2002

State of Wyoming

02LSO-0127.W3

 

 

 

WORKING DRAFT

 

 

 

HOUSE BILL NO.       

 

 

School finance-local revenues.

 

Sponsored by:

 

 

A BILL

 

for

 

AN ACT relating to school finance; diverting certain school revenues available to school districts directly to the foundation program account, to be distributed to districts through foundation payments; modifying related provisions accordingly; providing for retention of local revenues in excess of foundation payments; authorizing payment of property tax refunds from foundation account on behalf of districts; modifying tax anticipation note provisions as specified; providing transitional payments; and providing for an effective date.

 

Be It Enacted by the Legislature of the State of Wyoming:

 

Section 1.  W.S. 9-4-401(a), 9-4-503, 9-4-1102(b), 21-13-102(c), (f), (g) and by creating a new subsection (h), 21-13-201, 21-13-206, 21-13-207, 21-13-310(a)(i), (ii), (v) through (viii), (xii) and (xiii) and (b), 21-13-311(a) and by creating a new subsection (d), 21-13-312(a)(ii), 21-13-313(b), (c) and (e) and 39-13-111(a)(i)(C) and (ii)(A) are amended to read:

 

9-4-401.  Distribution of funds.

 

(a)  All funds received by the state of Wyoming, as its distributive share of the amounts collected by the United States government under the provisions of the act of congress of June 28, 1934 (48 Stat. 1269), known as the Taylor Grazing Act, and any act amendatory thereof, shall be deposited with the state treasurer. Upon receipt, the state treasurer shall for those amounts received from grazing fees, distribute the money to the several counties of the state as provided by subsection (b) of this section, and for those amounts received from leased or sold public lands and on behalf of those school districts in which the public lands are located, distribute the amounts received to the public school foundation program account. The state treasurer shall ascertain from the proper United States officers having the records of receipt from leased or sold public lands the amount of receipts from the sources in this state for each year for which money is received by the state. In accordance with W.S. 21-13-310, the state department of education shall maintain a separate account shall be kept accounting by school district of the sum amounts received and deposited under this subsection on behalf of the district from sale or lease rentals from public lands., which sum shall be segregated by the state treasurer and paid to the Each county shall pursuant to W.S. 21-13-207, report to the state department of education the amount accruing to the state from each school district within the county in which the leased or sold public land is located. If any leased or sold land lies in more than one (1) county of the state school district, each county district shall receive be reported as contributing a proportional amount of the revenue as the area of the leased or sold public land included within the boundary of the county district bears to the total area of the leased or sold public land.

 

9-4-402.  Money credited to general school fund; allocation thereof.

 

All money received from the lease and sale of public lands within the county shall be placed to the credit of the general school fund of the county, to be proportionately allocated by the county treasurer to the various school districts, exclusive of high school districts, in which the public lands are located and from which the funds are derived.

 

9-4-503.  Money from federal forest reserves; distribution among counties and between schools and county roads.

 

(a)  Upon making the apportionment provided for in W.S. 9-4-501 through 9-4-504, the state treasurer shall certify to the state auditor as soon as possible report to each county treasurer the amounts due to the counties, whereupon the state auditor shall issue a warrant payable that county from the monies received pursuant to W.S. 9-4-501.,

 

(b)  Within fifteen (15) days after receipt of the report from the state treasurer under subsection (a) of this section, the county commissioners shall apportion the amounts due between the county road fund and the school districts within the county and report the apportionment to the state treasurer.  Not less than five percent (5%) of the amounts due shall be apportioned to either the county road fund or to the school districts.

 

(c)  The state treasurer shall upon receipt of each county report under subsection (b) of this section, certify to the state auditor the amount to be paid to the county for county roads, and deposit the amount apportioned by the county to its school districts into the public school foundation program account. Upon certification, the state auditor shall issue a warrant payable from monies received under W.S. 9-4-501 in favor of the county treasurer of the counties included in the distribution for the amount to which the county is entitled has apportioned to its road fund and remit the warrants warrant to the county treasurers treasurer.

