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 meet or exceed the expenditure estimate for that year. Additionally, the bill mandates that expenditure estimates also be balanced in the same manner and recognizes any spending authorized in the previous fiscal year as ongoing for structural balance calculations. Furthermore, it would update the format of appropriations for the Department of Education to ensure that basic state aid and additional state aid are recognized in the same fiscal year as the school districts' budget capacity.

Moreover, the bill proposes a reduction in the amount owed to each school district for basic state aid and additional state aid in FY 2026, based on the school district's total ending cash balances as of June 30, 2024. It allows school district governing boards to utilize these cash balances to offset any revenue loss resulting from the K-12 rollover reduction. The bill also includes conforming changes to existing statutes to ensure consistency with these new requirements.

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