Appropriations panel debates DPI budget; proposal would divert $100 million from stabilization fund to school construction and prioritize per‑pupil payments

The Appropriations — Education and Environment Division reviewed the Department of Public Instruction (DPI) budget and funding sources at a committee meeting, where one senator proposed using most carryover and trust fund money for per‑pupil payments and transferring $100,000,000 from the Foundation Aid Stabilization Fund into the school construction low‑interest revolving loan fund.

The proposal, introduced during the committee’s worksheet review, would use available carryover, the common schools trust fund allocation, and part of the Foundation Aid Stabilization Fund to shore up per‑pupil payments. The senator said that using one‑time carryover and trust amounts for the per‑pupil payment would be preferable to tapping those pots for ad hoc projects and asked staff to reallocate worksheet lines to reflect a 3 and 3 per‑pupil rate scenario (up from the current 2 and 2) that would cost an additional $38,000,000 in general fund support.

Why it matters: the Foundation Aid Stabilization Fund is designed to protect K‑12 funding during downturns; diverting a large portion to construction or recurring payments changes the fund’s balance and…