This bill establishes the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2025, both set at 2 percent. These percentages are crucial for calculating supplemental state aid as part of the state school foundation program. The bill also modifies provisions related to property tax replacement payments for school districts, ensuring that the calculations for these payments are updated to reflect the new growth percentages.

Specifically, for budget years beginning on or after July 1, 2025, the property tax replacement payment for each school district will be determined by multiplying the district's weighted enrollment by a per pupil property tax replacement amount. This amount will be calculated as $153 plus the difference between the regular program state cost per pupil for the budget year and the regular program foundation base per pupil percentage. The bill is effective immediately upon enactment.