Government Relations

UM Legislative Update Newsletter

April 1, 2005

Senate committee forwards rewritten foundation formula

The Senate committee changes include establishing an assumed local spending amount at $3.35 per $100 of assessed valuation for all districts. Because districts which raise local taxes at higher amounts are not penalized by the latest formula, the new changes will have the impact of directing a larger share of the revenues to suburban districts that were raising the greatest concerns over the earlier version of the bill that seemed to penalize districts with higher levies. The new formula shifts the focus away from a tax-rate driven philosophy and to a formula primarily based on student needs.

The Senate committee version is estimated to cost $665 million to fully fund, and would be phased in over a five-year period. Gov. Blunt has recommended $170 million in additional funding for the first part of the formula in the coming fiscal year.

The House has established a special committee to do its work on the formula bill, and that body continues to review and consider the proposal. Lawmakers hope to have a new formula in place before the end of the legislative session.

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