Conference committee outlines election, Astra fund and budget changes in omnibus tax bill draft

Conference committee members reviewed and largely agreed on substantive provisions written into the conference draft of bill 02/2025, a multi‑part tax and local government package that includes a property‑tax funding limit, the creation of an Astra fund, election timing rules for taxing jurisdictions that seek to exceed new limits, and several administrative changes to budget and tax notice procedures.

The staff explanation summarized major elements: 02/2025 would create a property‑tax funding limit with a 4% ceiling before the limit takes effect, require taxing entities to notify their county clerks by June 1 if they intend to exceed that limit, and require county clerks to place such questions on the August primary ballot in even‑numbered years. In odd‑numbered years the question would appear on the primary ballot if a primary exists within any part of the taxing unit; if no primary exists within the unit’s territory, counties would have the option to hold a mail‑ballot election on Sept. 15 under the mail‑ballot statute the staff referenced.

Astra fund and allocations

- The draft creates an Astra fund with an initial state general‑fund transfer of $60,000,000 in the first year, increasing by 2% each subsequent year. - The fund would be apportioned across the state’s 105 counties; each county’s share would be split proportionally among the county government and the cities within that county based on prior‑year assessed value used to calculate property taxes. - Taxing entities that seek to exceed the property tax funding limit and either do so or hold an election and fail would not receive their full proportionate share from the Astra fund; counties that hold an election that fails would receive 25% of their allocation, as described in the draft.

Election logistics and local deadlines

Members discussed county clerk capacity and notification timing at length. Staff and conferees agreed on a uniform June 1 notification date for taxing jurisdictions to tell county clerks whether they intend to exceed the limit; clerks would then determine whether the question will be set for the primary or the Sept. 15 mail ballot where authorized.

One committee member said the county clerk they consulted told them clerks often have ballots partially prepared for even‑year primaries and could more easily insert measures that arise close to filing deadlines. Another cautioned that odd‑year elections present different administrative burdens and that the Sept. 15 mail‑ballot option would require an exemption from a 45‑day prohibition that otherwise limits off‑cycle elections.

Other technical and fiscal provisions

- The conference draft apportions Astra fund transfers to counties and cities and specifies how returned amounts are handled, with unspent or returned amounts reverting to the state treasury and reducing future SGF transfers to the Astra fund. - The bill changes municipal budget certification deadlines to Oct. 1 for all budgets, authorizes county clerks to use previous year budget and tax‑levy information if entities fail to certify, and moves county treasurer property‑tax statement mailing from Dec. 15 to Dec. 1. - Revenue‑neutral rate provisions are extended for two additional years; the revenue‑neutral notice form would be revised beginning in calendar year 2026 to add mill‑levy columns and other aggregate tax information in both dollars and percentages. - The draft also reauthorizes the statewide school finance mill levy for two years and incorporates personal‑property tax exemptions described in the House Tax Committee version of SB 10 and other filing‑field prohibitions from SB 269’s House version.

Why it matters: The package ties state transfers, local election mechanics and municipal budgeting deadlines to property‑tax relief mechanics. The Astra fund and notification rules together determine which taxing entities could access state mitigation funds and how quickly local governments must respond when considering tax increases.

Quotes from the record

Eddie (conference staff): "The Astra fund would be apportioned across the 105 counties and then of each county's apportionment, each the county government and each city government within the county, would have a proportionate amount of that based upon the assessed value used to calculate property taxes levied in the preceding year."

Senator Peck (conference member): "If they put in there expecting there to be an election for the taxes, wouldn't it be pretty simple then just to back that off if they already had it?" (on whether counties could remove measures already prepared on a ballot.)

Next steps and items held for later

Conferees agreed to refine statutory language and return technical edits to revisers. Several items remain for later consideration: some members asked to hold changes to the student‑loan repayment and income‑tax credit provisions in SB 69 until next year, and the committee flagged the need to reconcile definitions of new construction so appraisers and clerks can apply consistent rules.

Ending

Committee members said they will provide technical amendments and clarifications to revisers and reconvene as needed. The group accepted most of the draft’s major policy structures but left implementation dates and some definitional language to be finalized in the reviser process.