ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

House: ED DPA/SE 10-0-0-0 | APPROP DPA/SE 9-3-0-1

HB 2179: new school facilities; additional funding

NOW: new school facilities; base costs

Sponsor: Representative Udall, LD 25

House Engrossed

Overview

Adds to the circumstances in which the School Facilities Board (SFB) may modify the base costs provided in the New School Facilities (NSF) Fund formula. Requires the Joint Committee on Capital Review (JCCR) to review new school construction projects. Contains a conditional enactment clause pertaining to House Bill (HB) 2555.

History

SFB administers the NSF Fund and distributes monies to school districts to construct new school facilities and for permitted contracted expenses. School districts must submit enrollment projections to SFB that are then used to justify disbursements for schools to meet the minimum school facility adequacy guidelines (guidelines) (A.R.S. 15-2041).

SFB is required to adopt rules establishing the guidelines that provide the minimum quality and quantity of school buildings, facilities and equipment necessary for students to achieve academic standards. These guidelines are detailed in SFB's rules (A.A.C. Title 7, Chapter 6, Article 2).

If an enrollment projection indicates that additional space or a new school facility will be needed to meet the guidelines, statute outlines formulas SFB must follow when determining the amounts to provide to eligible school districts. The formulas include a statutorily-set amount for the base cost per square foot. These costs vary according to grade level. Currently, SFB may only modify the base costs per square foot for particular schools based on geographic or site conditions (A.R.S. 15-2041).

JCCR is tasked with developing and approving a uniform formula for computing annual building renewal funding needs, approving building systems, reviewing the state capital improvement plan, and reviewing the expenditure of monies appropriated for land acquisition, capital projects and building renewal (A.R.S. § 41-1251, 41-1252)

Currently, the Arizona Department of Administration (ADOA), the Arizona Board of Regents and the Arizona Department of Transportation are each considered to be separate building systems.  Statute requires, subject to JCCR review, each building system to designate an agency that is responsible for computing building renewal needs for each fiscal year (A.R.S. § 41-793).

HB 2555, relating to school capital finance, was introduced during the 55th Legislature, 1st Regular Session.

Provisions

NSF Fund and JCCR Review

1.   Allows SFB to modify the base cost per square foot, when calculating NSF Fund amounts to school districts eligible for additional square footage, if the school district elected in its project capital plan to:

a)   Limit the project only to a scope necessary to meet the guidelines; and

b)   SFB determined the cost per square foot of funding to be inadequate to cover the total cost required. (Sec. 1)

2.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRequires SFB to hold a school district's request for monies from the NSF Fund for additional space if the school district's average daily membership (ADM) projections indicate that additional space will not be needed within the next three school years, rather than two school years, to meet the guidelines. (Sec. 1)

3.   Stipulates that if ADM projections indicate that additional space will be needed within the next three school years, rather than two school years, to meet the guidelines, SFB must submit the amount calculated according to the NSF Fund formula to JCCR for review. (Sec. 1)

4.   Adds that a school district's capital plan must indicate, if the capital plan indicates a need for a new school or an addition to an existing school, whether the additional school space is to be limited to meeting the guidelines or whether the project will be supplemented by local funding. (Sec. 1)

5.   Instructs JCCR to review new school construction projects approved by SFB. (Sec. 5)

6.   Provides that SFB is to be considered as a separate building system. (Sec. 3)

Conditional Enactment Relating to HB 2555

7.   Requires, conditional upon the enactment of HB 2555, the Division of School Facilities to submit the amount calculated according to the NSF Fund formula to JCCR for review, if ADM projections indicate that additional space will be needed within the next three school years to meet the guidelines. (Sec. 2)

8.   Provides, conditional upon the enactment of HB 2555, that the Division of School Facilities is to be considered a separate building system. (Sec. 4)

9.   Directs, conditional upon the enactment of HB 2555, JCCR to review new school construction projects approved by the School Facilities Oversight Board within ADOA's Division of School Facilities. (Sec. 6)

Miscellaneous

10.  Conditions the enactment of Section 15-2041, A.R.S., as amended by Section 2 of this act, Section 41-793, A.R.S., as amended by Section 4 of this act, and Section 41-1252, A.R.S., as amended by Section 6 of this act on the enactment of HB 2555, 55th Legislature, 1st Regular Session, relating to school capital finance. (Sec. 7)

11.  Makes technical changes. (Sec. 1, 5)

12.  Makes a conforming change, conditional upon the enactment of HB 2555. (Sec. 2)

 

 

 

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                        HB 2179

Initials CH       Page 0 House Engrossed

 

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