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ID H0309
Bill
Status
4/21/2015
Primary Sponsor
Education Committee
Click for details
AI Summary
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Creates the public charter school debt reserve to assist qualifying charter schools in obtaining favorable financing for facility improvements and construction with approval from the Idaho Housing and Finance Association
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Establishes eligibility requirements including obtaining a letter of commitment from a financial institution, nonprofit, community development financial institution, or qualified underwriter; maintaining 60+ days cash reserves with debt service coverage greater than 1.20x; and keeping facility operating costs at no more than 20% of revenue
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Establishes the public charter school debt reserve fund in the state treasury with continuous appropriation, funded through appropriations, fees, grants, and gifts, with qualifying schools paying 10 basis points annually on the principal amount of debt
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Authorizes withdrawal from the fund to pay principal, interest, or redemption price if a qualified school defaults on debt with no other money available, with the Idaho Housing and Finance Association certifying the need to the superintendent of public instruction
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Requires schools that receive fund withdrawals to repay the amount through redirected facilities fund allocations over a period of years, with a maximum 10-year repayment window for any fiscal year withdrawal, provided it does not trigger default on the underlying debt obligation
Legislative Description
Adds to existing law to create the Public Charter School Debt Reserve, to provide conditions to use the Public Charter School Debt Reserve, to provide for approval from the Idaho Housing and Finance Association, to establish the Public Charter School Debt Reserve Fund, to provide for continuous appropriation, to provide for the deposit of certain moneys into the fund, to establish provisions concerning a default on an outstanding debt and to provide for repayment of moneys withdrawn from the Public Charter School Debt Reserve Fund.
PUBLIC CHARTER SCHOOLS
Last Action
Reported Signed by Governor on April 21, 2015 Session Law Chapter 343 Effective: 07/01/2016
4/21/2015