The bill amends the "Education Equity and Property Tax Relief Act" by establishing a new section titled "Permanent foundation education aid." This section outlines a formula for determining foundation education aid for each district, which includes a core instruction amount based on regional expenditure data and a student success factor to support high-need students. The core instruction amount is updated annually and excludes charter school and state-operated school students. The bill also requires the Department of Elementary and Secondary Education to develop a new poverty measure by October 1, 2022, for use in aid calculations and to provide estimates of foundation education aid costs in its budget submission. Local education agencies are allowed to allocate funds for expanding learning opportunities, provided that basic education and other required programs are funded.

Additionally, the bill introduces a new section "Education aid to be indexed to achieving low- and moderate-income housing levels" to Chapter 45-53 "Low and Moderate Income Housing." Starting January 1, 2024, a community's receipt of permanent foundation education aid will be indexed to its success in meeting low- and moderate-income housing goals. Communities exceeding the minimum goals will receive an increase in education aid, with a 2% increase for every 1% they exceed the requirement. The Department of Administration's division of planning will certify the percentage and amount of low- and moderate-income housing annually for this purpose. The bill is set to take effect on January 1, 2024.

Statutes affected:
254: 16-7.2-3