School finance-recapture-2.

WORKING DRAFT
2007
STATE OF WYOMING
07LSO-0326.E1

SENATE FILE
NO.
SF0046

School finance-recapture-2.

Sponsored by:
Joint Education Interim Committee

A BILL

for

AN ACT relating to school finance; repealing statutory provisions pertaining to maximum recapture in conformance with constitutional provisions; specifying payment during transition; exempting specified encumbrances; and providing for an effective date.

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

Section 1.

W.S. 21
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313(g) is amended to read:

21
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313.

Distribution of funds from foundation account; property tax and cash reserve adjustment; regulations.

(g)

In addition to subsections (b) and (c) of this section, the state superintendent shall for any district subject to W.S. 21
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102(b) as determined by the department for any school year, provide payments from the school foundation program account in an amount equal to one-third (1/3) of the foundation program amount computed for that district for that school year in accordance with W.S. 21
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309. The computed amount shall be paid to each eligible district on August 15 based upon tentative computations under W.S. 21
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309, for which the department may use fiscal information available from foundation program computations for the previous school year in the manner provided under subsection (b) of this section.
The amount computed under this subsection shall be reduced by any recapture revenues of a district which exceed limitations imposed under W.S. 21
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102(c), as established by the department for that district for the prior school year.
Any district receiving a payment under this subsection shall repay the foundation program account fifty percent (50%) of the amount received on or before January 31 of the school year in which received, and shall repay the remaining fifty percent (50%) by June 15 of that school year.

Section 2.

W.S. 21
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102(c) and 2006 Wyoming Session Laws, Chapter 37, Section 6(b) are repealed.

Section 3.

(a)

Except as provided under subsection (b) of this section, each school district shall rebate to the department of education any revenues subject to recapture under W.S. 21
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102(b) for fiscal year 2006-2007, including revenues exceeding the maximum allowable amount as computed under W.S. 21
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102(c) and in effect prior to November 15, 2006. Recapture payments under this subsection shall be made to the department on June 15, 2007.

(b)

Subsection (a) of this section shall not interfere with any contractual obligations entered into by any district subject to subsection (a) of this section encumbered as of January 1, 2007, and as approved by the department. Each district subject to this subsection shall on or before April 1, 2007, file with the department the amount of encumbrances existing as of January 1, 2007, together with documentation verifying the encumbered amount. If encumbered under this subsection for a capital construction project, the amount of encumbrance shall not exceed one hundred ten percent (110%) of the initially estimated capital construction project cost, as approved by the department, with the additional ten percent (10%) retained for a contingency fund. Any encumbered funds retained within the contingency fund that are not expended shall revert to the school foundation program account.

(c)

Notwithstanding W.S. 21
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102(e) and 21
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313(c), but subject to subsection (b) of this section, and not later than May 1, 2007, the department shall certify to each district subject to subsection (a) of this section the amount of recapture for fiscal year 2006-2007 to be remitted to the state under this section. The amount shall be based upon state assessed valuations certified on August 10, 2006, under W.S. 39
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102.1(c)(v).

Section 4.

T
his act is effective immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(END)

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SF0046