The proposed bill, if enacted, would amend current statutes regarding the state budget and appropriations. It would require that the annual general appropriation act be balanced for each fiscal year, meaning that the unreserved state general fund beginning balance plus the revenue estimate must equal or exceed the expenditure estimate for that year. Additionally, the bill mandates that expenditure estimates must also be balanced in the same manner and recognize any spending authorized in the previous fiscal year as ongoing for structural balance calculations. Furthermore, it introduces a requirement for the appropriations format for the Department of Education to acknowledge basic state aid and additional state aid entitlements in the same fiscal year that school districts recognize the state aid in their budgets.

The bill also proposes a reduction in the amount owed to each school district for basic state aid and additional state aid entitlements in FY 2026, based on the school district's total ending cash balances as of June 30, 2024. This reduction would apply to funds not included in the school district's adopted budget for FY 2025. Additionally, it allows school district governing boards to utilize any portion of these cash balances to offset the revenue loss resulting from the K-12 rollover reduction. Overall, the bill aims to enhance fiscal responsibility and transparency in the state budget process while adjusting funding mechanisms for school districts.

Statutes affected:
Introduced Version: 35-121, 35-125
House Engrossed Version: 35-121, 35-125