Bill
A 2318
Overview: A 2318, Raises the exclusion of certain indebtedness of school districts other than school districts in a city with one hundred twenty-five thousand inhabitants or more,
Overview: A 2318, Raises the exclusion of certain indebtedness of school districts other than school districts in a city with one hundred twenty-five thousand inhabitants or more, SUBSTITUTED BY S3367, Introduced: January 16, 2025
Purpose and Intent: This bill aims to increase the exclusion of certain indebtedness for school districts, excluding those in cities with a population of 125,000 or more. The goal is to provide financial relief and flexibility to smaller school districts as they manage their budgets and infrastructure needs.
Key Provisions:
- Raises the exclusion of certain indebtedness for school districts (excluding those in cities with 125,000+ inhabitants) from 5% to 7% of the average full valuation of taxable real estate of such school district
- Allows these school districts to incur additional debt without it counting towards their constitutional debt limit
- Maintains the 5% exclusion for school districts located in cities with a population of 125,000 or more
Affected Parties and Impacts:
- Smaller school districts outside of major cities, which will have more flexibility to finance infrastructure projects and other capital needs
- Taxpayers in these school districts, who may see changes in local property tax rates as a result of the increased debt exclusion
- Larger school districts in cities with 125,000+ inhabitants, which will not benefit from the higher exclusion
Procedural and Timeline Considerations:
This bill has been substituted by S3367, indicating that the Senate version of the legislation is now the active bill being considered. The legislative process will continue with the Senate version.
Compiled from official sources — confirm details with the bill’s official record.
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