SUMMARY: Revises the current formula for distribution of equalization grants to eligible school districts, in the event that appropriations are insufficient to fund the current distribution formula. Would be effective through July 1, 2013.

REQUIREMENTS: Establishes four tiers of eligibility:

• Tier 1: for the 25% of school districts deemed to be lowest in wealth per FTE, the district would receive 95% of its eligible allocation.
• Tier 2:  for the next 25% of school districts deemed to be lowest in wealth per FTE, the district would receive 80% of its eligible allocation.
• Tier 3:  for the next 25% of school districts deemed to be lowest in wealth per FTE, the district would receive a proportional share of the remaining funds allocated.
• Tier 4: the next 25% of school districts would receive no equalization funding.

POINTS TO CONSIDER:

• If passed, the legislation only applies if equalization appropriations are not available to fund the current formula
• The new formula expires on July 1, 2013.
• Several different percentages for distribution are being discussed and may be included in later versions of the bill.
• "Winners" and "losers"among school districts will result when the current distribution formula is compared with the proposed new formula.

EFFECTIVE DATE:  Upon approval by the Governor or upon becoming law without such approval.