SB 5895: Relating to education funding

Sponsored by Sen. Hill, SB 5895 increases funds in the Education Legacy Trust Account from real estate taxes, public utility taxes, solid waste collection taxes, and unclaimed state lottery prizes.  It also states that if changes in federal law or court decisions allow the state to collect sales tax on purchases from out-of-state sellers, the net increased amount must be transferred to the Education Legacy Trust Account. For the period from July 1, 2015, through July 1, 2023, the fiscal growth factor is the average of the sum of inflation and population change for each of the prior three fiscal years. For this period, the state expenditure limit does not apply to a number of areas, such as, state allocations to school districts; appropriations to state colleges and universities and state higher education financial aid programs; and early learning programs.  In addition, the first priority for state general obligation bonds will be capital appropriations for common school construction.  The schedule for the reduction of the state debt limit is elongated, with the limit reaching 7.75% in July 2034, rather than 2021.