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Cap Outlay bill amended, passed on to Senate

The referendum level for capital outlay certificates, as well as installment purchase contracts and lease-purchase agreements, could be lowered as an amended bill made its way across the Capitol hall.


Representatives passed the amended addition of House Bill 1297, which revises certain provisions regarding capital outlay obligations, on a 66-0 vote.


The amendment added on the House floor to HB 1297 lowered the total percentage for which a district would have to hold a public hearing, publish notice and potentially face a referendum when issuing a capital outlay certificate or entering into either an installment purchase contract or lease-purchase agreement from 1.5 to 0.5 of taxable valuation of taxable property.


Rep. Spencer Gosch noted the amendment was “brought to us by the Governor’s office” and would still provide districts “the authority” to complete “small projects.”


ASBSD opposes the bill based on the addition of the amendment.


Initially, ASBSD was monitoring the bill, which also allows districts to increase their Capital Outlay levy in order to meet the capital outlay obligations the district had entered into prior to July 1, 2016, as well as utilize the $2,800 per-student cap that was implemented in the 2016 funding formula overhaul.


Rep. Gosch noted the bill “holds harmless” districts who had C/O obligations prior to the change in the formula. State representatives testified in opposition of HB 1297 during its House Education committee hearing where it passed 12-2.


Prior to passing HB 1297, Representatives voted 62-4 to table House Bill 1240, which also revised certain provisions regarding C/O funding for schools. ASBSD supported the bill.


HB 1297 – now the lone capital outlay related bill still in play this session – heads to the Senate Education committee for review.


For udpates on this bill, check the ASBSD Blog, Bill Tracker page, Twitter feed and Facebook page.

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