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 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, 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 district. This pay increase limitation applies to contracts entered into, renewed, or modified after the bill becomes law. 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 after publication.

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