Senators pass state aid to schools

Senators gave final approval April 20 to a bill that would revise the state aid formula for K-12 education, resulting in a decrease of $13 million in total funding from the current fiscal year to the next.

York Sen. Greg Adams introduced LB235, the bill containing state aid funding provisions. The bill provides schools $822 million for fiscal year 2011-12 and $880 million for FY2012-13.

LB235 will:
• allow school districts with unused budget authority to spend 2 percent of their prior year expenditures;
• eliminate the allowable growth rate for FY2011-12 and increase the rate to 0.5 percent in FY2012-13;
• eliminate the additional percentage in the cost growth factor;
• set the local effort rate to $1.0395 for FY2011-12 and FY2012-13;
• reduce the averaging adjustment and needs stabilization thresholds by 5 percent for FY2011-12;
• reduce the allocated income tax by $21 million for FY2011-12 and FY2012-13;
• expand the comparison groups by 10 larger and 10 smaller districts;
• subtract property tax refunds from district resources beginning with FY2012-13;
• exclude lobbying expenses from the definition of general fund operating expenditures;
• include converted contract students as option students and exclude receipts; and
• include early childhood in the formula’s summer school allowance beginning in FY2012-13.

The bill passed on a 41-2 vote.