SB 207

This bill creates a new aid program for certain consolidated school districts. To

be eligible for this aid, the consolidation that created the consolidated school district

must take effect on or after July 1, 2020, and the consolidated school district's

maximum allowable levy rate must be greater than the lowest levy rate of the school

districts that were consolidated to create the school district (underlying school

districts). In general, the levy rate of a school district is the total amount of property

taxes levied by the school district divided by the school district's equalized value.

If a consolidated school district satisfies the above-described criteria, in the

first school year following the consolidation, the consolidated school district is

entitled to aid in an amount equal to the consolidated school district's equalized value

multiplied by the difference between the maximum allowable levy rate of the

consolidated school district and the lowest levy rate of the underlying school districts

(base aid amount). In the second school year following the consolidation, the

consolidated school district is entitled to aid in an amount equal to 80 percent of the

base aid amount. In the third school year following the consolidation, the

consolidated school district is entitled to aid in an amount equal to 60 percent of the

base aid amount. The amount of the aid continues to be reduced by 20 percent each

school year so that in the sixth school year following the consolidation, the

consolidated school district no longer receives this aid.

Current law limits the total amount of revenue a school district may receive

from general state aids and property taxes in a school year. This limitation is known

as a school district's revenue limit. The new aid provided under the bill is a general

state aid for purposes of school district revenue limits. As a result, the new aid

reduces the amount of property taxes that the consolidated school district is allowed

to levy.