HB 129 reclassifies Emergency and Substitute Levies as Fixed Sum Levies. Beginning with a district’s next property reappraisal, no later than Tax Year 2028, these levies will count toward the 20-mill minimum floor in the same way as standard current expense levies. This means that due to our fixed sum levy we will move off of the 20-mill floor in TY28. This is estimated to lower our future Class I tax collection by $1.94 million through FY31.

HB 186 introduces Inflationary Cap Tax Credit (ICC) factors designed to keep revenue growth during reappraisal years aligned with the three-year GDP Deflator index. The measure includes retroactive tax deductions for Tax Years 2023 and 2024 and places limits on future increases beginning with Tax Year 2025. Anticipated loss though FY31 for the district is estimated at $5.69 million. So if property taxes increase, the district does not receive additional revenue.

Beginning in Tax Year 2026, HB 335 requires County Budget Commissions to reduce inside millage when property values grow faster than the three-year GDP inflation rate. If a district is already at the 20-mill minimum floor, inside millage would not be reduced; instead, the Inflationary Cap Tax Credit would be used to limit growth.

Together, these changes affect how property-value growth translates into school district revenue and may influence future financial forecasting and long-term planning for Benjamin Logan.

These bills result in less funding for Benjamin Logan schools, removing previously voted upon funds and rolling back revenue that has already been collected or was planned to be collected. When combined with the underfunding of the Fair School Funding Plan by the state, Benjamin Logan and most other school districts will have to either cut planned services for students or find additional sources of revenue.