Date: 02/04/2015

Final
School Finance Presentation by LCS and JBC Staff

COMMITTEE ON JOINT EDUCATION

Votes: View--> Action Taken:
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12:17 PM -- School Finance Presentation by LCS and JBC Staff

The committee recessed.


12:26 PM

The committee came back to order. Todd Herreid, representing Legislative Council Staff, spoke about public school finance. He discussed the sources of funding for K-12 school finance and stated that funds come from a combination of state and local sources. Mr. Herreid distributed slides (Attachment B). He discussed other money that school districts receive, such as mill levy overrides, bonded debt, federal funds, and user fees. He stated that none of these are included in state or local sources as listed on his graphs. Mr. Herreid discussed categorical program funding for special education, transportation, and other special programs. He told the committee that the main source of local funds is property tax revenue. He discussed two main sources of state funds: the General Fund, and the State Public School Fund. He discussed the history of per pupil funding. He discussed the growth of the negative factor and the recent drop and then increase in average per pupil funding statewide. He provided an overview of the State Education Fund (SEF). He discussed the SEF's sources of revenue. He spoke about spending out of the SEF and current projections. Mr. Herreid responded to questions from the committee.

JtEd0204AttachB.pdfJtEd0204AttachB.pdf

12:40 PM

Mr. Herreid continued to respond to questions from the committee. They discussed the dropping balance in the SEF, marijuana money, and State Land Board money.


12:46 PM

Craig Harper, representing the Joint Budget Committee staff, spoke about the Governor's budget request. He discussed current law and its requirements in relation to the negative factor as well as the Governor's revised request and how it would reduce the negative factor. He discussed the depletion in the balance of the SEF and his recommendation that the General Assembly spend it down to $300 million this year, then $100 million in the future. He discussed how buying down the negative factor leads to large requirements of funding from the General Fund in future years. He discussed sustainability. Mr. Harper responded to questions from the committee.


01:02 PM

The committee adjourned.