Who Says Compromise is a Lost Art?
Bipartisan budget yields $736.4M in new formula spending, nearly $600M above required 2% inflation
At roughly 5:45 a.m. this morning, the Senate voted out the last of the FY23 budget bills, with Democrats providing the needed votes to pass a budget with seven days to spare.
The budget includes a total of $526.4M added to the base level, for a total increase of 8.8% (or 7.55% if you are in a district that formerly got the 1.25% teacher comp increase, which is eliminated in this budget), as well as another $150M in additional Group B increases, $45M in district additional assistance, $15M in charter additional assistance, and an increase of $109.2M in building renewal grants over FY22. Here’s how that breaks down:
$137M for required 2% base level inflation increase
$389.3M for an additional 6.8% increase to the base level
The K-12 budget bill eliminates the ability for districts to pursue a 1.25% base level increase by submitting a performance pay plan to the State Board of education, so some if this increase will take the place of that funding.
$100M to increase the special education DD/OHI Group B weight to 0.292 from 0.093
$50M to create a new opportunity weight for low SES students at 0.018, which will increase by $25M in FY24 and $25M in FY25 (total $100M)
$60M in district and charter additional assistance ($45M district/$15M charter) to increase additional assistance amounts per pupil
There is also additional increases of $29M each year in FY24 and FY25, for an additional $58M by FY25.
$109M in additional funding for building renewal grants over FY22
Total available for the BRG program in FY23 is $199.9M ($16.7M ongoing, $183.3M one-time)
ASBA GR staff will provide updated detailed documents ASAP with a subsequent update.
Bigtime Property Tax Cuts for Bigtime Properties
The final budget package retained the elimination of the Statewide Equalization property Tax Rate (SETR), which in FY22 was set at a whopping $0.4128 per $100 of assessed valuation. This property tax generated $330M statewide and functioned to offset the concentration of high-value property around the state. Since it was eliminated, the general fun will have to pick up that $330M. The net impact on districts is $0. It is unlikely homeowners will see much appreciable savings. However it is a decent savings to the owners of higher-value commercial and industrial properties.
ESAs Stand Alone
As reported yesterday, universal ESA expansion remains a big push. With the House passing HB2853, it is scheduled to be heard by Senate Appropriations committee today at 2:00 p.m. While Democrats provided the votes for the spending package, none have agreed to support ESAs, which leaves it up to Republicans to get the votes out of the Senate.
Whisky’s for Drinkin’…
Despite reportedly having agreement on water legislation, it was not moved forward yesterday and is planned for today. The passage of a water bill is agreed as a necessity for this session by all parties, today’s scheduled natural resources committee hearings will be key to moving the Legislature toward adjournment.
Is It Time for Ice Cream? Please Let it Be Time for Ice Cream
One of the best-loved traditions at the capitol is that on the day the Legislature adjourns for the year, ice cream treats appear in the freezers in the House and Senate for staff and members. When the ice cream arrives, you know the plan is that no one stops working until the session is over. President Fann was quoted early this mornng as saying the plan is to sine die today. So if you see someone at the capitol gnoshing on a Drumstick, you know the end is near.