Fiscal memos on state support for school districts, school levy tax credit released

The nonpartisan Legislative Fiscal Bureau (LFB) has released its annual memorandum providing information on the estimated percentage level of state support for K-12 education statewide and for individual school districts in the 2015-16 school year.

The memo estimates the state share of K-12 education in 2017-18 was 64.90 percent of partial school revenues, the same method used to calculate state support when the statutes mandated that state provide two-thirds of school costs.  That two-thirds funding mandate was in effect from 1996-97 school year through the 2002-03 school year.

In addition, the LFB released a memo indicating the estimated school levy tax credit payments for each school district  for 2018-19, based on the equalized value of the portions of the underlying municipalities located within a district’s boundaries.

A total of $940 million of school levy tax credits will be distributed in 2018-19. The credits are distributed based on each municipality’s share of statewide levies for school purposes during the preceding three years. Each individual taxpayer in a municipality shares in the tax credits paid to the municipality based on their share in the municipality’s total assessed value.