Cap Outlay adjustment bill comes out of comm.

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Cap Outlay adjustment bill comes out of comm.

A bill affecting capital outlay caps and obligations passed committee on Thursday (2/15).


On a 10-4 vote, House Taxation committee members passed House Bill 1240, which revises certain provisions regarding C/O funding for schools.


The bill increases the alternative capital outlay cap to $3,000 per student, up from $2,800 per student, and permits a school district that has capital outlay obligations prior to July 1, 2016 to tax at the maximum plus $500 dollars per student.


ASBSD supported the bill, which was introduced as result of changes made to capital outlay in the 2016 overhaul of the funding formula.


“This is truly an unintended consequence,” ASBSD Executive Director Wade Pogany said. “We really shouldn’t handcuff schools for this.”

Rep. Mary Duvall, the bill’s prime sponsor, said the bill will only come into play for with “existing obligations” and provides them the “opportunity to meet their capital outlay obligations.”


“The legislature should address some of those unintended consequences,” Rep. Duvall added.


HB 1240 now moves to the House floor for review.


For updates on the bill, as well as others, check the ASBSD Blog, Bill Tracker page, Twitter feed and Facebook page.

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