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House Study Bill 558

Conference Committee Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  257.13  ADVANCE FOR INCREASING
  1  2 ENROLLMENT.
  1  3    1.  If a district's actual enrollment for the budget year,
  1  4 determined under section 257.6 is greater than its budget
  1  5 enrollment for the budget year, the district is granted an
  1  6 advance from the state of an amount equal to its regular
  1  7 program district cost per pupil for the budget year multiplied
  1  8 by the difference between the actual enrollment for the budget
  1  9 year and the budget enrollment for the budget year.  The
  1 10 advance is miscellaneous income.
  1 11    2.  a.  Notwithstanding the amount computed under
  1 12 subsection 1, for the budget year beginning July 1, 1996, each
  1 13 school district shall receive an advance in amount equal to
  1 14 the applicable percentage of the amount computed under
  1 15 subsection 1 based upon the percentage increase in actual
  1 16 enrollment over budget enrollment in the following schedule:  
  1 17    Percentage increase                      Percentage
  1 18    in enrollment                            of advance       
  1 19    Less than 2 percent                       25 percent
  1 20    2 to less than 4 percent                  40 percent
  1 21    4 to less than 6 percent                  55 percent
  1 22    6 percent and above                       70 percent
  1 23    Advances received based on this schedule will be reduced by
  1 24 any amounts received by a district pursuant to section 257.14
  1 25 in determining the funding advance available to the district.
  1 26    b.  If a district's actual enrollment for the budget year
  1 27 exceeds its budget enrollment for the budget year by greater
  1 28 than one hundred students, the receivable percentage of the
  1 29 advance in the schedule provided in paragraph "a" is increased
  1 30 by twenty percentage points.
  1 31    3.  If the board of directors of a school district
  1 32 determines a need for additional funds exceeding the amount
  1 33 provided by the schedule, a request for supplemental aid based
  1 34 upon increased enrollment may be submitted to the school
  1 35 budget review committee as provided in section 257.31 and
  2  1 section 260D.14.
  2  2    4.  If a district receives an advance under this section
  2  3 for a budget year, the department of management shall
  2  4 determine the amount of the advance which would have been
  2  5 generated by local property tax revenues if the actual
  2  6 enrollment for the budget year had been used in determining
  2  7 district cost for that budget year, shall reduce the
  2  8 district's total state school aids otherwise available under
  2  9 this chapter for the next following budget year by the amount
  2 10 so determined, and shall increase the district's additional
  2 11 property tax levy for the next following budget year by the
  2 12 amount necessary to compensate for the reduction in state aid,
  2 13 so that the local property tax for the next following year
  2 14 will be increased only by the amount which it would have been
  2 15 increased in the budget year if the enrollment calculated in
  2 16 this section could have been used to establish the levy.
  2 17    5.  There is appropriated each fiscal year from the general
  2 18 fund of the state to the department of education the amount
  2 19 required to pay advances authorized under this section, which
  2 20 shall be paid to school districts in the same manner as other
  2 21 state aids are paid under section 257.16.
  2 22    Sec. 2.  Section 257.16, unnumbered paragraph 2, Code
  2 23 Supplement 1995, is amended to read as follows:
  2 24    All state aids paid under this chapter, unless otherwise
  2 25 stated, shall be paid in monthly installments beginning on
  2 26 September 15 of a budget year and ending on or about June 15
  2 27 of the budget year as determined by the department of
  2 28 management, taking into consideration the relative budget and
  2 29 cash position of the state resources.  However, the state aid
  2 30 paid to school districts under section 257.13 shall be paid in
  2 31 monthly installments beginning on December 15 and ending on
  2 32 June 15 of that year.
  2 33    Sec. 3.  This Act, being deemed of immediate importance,
  2 34 takes effect upon enactment for the purpose of computations
  2 35 required for payment of state aid to and levying of property
  3  1 taxes by school districts for budget years beginning on or
  3  2 after July 1, 1996.  
  3  3                           EXPLANATION
  3  4    This bill provides that if the actual enrollment of a
  3  5 school district exceeds the budget enrollment for the budget
  3  6 year, the district can receive a funding advance attributable
  3  7 to the increased enrollment.
  3  8    The amount of the advance is determined through application
  3  9 of a graduated schedule containing proportionate increases in
  3 10 funding corresponding to the percentage of increased
  3 11 enrollment.  If the district's actual enrollment for the
  3 12 budget year exceeds 100 students, the district is entitled to
  3 13 add an additional 20 percentage points in utilizing the
  3 14 schedule to calculate the amount of a funding advance.
  3 15 Amounts received by the district will be reduced by any budget
  3 16 adjustment receivable by the district pursuant to section
  3 17 257.14.
  3 18    In the event that additional funding for the budget year is
  3 19 determined necessary, the board of directors of the school
  3 20 district can apply to the school budget review committee for
  3 21 supplemental aid.
  3 22    The advance received in a given budget year will impact the
  3 23 following year's state aid and property tax levels.  The
  3 24 amount of the advance which would have been generated by
  3 25 property taxes if the actual (increased) enrollment figure was
  3 26 used in determining the district cost will be calculated by
  3 27 the department of management.  This amount will reduce the
  3 28 level of state aid available to the district for the following
  3 29 year, but not by more than the amount of the advance.  The
  3 30 district's additional property tax levy for the following
  3 31 budget year will then be increased by the amount necessary to
  3 32 compensate for the reduction in state aid.
  3 33    The bill provides for the appropriation of an amount
  3 34 necessary to pay the advances each fiscal year to the
  3 35 department of education, provides for payments beginning on
  4  1 December 15, and provides for an effective date upon
  4  2 enactment.  
  4  3 LSB 3977YC 76
  4  4 rn/sc/14
     

Text: HSB00557                          Text: HSB00559
Text: HSB00500 - HSB00599               Text: HSB Index
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