Bill to add geographic wage index and increase local optional revenue sparks debate over levy target

Representatives and school finance officials told the committee that frozen local optional revenue and regional wage differences have left many districts structurally short on staff and operations.

"We're not asking for more money. We're simply asking to maintain what we have," said a district finance official testifying in support of House File 3654, who described cuts already made to preserve fund balances and retain staff.

Witnesses urged creating a transparent geographic wage index to adjust the formula for regional wage differentials and to combine the existing two-tier local optional revenue into a single, larger per‑pupil amount with an additional regional adjustment. The testifiers said wages and benefits account for roughly 75–80% of district budgets and that local optional revenue has been frozen since 2014, eroding purchasing power.

Several committee members cautioned the proposal conflicts with the committee’s unofficial $0-levy target and said more technical work on regional definitions and equalization will be needed before a sustainable plan is clear. House fiscal staff and witnesses discussed equalization factors and where state aid would offset levy changes.

Representative Greene moved House File 3654 for possible inclusion; the bill was laid over for further work and intercommittee and fiscal coordination.