Current through Register Vol. 6, March 25, 2022
(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
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
(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
(9) After the payment is made
in May pursuant to
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
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
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.