Administrative Rules of Montana › Department 10 - EDUCATION › Chapter 10.21 - GTBA AND FUNDING COMPONENTS › Subchapter 10.21.1 - GTBA › Rule 10.21.101I - SCHOOL FACILITY ADVANCES AND REIMBURSEMENTS

Current through Register Vol. 13, July 5, 2024
(1) A school facility reimbursement will be
				provided to an eligible district to meet the district's debt service obligation
				for general obligation bonds for school facility construction or renovation. A
				district may not receive a school facility reimbursement to meet its obligation
				for a special improvement district. Eligible districts are provided advances
				for school facilities in the first school fiscal year in which a debt service
				payment is budgeted.
(2) A district
				is eligible to receive a school facility reimbursement for debt service
				obligations on bonds described in (1) if the district mill value per ANB is
				less than the facility guaranteed mill value per ANB. For a K-12 district, the
				eligibility of the elementary and high school programs for a school facility
				reimbursement is determined separately for each program.
(3) Pursuant to
				20-9-422,
				MCA, regarding additional requirements for trustees' resolution calling a bond
				election, the State Superintendent of Public Instruction shall calculate an
				estimate of the amount of advance for which the district will be eligible.
				"Current year" information used to estimate this payment will be the current
				year information originally submitted on the final budget from the district and
				the prior year percentage used to prorate the state share of reimbursement for
				school facilities until the payment is made in May. After the May payment,
				"current year" information used to estimate the advance payment will be the
				ensuing year's information for ANB and district and facility guaranteed mill
				values and the most current percentage used to prorate the state share of
				reimbursement for school facilities.
(4) A school district must report its annual
				debt service obligation for each bond issued by the district on the final
				budget form provided by the State Superintendent of Public Instruction. The
				Office of Public Instruction will calculate the school facility reimbursement
				for a district using the amounts reported for debt service obligations on the
				budget form.
(5) The maximum
				reimbursement a district may receive is calculated on the lesser of the
				district's school facility entitlement or its current year debt service
				obligation for the bonds that qualify under (1).
(6) A district qualifies for a school
				facility reimbursement in the amount of the maximum reimbursement for the
				district multiplied by [1-(district mill value per ANB/facility guaranteed mill
				value per ANB) ].
(7) If the
				legislative appropriation for the state reimbursement for school facilities is
				less than the amount for which districts qualify in (6), the State
				Superintendent of Public Instruction will calculate the percentage that the
				appropriation represents of the total amount for which districts qualify. To
				determine the school facility reimbursement for each district, the State
				Superintendent of Public Instruction will apply that percentage to the amount
				calculated in (6).
(8) On or before
				May 31, the State Superintendent of Public Instruction shall distribute the
				state advance for school facilities and the state reimbursement for school
				facilities to qualifying districts for deposit in the district's debt service
				fund.
(9) After the payment is made
				in May pursuant to
				20-9-371,
				MCA, actual state advance amounts for the ensuing fiscal year will be
				calculated using budgeted ANB and district and facility guaranteed mill values
				for the year in which the advance applies and the most current percentage of
				state share which will be considered "prior year's" percentage in the year in
				which the payment is made. The State Superintendent of Public Instruction will
				notify the districts of the amount to estimate as revenue in their debt service
				funds by the final budget meeting.
(10) Enrollment adjustments due to audit and
				enrollment increases approved under
				20-9-166,
				MCA, after October 1, do not constitute a change in ANB for the purpose of
				calculating the district's eligibility for facilities reimbursement or advance.
				However, in cases of significant adjustments in ANB, the Superintendent of
				Public Instruction may require adjustment of facility reimbursements and
				advance funding.
(11) Eligibility
				for a district with multiple bonding jurisdictions will be based on district
				budgeted ANB, district debt service mill value per budgeted ANB, and total
				district entitlement and obligations.
(12) If a district has more than one bonding
				jurisdiction and the district has eligibility for facilities reimbursement in
				one or more jurisdiction(s), those jurisdictions having eligibility will
				receive credit for the reimbursement.
(13) If a district refunds more than one
				bond, the underwriter must provide schedule amounts representing the total of
				each of the refunded bonds.
20-9-102,
					 20-9-369,
					 MCA; IMP,
					 20-9-366,
					 20-9-367,
					 20-9-368,
					 20-9-369,
					 20-9-370,
					 20-9-371,
					 MCA;