A bill for an act requiring the establishment of the state percent of growth and categorical state percent of growth for two consecutive budget years during the first regular session of the general assembly, and including effective date provisions.

2025-2026 Regular Session Introduced by Molly Donahue

Bill SF 262 ensures predictable school funding by establishing growth percentages for two budget years, aiding financial planning for school districts statewide.

Subcommittee: Evans, Donahue, and Kraayenbrink.

#budgets #fiscalyear #generalassembly #schooldistricts #schoolfinance

Summary of Bill SF 262

Bill Number: SF 262
Title: A bill for an act requiring the establishment of the state percent of growth and categorical state percent of growth for two consecutive budget years during the first regular session of the general assembly, and including effective date provisions.
Status: Subcommittee: Evans, Donahue, and Kraayenbrink
Introduced: February 11, 2025
Classification: Bill
Subject: Budgets, Fiscal Year, General Assembly, School Districts, School Finance

Purpose and Intent

The primary purpose of Bill SF 262 is to establish a framework for determining the state percent of growth and categorical state percent of growth for two consecutive budget years during the first regular session of the General Assembly. This bill aims to provide a consistent and predictable approach to school funding, which is crucial for effective budget planning by school districts.

Key Provisions

Establishment of Growth Percentages:

The bill mandates that the state percent of growth and categorical state percent of growth be established for two consecutive budget years.
The specific growth percentages for the upcoming budget years are as follows:
- For the budget year beginning July 1, 2022: 2.5%
- For the budget year beginning July 1, 2023: 3%
- For the budget year beginning July 1, 2024: 2.5%

Legislative Timeline:

The General Assembly is required to enact the state percent of growth and categorical state percent of growth within 30 days of receiving the Governor's budget, which is due by February 1 each year.

Adjustment of Growth Percentages:

After the establishment of the growth percentages for the second budget year, the General Assembly may increase but not decrease either the state percent of growth or the categorical state percent of growth for that budget year.

Effective Date:

The bill is deemed of immediate importance and takes effect upon enactment.

Impact

Who is Affected:

This legislation primarily impacts school districts across the state, as it directly relates to funding mechanisms that affect their budgets and financial planning.
Additionally, it influences the General Assembly and the Governor's office, as they will need to adhere to the new timeline and requirements for establishing growth percentages.

Budget Planning:

By providing a clear framework for growth percentages, the bill aims to enhance the predictability of funding for educational institutions, thereby supporting better financial management and resource allocation.

Legislative Actions

February 11, 2025: Bill introduced and referred to the Education Committee.

February 17, 2025: Subcommittee formed, consisting of members Evans, Donahue, and Kraayenbrink.

This summary outlines the essential aspects of Bill SF 262, highlighting its purpose, key provisions, and potential impact on school finance and budgeting processes within the state.