hb269.html
05 LC 22 5717
House Bill 269
By: Representatives Davis of the 109th, Jacobs of the 80th, Talton of the 145th, Lunsford of the 110th, and Watson of the 91st

A BILL TO BE ENTITLED
AN ACT

To amend Part 10 of Article 6 of Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to capital outlay funds for public schools, so as to provide that educational facilities plans for local systems shall anticipate needs for seven years; to conform references to such plans; to increase the maximum appropriation for general capital outlay funds and capital outlay funds for school systems experiencing exceptional growth; to change the requirements for local school systems to qualify for capital outlay funds designated for school systems experiencing exceptional growth; to provide for an enhancement for systems experiencing extreme growth; to amend an uncodified provision of an Act approved April 22, 1999 (Ga. L. 1999, p. 400), as amended, particularly by an Act approved April 9, 2001 (Ga. L. 2001, p. 148), so as to change the automatic repeal date for certain provisions; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Part 10 of Article 6 of Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to capital outlay funds for public schools, is amended in Code Section 20-2-260, relating to capital outlay funds, by striking paragraphs (3) and (5) of subsection (c), relating to responsibilities of the State Board of Education relative to capital outlay funds, and inserting in lieu thereof the following:
"(3) To adopt policies, guidelines, and standards for educational facilities construction plans. Local school system facilities construction plans shall include, but not be limited to, a list of construction projects currently eligible for state capital outlay funds, if any; educational facilities projected for abandonment, if any; educational facilities projected as needed five seven years hence; proposed construction projects for modernization, renovation, and energy retrofitting; proposed construction projects for the purpose of consolidating small, inefficient educational facilities which are less than the minimum size specified in subsection (q) of this Code section; and other construction projects needed to house the instructional programs authorized by provisions of this article;"
"(5) To develop a state-wide needs assessment for purposes of planning and developing policies, anticipating state-wide needs for educational facilities, and providing assistance to local school systems in developing educational facilities plans. The state-wide needs assessment shall be developed from, among other sources, vital statistics published by the Department of Human Resources, census data published by the Bureau of the Census, local school system educational facilities and real property inventories, educational facilities surveys, full-time equivalent student projection research, and educational facilities construction plans; shall reflect circumstances where rapid population growth is caused by factors not reflected in full-time equivalent student projection research; and shall give priority to elementary school construction. In addition, the state board shall develop a consistent, systematic research approach to full-time equivalent student projections which will be used in the development of needs within each local unit. Projections shall not be confined to full-time equivalent resident students but shall be based on full-time equivalent student counts which include full-time equivalent nonresident students, whether or not such full-time equivalent nonresident students attend school pursuant to a contract between local school systems. The full-time equivalent projection shall be calculated in accordance with subsection (m) of this Code section. The survey team will use such projections in determining the improvements needed for the five-year seven-year planning period. The state board shall also develop schedules for allowable square footage and cost per square foot and review these schedules annually. The cost estimate for each recommended improvement included in the plan shall be based on these schedules. Any increase in cost or square footage for a project beyond that allowed by state board schedules for such projects shall be the responsibility of the local school system and shall not count toward present or future required local participation. The schedules for allowable square footage and cost per square foot shall be specified in regulations by the State Board of Education;"

SECTION 2.
Said part is further amended in said Code Section 20-2-260, relating to capital outlay funds, by striking paragraphs (2) and (4) of subsection (d), relating to requirements for qualification for and receipt of such funds by local school systems, and inserting in lieu thereof the following:
"(2) Complete a local educational facilities plan in accordance with provisions of subsection (c) of this Code section. Each proposed construction project shall be identified according to the purposes for capital outlay funds as provided in subsection (e) of this Code section. Each local school system shall specify the order of importance of all proposed construction projects, giving priority to elementary school construction projects. In making the transition from five-year facilities plans to seven-year facilities plans, local school systems may elect to revise an existing five-year facilities plan to produce a seven-year facilities plan or complete a new seven-year facilities plan. When two or more local school systems agree on the need for a consolidation project pursuant to subsection (e) of this Code section, the estimated construction cost shall be prorated to the participating local school systems and included with their identification of needs in accordance with the proportion of the number of students to be served from each local school system;"
"(4) Complete a comprehensive educational facilities survey at least once every five seven years in accordance with provisions of subsection (c) of this Code section in order to formulate plans for educational facilities to house adequately the instructional program authorized by this article. Prior to initiating the survey, the local school system must file a written request with the State Board of Education that a survey be done in its behalf and recommending the individuals who will conduct it. The cost of the survey shall be paid from local funds;"

