An Act To Restore Income as a Factor in the Determination of Fiscal Capacity in the School Funding Formula

CONCEPT DRAFT SUMMARY

This bill is a concept draft pursuant to Joint Rule 208.

This bill proposes to preserve the provisions of the Essential Programs and Services Funding Act that determine each school administrative unit’s total allocation, but to discontinue the method of determining the local share and the state share of the total allocation by means of the maximum mill rate expectation system. The bill would restore the structure of the school subsidy distribution system that was discontinued in fiscal year 2005-06. Prior to fiscal year 2005-06, the school funding formula utilized a combination of relative local property valuation, weighted at 85%, and relative local median income, weighted at 15%, to determine the local share of the total allocation.