Vote Smart's Synopsis:

Vote to adopt a conference report that establishes procedures for appropriating revenue from the oil and natural gas production tax, effective July 1, 2012.

Highlights:

• Increases the basic entitlement for each school district as follows (Sec. 13):
• For each high school district, from $246,085 for fiscal year 2010 to $256,256 for fiscal year 2012 and $257,870 for each succeeding fiscal year;
• For each elementary school district, from $22,141 for fiscal year 2010 to $23,056 for fiscal year 2012 and $23,201 for each succeeding fiscal year; and
• For each junior high or middle school program, from $62,704 for fiscal year 2010 to $65,295 for fiscal year 2012 and $65,706 for each succeeding fiscal year.

• Requires any amount in excess of 15 percent of a school district's budget for fiscal year 2012 that remains in the school district's general fund to be returned to the state and deposited in the state's general fund (Sec. 6).

• Requires any amount in excess of 15 percent of a school district's budget for fiscal year 2013 and each fiscal year thereafter that remains in the school district's general fund to be returned to the state and appropriated as follows (Sec. 6):
• 70 percent of the excess amount must be deposited into the guarantee account;
• 5 percent of the excess amount must be deposited into the state school oil and natural gas impact account; and
• 25 percent of the excess amount must be deposited into the county school oil and natural gas impact account.

• Defines the "school oil and natural gas impact account" as an account that may be used to provide money to counties and schools that are not receiving oil and natural gas production taxes, but are impacted by neighboring countries that benefit from such taxes (Sec. 8).

• Authorizes a school district to retain an amount of oil and natural gas production taxes that is equal to no more than 150 percent of the school district's maximum or adopted budget (Sec. 7).

• Requires any oil and natural gas production tax revenue in excess of the 150 percent maximum to be deposited into the state general fund (Sec. 7).

• Authorizes a county or school district to apply to the superintendent of public instruction for funds from the state school oil and natural gas impact account for any of the following reasons (Sec. 8):
• An unusual enrollment increase; 
• A district's need to hire new teachers or staff as a result of increased enrollment; 
• The opening or reopening of an elementary or high school; or
• Major maintenance for a school or district.

• Limits the amount of funds in the state school oil and natural gas impact account to no more than $7.5 million, and specifies that any excess funds must be deposited into the state general fund (Sec. 8).

• Prohibits the county from appropriating funds from the county school oil and natural gas impact fund until any of the following occurs (Sec. 9):
• The amount of oil and natural gas production taxes received by a school district for the fiscal year is 30 percent or less than the average amount received over the previous 4 fiscal years;
• The average price of oil is $50 a barrel or less; or
• The production of oil in the county drops 50 percent or more below the average oil production during the preceding 5 year period.

• Requires the county to appropriate funds from the county school oil and natural gas impact fund within 30 days of any of the aforementioned events as follows (Sec. 9):
• 80 percent shall be proportionally appropriated to high school and elementary school districts in the county; and
• 20 percent shall be used for any of the following purposes:
• To pay for outstanding capital project bonds;
• To offset property tax levy increases;
• To promote diversification and development of the county's economy; or
• To attract new industry to the area.

• This act is effective July 1, 2012 (Sec. 22).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report that establishes procedures for appropriating revenue from the oil and natural gas production tax, effective July 1, 2012.

Highlights:

• Increases the basic entitlement for each school district as follows (Sec. 13):
• For each high school district, from $246,085 for fiscal year 2010 to $256,256 for fiscal year 2012 and $257,870 for each succeeding fiscal year;
• For each elementary school district, from $22,141 for fiscal year 2010 to $23,056 for fiscal year 2012 and $23,201 for each succeeding fiscal year; and
• For each junior high or middle school program, from $62,704 for fiscal year 2010 to $65,295 for fiscal year 2012 and $65,706 for each succeeding fiscal year.

• Requires any amount in excess of 15 percent of a school district's budget for fiscal year 2012 that remains in the school district's general fund to be returned to the state and deposited in the state's general fund (Sec. 6).

• Requires any amount in excess of 15 percent of a school district's budget for fiscal year 2013 and each fiscal year thereafter that remains in the school district's general fund to be returned to the state and appropriated as follows (Sec. 6):
• 70 percent of the excess amount must be deposited into the guarantee account;
• 5 percent of the excess amount must be deposited into the state school oil and natural gas impact account; and
• 25 percent of the excess amount must be deposited into the county school oil and natural gas impact account.

• Defines the "school oil and natural gas impact account" as an account that may be used to provide money to counties and schools that are not receiving oil and natural gas production taxes, but are impacted by neighboring countries that benefit from such taxes (Sec. 8).

• Authorizes a school district to retain an amount of oil and natural gas production taxes that is equal to no more than 150 percent of the school district's maximum or adopted budget (Sec. 7).

• Requires any oil and natural gas production tax revenue in excess of the 150 percent maximum to be deposited into the state general fund (Sec. 7).

• Authorizes a county or school district to apply to the superintendent of public instruction for funds from the state school oil and natural gas impact account for any of the following reasons (Sec. 8):
• An unusual enrollment increase; 
• A district's need to hire new teachers or staff as a result of increased enrollment; 
• The opening or reopening of an elementary or high school; or
• Major maintenance for a school or district.

• Limits the amount of funds in the state school oil and natural gas impact account to no more than $7.5 million, and specifies that any excess funds must be deposited into the state general fund (Sec. 8).

• Prohibits the county from appropriating funds from the county school oil and natural gas impact fund until any of the following occurs (Sec. 9):
• The amount of oil and natural gas production taxes received by a school district for the fiscal year is 30 percent or less than the average amount received over the previous 4 fiscal years;
• The average price of oil is $50 a barrel or less; or
• The production of oil in the county drops 50 percent or more below the average oil production during the preceding 5 year period.

• Requires the county to appropriate funds from the county school oil and natural gas impact fund within 30 days of any of the aforementioned events as follows (Sec. 9):
• 80 percent shall be proportionally appropriated to high school and elementary school districts in the county; and
• 20 percent shall be used for any of the following purposes:
• To pay for outstanding capital project bonds;
• To offset property tax levy increases;
• To promote diversification and development of the county's economy; or
• To attract new industry to the area.

• This act is effective July 1, 2012 (Sec. 22).

Full Bill Text