Ways & Means debates using surplus, general fund transfer to blunt property tax increase

The House Ways & Means Committee on Monday reviewed options for using an expected $41 million education‑fund surplus and a proposed $77.2 million general‑fund transfer to lower next year’s average property tax bill, but did not reach a decision.

Committee members and fiscal staff focused on trade‑offs between short‑term tax relief and risks to school budgets if line items are removed from the education fund. Julia Richter of the Joint Fiscal Office told the panel that the $41 million surplus, if not used to buy down property taxes, would raise the committee’s modeled average bill change from 5.8% to about 8.2%.

The dispute centers on two policy choices: applying one‑time funds to reduce next year’s rates versus holding some money in reserve or using funds to preserve the current structure of categorical programs funded out of the education fund. Representative Wagner said removing items from the education fund now would “make our work harder down the line” because…