Education Committee Report – Week 5, 2018

SF 2164 – FY19 basic school funding (SSA). 

 

FLOOR AND COMMITTEE ACTION:

SF 2164 sets the basic school funding for the 2018-2019 school year at 1 percent for both the regular state aid to schools and the categorical state aid. This bill establishes a total cost per pupil of $6,731, an increase of $67 per pupil. The 1 percent allowable growth rate will cost the state $3.222 billion, an increase of $32 million over last year. Based on Republican total funding assumptions, they will continue a $15 million AEA reduction in the Standings Bill.

Categorical State Aid: The FY19 allowable growth rate for the State Categorical Supplements (Teacher Leadership and Compensation, Teacher Salary Supplement, Professional Development and Early Intervention) is $527.2 million, an increase of $6.7 million. Funding amounts for each initiative include:

  • Teacher Salary Supplement at $$298.9 million, an increase of $3.7 million.
  • Professional Development Supplement at $33.9 million, an increase of $0.4 million.
  • Early Intervention Supplement (class-size) at $34.9 million, an increase of $0.4 million.
  • Teacher Leadership and Compensation at $159.5 million, an increase of $2.1 million.

Property Taxes: For the last few years, the Legislature has decided whether to pay for the increment increase in property taxes associated with an increase in the percentage growth for schools. The total funding for this effort is now $51.5 million, an increase of $4.7 million over last year.

A floor amendment was offered that adds one year of transportation and per-pupil equity funding. Specifically, the amendment adds year one of SF 455 (2017 equity bill) onto the SSA bill. Based on last year’s fiscal note, the transportation weighting cost would be estimated at $11.3 million and the district cost per pupil would be a state aid increase of $2.9 million.

  • District cost vs. state costs per pupil: Adds to the statewide cost per pupil after the annual calculation of SSA to close the gap between the highest district costs per pupil and the statewide cost per pupil. The amendment only adds $5 per pupil in FY19. Based on SF 455, it would take an additional $20 annually ($175 total) to eliminate the difference between the highest district costs per pupil and the statewide cost per pupil.
  • The transportation equity portion creates supplementary weighting to offset the cost of transportation per pupil. This is only year one of buying down the cost to the statewide average. It would cost $11.3 million. SF 455 took 10 years and a $130 million annual impact to fully buy down the highest districts to the statewide average.
    [Floor 2/7: 29-21 (No: Democrats, D. Johnson-I); Committee 2/1: 9-6 (party-line)]