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K-12 Omnibus Bill Highlights: Funding

By May 19, 2013 No Comments

MREA released today highlights of the K-12 Omnibus Bill for fundingtaxes and policies. Here’s what you need to know regarding funding: (View all the statewide totals and all statewide changes.)                                                                                         

  1. 1.5% / 1.5% on the formula in FY ’14 and FY ’15
    Statewide funding impact of $234 million

    • FY ’13   $5,224 (Base)
    • FY’ 14   $5,302
    • FY’ 15   $5,806 (includes changes in pupil weights)
  2. All Day Every Day Kindergarten funded in FY ’15 K = 1.0 for K students who receive a minimum of 850 instructional hours per year.
    Statewide funding impact of $134 million
  3. Adjusted Pupil Units APUs replace AMPCUs
  4. Operating Referendum allowances are adjusted in FY ’15 to reflect the change from AMPCUs to APUs to maintain same revenue as districts would have received under current law (resident pupils with adjustments to the equalization aid for open enrolled students).
    • Starting in FY ’16:  referendum revenue  =  APUs X new referendum allowance.
    • Most district allowances will go up because there are fewer APUs than AMPCUs
    • Districts with significant open enrollment in will see their referendum allowance go down since there will be more serving APUs than resident AMPCUs
    • See MREA article explaining this change.
  5. Declining enrollment aid is a new General Education Revenue line calculated at 28% of the difference between the previous year’s APUs and the current year’s APUs for districts experiencing a decline in enrollment.
  6. Early Learning Scholarships for children ages 3-5 in families whose income falls
    below 185% of poverty.
    Statewide funding impact of $40 million

    • Maximum scholarship is $5,000
    • FY ’14    $23 million (note:  $6 m was in FY ’13 base year)
    • FY’15     $23 million
    • Unused FY ’14 $’s can be allocated in FY ‘15
    • Office of Early Learning Established
    • Quality ratings system established for providers
    • See MREA Map of projected scholarships over the two year biennium
  7. Special Education
    Statewide funding impact of $40 million

    • Formula changes similar to  those recommended by Finance Working Group
    • Regular special education revenue increases, excess cost revenue decreases
    • Net increases in both FY’ 14 at $20 m and FY ’15 at $20 million
  8. Pension adjustment revenue eliminates the Pension Subtraction—not an insignificant change
  9. Achievement and Integration Revenue Program:
    • New percentages making fairer allocation due to non-majority populations
    • Little overall funding changes
    • Districts guaranteed 90% of current year funding
  10. Small School Revenue (SSR) includes multiple small high schools within one school district.
  11. School lunch reimbursement increases ½ cent to $0.125.  No other changes to school lunch.
  12. Starbase STEM education Center
    Statewide funding impact of $1 million
  13. School Climate Center
    Statewide funding impact of $1 million


More Highlights

Read highlights of the K-12 Omnibus Bill  for  taxes.

Read highlights of the K-12 Omnibus Bill  for policies.