SB 423 - The act provides a "cost of living" adjustment to the minimum state school aid payments to hold harmless districts. Hold harmless districts are those districts receiving state aid based upon their 1992-93 payment amount per pupil, rather than the current formula calculation. The act provides that the annual amount of adjustment to the hold harmless payment is the percentage increase in the guaranteed tax base (GTB) from the previous to the current year minus the percentage increase in total district local wealth deductions (but no less than zero), and such increase shall be applied for any year in which the basic formula is prorated at no less than 100% of full funding and in which the district made no increase in any voluntary tax rate rollback in comparison to the 2000-01 amount.
OTTO FAJEN