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Senate committee amends and forwards education-initiative fund changes to rules; bill would let schools keep balances until spent
Summary
The committee approved an amendment in the nature of a substitute to Bill 36-0064, removing a fiscal-year cutoff and revising reporting, allowable expenses and per-school allocations for the Education Initiative Fund. The amended measure will be sent to committee of rules and judiciary for further consideration.
The Senate Committee on Education and Workforce Development on June 17 approved an amendment in the nature of a substitute to Bill 36-0064, a measure to revise how the Education Initiative Fund is distributed and spent by public schools.
What changed: The amended language removes the strict fiscal-year spending deadline that required schools to use allocations by September 30, and instead would make allotted funds available "until expended." Department and OMB witnesses told the committee the change would remove the current "spend it or lose it" pressure that forces rushed purchases late in the year and leaves principals without startup funds for the next school year.
New controls and caps: The Department of Education, with OMB input, proposed statutory clarifications to limit prohibited uses and set caps to prevent misuse. The amendment lists explicitly prohibited purchases (entertainment, raffles, vehicle purchases and gifts) and sets examples of permissible administrative expenses, while recommending stronger district financial controls. The substitute also proposes district-level financial control officers and monthly reporting by principals.
Per-school allocation mechanics: The amended language keeps an automatic base allocation and a per-pupil supplement. The draft in committee set a base allocation ($50,000) and an additional per-student amount for enrollment above 500, with a requirement that annual fall population reports trigger the releases. Committee members discussed raising the per-student figure (currently $15 in longstanding code); the Department noted that figure has not changed since the 1990s and suggested $20 could be considered.
Operational dollars and stipends: The amendment proposed district-level administrative allocations (examples cited in testimony included $75,000 per superintendent for district-level programs and $125,000 to DOE to cover stipends for non-AFT athletic coaches), and a small administrative allocation to retain accountants to support oversight. Testimony said these numbers can be adjusted; the amendment language was intended to create clearer statutory authority for administrative uses and for annual audits by the Office of the Inspector General.
Vote and next steps: The committee voted (roll-call recorded in the transcript) in favor of the substitute and to send the revised bill to the committee on rules and judiciary for further consideration. Recorded roll call: DeGraaf (yes), Gittens (yes), James (yes), Johnson (yes), Joseph (yes), Lewis (yes), Viola (yes). Outcome: amendment in the nature of a substitute adopted and measure forwarded to rules.
