Session of 1998
                   
SENATE BILL No. 568
         
By Committee on Elections and Local Government
         
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            9             AN ACT concerning school district capital improvements; affecting de-
10             termination of state aid entitlements; amending K.S.A. 75-2319 and
11             repealing the existing section.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 75-2319 is hereby amended to read as follows:
15       75-2319. (a) There is hereby established in the state treasury the school
16       district capital improvements fund. The fund shall consist of all amounts
17       transferred thereto under the provisions of subsection (c).
18           (b) In each school year, each school district which is obligated to
19       make payments from its bond and interest fund shall be entitled to receive
20       payment from the school district capital improvements fund in an amount
21       determined by the state board of education as provided in this subsection.
22       The state board of education shall:
23           (1) Determine the amount of the assessed valuation per pupil (AVPP)
24       of each school district in the state and round such amount to the nearest
25       $1,000. The rounded amount is the AVPP of a school district for the
26       purposes of this section;
27           (2) determine the median AVPP of all school districts;
28           (3) prepare a schedule of dollar amounts using the amount of the
29       median AVPP of all school districts as the point of beginning. The sched-
30       ule of dollar amounts shall range upward in equal $1,000 intervals from
31       the point of beginning to and including an amount that is equal to the
32       amount of the AVPP of the school district with the highest AVPP of all
33       school districts and shall range downward in equal $1,000 intervals from
34       the point of beginning to and including an amount that is equal to the
35       amount of the AVPP of the school district with the lowest AVPP of all
36       school districts;
37           (4) determine a state aid percentage factor for each school district by
38       assigning a the state aid computation percentage to the amount of the
39       median AVPP shown on the schedule, decreasing the state aid compu-
40       tation percentage assigned to the amount of the median AVPP by one
41       percentage point for each $1,000 interval above the amount of the median
42       AVPP, and increasing the state aid computation percentage assigned to
43       the amount of the median AVPP by one percentage point for each $1,000

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  1       interval below the amount of the median AVPP. The state aid percentage
  2       factor of a school district is the percentage assigned to the schedule
  3       amount that is equal to the amount of the AVPP of the school district,
  4       except that the state aid percentage factor of a school district shall not
  5       exceed 100%. The state aid computation percentage is 5% for contractual
  6       bond obligations incurred by a school district prior to the effective date
  7       of this act, and 25% for contractual bond obligations incurred by a school
  8       district on or after the effective date of this act 25%;
  9           (5) determine the amount of payments in the aggregate that a school
10       district is obligated to make from its bond and interest fund and, of such
11       amount, compute the amount attributable to contractual bond obligations
12       incurred by the school district prior to the effective date of this act and
13       the amount attributable to contractual bond obligations incurred by the
14       school district on or after the effective date of this act;
15           (6) multiply each of the amounts computed under (5) such amount
16       by the applicable state aid percentage factor;
17           (7) add the products obtained under (6). The amount of the sum
18       product is the amount of payment the school district is entitled to receive
19       from the school district capital improvements fund in the school year.
20           (c) The state board of education shall certify to the director of ac-
21       counts and reports the entitlements of school districts determined under
22       the provisions of subsection (b), and an amount equal thereto shall be
23       transferred by the director from the state general fund to the school
24       district capital improvements fund for distribution to school districts. All
25       transfers made in accordance with the provisions of this subsection shall
26       be considered to be demand transfers from the state general fund.
27           (d) Payments from the school district capital improvements fund shall
28       be distributed to school districts at times determined by the state board
29       of education to be necessary to assist school districts in making scheduled
30       payments pursuant to contractual bond obligations. The state board of
31       education shall certify to the director of accounts and reports the amount
32       due each school district entitled to payment from the fund, and the di-
33       rector of accounts and reports shall draw a warrant on the state treasurer
34       payable to the treasurer of the school district. Upon receipt of the warrant,
35       the treasurer of the school district shall credit the amount thereof to the
36       bond and interest fund of the school district to be used for the purposes
37       of such fund.
38           (e) The provisions of this section apply only to contractual obligations
39       incurred by school districts pursuant to general obligation bonds issued
40       upon approval of a majority of the qualified electors of the school district
41       voting at an election upon the question of the issuance of such bonds.
42           Sec. 2. K.S.A. 75-2319 is hereby repealed.

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  1           Sec. 3. This act shall take effect and be in force from and after its
  2       publication in the statute book.
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