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Senate debates capital-outlay equalization; bill sent to House amid divided support
Summary
Senators debated a measure to phase in 2–5 mills of foundation funding to equalize school capital outlay; supporters said it helps fast-growth districts build capacity, opponents said it penalizes fiscally prudent districts and could require local tax increases.
Senate Bill 229, a capital-outlay equalization proposal, drew lengthy floor discussion about whether the Legislature should require a phased-in foundation mill levy to equalize school construction funding across districts.
Sponsor Sen. Beatty described the measure as a base funding mechanism that would require district levies of 2 mills in the first year and increase by 1 mill annually up to 5 mills, with the proceeds distributed on an equal-per-student basis. Beatty said the policy addresses rapid enrollment growth and the inability of some districts to build classrooms quickly enough — citing portable classrooms and room shortages in fast-growth suburbs.
Opponents, including Sen. Marine and Sen. Black, warned that the bill would reduce revenue for districts that have been fiscally prudent and had already levied for school construction; they argued the proposal could produce winners and losers, and they urged consideration of the House alternative that contains mitigation and differencing mechanisms.
Senators also discussed the political and practical effects of requiring local boards to levy taxes and then redistributing those levies. Several members said they preferred the House vehicle to the current form; others supported sending the current measure over so the House can act on it and allow amendment.
The Senate placed the bill on the calendar for House consideration; recorded floor action later showed the bill would be transmitted to the House.
