JBC directs staff to draft bill capping BEST program revenue at $150 million, shifting surplus to school operating fund

The Joint Budget Committee voted to ask staff to draft legislation that would cap total annual revenue to the Public School Capital Construction Assistance Fund — commonly called the BEST (Building Excellent Schools Today) program — at $150,000,000, and to direct any revenue above that cap into the State Public School Fund for public school operating support. The motion to adopt the staff recommendation and give staff drafting authority passed on a voice vote recorded as six‑zero.

Ms. Bickel, a Joint Budget Committee staff member, told the committee the governor’s November budget request had proposed capping BEST cash grants at $129,000,000 and shifting excess to school operating support. She said the governor’s office later revised its estimate for the shift downward to about $35,000,000. “My recommendation is … you create a cap on total annual revenue to the public school capital construction assistance fund, and you cap that at $150,000,000,” Ms. Bickel said. She added that, based on current projections, that cap would provide roughly $51,000,000 toward public school operating in the coming year while leaving roughly $100,000,000 available for BEST cash grants in 2025‑26, with longer‑term annual BEST cash grants likely falling to the $50,000,000–$75,000,000 range.

Why it matters: BEST is the state’s primary program for public school capital construction. Under the staff plan a fixed cap would make it mechanically simpler to determine each year how much BEST would keep and how much would flow to operating dollars, reducing reliance on volatile revenue sources that have driven recent swings in the program’s balance.

Key policy tradeoffs discussed

• Charter school capital assistance and formula details. Ms. Bickel and committee members said House Bill 14‑48 redirected some state education fund and other revenue toward charter school capital construction assistance; that statute also raised the certificate of participation (COP) cap and changed the mix of BEST revenue. Ms. Bickel warned the committee that the statutory changes in HB14‑48 increase ongoing state obligations to charter facilities and to COPs and that those commitments would consume a larger share of available revenue under a fixed cap.

• COP payments and long‑term obligations. Committee members and staff flagged a structural risk: COPs provide large near‑term capital funding but create multi‑year payment obligations that reduce cash available for grants. Ms. Bickel noted the COP cap was previously $62,500,000 and was raised in HB14‑48 toward $75,000,000; she cautioned that without limits on COPs, an increasing share of annual revenue could be locked into debt service.

• Impact on BEST cash grants. Staff estimated that with a $150,000,000 cap the best cash grant pool would be materially smaller in later years than recently — perhaps $50–75 million annually once reserves are spent — which would be a significant reduction from recent levels. The committee heard that current-year reserves and higher-than‑expected marijuana excise tax and other volatile revenues partially underpinned recent higher BEST grant totals.

• Federal matching for charter school aid. Ms. Bickel said some of the additional state funding for charter facilities was intended to match a federal grant; the federal contribution is structured to decline over time while state funding increases, a pattern that risks ongoing growth in the state share unless the legislature alters policy.

Committee debate and votes

Representative Taggart urged care in describing funds redirected to charters, saying, “Charter schools are part of our public education, and they’re deserving of dollars just as a traditional public school.” Other members said they were troubled that a cap could effectively preserve the charter‑directed share while reducing funds available to other public schools and asked staff to explore options to treat charter facility funding and BEST core cash grants more equitably.

The committee approved several staff actions related to BEST during the same hearing: staff‑initiated Long Bill adjustments to BEST cash grants (motion passed 6‑0), and staff‑initiated adjustments to state aid for charter school facilities (committee first recorded a 4‑2 vote on one iteration, with two objections by Taggart and Kirkmeyer, and later approved a related staff adjustment 6‑0 after clarification). The committee also gave staff drafting authority for implementing legislation tied to the BEST component.

What the action does and next steps

The committee’s vote does not by itself change statute; it authorized staff to draft implementing legislation based on the staff recommendation. That draft is expected to reflect a $150,000,000 cap on total annual revenue to the Public School Capital Construction Assistance Fund, include COPs and charter facility allocations in the cap, and include transitional language for the current budget year. Ms. Bickel told the committee she would return with draft language and updated revenue estimates after the March revenue forecast.

Unresolved items and follow‑ups

Committee members asked staff to provide options on how to treat charter facility funding within the cap (for example, paring back the HB14‑48 charter add‑on that helped secure federal matching dollars), whether to tie the cap to inflation, and whether to limit growth in COP usage. Members also asked for clearer modeling on long‑term effects on BEST cash grants, charter facility aid, and COP debt service obligations.

The committee flagged the issue for further work; staff will draft legislation reflecting the committee’s direction and return with updated estimates and bill language ahead of subsequent JBC action.

Ending

By voting to pursue a legislated cap and asking staff to draft implementing language, the Joint Budget Committee moved the debate from conceptual options toward a specific bill. The committee’s actions require further drafting and revenue updates before final votes on statutory change and appropriation adjustments in the spring revenue‑forecast cycle.