HB 1044 — Providing capital financial assistance to small school districts with demonstrated funding challenges.

H-1382.2H-0207.1 SUBSTITUTE HOUSE BILL 1044 State of Washington 68th Legislature 2023 Regular Session By House Capital Budget (originally sponsored by Representatives McEntire, Graham, Couture, Sandlin, Walsh, Rude, Caldier, and Santos)Santos READPrefiled FIRST12/16/22. TIME 02/22/23.

Read first time 01/09/23.

Referred to Committee on Capital Budget.

and creating a new section.section;

and declaring an emergency.

The legislature intendsfinds tothat createmany aschool newdistricts grantin programthe throughstate whichare small,unable financiallyto distressedaccess schoolstate districtsfunding thatfor generallyschool doconstruction, notwhether participatedue into thea currentlack schoolof constructionbond assistancecapacity programor willbecause bethe ableproperty totax getincrease theof necessarya fundsbond tomeasure modernizewould orbe rebuilda theirdifficult schoolburden. buildings.

NEWOften, SECTION.the buildings operated by these school districts are the district's only elementary school, middle school, or high school, putting greater pressure on the need for a safe, up-to-date, long- lasting school building in which students can thrive.

The legislature further finds that the state must do more to fund school buildings that are adequate to provide an equitable learning environment for all students in Washington, regardless of where they live.

Therefore, the legislature intends to create a new grant program through which small school districts that are generally unable to participate in the current school construction funding program will be able to get the necessary funds to modernize or rebuild their school buildings.

p.

1 HB 1044 NEW SECTION.

p.(a) Projects funded under this section must meet the following conditions:

1 SHB 1044 (a) Projects funded under this section must meet the following conditions:

(c) School districts applying for a grant under this section must submit separate applications for each individual school.

A seismic buildingnatural hazard assessment must be conducted by an engineer licensed as a structural engineer in Washington state.

(5)p. Eligible use of grants.

2 HB 1044 (5) Eligible use of grants.

p.(6) Required grant list.

2 SHB 1044 (6) Required grant list.

(8) Construction grant requirements and prioritization.

(a) School districts applying for a construction grant under this section must have received and completed a planning grant under subsection (7) of this section or have completed construction documents including drawings, specifications, total project cost estimates, contract and procurement requirements, and other materials required by the advisory committee, as part of the construction grant application process.

3 SHBHB 1044 (b)(8) SubjectConstruction togrant therequirements availabilityand ofprioritization. amounts appropriated for this specific purpose, the advisory committee must prioritize applications from school districts based on the total number of points awarded under this subsection.

(a) School districts applying for a construction grant under this section must have received and completed a planning grant under subsection (7) of this section or have completed construction documents including drawings, specifications, total project cost estimates, contract and procurement requirements, and other materials required by the advisory committee, as part of the construction grant application process.

(b) Subject to the availability of amounts appropriated for this specific purpose, the advisory committee must prioritize applications from school districts based on the total number of points awarded under this subsection.

Applyingp. school districts shall submit brief statements describing financial constraints as part of the construction grant application process.

4 HB 1044 Applying school districts shall submit brief statements describing financial constraints as part of the construction grant application process.

The advisory committee, in consultation with the office of the superintendent of public instruction, shall create and apply a formula for awarding points under this subsection (8)(b)(ii) related p.to facility condition.

4 SHB 1044 to facility condition.

(10) ShareCoordination ofwith projectthe costs.school construction assistance program and local cost share.

SchoolA districts receiving a grant awarded under this section must providebe acoordinated districtwith sharethe inschool accordanceconstruction withassistance theprogram followingprovided requirements:by RCW 28A.525.162 through 28A.525.180.

(a)In Exceptawarding as provided for under (b) and (c) of this subsection, to receive a grant under this sectionsection, athe schooloffice districtof mustthe provide,superintendent for each grant awarded, a district share of projectpublic costinstruction equalmust toensure atthat leasttotal 50state percentfunding offrom thea district'sgrant remainingunder debtthis capacitysection pursuantp. to RCW 39.36.020.

(b)5 ToHB the1044 extentand thata the district share requirement under (a) of this subsection would, at the time of application, require the estimated school districtconstruction propertyassistance taxprogram rate increment associated with the grant todoes not exceed atotal thresholdproject ofcosts $1.75minus peravailable $1,000local ofresources. assessed property value, the office of the superintendent of public p.

5 SHB 1044 instruction must reduce the required district share to achieve an estimated property tax rate equal to this threshold.

(c) A school district may use federal funding, other nonstate grant funding, and private donations to pay for its share under this subsection.

When calculating a district's share requirement under (a) of this subsection, the superintendent of public instruction must reduce the district's required share in a manner directly proportionate to the amount of nonstate and nonschool district funding provided to support the state grant.

(d) To determine the property tax rate threshold under (b) of this subsection, the office of the superintendent of public instruction must calculate the property tax rate increment associated with the grant based on the estimated annualized debt service costs for general obligation bonds issued with an average maturity of no less than 20 years and the interest rate for state of Washington general obligation bonds issued most closely to the date of application for the grant.

(11) Coordination with the school construction assistance program and local cost share.

To the extent that a school district awarded a grant under this section is also eligible for funding under the school construction assistance program provided by RCW 28A.525.162 through 28A.525.180, the office of the superintendent of public instruction must coordinate grant funding between the programs and ensure that total state funding from a grant under this section and a school construction assistance program grant does not exceed total project costs minus the school district's share calculated under subsection (10) of this section.

However,School school districts coordinating grants provided in this section with school construction assistance program funding are required to contribute not less than the30 schoolpercent district'sof requireda shareproject's astotal calculatedcost underfrom subsectionlocal (10)resources. of this section.

(12)(11) Disbursement of grant funds and reporting requirements.