31, 2006, to pay costs of school construction, additions to schools, and 27 major rehabilitation projects and education-related facilities that exceed $200,000, are 28 reviewed under AS 14.07.020(a)(11), and are not reimbursed under (n) or (o) of this 29 section; 30 (15) subject to (h), (i), (j)(2) - (5), and (q) of this section, and after 31 projects funded by the bonds, notes, or other indebtedness have been approved by the
01 commissioner, 90 percent of payments made by a municipality during the fiscal year 02 for the retirement of principal and interest on outstanding bonds, notes, or other 03 indebtedness authorized by the qualified voters of the municipality on or after June 30, 04 1999, but before October 31, 2006, to pay costs of school construction, additions to 05 schools, and major rehabilitation projects and education-related facilities that exceed 06 $200,000, are approved under AS 14.07.020(a)(11), meet the 10 percent participating 07 share requirement for a municipal school district under AS 14.11.008(b), and are not 08 reimbursed under (n) or (o) of this section; 09 (16) subject to (h), (i), and (j)(2) - (5) of this section, and after 10 projects funded by the tax exempt bonds, notes, or other indebtedness have been 11 approved by the commissioner, 70 percent of payments made by a municipality 12 during the fiscal year for the retirement of principal and interest on outstanding 13 tax exempt bonds, notes, or other indebtedness authorized by the qualified voters 14 of the municipality on or after November 1, 2006, but before November 30, 2008, 15 to pay costs of school construction, additions to schools, and major rehabilitation 16 projects and education-related facilities that exceed $200,000, are approved 17 under AS 14.07.020(a)(11), and are not reimbursed under (o) of this section; 18 (17) subject to (h), (i), and (j)(2), (3), and (5) of this section, 60 19 percent of payments made by a municipality during the fiscal year for the 20 retirement of principal and interest on outstanding tax exempt bonds, notes, or 21 other indebtedness authorized by the qualified voters of the municipality on or 22 after November 1, 2006, but before November 30, 2008, to pay costs of school 23 construction, additions to schools, and major rehabilitation projects and 24 education-related facilities that exceed $200,000, are reviewed under 25 AS 14.07.020(a)(11), and are not reimbursed under (o) of this section. 26 * Sec. 2. AS 14.11.100(j) is amended to read: 27 (j) Except as provided in (l) of this section, the state may not allocate money 28 to a municipality for a school construction project under (a)(5), (6), or (7) of this 29 section unless the municipality complies with the requirements of (1) - (5) of this 30 subsection, the project is approved by the commissioner before the local vote on the 31 bond issue for the project or for bonds authorized after March 31, 1990, but on or
01 before April 30, 1993, the bonds are approved by the commissioner before 02 reimbursement by the state, and the local vote occurs before July 1, 1987, or after 03 June 30, 1988. In approving a project under this subsection, and to the extent required 04 under (a)(8) - (17) [(a)(8) - (15)] of this section, the commissioner shall require 05 (1) the municipality to include on the ballot for the bond issue, for 06 bonds authorized on or before March 31, 1990, or after April 30, 1993, the estimated 07 total cost of each project including estimated total interest, estimated annual operation 08 and maintenance costs, the estimated amounts that will be paid by the state and by the 09 municipality, and the approximate amount that would be due in annual taxes on 10 $100,000 in assessed value to retire the debt; 11 (2) that the bonds may not be refunded unless the annual debt service 12 on the refunding issue is not greater than the annual debt service on the original issue; 13 (3) that the bonds must be repaid in approximately equal annual 14 principal payments or approximately equal debt service payments over a period of at 15 least 10 years; 16 (4) the municipality to demonstrate need for the project by establishing 17 that the school district has 18 (A) projected long-term student enrollment that indicates the 19 district has inadequate