SB 5063 changes the language of the state expenditures limitations to reflect beginning July 1, 2017 and ending June 30, 2027, to the extent that biennial revenues to the state general fund and related funds (unrestricted ending fund balance from prior biennium, including the transfer or diversion revenue to or from another fund/account) exceed state general fund and related fund revenues for the prior fiscal biennium, the revenue can be expended by the legislature only if at least two-thirds of the expenditures are for education programs and the other net state appropriations for education programs (allocations to school districts, charter schools and educational service districts, state college student financial aid programs, early learning program) are not reduced below the appropriation level in the prior biennium
However, less than two-thirds of the revenue can be expended for education programs to the extent necessary to pay for costs of court rulings imposing new state costs issued after July 1, 2017, and prior to July 1, 2027; the cost of extraordinary growth in the caseloads of state entitlement programs to the extent that the total biennial noneducation entitlement caseload cost exceed by one-third the average biennial percentage growth over the prior 5 fiscal biennia; but not including the cost of new entitlements or the expansion of existing entitlements after January 1, 2015. When determining the extraordinary growth calculation of cost increases in noneducation state entitlement programs, the percentage will be adjusted to exclude policy changes that caused negative growth during the recession of fiscal years 2008 Ð 2013.
At the next general election, voters will adopt and ratify, or reject these changes to the state expenditures limitations.
This act is known as the Kids First Act.
Ways and Means Amendment: The amendment deletes the phrase “low-income” from the description of preschool and early programs in the intent section of the bill. Further, in calculating extraordinary caseload growth in non-education spending, the calculation excludes negative growth in state spending that resulted from the use of direct federal stimulus funds during the 2008-13 recession.