FY10 BUDGET SUMMARY
(Fiscal Year 2010: July 1, 2009 – June 30, 2010)
This is a summary of the bigger budget and policy items that passed the House and Senate on July 1, 2009. This is not a complete list of all the changes to education. The budget bills from June 4 along with the “trailer bills” will now be transmitted to the Governor. This summary was created by Jennifer Loredo, AEA lobbyist.
TAXES (HB2644)
Permanent Repeal of the State Equalization Property Tax—aka the school tax
· Permanently repeals the state equalization property tax. This is a loss of revenue to the state of approximately $250 million per year.
Reduction of Assessment Ratio for Business’ Secondary Property Tax
· Lowers the assessment ratio for secondary property taxes on businesses to 16% for all bonds and overrides approved after December 31, 2011. This will potentially make it harder for school districts, community colleges, counties, and cities/towns to pass bonds and overrides because there will be a property tax shift from business to homeowners.
Vehicle License Tax (VLT) used to offset basic state aid
· Sweeps $22 million in VLT from cities and towns in FY10 to pay a portion of basic state aid for education.
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