Budget compromise bill contains increased education funding, help for child care centers

UPDATED: The state’s next two-year budget is on its way to the governor.

House Bill 6 has been in a Free Conference Committee where members of leadership from the House and Senate take both of their versions of the legislation and find compromise.

The Free Conference Committee Report (FCCR) allocated additional money in the SEEK formula, the funding model for K-12 education. It allocates $4,326 per pupil in the first fiscal year and $4,586 in the second, an increase of $612 per student over the two-year period.

Lawmakers stated this increase should allow local school districts to provide teacher raises.

Funding for school transportation was also included at 90% in the first year and 100% in the second year of the budget.

The compromise also includes the child care investments proposed by the Senate version of the budget, totaling $62.9 million. These items consisted of funding for the Child Care Assistance Program (CCAP), the Employee Child Care Assistance Partnership, a new program to allow child care workers to automatically qualify for CCAP, funding for a benefits cliff transition program, early childhood development scholarships, and a new Innovations in Early Childhood grant program, which could help support new employer-based child care services. These investments represent a significant increase in state investments in child care and will support workforce participation. More work will need to be done in future sessions to support the child care sector and working families.

Critical investments in higher education including increased general funds for the performance-based funding model and money for KEES and work ready scholarships were also included.

General fund spending in the operating budget included $14.8 billion in fiscal year 2025 and $15.2 billion in fiscal year 2026.

The Senate passed the amended version of House Bill 6 36-1 on Wednesday before the House passed it 72-26 on Thursday afternoon.

Thursday is the final day of session before the veto period. The legislature will then return to convene on April 12 and April 15 for passage of any final bills and veto overrides.

Stay tuned to The Bottom Line for more updates.