Senate finance committee adopts CS for HB 28, authorizes teacher loan pilot and a school energy grant program

The Senate Finance Committee on May 16 adopted a committee substitute for House Bill 28 and set the bill aside for further consideration.

Senator Lukey Tobin (District I) explained Version W of the CS, saying the bill authorizes a three-year pilot teacher loan program targeted at special-education and STEM teachers and directs funding from the Higher Education Investment Fund for that program.

Tobin said the CS establishes a state energy grant program for school districts, subject to appropriation, that would calculate a district's three-year average energy expenditures and provide a reimbursement of those expenditures — described in the committee remarks as 100% reimbursement — with the program scheduled to begin in 2028. Tobin acknowledged districts currently use base student allocation (BSA) funds to cover energy costs and said the grant is intended to return those dollars to classroom use.

"One of the most significant things we can do to help reduce costs for our districts is to replace those outdated materials and systems and provide those funds toward major maintenance," Tobin said, describing energy-efficiency upgrades and major maintenance as the intended use of the funding.

Senator Kaufman questioned whether a 100% reimbursement would remove incentives for energy efficiency. Tobin replied the committee has focused on major maintenance and that a report and audit on energy expenditures will be provided to the legislature to guide possible efficiency standards or oversight.

Tobin also described provisions that align remote/distance education policies with brick-and-mortar policy, allow regional resource centers to rehire retired teachers, and align school consolidation timing with hold-harmless provisions; the CS limits year-over-year growth in a district's required local contribution to 5% to smooth funding shocks related to property-value increases.

Tobin said the bill directs the department to compute each district's three-year energy-cost average and that committee staff estimated about $88,000,000 for the program's first year (2028) based on prior expenditures; Tobin characterized that as an approximate number during Q&A.

After discussion and answers from staff, the chair removed objections and the committee adopted the CS by voice vote. The committee set HB 28 aside for further consideration; no roll-call vote was recorded during the meeting.

What happens next: HB 28 will remain before the Senate Finance Committee as Version W; staff and the department will be expected to produce the district energy-expenditure calculations and the required audit/report described in the CS.