Senate Bill 553 Summary

• Allows constituent school districts to opt out of intermediate school district (ISD) services by adopting a resolution after holding at least 2 public board meetings with proper notice.

• Requires ISDs to transfer 80% of property tax revenue and 90% of state/federal funding attributable to an opting-out district to that district within 1-5 business days; ISDs must refund 10% of tax proceeds to individual taxpayers.

• ISDs must continue auditing enrollment and attendance data for opting-out districts; allows ISDs to retain 10% of property taxes and 10% of state/federal aid for these audit services.

• Prohibits school electors in districts with an opt-out resolution from voting on ISD bond issues; prohibits ISDs from levying bond repayment taxes on property in opting-out districts.

• Applies similar restrictions to career and technical education programs and special education services, requiring opting-out districts to directly provide these services using funds received from the ISD.