Relating to: requiring a school board to spend at least 70 percent of its operating expenditures on direct classroom expenditures and annual pay increases for school administrators. (FE)

SB 32 requires school districts to spend at least 70% of their operating funds on direct classroom expenditures (including teacher salaries, instructional supplies, and programs like athletics). If a district falls short, it must increase classroom spending by 2% annually until reaching the 70% target. Districts failing to comply face state aid deductions, with remaining shortfalls potentially requiring property tax reductions for residents. The bill also amends rules to cap annual pay increases for school administrators at the average teacher pay increase rate, not mandate them. This affects all public school districts in the state, with penalties enforced through state funding adjustments.