Legislation Document

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 75, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7503. Matching funds.

(b) The local share for each school construction project, excluding minor capital improvement projects, which is

contained in a school construction bond authorization act, shall be is computed as specified in this subsection. A local share ratio shall must first be computed for each school district, including vocational districts, and 1 for each county, for each fiscal year and shall must be used in computing the local share of funding for that school district for each school construction project contained in the school construction bond act for that fiscal year. In the event that the funding of a project is spread over more than 1 school construction bond authorization act, the local share ratio which applies to that project in the school construction bond authorization act in which it first appears shall must apply to all subsequent school construction bond authorization act allocations for that project. The local share ratio shall be is computed by multiplying the school district ability index for the school district, or in the case of vocational schools or special schools, the county wide ability index, as defined in § 1707 of Title 14, by .40, providing, however, that the product shall may not exceed .40 or be less than .20 for any school district. The local share ratio shall must be rounded to the nearest one-hundredth and the result multiplied by the total cost of the school construction project in order to determine the local share.

The local share for each school construction project may include an additional amount, not to exceed 15% of the

local cost as calculated in the preceding paragraph, to match additional state funds that may be appropriated to address increases in the cost of school construction projects. Provided the district receives referendum approval for this additional amount and the State appropriates additional funds subsequent to referendum passage, the district may increase its local share in accordance with the local share ratio for the project and the approved referendum subject to local school board approval.

Inclusion of a project and designation of a local share for a vocational school in a school construction bond authorization act shall be is considered authorization for the vocational district to establish a tax rate sufficient to pay the principal and interest on the bonds for the local share of the project.

For the statewide autistic program, the Delaware School for the Deaf, the John G. Leach School, the Kent County Community School, the John S. Charlton School, the Sussex Consortium, Sussex County Orthopedic School, the Charles W. Bush Early Education Center, and the Howard T. Ennis School, construction shall must be 100% state-funded. State funding for these schools shall include, but not be limited to, includes school construction projects serving students, ages three and older, who meet the criteria established in 14 Del. C. c. 31. Chapter 31 of Title 14.

Inclusion of a project and designation of a local share for a special school shall be is considered authorization for the school district administering the special school to obligate itself for the required bonds and for the school district to collect the revenues required to pay the principal and interest on those bonds through tuition payments authorized in § 602 of Title 14. The school district collecting the tuition for payment of bonds and interest shall must maintain such debt service receipts in a separate account for the special school.

§ 7528. Minor capital improvements.

(a) The proceeds of bonds and notes may be applied to the cost of minor capital improvements. Minor Capital

Improvements shall mean, means, but shall not be is not limited to, capital expenditures for rebuilding or major repairs of roofs, floors, heating systems or facilities, painting, electrical systems or facilities, plumbing or water systems or facilities, asbestos abatement, the removal of architectural barriers to the handicapped, stand-alone storage buildings buildings, and purchase or lease of portable classrooms. These funds may also be applied to the preparation and securing of a public school district building that is being vacated but preserved for an unspecified period of time or for the return of such a building from a closed condition to use by a public school district. The State Department of Education, with the approval of the State Board of Education Education, shall establish rules, consistent with this section, for defining minor capital expenditures.

(b) The State Department of Education, or any other department or agency of the State, shall, in no case, pay more than 60 percent of the cost of minor capital improvements nor more than the total amount designated in an authorization act as “maximum state share,” for any minor capital improvements nor less than 60 percent rounded to the nearest $100 of the final actual total costs therefor. The local share for minor capital improvements is computed as specified in this subsection. The local share ratio is computed by multiplying the school district ability index for the school district, or in the case of vocational schools or special schools, the county-wide ability index, as defined in § 1707 of Title 14, by .40, providing, however, that the product may not exceed .40 or be less than .20 for any school district. The local share ratio must be rounded to the nearest one-hundredth and the result multiplied by the total cost of the school construction project in order to determine the local share. Any funds transferred to a school district from any source for the purpose of removing architectural barriers for the handicapped or asbestos shall must constitute the 60 percent State’s portion of a minor capital improvement. No expenditure of such funds may be made by a school district unless and until it has provided its 40 percent share of such minor capital improvement. Notwithstanding the foregoing, the State may provide for the entire costs of minor capital improvements for schools entirely supported by the State.

SPONSOR:	Sen. Hansen & Rep. Heffernan & Rep. K. Williams
Sens. Ennis, Gay, Mantzavinos, Pinkney, Sturgeon, Townsend, Walsh; Reps. Chukwuocha, Morrison, Osienski