Assembly Bill 6 mandates that school boards allocate at least 70 percent of their operating expenditures to direct classroom expenditures, which include salaries and benefits for teachers and aides, instructional supplies, tuition, athletic programs, and co-curricular activities. If a school board fails to meet this threshold in any given year, it must increase its spending on direct classroom expenditures by at least 2 percent in subsequent years until compliance is achieved. Additionally, the bill stipulates that the Department of Public Instruction will reduce state aid payments to the school district by the difference between the actual spending and the required minimum, and prohibits the school board from raising property taxes to offset this reduction. If state aid does not cover the excess expenditures, the school board must reduce property tax obligations for taxpayers, including issuing refunds with interest.

Furthermore, the bill introduces limitations on annual compensation increases for school administrators, capping them at the average percentage increase provided to teachers within the district. The new provisions regarding compensation limits will apply to contracts entered into, renewed, or modified after the bill's enactment. The bill also includes amendments to existing statutes to incorporate these requirements and definitions, ensuring that the financial management of school districts prioritizes classroom spending and maintains equitable compensation practices for educators and administrators.

Statutes affected:
Bill Text: 118.24(1), 118.24, 119.44(2)(c), 119.44, 121.085(1), 121.085