20-9-635.  Natural resource development K-12 school facilities payment. (1) The natural resource development K-12 school facilities payment replaces the former natural resource development K-12 funding payment as a means to provide local property tax relief by supporting school district facility needs. The legislature intends for the new payment to grow in a manner similar to the previous payment as described in subsection (2) through fiscal year 2022 until other revenue to support school facilities has increased.

(2) The legislature intends the natural resource development K-12 school facilities payment to be a general fund appropriation to support school major maintenance aid pursuant to 20-9-525 that is:

(a) for fiscal years 2020, 2021, 2022, and 2023, calculated as the greater of:

(i) $6.4 million in fiscal year 2020, $7.6 million in fiscal year 2021, $10 million in fiscal year 2022, and $10 million in fiscal year 2023, with each fiscal year's appropriation reduced by the amount of projected earnings from the school facilities fund pursuant to 17-5-703 for that fiscal year; or

(ii) 5% of the oil and natural gas production taxes deposited in the general fund pursuant to 15-36-331(4) for the fiscal year occurring 2 fiscal years prior to the fiscal year of the payment; and

(b) for fiscal years 2024 and beyond, calculated as the greater of:

(i) $10 million increased by an inflationary adjustment calculated as provided in 20-9-326 applied in fiscal year 2024 and in each succeeding fiscal year; or

(ii) 5% of the oil and natural gas production taxes deposited in the general fund pursuant to 15-36-331(4) for the fiscal year occurring 2 fiscal years prior to the fiscal year of the payment.

(3) The present law base calculated under Title 17, chapter 7, part 1, for major maintenance aid must consist of:

(a) the natural resource development K-12 school facilities payment as calculated in subsection (2) as a general fund appropriation; and

(b) projected revenue available in the school major maintenance account, established in 20-9-525, as a state special revenue fund appropriation, including:

(i) projected earnings from the school facilities fund pursuant to 17-5-703; and

(ii) any anticipated transfers of excess interest and income revenue pursuant to 20-9-622.