HF 84 (LSB 1201HH (5) 86)

HOUSE FILE 84

BY  SHEETS, GASSMAN, HEATON, MOMMSEN, MAXWELL, and HANSON

A BILL FOR

An Act establishing a transportation cost supplement program for school districts, authorizing the imposition of a transportation cost supplement property tax and income surtax, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 275.12, subsection 5, Code 2015, is amended to read as follows:
   5.  The petition may include a provision that the voter-approved physical plant and equipment levy provided in section 298.2, the transportation cost supplement program provided in section 298.17, or both, will be voted upon at the election conducted under section 275.18. The petition may also include a provision that the revenue purpose statement provided in section 423F.3 will be voted upon at the election conducted under section 275.18.
    Sec. 2.  Section 298.14, unnumbered paragraphs 1 and 2, Code 2015, are amended to read as follows:

   For each fiscal year, the cumulative total of the percents of surtax approved by the board of directors of a school district and collected by the department of revenue under sections 257.21, 257.29, and 298.2, and 298.17, and the enrichment surtax under section 442.15, Code 1989, and an income surtax collected by a political subdivision under chapter 422D, shall not exceed twenty percent.

   A school district income surtax fund is created in the office of treasurer of state. Income surtaxes collected by the department of revenue under sections 257.21, 257.29, and 298.2, and 298.17, and section 442.15, Code 1989, shall be deposited in the school district income surtax fund to the credit of each school district. A separate accounting of each surtax, by school district, shall be maintained.
    Sec. 3.  NEW SECTION.  298.17  Transportation cost supplement program —— election.
   1.  a.  A transportation cost supplement program is established to provide additional funding for school districts in which the district transportation costs per pupil exceed the state average transportation costs per pupil, as those amounts are determined under section 257.31, subsection 17, paragraph “c”.
   b.  The board of directors of a school district that satisfies the criteria of paragraph “a”, may direct the county commissioner of elections to submit the question of participation in the transportation cost supplement program to the registered voters of the school district at an election held on a date specified in section 39.2, subsection 4, paragraph “c”. The question submitted to the voters of the school district shall specify the period of consecutive years that the school district may participate in the program, if otherwise eligible under paragraph “a”, not to exceed ten consecutive years. If a majority of those voting on the question favors participation in the program, the board shall adopt a resolution to participate and shall certify the results of the election to the department of management and the district shall participate in the program. If a majority of those voting on the question does not favor participation, the district shall not participate in the program.
   2.  The transportation cost supplement program shall provide additional revenues each fiscal year not to exceed an amount equal to the district’s actual enrollment used to calculate the district’s average transportation costs per pupil under section 257.31, subsection 17, paragraph “c”, multiplied by the remainder of the district’s average transportation costs per pupil minus the state average transportation costs per pupil, as those amounts are determined under section 257.31, subsection 17, paragraph “c”. However, such resulting amount shall be reduced by the amount of transportation assistance aid received by the district under section 257.31, subsection 17, for the same budget year, as defined in section 257.2, if applicable. Certification of a district’s participation for a budget year, the method of funding, and the amount to be raised shall be made to the department of management not later than April 15 of the base year, as defined in section 257.2.
   3.  The transportation cost supplement program shall be funded by either a transportation cost supplement property tax or by the combination of a transportation cost supplement property tax and a transportation cost supplement income surtax. The method of raising the transportation cost supplement program moneys shall be determined by the board. Subject to the limitation in section 298.14, if the board uses a combination of a transportation property tax and a transportation cost supplement income surtax, the board shall determine the percent of income surtax to be imposed, expressed as full percentage points, not to exceed twenty percent.
   4.  The department of management shall establish the amount of the transportation cost supplement property tax to be levied or the amount of the combination of the transportation cost supplement property tax to be levied and the amount of the transportation cost supplement income surtax to be imposed for each school year that the transportation cost supplement amount is authorized and the school district eligible under subsection 1, paragraph “a”. The transportation cost supplement property tax and income surtax, if an income surtax is imposed, shall be levied and imposed, collected, and paid to the school district in the manner provided for the instructional support program in sections 257.21 through 257.26.
   5.  Revenues received by a school district from a transportation cost supplement property tax or income surtax imposed under this section shall be deposited in the general fund of the school district and expended only for the cost of repairing, maintaining, and fueling school district transportation equipment and school buses, as defined in section 321.1, subsection 69. Revenues received by a school district under this section are miscellaneous income.
   6.  Except for an adjustment in the total amount authorized to be collected under subsection 2, participation in the transportation cost supplement program under this section shall not affect a school district’s eligibility for transportation assistance under section 257.31, subsection 17.
   7.  Once approved at an election, the authority of the board to use the transportation cost supplement program shall continue, subject to the period of years authorized at election, until the board votes to discontinue the program or the voters of the school district by majority vote order the discontinuance of the program. The board shall submit at an election held on a date specified in section 39.2, subsection 4, paragraph “c”, the question of whether to discontinue the program upon the receipt of a petition signed by not less than one hundred eligible electors or thirty percent of the number of electors voting at the last preceding school election, whichever is greater.
   8.  Participation in the transportation cost supplement program is not affected by a change in the boundaries of the school district. If each school district involved in a school reorganization under chapter 275 has approved a transportation cost supplement program, and if the voters have not voted upon the question of participation in the program in the reorganized district, the program shall be in effect for the reorganized district that has been approved for the least amount and the shortest time in any of the districts.
    Sec. 4.  APPLICABILITY.  This Act applies to school budget years beginning on or after July 1, 2016.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill establishes a transportation cost supplement program to provide additional funding for school districts in which the district transportation costs per pupil exceed the state average transportation costs per pupil. Under the bill, the board of directors of such a school district may direct the county commissioner of elections to submit the question of participation in the program to the registered voters of the school district. The question submitted to the voters shall specify the period of consecutive years that the school district may participate in the program not to exceed 10 consecutive years.
   The transportation cost supplement program provides additional revenue each fiscal year not to exceed an amount equal to the district’s actual enrollment used to calculate the district’s average transportation costs, multiplied by the remainder of the district’s average transportation costs per pupil minus the state average transportation costs per pupil. This amount is required to be reduced by the amount of transportation assistance aid received by the district under current Code section 257.31(17), if any, for the same budget year.
   The bill authorizes the transportation cost supplement program to be funded by either a transportation cost supplement property tax or by the combination of a transportation cost supplement property tax and a transportation cost supplement income surtax. An income surtax imposed as part of the transportation cost supplement program is subject to the 20 percent cumulative income surtax cap under Code section 298.14.
   Revenues received by a school district from a transportation cost supplement property tax or income surtax shall be deposited in the general fund of the school district and expended only for the cost of repairing, maintaining, and fueling school district transportation equipment and school buses, as defined in Code section 321.1(69). Revenues received by a school district under this section are miscellaneous income.
   The bill provides that the transportation cost supplement program may be discontinued by either school board action or by petition and election and includes provisions relating to participation in the transportation cost supplement program by school districts involved in a school reorganization under Code chapter 275.
   The bill applies to school budget years beginning on or after July 1, 2016.