State Education Fund Report (2012)

The forecast for the State Education Fund and the level of General Fund appropriations needed to pay for school finance have changed from when the General Assembly adjourned in May 2011. Property values have stabilized and are expected to grow slowly over the next few years, helping to boost the local contribution to school finance. Similarly, income tax receipts are growing, which is increasing deposits into the State Education Fund and the General Fund. Despite these improvements, education funding requirements for new students and inflation continues to put increasing pressure on state resources. In FY 2012-13, General Fund support for school finance will need to increase by $94 million compared with the prior year to pay for the preliminary funding level set by House Bill 12-1201, and to maintain a $50 million State Education Fund balance.