S.F. No. 2819 Summary

• Creates a new education funding framework effective fiscal year 2014 reorganizing general education revenue into basic revenue, extended time revenue, compensatory revenue, LEP revenue, referendum replacement revenue, and special education revenue, plus instructional and support services revenues.

• Increases basic formula allowance from $5,124 (FY2009) to $7,500 (FY2014) and thereafter indexes to inflation using implicit price deflator.

• Introduces new funding mechanisms including location equity revenue based on wage levels, declining enrollment revenue, and innovation revenue for evidence-based education programs with accountability reporting requirements.

• Establishes a 4-year phase-in period starting July 1, 2013 where districts receive 25 percent annually of the difference between baseline (2008 formulas) and new revenue amounts.

• Creates school bond agricultural credit providing 66 percent tax relief on class 2a, 2b, and 2c property and modifies career and technical education funding from levy-based to grant-based aid model.