The Appropriations - Education and Environment Division on Feb. 6, 2025 took up House Bill 1013, the Department of Public Instruction (DPI) budget, and considered several funding-source and formula changes that affect state school aid and program grants.

Sheila of the Legislative Council opened the DPI portion of the packet by announcing, "For anybody watching online, we are taking up House Bill 1013, otherwise known as the DPI budget." The committee then reviewed line items that shift funding sources, adjust IT rate treatment, and remove prior one-time allocations.

Committee members heard that the packet increases base funding from the Common Schools Trust Fund by $84,000,000 for the coming biennium to bring that line up; staff said that change raises Common Schools distributions to about $596,000,000. Committee staff explained that the $84 million replaces some general fund support in the base, but later increases in the biennium would come from the general fund.

Members discussed DPIs IT treatment, noting that DPI historically bills IT only against its operating budget rather than the full budget. The worksheet currently lists a 2-and-2 funding assumption to move the budget; members and staff said a pending bill to authorize a 3-and-3 treatment could change those entries and that the committee may revisit the IT lines if the separate bill advances.

Committee staff and members addressed formula mechanics and enrollment assumptions. Representative Sanford asked whether enrollment estimates had changed; staff responded that Adam (DPI estimate) uses best available projections and that the integrated formulas were prepared with a slightly lower estimate after adjusting for recent enrollment trends. Staff warned committees that enrollment fluctuation can cause mid-biennium adjustments or returned dollars.

Other substantive changes in the DPI packet included removing one-time funding previously provided for multiple-plant school district programs (identified on the worksheet as $4,300,000) and removing or reducing transition-minimum payments if the formula changes in bill 1369 are enacted. Committee staff said the executive recommendation to change the formula in bill 1369 would produce a savings of roughly $6,700,000 and could end transition-minimum payments sooner for remaining districts still on the phase-in.

Members also discussed reductions in free meal program grants. Representative Richter asked whether the reduction referenced the same program discussed at an earlier hearing; staff member Jamie nodded and affirmed the connection to the prior deficit report. The committee did not adopt an amendment on that line during the meeting.

The committee did not vote on HB1013 at the session. Staff told the panel they will update the worksheet to reflect final IT-rate decisions and any incoming bills and return with marked-up materials for a future vote.