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Subcommittee recommends ITL on two school building-aid bills after split debate

House Education Funding Subcommittee · October 29, 2025

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Summary

A House education subcommittee recommended against advancing two proposals to change school building-aid funding, voting 4-3 on motions to find both bills "inexpedient to legislate."

A House education subcommittee on Tuesday recommended against advancing two bills that would alter how the state handles school building aid, voting 4-3 on each motion to send the measures back as "inexpedient to legislate."

Representative McGuire moved the committee to recommend ITL on HB295, a proposal described in the hearing as making leftover school building-aid program funds non-lapsing. "There are two main reasons," McGuire said in debate: "the school building aid program has, in general, not been very successful. It creates winners and losers... Secondly, I am very much against non-lapsing funds in general." Supporters of the bills argued the program is underfunded and that small non-lapsing balances could fund additional projects.

Opponents said leaving leftover money available year to year can tie the hands of future legislatures and complicate biennial budgeting. Representative Fellows characterized the amount at issue as small but potentially useful to fund an additional project in some years, while Representative Damon said many districts that have benefited disagree that the program is unsuccessful and that the real problem is insufficient appropriation.

The clerk recorded the roll on HB295 with these votes: McGuire — Yes; Cobalt — Yes; Peoples — Yes; Fellows — No; Damon — No; Bridal — No; Chairman Ladd — Yes. The motion passed, 4-3.

The committee then took up HB366, which would provide limited retroactive building-aid payments for certain completed projects. Opponents raised fairness concerns for districts that followed statutory approval processes, while proponents described long-running local fiscal stress tied to projects completed during a prior moratorium. Representative Peoples moved to recommend ITL; Representative McGuire seconded. The roll was recorded as: McGuire — Yes; Kovalts — Yes; Peoples — Yes; Fellows — No; Damon — No; Bridal — No; Chairman Ladd — Yes. The motion passed, 4-3.

Both ITL recommendations will be forwarded as the subcommittee's recommendation to the full committee at its next scheduled meeting.