Bill Description: House Bill 634 (H634) would require that any funding appropriated to school districts and public charter schools must be used for its intended purposes.

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NOTE: H634 is a near carbon copy of H350 introduced during the 2025 legislative session.

Does it expand the government's bureaucratic monopoly on education, reduce family and student choice, or finance education based on an institution or system? Conversely, does it reduce government coercion in education, expand education choice, or finance education based on the student rather than the institution?

House Bill 634 would require “any funds distributed by the state department of education to school districts or public charter schools that are specifically identified in statute or in an appropriation bill as intended for a certain purpose shall be used only for such purpose.” It furthermore provides that any funds not used for its proper purpose “shall be reimbursed to the state by the school district or public charter school and deposited to the state general fund.”

There are compelling arguments on both sides of this subject. On one hand, it would be a positive development for school districts to redirect funds away from unnecessary uses, such as funding a bloated administrative staff, to essential ones, such as student instruction. On the other hand, this discretion can be abused by school districts who have a misguided set of priorities. Consequently, House Bill 634 can be said to unnecessarily restrict the discretion of well-run school districts while properly binding the hands of poorly administered districts. 

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