 

(d)  Each recipient county shall report the amount deposited into the foundation program account under subsection (c) of this section on behalf of each district within the county at the time and in the manner required by W.S. 21-13-207.

 

9-4-504.  Money from federal forest reserves; distribution by county commissioners.

 

Upon the receipt by the county treasurer of the funds, as provided in W.S. 9-4-503, the county commissioners of the county shall apportion the monies between the general school fund and the road fund of their county. Not less than five percent (5%) of the monies shall be credited to either one of the funds.

 

9-4-1102.  Authority.

 

(b)  The principal amount of notes issued and outstanding at any time under subsection (a) of this section shall be limited to three hundred million dollars ($300,000,000.00) but not to exceed the amount of revenue anticipated to be received during the applicable fiscal year and pledged for the repayment of the notes.

 

STAFF COMMENT:  TRANS limitation may require modification depending upon Committee action pertaining to foundation payment schedule and other cash flow issues.

 

21-13-102.  Maximum rate of school district tax; retention of excess; disposition of tax collections.

 

(b)  Except as otherwise provided by law, on June 15, each school district shall rebate to the department of education the amount by which the revenue from the sources provided by W.S. 21-13-310 exceeds the foundation program costs determined under W.S. 21-13-309 as certified to the districts on or before March 1 of the current fiscal year under subsection (e) of this section, to be credited to the public school foundation program account defined in W.S. 21-13-101(a)(ix).

 

(c)  For any school year, the revenue to be rebated under subsection (b) of this section retained for any district within the foundation program account under W.S. 21-13-311(a) shall not exceed seventy-five percent (75%) of the difference between the revenue received by a school district from the mandatory levies per average daily membership provided by subsection (a) of this section and the statewide revenue per average daily membership from twenty-five (25) mills, multiplied by the average daily membership of the school district.  Annually, on or before July 15, the department using average daily memberships and assessed valuations from the preceding fiscal year, shall compute maximum recapture retention under this subsection for each district and the final amount of recapture computed under subsection (b) of this section retained for the preceding fiscal year.  If the amount retained for any district rebated more revenue to the state during the preceding fiscal year is more than the maximum computed, or than the amount to be rebated under subsection (b) of this section retained as computed using actual data from the preceding fiscal year, the department shall rebate pay the excess to the district.  If any district rebated less revenue to the state during the preceding fiscal year than the amount to be rebated under subsection (b) of this section, as computed using actual data from the preceding fiscal year, the district shall rebate the difference to the state.

 

(e)  Annually on or before August 15 the department shall notify each district subject to recapture of the estimated amount due to the state during the current fiscal year, using data from the previous school year. Upon receipt of the state assessed values by school districts, and not later than March 1 of the current fiscal year, the department shall certify to each district subject to recapture the amount of recapture for the fiscal year to be remitted to the state.  The amount certified shall supersede the estimates certified on or before August 15.  If a district can demonstrate financial inability to make payments to the state as provided in subsection (b) of this section, the superintendent of public instruction may adjust the schedule of payments provided by subsection (b) of this section if the financial integrity of the foundation program will not be jeopardized.

 

(f)  Annually, on or before January 1, the superintendent and the state board shall present a written report to the legislature and to the governor concerning the operation of the foundation program under this article during the current school year, reporting difficulties with school finance during the current school year and recommending classroom unit values, recapture percentages and other modifications to the foundation program for the current and the next ensuing school year.

 

(g)  Notwithstanding the foregoing W.S. 21-13-311(a) and subsection (c) of this section, the computed recapture retention of local district resources with the foundation program for any applicable school district which is subject to recapture and which levies more than the state average mill levy for the sum of levies required or authorized under W.S. 21-13-102(a), 21-13-201(a) and 21-13-303(a) and for repayment of bonded indebtedness, shall be reduced by the percent which the stated mill levies in the district exceed the state average for the stated mill levies.  Each school district receiving a reduction under this subsection shall apply an equal amount of revenue from its operating funds to the repayment of bonded indebtedness during the ensuing fiscal year and reduce the amount of mill levy for the repayment of bonded indebtedness accordingly.  Following the first reduction under this subsection, the department shall compute the required state averages and district levies as if no reduction in mill levies for bonded indebtedness were made and shall utilize mill levies for bonded indebtedness which would have been required but for the application of this subsection.;

 

(h)  Amounts collected by each county treasurer from the levies imposed by school districts within the county pursuant to subparagraphs (a)(i)(A) and (ii)(A) of this section shall be deposited within the county school fund and subsequently transferred to the foundation program account in the time and manner specified under W.S. 21-13-207.  Each county shall report to the state department the amounts collect on behalf of each district within the county as required under W.S. 21-13-207.

