Committee approves plan to reduce levies when school districts hold 'dead cash'
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Summary
A strike‑everything amendment to HB 27-84 would require county school superintendents to reduce primary levies when districts’ ending cash balances exceed authorized budget balances; supporters say it returns overcollected funds to taxpayers while some members urged buffers and phase‑in to avoid spikes.
The committee returned House Bill 27-84, as amended, directing county school superintendents to annually reduce primary school district levies if a district’s ending cash balances exceed the authorized budget balances. Sponsor Representative Olsen and multiple district finance representatives framed the bill as a vehicle to return excess, unspent property tax collections — sometimes described as 'dead cash' — to property taxpayers.
Megan Delartino (Education Finance Reform Group) supported returning excess cash to taxpayers but asked for guardrails: retain a buffer to protect districts from year‑to‑year shortfalls, and consider phasing the reductions to avoid abrupt levy changes. Representative Livingston suggested allowing districts to apply excess to paying bond debt to produce longer‑term taxpayer relief. Committee members debated mechanics and asked for follow‑up data on which districts hold excess or deficit cash balances.
The committee adopted the amendment and returned the bill with a due‑pass recommendation; members signaled willingness to work on phase‑in options and debt‑payoff mechanics as the bill proceeds.
