Budget, and BIMP and Bonds, Oh My!
As the legislative session comes to a close, the flurry of activity shifts from the chambers of debate to the governor's desk. With the session now ended, the Governor is picking up his pen to sign into law the bills that have navigated the legislative process. The bill signing activity commenced last week with several key pieces of legislation being approved.
FY25 Education Budget
The budget bill was signed on June 5th, and is now Public Act 103-0589. The FY 25 budget provided an additional $528 million dollars in General Revenue Funds (state dollars) for K12 education which totals the state’s contribution for education at $10.8 billion dollars for the upcoming fiscal year. Some of the major funding item increases for the FY25 education budget are as follows:
Evidence Based Funding - $350 million increase
Mandated Categoricals (MCATS) - $32.7 million increase
Early Childhood Education - $75 million increase
After School Programs - $50 million increase
Career and Technical Education - $10 million increase
FY25 Budget Implementation Bill (BIMP)
The BIMP was also signed on June 5th, and is now Public Act 103-0588.
Included in the new law is an extension for the program that allows retirees to return to work full-time in subject shortage areas without impairing their TRS retirement, language that will add dental and vision insurance to the health benefits available to TRS benefit recipients and dependent beneficiaries starting January 1, 2025 and the establishment of a Fleet Electrification Incentive Program that will provide grants for electric vehicles and for which school districts may be eligible.
Bond Authorization and Changes to Borrowing Practices
School districts received a pleasant surprise during the final week of session when House Amendment 2 to SB 3422 was filed. The bill provided additional bonding authority through General Obligation Bonds for the state, but also included a variety of changes to existing bond practices for school districts. While most of the debate in the committee hearings and floor debate centered around the increased bonding authority for the state, school districts will be most interested in other provisions of the bill. Due to procedural necessity, the bill was refiled on Senate Amendment 1 to HB 4582 on Saturday and passed by the Senate that evening. The bill was signed on Friday and the legislative changes achieve the following goals, and is effective July 1, 2024:
-
Increase the maximum term of school district bonds from 20 years to 30 years;
-
Exempt bond levies for school fire prevention and safety bonds from PTELL;
-
Eliminate the referendum requirement for new school building construction that results in an increase in pre-kindergarten or kindergarten classroom space;
-
Allow the amount of certain bonds to be increased by up to 3% of the authorized amount to cover the costs of issuance and/or capitalized interest.
We are committed to keeping you informed about the latest legislative developments, so as bills are signed throughout the summer months, we will provide updates on the newly created public acts. Additionally, don’t forget about our Bill Tracker, available on the IASBO website for up to date information on the bills signed into law!