Requires the legislature, for all legislation where a school district fiscal note is required, to: (1) Appropriate the funds identified as necessary to fund the local costs of the legislation; or

(2) Identify the revenue source that is available to school districts to fund the local costs to implement the legislation.

Prohibits the legislature from relying on local levy funds or federal funds as a funding resource if the legislation mandates any requirements that are a component of basic education.