SF269 Bill Summary

• Creates a new education funding framework for fiscal year 2014 and later, restructuring general education revenue to include basic revenue, extended time revenue, declining enrollment revenue, basic skills revenue, location equity revenue, referendum replacement revenue, sparsity revenue, transportation revenue, and operating capital revenue.

• Modifies basic formula allowance from $5,124 (FY 2009-2013) to $7,500 for fiscal year 2014, with subsequent years indexed to inflation using implicit price deflator.

• Establishes new pupil unit weighting system: kindergarten, grades 1-3, grades 4-6, and grades 7-12 pupils counted as 1.0 units each (instead of previous weighted amounts of .612 to 1.3), and eliminates adjusted marginal cost pupil units calculations.

• Creates location equity index based on county and regional wage data to provide additional funding for districts in lower-wage areas, with index ranging from .9 to 1.05.

• Adds school bond agricultural credit providing 66 percent tax relief to agricultural property (excluding homestead acre) on school debt service taxes, effective for taxes payable in 2013 and later.