This bill amends the Education Equity and Property Tax Relief Act to determine the state's share of foundation education aid for each district. The calculation takes into account a district's revenue-generating capacity and concentration of high-need students. If the calculation results in a state share ratio that is less than the state share ratio for the poverty status percentage, and the district's poverty status percentage is greater than 50%, the state share ratio will be equal to the state share ratio for the community. The bill also establishes a poverty loss stabilization fund for districts that experience a decline in the state share ratio from the prior year of more than 2%. The amount of the fund will be equal to 50% of the difference in the amount of permanent foundation education aid received in the prior year. Additionally, the bill prohibits total education aid paid to a local education agency from being reduced by more than 1% of the municipal education appropriation in the previous fiscal year. This bill will take effect upon passage.
Statutes affected: 7911: 16-7.2-4