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Committee moves several school programs from Education Trust Fund to General Fund, ties lottery money explicitly to adequacy
Summary
The committee voted to move several K–12 programs from the Education Trust Fund into the General Fund and to clarify language tying lottery receipts to school adequacy grants.
The Finance Division II voted to adopt amendment 1294H to HB 2 that changes the statutory funding source for several K–12 programs and clarifies the intended disposition of lottery revenue.
Mickey Landrigan (committee staff) walked members through the amendment, which would move programs previously funded through the Education Trust Fund into the General Fund at the same funding levels recommended in the governor’s budget. The list includes special education aid (formerly catastrophic aid), tuition and transportation, school building aid, court-ordered placements, statewide testing, charter school building lease aid and the public school infrastructure fund.
Landrigan said the change does not alter program funding levels; it changes the “pocket” from which those dollars are drawn. He explained the shift would be reflected both in HB 2 statutory text and in HB 1 accounting to maintain appropriations at the same levels.
The amendment also contains the drafting required to align how lottery revenues are treated should the committee adopt provisions directing lottery receipts toward school adequacy grants. Representative Popovich argued the move provides clearer budget-level flexibility and ensures general-fund availability for program obligations. Representative Murray and other members raised policy concerns about removing the programs from the Education Trust Fund, saying the trust fund provides an accounting frame that signals priority for education.
On a hand vote the committee adopted the amendment 4–3.
Landrigan told members that subsequent votes on tax-split adjustments will be used to ensure both General Fund and Education Trust Fund have resources to fund the appropriations after the reallocation.
Votes at a glance: motion to adopt amendment 1294H to HB 2 (move listed education programs from Education Trust Fund to General Fund; align lottery disposition language) — adopted 4–3.
