Senate Bill 32 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 boards by the difference between their actual spending and the required minimum, without allowing for property tax levies to compensate for this reduction. Furthermore, if state aid reductions do not cover excess expenditures, DPI is required to order a reduction in property tax obligations for taxpayers.

The bill also introduces limitations on annual compensation increases for school administrators, capping them at the average percentage increase provided to teachers within the same district. This provision applies to contracts entered into, renewed, or modified after the bill's enactment. The bill amends existing statutes to incorporate these requirements and creates new definitions and provisions related to classroom expenditures and state aid adjustments. 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