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 (DPI) will reduce state aid payments to non-compliant school districts by the difference between their actual spending and the required minimum, and prohibits these districts from raising property taxes to offset the reduction. If state aid does not cover excess expenditures, DPI must order a reduction in property tax obligations for taxpayers.

Furthermore, the bill imposes limitations on annual compensation increases for school administrators, capping them at the average percentage increase provided to teachers within the district. The new provisions will apply to contracts entered into, renewed, or modified after the bill's enactment. The bill also introduces new definitions and requirements related to classroom expenditures and state aid adjustments, ensuring that financial accountability is maintained within school districts. The effective date for the bill is set for July 1, 2026, with certain provisions taking effect immediately upon publication.

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