SB 656

Under current law, a newly consolidated school district is eligible for consolidation aid for seven school years beginning in the school year in which the consolidation takes effect. Currently, in each of the first five years following a consolidation, the Department of Public Instruction must pay the consolidated school district $150 per pupil enrolled in the school district. In the sixth year after consolidation, DPI must pay the consolidated school district an amount equal to 50 percent of what the school district received in the fifth year, and in the seventh year, DPI must pay the consolidated school district an amount equal to 25 percent of what the school district received in the fifth year. Under current law, consolidation aid is funded by a sum sufficient appropriation.

For a school district consolidation that takes effect in 2026, 2027, or 2028, this bill increases the aid for the school year in which the consolidation takes effect to $2,000 per pupil enrolled in the consolidated school district. Under the bill, the consolidation aid amounts in the subsequent six school years following the consolidation remain the same as under current law.