Senate education committee adopts substitute for bill changing local school contribution growth limits

The Senate Education Committee adopted a committee substitute for Senate Bill 278 on May 15 and reported the bill out of committee with individual recommendations and attached fiscal notes.

Senate aide Mike Mason explained that version N of SB 278 aligns the statutory school consolidation timeframe with the state’s four‑year hold‑harmless provision (changing a seven‑year consolidation time frame to four years), raises the annual cap on required local contribution growth from 2% to 5% to better reflect recent property valuation increases, establishes an effective date of July 1, 2026 for section 1 and repeals the percentage limit on local contribution increases in 2029 as a three‑year transition.

Committee members, including Sen. Kiel, supported a sunset so the legislature’s education task force can address longer‑term formula reform to avoid creating disparities among fast‑ and slow‑growing municipalities. President Stevens moved to report SB 278 and the committee did so by unanimous consent.

What’s next: SB 278 was reported from the Senate Education Committee with recommendations and attached fiscal notes and will proceed according to Senate processes.