Bill > S4334

Introduced Session

This bill modifies the school district tax levy cap law to require that the cap be the greater of the percentage increase in the Consumer Price Index or two percent. The bill also provides $67.9 million in additional State school aid to ensure that no school district receives an aid reduction in the 2025-2026 school year compared to the 2024-2025 school year. Under current law, a school district is generally prohibited from increasing its property tax levy by more than two percent compared to the previous school year. This limited increase is often referred to as a "tax levy growth limitation" or a "tax levy cap." This bill would require that the tax levy cap in a given school year be the greater of the increase in the Consumer Price Index or two percent. While there is a general prohibition on increasing the school district tax levy by more than two percent, State law authorizes certain allowable adjustments to the general two percent limitation, thereby permitting a district to account for certain increases in items such as enrollment, health care costs, and certain normal and accrued liability pension contributions. This bill would provide for another allowable adjustment for a school district that is spending below adequacy. Under current law, a school district is considered to be spending below adequacy if its prebudget year spending (defined as the sum from the prior school year of equalization aid, special education categorical aid, security categorical aid, and the school district's tax levy) is below its projected adequacy spending (defined as the sum for the school year in which the budget will be implemented of its adequacy budget, special education categorical aid, and security categorical aid). For these districts, the allowable adjustment to the tax levy would be the amount necessary for the district to be spending at adequacy. Finally, the bill appropriates $67.9 million in additional State school aid to ensure that no school district receives an aid reduction in the 2025-2026 school year compared to the 2024-2025 school year. It is estimated that this aid will support approximately 200 school districts.

Committee Categories

Linda Greenstein (D)*,  Andrew Zwicker (D)*, 

Introduced in the Senate, Referred to Senate Education Committee (on 05/12/2025)

Official Document