Proposition 301

With the passage of Proposition 301 in the November 2000 general election, the Department of Revenue started collecting an additional 0.6% sales tax beginning June 1, 2001. Pursuant to Section 42-5029E the monies are to be distributed as follows:

1. If there are any outstanding School Facilities Revenue Bonds, 1/12 of the annual debt service amount is transferred to the bond debt service account.
2. Twelve percent of the remaining monies is transferred to the Technology and Research Initiative Fund to be distributed to each of the universities.
3. Three percent of the remaining monies is transferred to the Workforce Development Account developed by each of the Community College Districts.
4. After items 1, 2, and 3, any community college owned by a qualifying Indian tribe on its own reservation will receive a share equal to the amount each Community College District receives for workforce development.
5. One-twelfth of the amount for the increased cost of basic state aid due to added school days and associated teacher salary increases (FY 05 - $66,957,200).
6. One-twelfth of the amount to the Department of Education for school safety and character education (school safety $7,800,000; character education $200,000 per fiscal year).
7. An amount of $7,000,000 for increased accountability in the Department of Education. This amount is not to exceed $7,000,000 per fiscal year (FY 05 - $ 7,000,000).
8. One-twelfth of the amount to the Department of Education to fund the failing schools tutoring program ($1,500,000 per fiscal year).
9. One-twelfth of the amount to the State General Fund to offset the cost of the income tax credits allowed by section 43-1072.01 ($25,000,000 per fiscal year).
10. Any remaining monies to the classroom site fund for performance based teacher compensation (40%), teacher base compensation and related expenses (20%), and maintenance and operation purposes (40%).