House Education Committee adopts committee substitute to HB261 to change education funding formula

The House Education Committee voted to adopt a committee substitute to House Bill 261 on March 20, advancing a revision to the state's school funding calculation intended to give districts greater budget stability.

Sponsor and co‑chair Representative Andy Story told the committee the measure aims to "maintain the three‑year averaging or the previous year average daily membership," and to "ensure greater budget stability for communities, and to be able to offer teacher contracts earlier in the spring to increase retention and recruitment." Staff said the substitute (version I) also narrows how intensive student counts are averaged to reduce inflated counts across districts.

Tammy Smith, staff to Rep. Story, summarized the sectional analysis and described conforming edits and statutory cross‑references. Smith said the substitute restores the intensive needs student count period that had referenced October 15 and replaces several instances of the word "previous" with "prior" across the definition sections. Smith also said the CS removes an alternative‑school ADM provision and adds transition language to preserve hold‑harmless status for districts that are currently protected while they phase into a new averaging approach.

Following the staff summary, Representative Eisheide moved adoption of the committee substitute. Co‑chair Hemshutt called for objections; none were raised and the substitute was adopted by the committee. Hemshutt set an amendment deadline for CS HB261 (version I) for Wednesday, March 25 at noon, with amendments to be filed in the co‑chairs' offices.

The committee did not take a roll‑call recorded vote in the hearing transcript; the CS was adopted by voice and no recorded nay votes were noted. The committee will consider any amendments filed by the March 25 deadline before further action.

The committee returned to other business and adjourned at 09:58.