HB 2 is an omnibus bill relating to public education and public school finance. The 148-page bill makes numerous changes to school finance provisions, including increasing the Basic Allotment. The bill provides more than $8 billion in funding for public education. Major highlights from the bill include:
- Increases the Basic Allotment from $6,160 to $6,380 ($220). Requires districts to use at least 40 percent (currently 30 percent) for compensation increases.
- Provides a hold harmless for declining enrollment of more than 5% in ADA from the prior year. Districts will receive 95% of the funding from the preceding school year. Caps the program at $50 million per year.
- Increases the small and midsized adjustments: small size from .0004 to .00062 and midsize from .000025 to .000035.
