HF 2508 Summary

• Establishes statutory framework for state aid payment shift and property tax recognition shift, with prioritized allocation of any positive general fund balance to cash flow account ($350 million), budget reserve account ($653 million), school district aid payments, net aid reductions, and state airports fund.

• Changes property tax revenue recognition timing for school districts: beginning June 2010, districts must recognize lesser of May-July tax settlement revenue plus education aid, or a percentage-based calculation using referendum levy amounts from prior years.

• Adjusts state aid payable to school districts by comparing prior and current fiscal year revenue recognized under property tax provisions, excluding certain levies assumed by the state.

• Modifies current year aid payment percentage from 90 to 73 percent for fiscal year 2010 and later, effective for revenue from fiscal years 2010 and onward.

• Allows school districts and charter schools exceeding expenditure limitations to receive advance final payments up to June 20 if requested, limited to $7.5 million statewide, and defines special education excess cost aid entitlements at 74.0 percent for fiscal year 2006 and later.