Introduced by Rep. Arlen Siegfreid (R) on February 3, 2010, to empower K-12 school districts (USDs) to levy an additional property tax for funding school activities if the USD has already exercised the maximum local option budget (LOB) currently allowed. The new "activities" budget could not exceed 5 percent of the USD's state financial aid and the funds could not be used for scholastic purposes that aid the USD in meeting state accreditation standards. No such activities budget could be adopted without prior approval by a local public vote. USDs are currently allowed to increase their budgets by up to 31 percent by exercising LOB authority that is partially subsidized by the state.
Referred to the House Education Budget Committee on February 4, 2010.
Reported in the House on February 17, 2010, recommending the bill be passed as amended. House committee amended the bill to change the new local taxing authority from the proposed maximum 5 percent of state aid to, instead, 5 percent of a new "local activities budget computation factor" which would exclude consideration of state aid for purposes of a district's capital improvements or local option budget. In addition, the committee deleted language allowing school boards to exclude from taxation any and all classifications of real or personal property.