| SB 0965 | Revises state school aid formula, reduces minimum levy and increases sales tax for schools |
| Sponsor: | Westfall | |||
| LR Number: | S3741.01I | Fiscal Note: | 3741-01 | |
| Committee: | Education | |||
| Last Action: | 03/11/98 - Hearing Conducted S Education Committee | Journal page: | ||
| Title: | ||||
| Effective Date: | Indefinite | |||
SB 965 - This act would revise the state school aid formula. The new formula requires a minimum levy of $1.25 and equalizes only that amount with state aid, but to a higher guarantee level than current law. The guaranteed tax base per eligible pupil (GTB) is increased from $119,000 (for the next school year) to $329,500. A district may levy a higher tax rate and generate additional local revenue.
The act increases the state sales tax by one percent and increases corporate income tax to 6.75% and personal income tax to 6.5% for income above $10,000.
The one cent Proposition C sales tax revenues are redirected through the basic state school aid formula payment rather than as a per pupil grant and the Proposition C tax rate roll back is eliminated.
The deductions for all local revenues at 100%, including merchants and manufacturers replacement tax (M & M) revenues.
The bill has a referendum clause.
OTTO FAJEN