HB559:

School boards, local; composite index of local ability-to-pay, required local effort.

Bill Summary:

Local school boards; composite index of local
ability-to-pay; required local effort; adjustment in certain circumstances.
Provides that in any case in which a local school board enters
into a comprehensive agreement with a private entity pursuant to
the Public-Private Education Facilities and Infrastructure Act of
2002 whereby the private entity finances the construction of a new
public school building in the local school division through the issuance
of bonds; leases the building to the local school board in an arrangement
such as a certificate of participation, a double net lease, or a
triple net lease; and expects the local school board to make lease
payments in an annual amount that approximates or is equal to the
annual debt service on such bonds, the Department of Education shall
not consider 50 percent of such lease payments as capital outlay
and debt service and therefore shall not subtract such payments in
the biennial calculation of net local expenditures for operations
or required local effort for the purpose of determining such local
school division's composite index of local ability-to-pay, if so
requested by the local school board.