Rule 160-5-4-.05. Regular Advance and Low-Wealth Funding

1. (1) REQUIREMENTS.

   1. (a) A local school system shall meet the following conditions to qualify for regular advance funding:

      1. 1. The local school system shall have a current approved facilities plan in which the advance funded project is identified as the next priority.
      2. 2. The requested project will require a minimum of five years of regular capital outlay program entitlement earnings after regular accumulated entitlement has been deducted to construct the project.
      3. 3. The local school system shall have no remaining entitlement due on previous advance funded or low-wealth projects.
      4. 4. The project applied for shall not be in addition to other projects funded in a given year under the regular capital outlay program.
      5. 5. Regular advance funding applications shall be for only one project as required by law.
      6. 6. Local school systems seeking regular advance funding for across-system-line schools shall be required to utilize up to five year's combined entitlements.
      7. 7. Local school systems applying for regular advance funding for an across-system-line school shall have executed a 25 year contract as specified by law.

   2. (b) Local school systems applying for advance funding under the provisions of law relating to schools certified as hazards to health and safety shall provide the following appropriate certification with the application:

      1. 1. Certification from the appropriate Department of Human Resources District/Unit Health Director that such hazards exist.
      2. 2. Certification by the State Fire Marshal's Office specifying the life safety code violation.

   3. (c) To qualify for low-wealth funding under the provisions of O.C.G.A. § 20-2-262, a local school system shall meet the following conditions:

      1. 1. The local school system shall satisfy one of the following:

         1. (i) Low-Wealth Calculation: Sales tax revenues per Full-Time Equivalent (FTE) for the local school system shall currently be in the bottom 25 percent of the statewide sales tax revenues per FTE or was so ranked during any of the three most recently completed school years, and the value of property per FTE for the local school system shall currently be in the bottom 25 percent of the statewide property wealth per FTE or was so ranked during any of the three most recently completed school years; or
         2. (ii) Project Specific Low-Wealth Calculation: A local school system was ranked in the bottom 25 percent of special purpose local option sales tax revenues (SPLOST) of eligible local school systems receiving SPLOST revenues. In the event a local school system's system-wide eligible need has been met as a result of an approved project specific low-wealth application, the local school system shall not be eligible to receive another approved project specific low-wealth application for ten years from the date the grant was received, which is defined as the fiscal year date the application was funded; or
         3. (iii) Low-Wealth/Project Specific Low-Wealth Consolidation: The local school system shall include in the approved Local Facilities Plan (LFP) the intent to consolidate facilities that are more than 35 years old whereby the amount of SPLOST revenues over a five-year period would not generate the local contribution necessary to meet the difference between the state eligible cost and the agreed upon state eligible cost in the LFP. In the event a local school system's system-wide eligible need has been met as a result of an approved low-wealth/project specific low-wealth application, the local school system shall not be eligible to receive another approved low-wealth/project specific low-wealth application for ten years from the date the grant was received, which is defined as the fiscal year date the application was funded; and
      2. 2. The local school system's millage rate for maintenance and operation shall be at least 12 mills; and
      3. 3. A SPLOST is in effect in the local school district, or the local school system has in place a millage rate for debt service on bonds, or both; and
      4. 4. The local school system cannot have a current advance funding or low-wealth project; and
      5. 5. The local school system must use prototypical specifications approved by the Georgia Department of Education in the design and construction of the facility.
   4. (d) The Required Local Participation (RLP) for low-wealth projects is 8 percent.
   5. (e) A reduction of 1 percent in the RLP will be applied for every one mill or equivalent mill levied by the local school system for each mill or equivalent mill levied by the local school system at the time of the application.
   6. (f) If the local funds needed for a project will be in excess of five years of projected SPLOST revenues (verified by the GaDOE), additional state funds will be applied to the project. The local funds needed will be equivalent to five years of projected SPLOST revenues.
   7. (g) In the event state funding is not sufficient to cover the full amount low-wealth applications, eligible local school systems with lesser amounts of SPLOST revenues shall be prioritized over eligible local school systems with higher amount of SPLOST revenues.

Authority: O.C.G.A. §§ 20-2-260; 20-2-262.

History. Original Rule entitled "Regular Advanced Funding" adopted. F. Nov. 30, 1990; eff. Dec. 20, 1990.

Amended: F. Sept. 19, 1994; eff. Oct. 9, 1994.

Amended: Rule retitled "Regular Advance and Low-Wealth Funding". F. Apr. 19, 2004; eff. May 9, 2004.

Amended: F. May 10, 2012; eff.: May 30, 2012.

Amended: F. Feb. 20, 2025; eff. Mar. 12, 2025.