Provides that a school district contingency budget shall not result in an annual increase in the tax levy

BILL NUMBER:S4829

Title of bill

An act to amend the education law, in relation to contingency budgets

Purpose

To give school district voters the option of voting to not increase the tax levy.

Summary of provisions

Amends the section 2023 of the education law. Subdivision 4 paragraph (a) is amended so that a "contingency budget shall not result in an increase of the annual tax levy over the district's annual tax levy under the school district budget for the prior school year."

Existing law

A contingency budget cannot exceed the lesser of (i) one hundred twenty percent of the consumer price index, with the result rounded to two decimal places; or (ii) four percent.

Justification

Presently, school budget votes do not provide a mechanism for voters to prevent a tax levy increase. Current contingency budgets instead allow for as much as a 4% increase in spending, which may require a levy increase. Voters should have the option available to them to vote to not increase the tax levy, and not merely have to chose between two tax increases, as often ends up being the case under current law.

Legislative history

New bill.

Fiscal implications

None

Local fiscal implications

None.

Effective date

This act shall take effect immediately and shall first apply to the levy of taxes by school districts for the 2012-2013 school year and to school district meetings and elections held on and after such effective date.