HB 1069 -- Capital Improvement Funds for Elementary and Secondary
Schools

Sponsor:  Thomson

This bill establishes a procedure for using federal stimulus
funds from the American Recovery and Reinvestment Act of 2009 for
repairing elementary and secondary schools.  The bill creates the
Federal Budget Stabilization Fund and the Federal Stimulus Fund
to be administered by the State Treasurer.  The State Treasurer
will be allowed to create additional funds as needed to avoid
commingling moneys.  The General Assembly must allocate half of
the moneys deposited into the Federal Stimulus Fund to the School
Building Revolving Fund, which is renamed the School Building
Renovation Fund, under the control of the Department of
Elementary and Secondary Education to support public school
renovation projects.  "School facility" is redefined as "school
building" to exclude athletic facilities and administrative
facilities.  The current fund limit of $440 million is removed.

The initial deposit of federal stimulus moneys into the fund will
be distributed immediately to the districts on the basis of the
previous year's pupil count and must be used within one year of
receipt.  Within 60 days of receipt, each district must submit a
plan of capital improvement projects to the department.  At the
end of the one-year period, a final report must be submitted to
the department detailing the renovations made with a certified
statement by the district's auditor that the funds were used in
accordance with the provisions of the bill.

If moneys remain in the fund because districts did not use them
timely, districts may submit applications for matching grants for
allowed capital improvement projects.  Long-range capital
improvement plans are required for these applications.  The
department must develop minimum school building standards as
criteria for granting funds, and projects must also meet federal
criteria.  Grants will be prioritized based on renovation
projects with costs in excess of insurance proceeds and buildings
over 35 years old.  Under certain circumstances, a building that
is 50 or more years old may be replaced rather than renovated.
If a district does not meet its matching obligation, it forfeits
its right to the grant but may resubmit an application the next
year.  The department must publish criteria for the grant within
60 days of the effective date of the bill.  Currently, moneys in
the School Building Revolving Fund can be used for lease-
purchases.  The bill removes that option.

The bill contains criteria for a district's matching obligation
based on the rank-ordering of the school districts' equalized
assessed valuation per pupil and assigning a 50% match to the
lowest-ranked district and a 75% match to the highest.  Each
district in between will be assigned a unique percentage.  The
department will match costs up to the maximums specified in the
bill based on the grade levels housed in the building to be
renovated.  Funds will be distributed between July 1 and July 15
after a district obtains its matching funds and, upon the State
Board of Education certifying the amounts, warrants will be
issued by the Commissioner of the Office of Administration and
the funds will be placed in the district's capital projects fund.
Districts are responsible for any costs in excess of the
estimated cost; and if a project costs less than estimated, the
district will return the department's share of funds.  After a
project is completed, the district will submit a final report to
the department for review of compliance with the provisions of
the bill.  If the district failed to expend funds as required by
the bill, it must repay the department within 60 days or an
amount may be withheld from the district's state aid payment.
State matching funds do not impose liability on the department or
the state in regard to a district's contractor.  Title to
property improved or acquired with grant moneys will be held by
the district.

The bill contains an emergency clause.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am