 

21-13-201.  Levy, collection and distribution of 6 mill school tax.

 

(a)  Pursuant to article XV, section 17 of the constitution of the state of Wyoming, there shall be levied each year, by the county commissioners in each county in the state, a tax of six (6) mills on the dollar of assessed valuation of the property within the county for the support and maintenance of the public schools.  This tax shall be collected by the county treasurer and deposited within the county school fund for subsequent transfer to the foundation program account pursuant to W.S. 21-13-207.

 

(b)  On or before September 1 of each year, The state department of education shall notify the treasurer of each county of annually compute the percentage proportion to be allocated from under which the countywide six (6) mill school levy to shall be reported under W.S. 21-13-207 on behalf of each school district in his respective county the state.  The computation of the distribution of the countywide six (6) mill levy shall be made by the department of education on the basis of the average daily membership (ADM) for the previous year.  This number, for each district, shall be converted into a percentage of the total average daily membership (ADM) for all school districts within the each county.  The county treasurer shall distribute the revenue arising from the countywide six (6) mill levy among the school districts of the county according to the percentage computed above and pursuant to On or before September 1 of each year, the computation shall be reported to each county treasurer for use in reporting collections under this section on behalf of school districts in accordance with W.S. 21-13-207.

 

21-13-206.  Disposition of fines, penalties and forfeitures.

 

All fines, penalties, and forfeitures provided by the school laws may be recovered by an action by any citizen in the name of the people of the state of Wyoming for the use of the proper school district or county, and when they accrue, shall belong to the school district or county in which they have accrued and shall be deposited with the county treasurer of the county in which they have accrued for subsequent transfer to the foundation program account on behalf of the proper school district in the manner provided by W.S. 21—13-207.

 

21-13-207.  Transfer of funds within county school fund by county treasurer; report to state department.

 

On the second Monday of each month, the each county treasurer shall apportion transfer all monies in the county treasury belonging to the county school fund, including all interest earned thereon and including fines and forfeitures, among the various school districts of the county in the same percentages as provided by W.S. 21-13-201(b) and shall immediately pay the amount to each school district to the foundation program account. At the time of transfer, each county treasurer shall report to the state department of education the amount transferred from each revenue source on behalf of each school district within the county.

 

21-13-310.  Annual computation of district revenues; certification of revenue amounts.

 

(a)  To ensure revenues available to each district are uniformly sufficient to enable compliance with the uniform standards for educational programs prescribed under W.S. 21-9-101 and 21-9-102 and to secure state board accreditation of educational programs under W.S. 21-2-304(a)(ii), the revenues specified under this subsection section shall be deemed state revenues. and shall be considered in determining Except for those districts subject to retention under W.S. 21-13-311, the amount to be distributed to each district under W.S. 21-13-311. A district for any school year shall not be less than the sum of the revenues computed under this section for that district for that school year. The state department shall make an annual computation of the following revenues for each district:

 

(i)  The actual revenue collections to be received by each collected on behalf of the district during the school year as its proportionate share of the county six (6) mill levy imposed under W.S. 21-13-201(a) as certified on August 10 under W.S. 39-11-102.1(c)(v) for that school year regardless of the year of assessment;

 

(ii)  The required local tax effort in the current school year for the assessment and levy of school taxes by the district according to the following schedule:

 

