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District officials warn sweeping legislative tax and funding changes could cut local school revenue
Summary
Superintendent and staff delivered a legislative update outlining multiple bills that would shift property tax revenue, change hold-harmless guarantees, and alter school funding streams; staff estimated a potential $14 million loss over three years from tax-policy changes and additional impacts from program consolidations.
Superintendent Horsley and district lobbyist/analyst Todd Haber gave a detailed legislative update during the March 4 meeting, describing multiple bills that could affect district revenue and programs.
Haber summarized proposals that would shift local property-tax receipts into the state general fund (Senate Bill 37), reduce the years used in hold-harmless calculations for guaranteed tax yields (impacting local levy guarantees), and eliminate or reduce a set of state programs used to fund staff compensation and services. He said the combined impact of some enacted or pending measures could cost the district roughly $14 million over the next three years because of changes to the hold-harmless guarantee for local levies.
Among other items Haber highlighted: House Bill 110 (property-tax reductions and WPU/TSSA changes), provisions that would redirect rollback taxes to counties rather than districts, potential reductions to Career & Technical Education and discretionary grant programs, and a shift of certain categorical program funding into a flexible allocation account (which the district said would reduce dollars earmarked for veteran compensation steps). Several bills addressing curriculum, school governance, and data practices were also discussed; some bills failed in committee while sponsors may return with new versions.
Haber and the superintendent urged board members and communities to continue engagement with legislators as bills move in the final days of the session. The board heard multiple examples of how legislation that appears small on paper can result in material, multi-year impacts to local budgets, staffing and programs.
