Date: 12/20/2010
Final
School Finance Outlook
COMMITTEE ON LEGISLATIVE COUNCIL
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11:11 AM -- School Finance Outlook
Todd Herreid, Legislative Council Staff, presented the school finance outlook in light of the most recent forecast presented and distributed a handout to the committee (Attachment D). He shared that property tax collections will be $10 million below forecast and that specific ownership tax collections will also be lower. He noted that this is an issue that the state will have to deal with when the legislature convenes. He responded to questions from the committee about the decrease in the local contribution and on calculating the per-pupil effect of a $23 million recission.
Mr. Herreid discussed the FY 2011-12 budget year effects, given the decline in the revenue forecast, and discussed the budget stabilization factor. He stated that the state's share will need to increase as a result of the local revenue decline. He explained that the handout shows different budget scenarios to pay for the shortfall. He stated that at the end of 2010-11, the balance of the State Education Fund (SEF) will be at about $130 million. He responded to questions from the committee regarding his presentation.