(A)  Any district actually and physically operating a school within the boundaries of the district offering instruction in kindergarten through grade twelve (12), the amount of actual revenue collections to be received on behalf of the district during the school year under the twenty-five (25) mill local district levy as certified on August 10 under W.S. 39-11-102.1(c)(v) for that school year imposed under W.S. 21-13-102(a)(i)(A) and reported under W.S. 21-13-102(h), without regard to the year of assessment;

 

(B)  Any nonunified district actually and physically operating a school within the boundaries of the district offering instruction in kindergarten through grade eight (8), the amount of actual revenue collections to be received on behalf of the district during the school year under the number of mills levied pursuant to W.S. 21-13-102(a)(ii)(A) and (C), as certified on August 10 under W.S. 39-11-102.1(c)(v) for that school year reported under W.S. 21-13-102(h), regardless of the year of assessment.

 

(v)  The district's share amount of fines and forfeitures distributed to it transferred to the foundation program account under W.S. 21-13-206 on behalf of the district during the previous current school year;, including penalties distributed under W.S. 35-11-424(c);

 

(vi)  The district's share amount of forest reserve funds distributed to it deposited into the foundation program account on behalf of the district during the previous current year under W.S. 9-4-504 9-4-503;

 

(vii)  The district's share amount of Taylor Grazing Act funds distributed to it deposited into the foundation program account during the previous current school year on behalf of the district under W.S. 9-4-402 9-4-401;

 

(viii)  The district's share amount of the county motor vehicle fund distributed to it transferred to the foundation program account on behalf of the district during the previous current school year by the county treasurer under W.S. 31-3-103;

 

(ix)  The amount of tuition paid to the district during the previous school year, including any amount charged under W.S. 21-4-501 and any amount assessed in excess of the costs incurred for adult education programs, summer school programs, programs provided under an agreement for cooperative educational programs under W.S. 21-20-101 through 21-20-111 and any amount assessed for programs and services for children with disabilities;

 

(xii)  The district's share amount of interest and penalties on delinquent taxes under W.S. 39-13-108(b)(ii) and (c) distributed to it transferred to the foundation program account on behalf of the district during the previous current school year by the county treasurer;

 

(xiii)  The district's share amount of railroad car company taxes distributed transferred to it the foundation program account on behalf of the district during the previous current school year by the county treasurer under W.S. 39-13-111(a)(iii).;

 

(xiv)  Any amount received by the district during the preceding school year from the sale of real or personal property which was not owned by the district prior to July 1, 1997;

 

(xv)  All other revenues received or collected by the district during the previous school year, but excluding any amount received from private contributions and gifts, excluding any revenues dedicated by law to the payment of bonded indebtedness and excluding fees or other charges imposed by the district for goods or services, such as rental fees and the price paid for admission into any place for recreation, entertainment or an athletic event.  Upon application of a district, the department shall exclude from this paragraph revenue received by the district if the department finds that the revenue could not be used by the district to provide educational services to students.

 

(b)  On or before July 10 31 of each year, the county treasurer of each county shall certify to the state superintendent, in such form as the state superintendent shall provide, a report of monies distributed by him to each district within the county during the previous school year each district shall report to the department of education any amounts collected by the district during the immediately preceding school year under each of the following revenue sources, together with payment of the amount collected, for deposit into the foundation program account on behalf of the district:

 

(i)  The amount of tuition paid to the district during the applicable school year, including any amount charged under W.S. 21-4-501 and any amount assessed in excess of the costs incurred for adult education programs, summer school programs, programs provided under an agreement for cooperative educational programs under W.S. 21-20-101 through 21-20-111 and any amount assessed for programs and services for children with disabilities;

 

(ii)  Any amount received by the district during the applicable school year from the sale of real or personal property which was not owned by the district prior to July 1, 1997;

 

(iii)  All other revenues received or collected by the district during the applicable school year, but excluding any amount received from private contributions and gifts, any revenues dedicated by law to the payment of bonded indebtedness and excluding fees or other charges imposed by the district for goods or services, such as rental fees and the price paid for admission into any place for recreation, entertainment or an athletic event.  Upon application of a district, the department shall exclude from this paragraph revenue received by the district if the department finds that the revenue could not be used by the district to provide educational services to students.