SECTION 3.
Said part is further amended in said Code Section 20-2-260, relating to capital outlay funds, by striking paragraphs (1) and (2) of subsection (g), relating to funding and authorization levels for capital outlay funds, and inserting in lieu thereof the following:
"(g) (1) In order to determine a reasonable total funding level for the purposes stated in subsection (e) of this Code section, excluding funds provided for exceptional growth pursuant to subsection (j) of this Code section, and to establish a fair and equitable distribution of funds to local school systems, the State Board of Education shall annually determine a level of authorization. Starting with fiscal year 2003 2004-2005 applications for funds and for each fiscal year thereafter, the new authorization level may equal zero but shall not exceed $200 $210 million, adjusted annually to reflect the changes in the current annual construction cost data maintained by the Department of Education pursuant to paragraph (4) of subsection (c) of this Code section. For purposes of deliberations with the Governor and the General Assembly regarding the amount of state funds to be appropriated, calculations shall be made for at least three levels below the $200 $210 million maximum authorization, adjusted as specified in this paragraph.
(2) In setting the annual authorization level under this subsection, the state board shall consider any previously authorized but unfunded amounts together with the total estimate of funds needed for school facilities in the state. Such total state facilities needs pursuant to this subsection shall be computed by summing the following:
(A) The total facility improvement needs included in the most recent five-year educational facilities plan, excluding exceptional growth construction projects which shall be requested under subsection (j) of this Code section, which has been reviewed by a survey team and approved by the state board. Such needs shall annually be adjusted downward for projects financed by either state or local funds and shall annually be adjusted upward or downward to reflect changes in the full-time equivalent student counts but shall not be otherwise adjusted upward except upon approval of a new or revised five-year educational facilities plan pursuant to subsections (c) and (d) of this Code section; and
(B) The sum of the annual debt service payments for the five-year period of the latest survey (that used in subparagraph (A) of this paragraph), excluding payments for postsecondary facilities, athletic facilities, administrative facilities, or other projects not included in the approved five-year educational facilities plan pursuant to subsections (c) and (d) of this Code section. Such payments shall annually be adjusted upward or downward for the remaining portion of the five-year seven-year period for changes in the annual debt service payments resulting from local financing of projects covered by the state board approved plan."

SECTION 4.
Said part is further amended in said Code Section 20-2-260, relating to capital outlay funds, by striking paragraphs (1) and (2) of subsection (j), relating to funding and authorization levels for capital outlay for school systems experiencing exceptional growth, and inserting in lieu thereof the following:
"(j)(1) In order to determine a reasonable funding level under this subsection and to establish a fair and equitable distribution of funds to local school systems for construction projects needed because of exceptional growth, the State Board of Education shall annually determine a level of authorization. For a given fiscal year, the new authorization may equal zero but shall not exceed $100 $110 million. For purposes of deliberations with the Governor and the General Assembly regarding the amount of state funds to be appropriated, calculations shall be made for at least three levels below the $100 $110 million maximum authorization.
(2) In setting the annual authorization level for exceptional growth funding, the state board shall consider any previously authorized but unfunded amounts under this subsection together with the total estimate of funds needed for school facilities as a result of exceptional growth as computed under subparagraph (A) of this paragraph. The annual entitlement for each school system experiencing exceptional growth shall be computed as follows:
(A) The average of each school systeḿs average full-time equivalent count for the three most recently completed school years ('most recent average') will be compared to the average of that systeḿs average full-time equivalent count for the three most recently completed school years prior to the most recently completed school year ('earlier average'). If there is an increase in a school systeḿs most recent average of at least 1.5 percent and at least 65 225 average full-time equivalent counts over that systeḿs earlier average, that system will be an exceptional growth system. For each such exceptional growth system with an increased average count of at least 65 225 average full-time equivalent counts after the above calculation, the amount of such increase will be divided by the total such increase for all exceptional growth systems under this subsection to provide the ratio of each systeḿs growth to the total growth of all systems with exceptional growth, also known as the systeḿs ratio of need; provided, however, that any exceptional growth system that has an increase in the school systeḿs most recent average of at least 6 percent will receive an extreme growth enhancement of 10 percent of the school systeḿs average full time equivalent increase, added to such systeḿs average full time equivalent increase; such sum will be divided by the total such increase for all exceptional growth systems, including the total of any extreme growth enhancements, to produce the systeḿs ratio of need; and
(B) Each of the school systems identified as being an exceptional growth system under subparagraph (A) of this paragraph shall be entitled to a portion of the total entitlement authorization set by the General Assembly annually for exceptional growth based on each systeḿs relative exceptional growth to the sum of exceptional growth for all systems as determined in subparagraph (A) of this paragraph. The entitlement for each school system shall be determined annually by multiplying each systeḿs ratio of need to the total need for exceptional growth, including the total of any extreme growth enhancements, by each of the program authorization levels required in paragraph (1) of this subsection. In addition to the annual entitlement, the local school system is eligible to receive any entitlement accrued under this subsection from previous fiscal years for which state funds have not been received. Any method of determining entitlements in subsequent years shall in no way affect the amount of previously accrued entitlements."

SECTION 5.
Said part is further amended in Code Section 20-2-262, relating to low-wealth capital outlay grants to local school systems, by striking subsection (c) and inserting in lieu thereof the following:
"(c) The State Board of Education shall provide eligible local school systems with low-wealth capital outlay grants as provided for in this Code section, subject to appropriation by the General Assembly. Such grants shall provide sufficient funds to cover 92 percent of the state eligible cost of the local school systeḿs first priority project in the five-year local facilities plan, as contained in the systeḿs most recently approved local facilities plan. A local school system may qualify for a grant not to exceed 95 percent of the state eligible cost of the local school systeḿs first priority project in the five-year local facilities plan if the system uses a Georgia State Financing and Investment Commission prototypical design with the project managed under the direction of the Georgia State Financing and Investment Commission."

SECTION 6.
An Act approved April 22, 1999 (Ga. L. 1999, p. 400), as amended, particularly by an Act approved April 9, 2001 (Ga. L. 2001, p. 148), is amended by striking Section 2 and inserting in lieu thereof the following:

"SECTION 2.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval and shall be automatically repealed on June 30, 2009 2019."

SECTION 7.
This Act shall become effective on July 1, 2005.

SECTION 8.
All laws and parts of laws in conflict with this Act are repealed.