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Committee approves cap on education service district bonded indebtedness, allows funds to be used for component districts
Summary
House Bill 2,514, establishing a 7.95% cap on aggregate bonded indebtedness for education service districts and allowing bond proceeds to be used by component school districts under an amendment, was moved to the Senate floor after the committee approved an A2 amendment.
The Senate Education Committee on Monday approved House Bill 2,514 as amended, reporting the measure to the floor with a due-pass recommendation. The bill would limit the aggregate principal amount of bonded indebtedness for education service districts (ESDs) to 7.95% of the real market value of taxable property within the ESD and allow bonds to finance capital costs.
Committee staff presenter Lisa said the A2 amendment would allow bond funds to be used for one or more component school districts within an ESD. The staff fiscal note described the amendment as having a minimal fiscal impact and no revenue impact.
Vice Chair Weber moved adoption of the A2 amendment; the amendment passed on roll call. Weber then moved the bill, as amended, to the floor with a due-pass recommendation. The committee recorded a roll-call vote that included both yes and no votes; the motion passed and the bill will be carried to the floor by a committee member.
The bill as described in committee restricts the aggregate bonding capacity of ESDs to a specific percentage of real market value and clarifies eligible uses for bond proceeds. Committee staff indicated no fiscal or revenue impacts for the amendment or bill during the work session.
