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Committee backs change to school equalization millage threshold
Summary
The committee approved a bill that lowers the equalization minimum millage threshold from 14 mills to 10 mills and adds a penalty for districts that reduce millage below the new threshold; sponsors said the change would allow jurisdictions to roll back rates as property values rise without losing local equalization share.
Representative Cannon presented legislation to change the minimum local millage threshold used in the school equalization formula. The measure lowers the threshold from 14 mills to 10 mills and adds a penalty provision: if a local jurisdiction drops below the new threshold, up to 25 percent of its equalization allocation could be withheld.
Cannon described how rising property values have pushed some school systems close to the statutory threshold established in 2019 and that the change would allow school systems to roll back millage rates as assessments increase without necessarily losing equitable state support. "What that's doing is that school systems are afraid that if they go below that, a 14 threshold, they may lose equalization," Cannon said.
Committee members asked whether existing homestead provisions and floating exemptions would address the same concerns; the sponsor and staff explained the proposed change applies to all property types and the penalty provision is designed to discourage jurisdictions from reducing contributions below the intended local share.
The committee voted to give the bill a do‑pass recommendation by voice vote and sent it to the full committee.
