Senate hearing examines bill to cut school local contribution from 60 to 45 mills, fiscal note at $181 million

Senator Don Schaible, appearing before the Senate Finance and Taxation Committee, introduced Senate Bill 2,279 on behalf of an effort to provide broader property tax relief by reducing the statutory local school contribution from 60 mills to 45 mills.

Schaible said the measure “is an attempt to provide some property tax relief to all taxing entities” and that it is “not meant to be the complete package,” but would reduce the required local contribution within the K–12 funding formula by 15 mills. He told the committee the bill’s fiscal note estimates the state would absorb about $181,000,000 in additional school funding for the upcoming biennium if the change were enacted.

The bill would alter language in multiple sections of the state funding statutes, remove a three‑year “look‑back” levy authority that allows districts to base levies on prior higher amounts, and repeal several expired or cleanup provisions, according to Schaible’s description of the draft. Schaible summarized the practical effect: under the current formula the number of pupils times the per‑pupil payment (which he said is…