Budget Amendment ID: FY2025-S4-735

EDU 735

Inflation Bank

Messrs. O'Connor, Eldridge, Pacheco, Brady, Tarr, Moore, Fattman, Oliveira and Payano moved that the proposed new text be amended by inserting the following section:-

SECTION XXXX: Said section 2 of chapter 70 is hereby amended by striking the definition of “Foundation inflation index” and inserting in place thereof the following new definition:- “Foundation inflation index”, is the ratio of the value of the implicit price deflator for state and local government consumption expenditures and gross investment in the first quarter of the prior fiscal year to the value of that same deflator in the first quarter of fiscal year two thousand and nineteen; provided that the increase in the index over the prior fiscal year shall not exceed four-and-one-half percent; provided further, that in fiscal years in which the foundation inflation index exceeds four-and-one-half percent, the department of elementary and secondary education shall steward an escrow account for all remaining funds over four-and-one-half percent to be held and distributed by the department in future fiscal years when the index is below four-and-one-half percent.