| Summary |
The bill creates a new total program formula (new formula), which
is used to determine each school district's (district) and institute charter
school's annual total program amount to fund public education. With
limited exception, the district or the institute charter school has the
discretion to determine the budgeting and expending of its total program
money.
The new formula:
•
Starts with a district's foundation funding, which is
determined by multiplying the statewide base per pupil
funding by the district's funded pupil count, excluding the
district's extended high school pupil enrollment and the
district's online pupil enrollment; then
•
Adds the district's at-risk funding, which is determined by
multiplying the statewide base per pupil funding by 25%
and then multiplying that result by the district's at-risk pupil
enrollment; then
•
Adds the district's English language learning funding,
which is determined by multiplying the statewide base per
pupil funding by 25% and then multiplying that result by
the district's English language learner pupil enrollment;
then
•
Adds the district's special education funding, which is
determined by multiplying the statewide base per pupil
funding by 25% and then multiplying that result by the
district's special education pupil enrollment; then
•
Adds the district's cost of living factor, which is determined
by multiplying the statewide base per pupil funding by the
district's funded pupil count, excluding the district's
extended high school pupil enrollment and the district's
online pupil enrollment, and then multiplying that result by
the district's cost of living factor; then
•
Adds the district's locale factor, which is determined by
multiplying the statewide base per pupil funding by the
district's funded pupil count, excluding the district's
extended high school pupil enrollment and the district's
online pupil enrollment, and then multiplying that result by
the district's locale factor; then
•
Adds the district's size factor, which is determined by
multiplying the statewide base per pupil funding by the
district's funded pupil count, excluding the district's
extended high school pupil enrollment and the district's
online pupil enrollment, and then multiplying that result by
the district's size factor; then
•
Adds the district's extended high school funding, which is
determined by multiplying the district's extended high
school pupil enrollment by an amount that increases by the
same percentage that the statewide base per student funding
increases; then
•
Adds the district's online funding, which is determined by
multiplying the district's online pupil enrollment by an
amount that increases by the same percentage that the
statewide base per student funding increases.
Beginning in the 2030-31 state fiscal year, the new formula will
determine each district's and institute charter school's annual total
program amount.
For the 2025-26 state fiscal year through the 2029-30 state fiscal
year, each district's and institute charter school's annual total program
amount will be determined by calculating each district's and institute
charter school's annual total program amount under the new formula and
the expiring formula. During these state fiscal years, a district's or
institute charter school's annual total program amount is the district's or
institute charter school's calculation under the expiring formula, unless:
•
For the 2025-26 state fiscal year, if the total program
calculation under the new formula is greater than the total
program calculation under the expiring formula, the
district's or institute charter school's annual total program
amount is the amount calculated under the expiring formula
plus an amount equal to 18% of the difference between the
amount calculated under the new formula and the expiring
formula;
•
For the 2026-27 state fiscal year, if the total program
calculation under the new formula is greater than the total
program calculation under the expiring formula, the
district's or institute charter school's annual total program
amount is the amount calculated under the expiring formula
plus an amount equal to 34% of the difference between the
amount calculated under the new formula and the expiring
formula;
•
For the 2027-28 state fiscal year, if the total program
calculation under the new formula is greater than the total
program calculation under the expiring formula, the
district's or institute charter school's annual total program
amount is the amount calculated under the expiring formula
plus an amount equal to 50% of the difference between the
amount calculated under the new formula and the expiring
formula;
•
For the 2028-29 state fiscal year, if the total program
calculation under the new formula is greater than the total
program calculation under the expiring formula, the
district's or institute charter school's annual total program
amount is the amount calculated under the expiring formula
plus an amount equal to 66% of the difference between the
amount calculated under the new formula and the expiring
formula; and
•
For the 2029-30 state fiscal year, if the total program
calculation under the new formula is greater than the total
program calculation under the expiring formula, the
district's or institute charter school's annual total program
amount is the amount calculated under the expiring formula
plus an amount equal to 82% of the difference between the
amount calculated under the new formula and the expiring
formula.
The bill repeals the expiring formula on July 1, 2030.
The bill makes amendments to conform with these changes and to
repeal obsolete provisions within the Public School Finance Act.
The bill requires the department of education to contract with
third-party entities to conduct 2 studies and publish reports concerning
weighted student budgeting and implementing a multiple count day
method for determining pupil enrollment. The third-party entities are
required to submit reports to the education committees of the house of
representatives and the senate, and the governor, by June 30, 2025.
Under current law, there is the public school fund of the state
(permanent school fund). The bill requires that:
•
For the 2024-25 state fiscal year, the first $11 million of
interest and income earned on the deposit and investment
of money in the permanent school fund (interest and
income) is credited to the state public school fund, the next
$11 million of interest and income becomes part of the
principal of the permanent school fund, and the remaining
interest and income is credited to the restricted account of
the public school capital construction assistance fund
(assistance fund);
•
For the 2025-26 state fiscal year, the first $6 million of
interest and income is credited to the state public school
fund, the next $6 million of interest and income becomes
part of the principal of the permanent school fund, and the
remaining interest and income is credited to the restricted
account of the assistance fund; and
•
For the 2026-27 state fiscal year, and state fiscal years
thereafter, all interest and income is credited to the
restricted account of the assistance fund.
The bill requires the state treasurer to allocate any money
remaining in the state land board trust administration fund to pay for the
services provided by the investment consultant hired by the public school
investment board and for the reimbursement for travel and other
necessary expenses incurred by the members of that board.
Under certain circumstances, the bill requires to be credited to the
assistance fund:
•
For the 2024-25 state fiscal year, the greater of $10 million
from proceeds received from certain resources from public
school lands plus 50% of the gross amount of public school
lands income other than interest or income, or $40 million;
•
For the 2025-26 state fiscal year, the greater of $15 million
from proceeds received from certain resources from public
school lands plus 50% of the gross amount of public school
lands income other than interest or income, or $40 million;
and
•
For the 2026-27 state fiscal year, and each state fiscal year
thereafter, the greater of $21 million from proceeds
received from certain resources from public school lands
plus 50% of the gross amount of public school lands
income other than interest or income, or $40 million.
The bill credits an amount to the charter school facilities assistance
account from the assistance fund.
The bill increases the total maximum amount of annual payments
payable by the state during a state fiscal year under the terms of all
outstanding financed purchase of an asset or certificate of participation
agreements entered into by the state treasurer from $125 million to $150
million.
Current law dictates the distribution of proceeds received from
certain resources from public school lands, of which, a certain amount is
credited to the permanent school fund. The bill requires that:
•
For the 2024-25 state fiscal year, the first $10 million is
credited to the assistance fund;
•
For the 2025-26 state fiscal year, the first $15 million is
credited to the assistance fund; and
•
For the 2026-27 state fiscal year, and each state fiscal year
thereafter, the first $21 million is credited to the assistance
fund.
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