TCSA Capitol Update

Week of February 26 - March 1, 2024

School choice became the week's topic as vastly different versions of a school voucher proposal were presented in the House and Senate. Late last week, the Lee administration released amendment language for the Education Freedom Scholarship Act to be placed on HB2468/SB2787. It closely mirrors how he has been talking about the proposal - 20,000 scholarships to provide students with $7075 a piece that could be spent on expenses related to private education. The Senate Education Chairman, Jon Lundberg, then filed his version of a program that included additional options for open enrollment between public schools. In his amendment, this results in TISA funds shifting between districts. The bill also includes requirements for accountability andtesting for private school students who take a voucher. Then, early this week, the House unveiled a 39-page amendment that went in a dramatically different direction. 

 

The scholarship, or voucher, in the House version is equivalent to the base TISA funding, but is solely state-funded. The approved uses of the funding are similar to the other versions. The priority of students receiving the scholarships is different. First priority goes to a student who would be eligible for an Education Savings Account or Individualized Education Account (the state’s current limited voucher programs). Next would be students whose family household income doesn’t exceed 400% of federal poverty, then to those under 500% of poverty, then to anyone else. In any year when 90% of the available scholarships are used, the number of scholarships would increase 20% the next year. 

Beyond those differences in the voucher program itself, the House bill then went further into numerous education reforms. The amendment included proposals to:

  • Increase the weighted funding for students in sparse school districts from 5% to 6%;
  • Creates a new direct allocation of $75 per student for maintenance and infrastructure;
  • Increase the weighted funding for students in small school districts from 5% to 8% and create another weight for students in systems just above the small size at 2%;
  • Give school systems the option to enroll their instructional employees in the state employee health insurance plan instead of the local education insurance plan and have the state fund 60% of the cost of insurance instead of 45%; 
  • Dramatically reduce the number of assessments given to students in the public education system;
  • Change the system of teacher evaluations;
  • Revise the state’s response to instruction and intervention program;
  • Alter the retention provisions for children who score as below or approaching on ELA tests; 
  • Change teacher licensing provisions;
  • Abolish the achievement school district which took over a number of the state’s poorest performing schools; and
  • Change the way student performance data can be used.

In general, the perception is that all of these other revisions to the public K-12 system are to entice opponents to school choice programs to go along with the bill. But all these additions drive the cost of the bill up from $140 million in the Governor’s budget to nearly $400 million. Especially pricey are the new or larger weights and direct allocations at a total of around $93 million and the increase in health insurance premiums, estimated to cost $160 million or more. The Senate voucher proposal appears to be cheaper in the first year than the Governor’s original proposal since some of the recipients of the scholarships would be public school students already paid for in the education funding formula. It is estimated to bring the cost down from $144 million to $95 million in the first year, before ballooning over $300 million in future years.

 

 The House Education Administration K-12 Subcommittee sent the bill on to the full committee after lengthy discussion and debate.

 

In the Senate, the plan all along was to have extensive discussions of their proposal, but no vote. In both chambers, these competing amendments were placed onto a different caption bill (HB1183/SB503) and the bill intended to carry the Governor’s amendment was taken off notice in the House and rolled to the final calendar of the Senate Education committee.

 

Reappraisals

The Comptroller’s bill on more frequent reappraisals made more progress this week after hitting an obstacle in Senate State and Local last week. SB1946/HB2057 passed out of that committee and was sent to Finance after testimony and discussion about the fiscal note for the bill that appeared to show it increasing taxes. In the House, the bill was approved by the Finance Committee and then scheduled for a floor vote next Thursday. 

Challenging County Commission Votes

HB2685 which creates a process whereby members of the public can raise potential conflicts of interest of county commissioners, passed the House floor on Monday night. The Senate version of the bill (SB2548) is on the State and Local Government calendar for next week. 

Sales Tax on Vehicles

A bill (SB1581) that proposed redirecting the sales tax from vehicle and tire purchases to the highway fund received a negative recommendation from the Senate Revenue Subcommittee. The bill, as introduced, would shift over $1 billion from the state general fund to the highway fund.

County Mayors and the Sunshine Law

The bill that clarifies that county mayors are not subject to the Open Meetings Act (SB1667) was approved by the Senate State and Local Government Committee. It has been referred to the calendar committee. It has already passed the House floor. 

Fuel Purchasing

HB2547/SB2432 that gives local governments flexibility to buy bulk gas and diesel fuel using documented quotes instead of competitive bids moved out of the House Cities and Counties Subcommittee. It is scheduled to be heard next week in the full Local Government Committee and in the Senate State and Local Government Committee.

Mayor’s Budget Maintenance of Effort

The bill SB2023/HB2019 to set a maintenance of effort standard for the county mayor’s budget was placed behind the budget in the House Finance Subcommittee. This procedural move is required for any bill that is believed to have a local fiscal cost. The bill is awaiting a hearing in the Senate State and Local Government Committee.

Third Party Building Inspections

An administration proposal (SB2100/HB1892) has moved to the Senate floor for consideration after being approved by the Commerce Committee. The legislation sets up a process whereby architects and engineers can be registered with the state fire marshal's office as third-party inspectors. Then a developer can choose to hire one of those private third party inspectors to handle plans review or inspection instead of the local government inspectors. Under the bill, the developer still pays the same building permit fee to the local government, but uses the private party to do the inspections. The bill was pitched as a way to speed up the construction process and bring down costs of development. It is scheduled to be heard in the House Commerce Committee next week.

 

Restrictions on Bail

Numerous proposals are moving through the Judiciary Committees of both chambers that would limit access to bail for certain offenses. The various proposals are being offered as a way of reducing violent crimes being perpetrated by individuals out on bail. These include:

  • HB1641/SB2563 and HB2696/SB2564 Create a Class A misdemeanor for violating a condition of bond;
  • HB1718/SB2566 As amended, would require court to forfeit bond and issue arrest warrant on violation of a condition of bond;
  • HB1920/SB2563 Would allow a judge to require a defendant to serve up to 100% of their sentence;
  • HB2188/SB2044 Changes the sentence reduction credits on a sentence of 2 years or more; 
  • HB2692/SB1972 – Requires pretrial GPS on certain domestic assault cases

 

There are concerns that these bills would significantly increase local expenditures by adding new costs or increasing pretrial confinement for inmates who are unable to get bail. A number of the bills came out of the House Criminal Justice Committee and have been placed behind the budget by the Finance Subcommittee. A related proposal to amend the constitution to create many more offenses for which a judge could prohibit bail is also moving forward. 


Lower Local Option Sales Tax on Food

HB 2641, which would give local governments the option to reduce or eliminate the local option sales tax on groceries, is headed to the House floor for a vote next week. Some local governments that border other states where groceries are exempt from sales tax have expressed an interest in such a measure as a way to stop leakage of spending across state lines.


Session Speeding up to Critical Pace

This is the time of year when legislative committees are building to a crescendo. The committee calendars are filling up, in many cases with bills that are being drastically rewritten with amendments filed as little as 24 hours prior to the hearing. Some committees have announced target dates for their final hearings during March which will cause even more members to put their bills on notice. We will keep you informed of the major developments as the session progresses.