HCS HB 457 -- FINANCING OF CAPITAL IMPROVEMENTS FOR SCHOOLS

SPONSOR:  Franklin (Kreider)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Education-Elementary and Secondary by a vote of 23 to 0.

This substitute extensively revises the lease purchase program
that is funded by the School Building Revolving Fund, which
currently receives its moneys from transfers of asset
forfeitures pursuant to the County School Fund.  The substitute
eliminates lease purchases and creates a matching grant program,
with separate qualifications for new construction versus
renovation of buildings; changes the name of the fund to the
School Building Property Tax Relief Fund; and supplies funding
by directing that certain gaming moneys be routed into the
fund.  These moneys, which currently are directed to the school
foundation formula via the State School Moneys Fund, must be
replaced by general revenue.  The redirection of the gaming
moneys will occur over a 5-year period from fiscal year 2003 to
2007, in increments of 20% each year.

Among its major provisions, the substitute:

(1)  Details the elements of the long-range capital improvement
plan necessary to qualify for a grant and also permits waiver of
the plan under certain emergency circumstances;

(2)  Revises the current eligibility criteria to delete assessed
valuation and bonded indebtedness and substitutes a requirement
that the applicant district not be financially stressed;

(3)  Revises the priority for ranking applications to address
high-growth rates, overcrowding, and need for all-day
kindergarten; educational technology and health/safety features
for new construction; and building age and emergency situations
for renovations;

(4)  Provides a sliding scale for the district's matching amount
that varies between 50% and 75% based on assessed valuation;

(5)  Provides a per-pupil amount for both new construction and
renovation that varies based on the grade level of the building
to be constructed or renovated; and

(6)  Addresses issues of liability, building title, and use of
funds.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of $0
in FY 2002, $36,146,971 in FY 2003, and $72,142,960 in FY 2004.
Estimated Net Effect on State School Moneys Fund of $0 in FY
2002, FY 2003, and FY 2004.  Estimated Net Effect on School
Building Property Tax Relief Fund of $0 in FY 2002, FY 2003, and
FY 2004.

PROPONENTS:  Supporters say that Missouri is one of only 12
states that does not provide capital funding to school
districts.  A recent survey determined that statewide there is a
$4.3 billion need for new construction and renovation.  Some
witnesses cautioned that the bill's funding source is
problematic, but the technical components of the grant program
met with general approval.

Testifying for the bill were Representative Kreider; Missouri
Council of School Administrators; Tony Stansberry,
superintendent of Lee's Summit R-7 School District; Jere
Hochman, superintendent of Parkway School District; Bill View,
superintendent of Harrisburg School District; Missouri School
Board Association; Cooperating School Districts of Suburban
Kansas City; Missouri State Teachers Association; and Missouri
National Education Association.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:44 am