Legislature(1995 - 1996)
1996-04-22 Senate Journal
Full Journal pdf1996-04-22 Senate Journal Page 3416 SB 70 SENATE BILL NO. 70 An Act relating to the public school foundation program; and providing for an effective date which had been held in second reading (page 3383) was before the Senate. Senators Taylor, Phillips offered Amendment No. 1 : Page 1, line 1: Delete "the public school foundation program" Insert "revenue received by and paid by the state and its municipalities" 1996-04-22 Senate Journal Page 3417 SB 70 Page 1, line 4, through page 3, line 5: Delete all material and insert: "* Section 1. AS14.17.010(a) is amended to read: (a) The public school foundation account is established. The account consists of municipal contributions made under AS14.17.025(i) and appropriations for distribution to school districts, the state boarding school, and for centralized correspondence study programs under this chapter. * Sec. 2. AS14.17.021(a) is amended to read: (a) The amount of state foundation aid for which a school district may qualify in a fiscal year is calculated by subtracting from the basic need defined in (b) of this section the required local contributions under AS14.17.025(a) and 100 ª90ß percent of eligible federal impact aid for that fiscal year. In a rural educational attendance area, the reduction of eligible federal impact aid is in lieu of a contribution of funds from local taxes. The department may make adjustments to a district's state foundation aid for a fiscal year to correct underpayments made in previous fiscal years. * Sec. 3. AS14.17.025(a) is amended to read: (a) Local contributions to a city or borough school district (1) shall be ªINCLUDE AT LEAST THE LESSER OF (1)ß the equivalent of a 4.5 ªFOURß mill tax levy on the full and true value of the taxable real and personal property in the district as of January1 of the second preceding fiscal year, as determined by the Department of Community and Regional Affairs under AS14.17.140 and AS29.45.110; or (2) if the amount determined under (1) of this subsection is greater than the district's basic need for the current fiscal year as determined under AS14.17.021(b), shall be ª35 PERCENT OFß the district's basic need for the current ªPRECEDINGß fiscal year, asdetermined under AS14.17.021(b). 1996-04-22 Senate Journal Page 3418 SB 70 * Sec. 4. AS14.17.025 is amended by adding new subsections to read: (i) Except as provided in this subsection, a city or borough school district that is required to make a local contribution under (a)(2) of this section shall also pay into the public school foundation account an amount determined by subtracting the amount under (a)(2) of this section from the amount under (a)(1) of this section in that district. If a city or borough school district is required to make a payment under this subsection and the city or borough school district is also a municipality subject to the provisions of AS29.45.080(b) and (c), the city or borough school district is entitled to a credit against the amount due under this subsection. The amount of the credit is equal to the amount by which the municipal property tax under AS29.45.080(b) and (c) is reduced by applying a tax at the rate of 4.5 mills on all property within the municipality that is subject to tax under AS43.56. (j) In addition to the amount contributed under (a) of this section, a city or borough school district may make a local contribution that is equal to or less than the amount determined under AS14.17.065(a)(1)(B). * Sec. 5. AS14.17.031(a) is amended to read: (a) The department shall adopt regulations defining funding communities within each district that reflect geographic and attendance area factors, and that include at least 10 students in average daily membership. For the purpose of determining instructional units, students are counted in the district and the funding community from which they receive educational services. The total number of instructional units in a school district is the sum of the following units for each funding community within the district, as determined by the department: (1) the number of units for elementary and secondary students determined under AS14.17.041(a) or (b); (2) the number of units for vocational education determined under AS14.17.043; (3) the number of units for special education determined under AS14.17.045; ªANDß 1996-04-22 Senate Journal Page 3419 SB 70 (4) the number of units for bilingual education determined under AS14.17.047; and (5) the number of units for gifted and talented education determined under AS14.17.048." Renumber the following bill sections accordingly. Page 3, line 31, through page 4, line 7: Delete all material and insert: "* Sec. 7. AS14.17.041(a) is amended to read: (a) For funding communities that have an average daily membership of less than 200 in grades K-6 or less than 200 in grades 7-12, combined elementary and secondary instructional units are determined under the following table: ADM No. Instructional Units ª1 - 10 2ß 10 ª11ß - 20 2 + ((ADM-10)/5) 21 - 60 4 + ((ADM-20)/8) 61 - 120 9 + ((ADM-60)/12) 121 - 525 14 + ((ADM-120)/15)." Renumber the following bill sections accordingly. Page 4, line 17, through page 5, line 8: Delete all material and insert: "* Sec. 9. AS14.17.041 is amended by adding a new subsection to read: (e) A district with an ADM of 900 or less that consists of one funding community shall increase the elementary and secondary instructional units received under (a) or (b) of this section by multiplying the instructional units by a factor determined under the following table: District ADM Factor 1- 250 1.12 251- 525 1.08 526- 900 1.06. 