This bill appropriates up to $50 million from the Property Tax Relief Fund to assist qualifying school districts in managing increases to their adjusted tax levies due to rising health care costs for the 2026-2027 school year. A qualifying school district is defined as one that experiences an increase in its adjusted tax levy of more than 9.9 percent compared to the adjusted tax levy from the 2024-2025 school year. The funds allocated to each qualifying district will be based on their proportionate share of the total increase in health care costs across all school districts in the state.

The bill addresses the financial strain on school districts resulting from a significant allowable adjustment to property tax levies for health care costs, which is projected to be 29.9 percent for the 2026-2027 school year. This adjustment is notably higher than the typical two percent increase allowed without voter approval, as determined by current law. By providing financial support, the bill aims to alleviate the burden on taxpayers in districts that have already faced substantial tax increases in recent years due to escalating health care expenses.