HF 321 (LSB 1949YH (3) 86)

HOUSE FILE 321

BY  SHEETS, DOLECHECK, HEATON, GASSMAN, RUFF, SALMON, HEARTSILL, VANDER LINDEN, BAXTER, MEYER, WATTS, GASKILL, MAXWELL, HUNTER, and KOOIKER

A BILL FOR

An Act modifying school budget review committee authority to recommend fiscal reviews.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.31, subsection 18, Code 2015, is amended by striking the subsection and inserting in lieu thereof the following:
   18.  The committee is authorized to recommend that the department implement a phase II on-site visit to conduct a fiscal review pursuant to section 256.11, subsection 10, paragraph “b”, subparagraph (1), subparagraph division (e), as follows:
   a.  If a school district exceeds its authorized budget or carries a negative unspent balance for the most recently completed budget year and for each of the two budget years preceding that budget year and the school district is not eligible for a phase II on-site visit recommendation to conduct a fiscal review under paragraph “b”, the committee may, but is not required to, recommend that the department conduct such a phase II on-site visit unless the school district’s unspent balance for the most recently completed budget year is greater than the difference of four-thirds of the unspent balance for the budget year preceding the most recently completed budget year minus one-half of the unspent balance for the budget year two years preceding the most recently completed budget year.
   b.  If a school district exceeds its authorized budget or carries a negative unspent balance for the most recently completed budget year and for each of the four budget years preceding that budget year and the school district was not recommended for a phase II on-site visit to conduct a fiscal review under this subsection for the budget year preceding the most recently completed budget year, the committee may, but is not required to, recommend that the department conduct such a phase II on-site visit.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Current Code section 257.31(18) provides that if a school district exceeds its authorized budget or carries a negative unspent balance for two or more consecutive years, the school budget review committee may recommend that the department of education implement a phase II on-site visit to conduct a fiscal review pursuant to Code section 256.11(10). This bill strikes current Code section 257.31(18), and enacts a different methodology for the school budget review committee to utilize when determining whether the committee may make recommendations for the department of education to implement a phase II on-site visit to conduct a fiscal review pursuant to Code section 256.11(10).