 

21-13-311.  Determination of amount to be distributed to each district from foundation account; retention of excess; undistributed balance; refund of tax collections.

 

(a)  Except for any district subject to retention under this section, the amount of money which shall be distributed to each district from the foundation account shall be determined by subtracting the sum of the district revenues computed in accordance with W.S. 21-13-310 from equal to the total amount of the foundation program computed for that district in accordance with W.S. 21-13-309. For any district in which the sum of the local district revenues computed under W.S. 21-13-310(a) and (b) exceeds the total foundation program amount computed under W.S. 21-13-309, the amount distributed from the foundation account for that district shall be equal to foundation amount computed under W.S. 21-13-309. Except as provided under W.S. 21-13-102(c), district local revenues which are in excess of the foundation program amount shall be retained in the foundation program account. Funds retained in the foundation account under this section and W.S. 21-13-312 may be expended in the same manner authorized by law as any other funds within the account.

 

(d)  In addition to amounts distributed under subsection (a) of this section and upon application by a district to the state department and certified by the district superintendent, the foundation program account shall on behalf of the applicant school district, pay that amount directed by the board of county commissioners to be refunded to the county treasurer pursuant to W.S. 39-13-109(c) from levies imposed under W.S. 21-13-102 and 21-13-201, and collected and distributed to the district prior to July 1, 2002, or collected and distributed to the foundation program account on behalf of the district on or after July 1, 2002, if the amount to be refunded:

 

(i)  Is included in the computation of that district's local revenues under W.S. 21-13-310(a)(i) and (ii) for the school year in which received, unless otherwise provided by law;

 

(ii)  Is claimed within forty-five (45) days following the date of the refund directive issued by the board of county commissioners;

 

(iii)  Excludes any amount _paid to a district under W.S. 21-13-102(c).

 

21-13-312.  Prorating payments when income from foundation account insufficient.

 

(a)  To preserve the integrity of the foundation account for the biennium and so that payments can be made during the full school year for each year of the biennium, if it appears to the state superintendent that the income available to the foundation program account is not sufficient to meet the payments as provided by law:

 

(ii)  The revenue to be rebated by a retained from any district under W.S. 21-13-102(b) 21-13-311(a) shall be adjusted based upon the guaranteed amount for that district determined under paragraph (a)(i) of this section.

 

21-13-313.  Distribution of funds from foundation account; property tax and cash reserve adjustment; regulations.

 

(b)  The state superintendent shall determine on or before August 15 of each year the tentative allotment of foundation funds to which each district is entitled under this article. In making this determination, the state superintendent may, if current fiscal information required by law to compute the tentative allotment is not available for any district by August 1 of that year, use fiscal information available to the state superintendent from the foundation program computations of the previous school year for that district. The previous year's fiscal information shall be adjusted to reflect current fiscal changes and other information known by or available to the state superintendent. Upon receiving actual fiscal information from a district or county treasurer, as applicable, the state superintendent shall accordingly adjust future foundation program determinations for that district such that foundation program payments appropriately reflect current fiscal information for the applicable school year.

 

(c)  One-third (1/3) of each district's entitlement shall be paid to the district on August 15 of each year. Subject to any recalculation under W.S. 21-13-309(q) and adjustment under subsections (d) and subsection (e) of this section, on or about the fifteenth day of October and February, the balance of the entitlements shall be distributed in equal payments. If, after March 1, the state superintendent determines that the entitlement paid to a district for that school year is not accurate, the state superintendent shall make additional payments to or require withhold the amount from future payments from to that district as necessary to correct the inaccuracy as soon as practicable.

