SB 251

This bill provides additional state aid to certain school districts — those in

which the equalized value per pupil is less than 50 percent of the statewide average

— to assist in paying debt service on bond issues approved at a referendum held on

or after July 1, 2011. Under the bill, annually the Department of Public Instruction

pays an eligible school district the amount determined by multiplying the school

district's levy for debt service on the bond by the percentage of the school district's

primary shared cost that the school district received at the primary aid level of

general state school aid in the previous school year. A school district's primary

shared cost is that portion of the district's shared cost that is aided at the primary

level of state aid.

The school district may receive such aid in any year only if it repays no more

than 10 percent of the principal of the bond in that year. Aid is paid as a first draw

from the general school aid appropriation, thus reducing the amount distributed as

general school aid to other school districts.