This bill establishes two additional aid grants for schools based on the percentage of students eligible for free or reduced-price meals and municipal fiscal capacity disparity.

The first grant, based on the percentage of students eligible for free or reduced-price meals, provides additional funding to municipalities based on the percentage of students eligible for these meals. The amount of funding varies depending on the percentage of eligible students, with higher percentages receiving more funding.

The second grant, based on fiscal capacity disparity, provides funding to municipalities based on their fiscal capacity compared to a set threshold. Municipalities with a lower equalized valuation per ADMR receive more funding, while those with a higher equalized valuation per ADMR receive no funding.

The bill also includes accountability measures for these grants, requiring eligible school districts to provide a plan to the Department of Education outlining how the funds will be used to improve educational achievement. The plan must include an accountability component that measures student academic achievement and growth. School districts must also submit an annual progress report to the department.

Additionally, the bill allows school districts to accept and expend unanticipated funds from the education trust fund and make adjustments to their operating budget at a special meeting due to adjustments in the calculation of adequate education grant amounts.

The effective date of the bill is July 1, 2023.

Statutes affected:
Introduced: 198:41
As Amended by the House: 198:41