TO:	Honorable Dan Huberty, Chair, House Committee on Public Education
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB3251 by King, Ken (Relating to the adjustment for rapid decline in taxable value of property for school districts.), As Introduced

The bill would amend a Foundation School Program mechanism related to calculation of entitlement for school districts that experience declining property values.  Because prior year values are used in calculating Foundation School Program entitlement, formula response to declining values lags by a year.  The mechanism amended by the bill provides for early recognition of value loss under certain circumstances. 
 
School districts across the spectrum of property value per weighted student may experience tax base decline.  Accordingly, effects on equalized funding requirements within the Foundation School Program due to a change in the recognition of value decline would be anticipated to vary across the spectrum of value per weighted student.  Specific effects would vary depending on the type and degree of value loss experienced in any given year among districts.