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Subcommittee adopts amendment and advances State School Fund budget bill; LFO cites $11.4 billion current-service level
Summary
The Education Subcommittee adopted a dash-2 amendment to Senate Bill 5516 and moved the bill to the full Ways and Means Committee with a due-pass recommendation. Committee materials set the 2025–27 current-service-level State School Fund at about $11.4 billion and provided a breakdown of state revenue sources used in that calculation.
The Education Subcommittee adopted the dash-2 amendment to Senate Bill 5516 and forwarded the bill to the full Ways and Means Committee with a due-pass recommendation. Committee fiscal staff described the current-service-level calculation and provided a revenue breakdown for the State School Fund.
LFO and committee staff presented the State School Fund current-service-level figures for the 2025–27 biennium and the 2025–26 school year. The LFO described the 2025–27 current-service-level estimate for the State School Fund as $11,400,000,000 and presented a state-revenue breakdown based on the May 2025 economic forecast: General Fund $9,850,229,757; Lottery Fund $625,259,443; Marijuana Tax $43,568,275; Corporate Activity Tax $839,625,392; and a small State Timber Tax amount $759,823, for a total LFO subtotal of $11,359,442,690. Committee staff also presented an estimate of local revenues (property tax and other local sources) of about $5,600,000,000 and combined total formula resources exceeding $16,700,000,000 for the 2025–27 biennium.
During debate, members discussed priorities for the budget and the limits of available revenue. One committee member urged removing the Department of EducationDEI office and reallocating those funds to special education; another member strongly defended DEI and the broader goals of inclusion and cultural responsiveness. Co Chair Ruiz emphasized the committee's "rich conversations" and warned that available revenue constrained proposals for early childhood and K–12 program expansions.
Committee action: the subcommittee adopted the dash-2 amendment (dollar amounts and fund mix reflected in committee materials) without recorded opposition and then moved SB 5516 as amended to the full committee with a due-pass recommendation. Roll-call recorded aye votes from members including Co Chair Ruiz, Senator Frederick, Senator Weber, Co Chair Solman and multiple representatives; motion carried.
Next steps: SB 5516 as amended will be considered by the full Ways and Means Committee. The LFO numbers and the dash-2 amendment will be part of the bill record and subject to change in the final budget reconciliation at the end of session.
