JBC to draft bill to repay State Education Fund from HSMA and pause transfers

Committee staff urged lawmakers to consider repaying $31 million previously moved from the State Education Fund (SEF) to other accounts and to reexamine a statutory transfer schedule to Healthy School Meals for All (HSMA).

Miss Bickel said earlier forecasting errors led to a temporary use of SEF dollars that staff now believe HSMA reserves can repay. She recommended a repayment across two fiscal years (roughly $16.1M then $15M) and asked the committee whether to (a) use an existing transfer bill to effect a repayment or (b) draft a standalone transfer bill that also suspends or eliminates future transfers from SEF to HSMA. Several members pressed for preserving State Education Fund balances for priorities such as SNAP and school finance; others supported repayment as equitable given corrected forecasting.

The committee voted to have staff draft one bill that includes both components discussed — repayment to the SEF and changes to the scheduled transfers to HSMA — and to continue discussion in March when forecasts are updated.