 

(d)  On or before August 15 of the succeeding fiscal year, each school district shall report the amount of revenue it received during the preceding fiscal year attributable to levies provided by W.S. 21-13-102(a)(i)(A) and (ii)(A) and (C) and 21-13-201 regardless of the assessment year, but not to include assessments from years prior to July 1, 1991.  If those revenues reported are less than the revenues estimated under W.S. 21-13-310(a)(i) and (ii) for that fiscal year, as applicable, and if the district's total revenues computed under W.S. 21-13-310 for that fiscal year continue to be less than the total foundation program amount computed under W.S. 21-13-309, the school district shall be paid the difference by October 15 from the foundation program account.  No amount in excess of the total foundation program amount computed for any district for that fiscal year shall be paid from the foundation program account for purposes of this subsection.  Any amount paid under this subsection shall not thereafter be relevant to or used for future foundation program calculations.  If those revenues reported are greater than the revenues estimated under W.S. 21-13-310(a)(i) and (ii) for that fiscal year, as applicable, the excess shall be included as revenues of the district under W.S. 21-13-310 in computing the foundation entitlement for the succeeding fiscal year.

 

(e)  Not later than January 31 of each fiscal year, the department shall compute the amount by which each district's operating balance and cash reserves at the end of the preceding fiscal year exceed fifteen percent (15%) of the total foundation program amount computed under W.S. 21-13-309 for the preceding fiscal year. In making this calculation, the entire operating balance and cash reserves for each district for the fiscal year ending June 30, 1997, as computed by the department, shall be separately accounted for and excluded, until it has been completely expended by the district. Except as otherwise provided in 1997 Special Session Laws, chapter 3, section 306(e), as amended, that excess shall be deemed to be a state revenue under W.S. 21-13-310(a) for the purpose of determining distributions and amounts to be retained under W.S. 21-13-311. and amounts to be rebated under W.S. 21-13-102.  The department shall promulgate rules, including reporting requirements and procedures for districts, to implement this subsection.  As used in this section, "operating balance and cash reserves" means those financial resources of the district which are not encumbered by the district board of trustees for expenditure to meet an existing legal obligation or otherwise restricted by law or regulation for expenditure on specific educational programs.  For purposes of this subsection, any balance within a district's separate account established under W.S. 21-15-109(e) for major building and facility repair and replacement shall be deemed restricted by law for expenditure as provided by W.S. 21-15-109(e) and shall not be considered an operating balance and cash reserve under this section.

 

35-11-424.  Deposit of fees and forfeitures.

 

(c)  For the period commencing July 1, 1992 and ending June 30, 1993 only, all fines and penalties collected under this act shall be transferred by the department to the county treasurer of the county in which the violation occurred.  Upon receipt, the county treasurer shall deposit the transferred collections into the county school fund for apportionment among school districts within the county in accordance with W.S. 21-13-207.

 

39-13-111.  Distribution.

 

(a)  The following shall apply to the distribution of tax collections:

 

(i)  The county treasurer shall keep accurate records of taxes collected for each governmental entity for which a tax levy is made pursuant to W.S. 39-13-104(k) and shall pay the taxes collected to the treasurer of each governmental unit or settle accounts with the county commissioners as hereafter provided:

 

(C)  To the state superintendent on behalf of school districts as provided by W.S. 21-13-207;

 

(ii)  Upon sale of property for the nonpayment of taxes, the proceeds thereof shall be distributed as follows:

 

(A)  The portion attributable to school district levies is payable to the state superintendent on behalf of the proper school district;

 

Section 2.  W.S. 9-4-402, 9-4-504, 21-13-102(b) and (e), 21-13-310(a)(ix), (xiv) and (xv), 21-13-313(d) and 35-11-424(c) are repealed.

 

Section 3.

 

(a)  On or before January 1, 2003, the state department of education shall for each school district:

 

(i)  Compute the actual amount of revenues received by the district during the 2001-2002 school year from each of the revenues specified under W.S. 21-13-310(a);

 

(ii)  Compare the amounts computed under paragraph (a)(i) of this section to the amounts used for each of the revenues specified under W.S. 21-13-310 in determining the district's foundation amount under W.S. 21-13-311 for school year 2001-2002, or in determining the amount recaptured from the district under W.S. 21-13-102(b) for that year, whichever is applicable;

 

(iii)  If the amount computed under paragraph (a)(i) of this section is less than the amount computed under paragraph (a)(ii) of this section, pay the difference to the district from the foundation program account.

 

Section 4.  This act is effective July 1, 2002.

 

(END)