facilities to meet present or projected enrollment; 20 (B) facilities that require repair or replacement in order to meet 21 health and safety laws or regulations or building codes; 22 (C) demonstrated that the project will result in a reduction in 23 annual operating costs that economically justifies the cost of the project; or 24 (D) facilities that require modification or rehabilitation for the 25 purpose of improving the instructional program; 26 (5) evidence acceptable to the department that the district 27 (A) has a preventive maintenance plan that 28 (i) includes a computerized maintenance management 29 program, cardex system, or other formal systematic means of tracking 30 the timing and costs associated with planned and completed 31 maintenance activities, including scheduled preventive maintenance;
01 (ii) addresses energy management for buildings owned 02 or operated by the district; 03 (iii) includes a regular custodial care program for 04 buildings owned or operated by the district; 05 (iv) includes preventive maintenance training for 06 facility managers and maintenance employees; and 07 (v) includes renewal and replacement schedules for 08 electrical, mechanical, structural, and other components of facilities 09 owned or operated by the district; and 10 (B) is adequately following the preventive maintenance plan. 11 * Sec. 3. AS 14.11.100(p) is amended to read: 12 (p) The total amount of school construction projects approved for 13 reimbursement by the department under (a)(13) and (a)(14) of this section 14 (1) may not exceed $179,256,000 [$177,256,000]; 15 (2) after June 30, 1999, and until October 31, 2006, shall be allocated 16 as follows: 17 (A) $61,925,000 to projects in a municipality with a public 18 school enrollment of 45,000 or more students in fiscal year 2005, as 19 determined under AS 14.17.500; 20 (B) $40,570,000 to projects in a municipality with a public 21 school enrollment of at least 14,600 but less than 20,000 students in fiscal year 22 2005, as determined under AS 14.17.500; 23 (C) $20,000,000 to projects in a municipality with a public 24 school enrollment of at least 10,000 but less than 14,600 students in fiscal year 25 2005, as determined under AS 14.17.500; 26 (D) $2,588,000 to projects in a municipality with a public 27 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 28 2005, as determined under AS 14.17.500; 29 (E) $5,995,000 to projects in a municipality with a public 30 school enrollment of at least 4,000 but less than 6,000 students in fiscal year 31 2005, as determined under AS 14.17.500;
01 (F) $1,237,000 to projects in a municipality with a public 02 school enrollment of at least 2,400 but less than 2,800 students in fiscal year 03 2005, as determined under AS 14.17.500; 04 (G) $1,100,000 to projects in a municipality with a public 05 school enrollment of at least 2,200 but less than 2,400 students in fiscal year 06 2005, as determined under AS 14.17.500; 07 (H) $2,000,000 to projects in a municipality with a public 08 school enrollment of at least 1,501 but less than 1,800 students in fiscal 09 year 2005, as determined under AS 14.17.500; 10 (I) [(H)] $7,164,000 to projects in a municipality with a public 11 school enrollment of at least 1,300 but less than 1,500 students in fiscal year 12 2005, as determined under AS 14.17.500; 13 (J) [(I)] $1,260,000 to projects in a municipality with a public 14 school enrollment of at least 740 but less than 757 students in fiscal year 2005, 15 as determined under AS 14.17.500; 16 (K) [(J)] $608,000 to projects in a municipality with a public 17 school enrollment of at least 650 but less than 700 students in fiscal year 2005, 18 as determined under AS 14.17.500; 19 (L) [(K)] $32,000,000 to projects in a municipality with a 20 public school enrollment of at least 500 but less than 600 students in fiscal year 21 2005, as determined under AS 14.17.500; 22 (M) [(L)] $2,809,000 to projects in a municipality with a public 23 school enrollment of at least 370 but less than 390 students in fiscal year 2005, 24 as determined under AS 14.17.500. 25 * Sec. 4. AS 14.17.470 is amended to read: 26 Sec. 14.17.470. Base student allocation. The base student allocation is $5,380 27 [$4,919]. 28 * Sec. 5. This Act takes effect July 1, 2006.