HJR 21 -- Public School Infrastructure Bonds

Co-Sponsors:  Fraser, Boykins, Villa, Walton, Hubbard

This proposed constitutional amendment gives the General Assembly
the authority to issue bonds not to exceed an aggregate of $2
billion for public school technology and infrastructure upgrades
and repairs, remodeling, and additions to school buildings, as
well as additional school buildings where necessary.  The bond
sale proceeds will be deposited in the Public School
Infrastructure Fund, which the joint resolution creates, from
which school districts may draw on a matching basis to be
determined by the State Board of Education.  The joint resolution
also creates a bond interest and sinking fund.  An income tax
surcharge of 0.5% will be added to the state income tax as long
as any infrastructure bonds are outstanding.  The tax rate may be
lowered, but not below the level necessary to pay the principal
and interest on bonds for the current fiscal year and not below
the level needed to fund the School District Equalization Fund
and the Teacher and Student Achievement Fund, both of which are
created by the joint resolution.  These two funds must be funded
at a level not less than the level of contributions to the funds
in the previous fiscal year in which state revenues did not
exceed the revenue limit set in Article X, Section 18, of the
constitution by 1% or more.  In the event revenues do exceed the
limit by 1% or more, the excess revenues will go first toward
retiring serviceable debt attributable to the infrastructure
bonds in the current fiscal year, toward retiring future debt,
and then for distribution on a pro rata basis pursuant to Article
X, Section 18.  Appropriations to these funds will be made
without legislative action, and moneys received from the
equalization and achievement funds are not to be deducted from a
school district's state aid.

After meeting the sinking fund and interest requirements, any tax
surcharge revenues will be distributed equally between the
equalization fund, which will be distributed to school districts
on a per pupil basis, and the achievement fund, which will be
used equally for grants to promote teacher recruitment,
retention, and training, and for grants to enhance student
achievement.  If income tax surcharge revenues or excess state
revenues are not sufficient to pay principal and interest on
maturing bonds in the next fiscal year, a property tax will be
levied, for which the Commissioner of Administration will
determine the rate.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am