SB 61

Under current law, a school district’s shared cost is one of the factors used to calculate a school district’s equalization aid. Generally, under current law, a school district’s shared cost is the sum of the school district’s expenditures from its general fund and its debt service fund.

Under this bill, expenditures from either a school district’s general fund or debt service fund that are authorized by 1) an operating referendum held after the date on which this bill becomes law to exceed the school district’s revenue limit by more than $50,000,000 or 2) a capital referendum held after the date on which this bill becomes law to borrow more than $50,000,000 are excluded from the school district’s shared cost, unless the school district was a negative tertiary school district in the previous school year. A school district is a negative tertiary school district if its equalized valuation exceeds the tertiary guaranteed valuation per member.