HB3416 Summary

• Changes the Foundation Level calculation for school state aid beginning in the 2017-2018 school year to increase annually by the greater of 2% or the Consumer Price Index (CPI) increase for the prior 12 months ending December 31.

• Replaces the fixed Foundation Level of $6,119 that had been in place from 2009-2010 through 2016-2017 school years with an indexed formula tied to inflation.

• Applies the new Foundation Level calculation to each school year thereafter, allowing automatic adjustments based on actual inflation metrics rather than requiring legislative action for each increase.

• Maintains existing provisions for calculating general State aid and supplemental aid for schools serving low-income students, with changes only to how the Foundation Level baseline increases annually.