HB 1752 -- Funding for Public Schools

Co-Sponsors:  Ballard, Marble

Subject to approval at referendum and contingent upon approval
of a constitutional amendment which prohibits raising school
taxes without a vote of the people, this bill replaces the
property tax basis of the school funding formula with a per--
pupil distribution (the foundation formula payment amount)
supported by a one and one-half-cent increase in sales tax, an
increase in the top bracket of personal income tax from 6% to
7%, and an increase in corporate income tax from 6.25% to 7.5%.
As of July 1 of the year following voter approval, the school
district operating levy in each district is reduced by $2.75,
not to go below zero.  Any amount remaining above $2.75 is
converted to local revenue for school purposes without further
action of the electorate.  Minimum levy requirements for
eligibility for state school aid, accreditation, and minimum
teacher salary support are eliminated.  Deductions for local
wealth are revised to eliminate local property tax, state--
assessed railroad and utility tax, and Proposition C receipts.
Merchants and manufacturers tax, currently excluded from
consideration as a source of local wealth, is added to the list
of deductions.  Categorical add-ons are retained, but the
formula for at-risk (formerly line 14) is revised to eliminate
its basis in the guaranteed tax base and minimum levy.  The bill
makes many technical changes to taxation sections to accommodate
the change-over from property tax to sales tax.