1996-04-22 Senate Journal Page 3420 SB 70 * Sec. 10. AS14.17.045(a) is amended to read: (a) An exceptional child, other than a gifted child, as both are defined in AS14.30.350, who is enrolled in a special education program, approved by the department, on the last day of the counting period for which a determination is being made, generates ª0.025 INSTRUCTIONAL UNITS IF THE CHILD RECEIVES GIFTED SERVICES,ß 0.056 instructional units if the child receives resource services, 0.1 instructional units if the child receives self-contained services, or 0.333 instructional units if the child receives intensive or hospital/homebound services, as those categories of service are defined by the department by regulation, in the funding community in which the child is served. A child may be counted in one special education category only. * Sec. 11. AS14.17.045(b) is amended to read: (b) Notwithstanding (a) of this section, in a district that offers a special education program for exceptional children other than gifted children, as both are defined in AS14.30.350, each funding community receives a minimum of 0.25 instructional units for special education for each funding community in which such a child is served or the district receives a minimum of 1.00 instructional units for special education, whichever is greater. * Sec. 12. AS14.17.047 is amended to read: Sec. 14.17.047. BILINGUAL EDUCATION INSTRUCTIONAL UNITS. A student for whom an appropriate bilingual program must be provided under regulations adopted by the department, and who is enrolled in a bilingual program, approved by the department, as of the last day of the counting period for which a determination is being made, generates, in the funding community in which the student is served, 0.021 instructional units ªTHE NUMBER OF BILINGUAL EDUCATION INSTRUCTIONAL UNITS THAT IS THE PRODUCT OBTAINED BY MULTIPLYING 0.042 BY THE STUDENTS LANGUAGE DOMINANCE CATEGORY WEIGHT UNDER DEPARTMENT REGULATIONSß. A funding community in which a bilingual program approved 1996-04-22 Senate Journal Page 3421 SB 70 by the department is operated receives a minimum of 0.10 instructional units for bilingual education, or a district in which a bilingual program is operated receives a minimum of 1.00 instructional units, whichever is greater. * Sec. 13. AS14.17 is amended by adding a new section to read: Sec. 14.17.048. GIFTED AND TALENTED INSTRUCTIONAL UNITS. Gifted and talented instructional units for a funding community in a district are calculated by (1) multiplying by .045 the elementary and secondary student enrollment in the funding community on the last day of the student counting period under AS14.17.160; and (2) multiplying the product obtained under (1) of this section by a supplemental revenue weighting factor specified in regulations adopted by the department. * Sec. 14. AS14.17 is amended by adding a new section to read: Sec. 14.17.065. SUPPLEMENTAL EQUALIZATION AID. (a) In addition to state foundation aid for which a district may qualify under AS14.17.021, a school district is eligible to receive supplemental equalization funds as follows: (1) in a city or borough school district, supplemental equalization aid is equal to a (A) state share under the following formula: funding = Vs/(Vs + Vi) x Vs x 2.5 mills x District ADM; (B) local share under the following formula: funding = Vs x 2.5 mills x District ADM - the amount determined under (A) of this paragraph; (2) in a regional educational attendance area, supplemental equalization aid is equal to the amount determined under the formula provided under (1)(A) of this subsection in that regional educational attendance area. 1996-04-22 Senate Journal Page 3422 SB 70 (b) In this section, (1) "Vi" means the amount determined by dividing the full and true value of the taxable real and personal property in the district as calculated under AS14.17.140 and AS29.45.110 by the District ADM for the same fiscal year for which the valuation of real and personal property was made; (2) "Vs" means the amount determined by dividing the sum of the property valuations of all districts in the state by the total ADM of all districts in the state." Renumber the following bill sections accordingly. Page 5, line 21, through page 6, line 17: Delete all material and insert: "* Sec. 16. AS29.45.080(b) is amended to read: (b) A municipality may levy and collect a tax on the full and true value of taxable property taxable under AS43.56 as valued on an assessment made by the Department of Revenue (1) on or before December31, 1996, at a rate not to exceed that which produces an amount of revenue from the total municipal property tax equivalent to $1,500 a year for each person residing in its boundaries; (2) after December31, 1996, at a rate that does not exceed that which produces an amount of revenue from the total municipal property tax equivalent to $1,500 a year for each person residing in its boundaries, reduced by the amount of revenue that would be obtained by applying a tax at the rate of 4.5 mills on all property within the municipality that is subject to tax under AS43.56. * Sec. 17. AS29.45.080(c) is amended to read: (c) A municipality may levy and collect a tax on the full and true value of that portion of taxable property taxable under AS43.56 as assessed by the Department of Revenue which value, when combined with the value of property otherwise taxable by the municipality, does not exceed the product of 225 percent of the average per capita 1996-04-22 Senate Journal Page 3423 SB 70 assessed full and true value of property in the state multiplied by the number of residents of the taxing municipality, except that, after December31, 1996, the limitation of levy under this subsection shall be reduced by the amount of revenue that would be obtained by applying a tax at the rate of 4.5 mills on all property within the municipality that is subject to tax under AS43.56. * Sec. 18. AS43.56.010(c) is amended to read: (c) If the total value of assessed property of a municipality taxing under AS29.45.080(c) exceeds the limitation imposed by that subsection ªPRODUCT OF 225 PERCENT OF THE AVERAGE PER CAPITA ASSESSED FULL AND TRUE VALUE OF PROPERTY IN THE STATE, TO BE DETERMINED BY THE DEPARTMENT AND REPORTED TO EACH MUNICIPALITY BY JANUARY15 OF EACH YEAR, MULTIPLIED BY THE NUMBER OF RESIDENTS OF THE TAXING MUNICIPALITY,ß the department shall designate the portion of the tax base against which the local tax may be applied. * Sec. 19. TRANSITION: REGULATIONS. The Department of Education may immediately proceed to adopt regulations necessary to implement secs. 1 - 15 of this Act. The regulations take effect under the Administrative Procedure Act, but not before July1, 1996. * Sec. 20. Section 19 of this Act takes effect immediately under AS01.10.070(c). * Sec. 21. Except as provided in sec. 20 of this Act, this Act takes effect July1, 1996." Senator Taylor moved for the adoption of Amendment No. 1. Senator Adams objected. Senator Halford lifted the call.