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Bill would let districts use operating capital revenue to pay utility bills, proponents say
Summary
Senate File 4414 would add building utility costs to the list of allowable uses for operating capital revenue, giving districts another flexible funding tool; proponents said the change has no state fiscal impact and noted statewide reserve balances that mitigate risk to long‑term capital needs.
Senator Clark presented Senate File 4414 to the Education Finance Committee, seeking to add building utility costs as an allowable use of operating capital revenue for school districts and charter schools.
Supporters described the change as administrative flexibility rather than a new spending program. "This bill will add utility costs to a long list of allowable expenses and ... simply gives districts more flexibility to address their budget needs today," a sponsor said.
District finance officials testified that utility costs are volatile and in many places have risen substantially in recent years; one witness cited an approximate 22 percent electricity cost increase over the last two years. Committee staff reported that statewide fund balances in the relevant reserve account totaled about $236 million at the end of fiscal 2025, roughly equivalent to annual statewide operating capital revenue, suggesting some statewide cushion against short‑term volatility.
Senators asked whether allowing utilities would leave less funding for long‑term capital needs such as roofs; testimony noted wide variation between districts and indicated staff would return with additional detail on local fund balances and guardrails. The committee laid the bill over for possible inclusion in a future omnibus bill.
