Lower school funding local effort rate adopted

Senators passed a bill March 27 that changes the state aid formula one year early.

LB725, introduced by Cedar Rapids Sen. Kate Sullivan, lowers the local effort rate (LER) used to calculate aid under the Tax Equity and Educational Opportunities Support Act.

The LER was scheduled to decrease from $1.03 to $1.00 for the 2015-16 school fiscal year. The bill implements the decrease for the 2014-15 school fiscal year and into the foreseeable future.

It also changes the calculation of the student growth adjustment correction to more accurately reflect the difference between the actual student growth and the estimated student growth.

Senators passed the bill on a 44-0 vote.