Senate File 2323 H-8273 Amend Senate File 2323, as amended, passed, and 1 reprinted by the Senate, as follows: 2 1. Page 34, after line 6 by inserting: 3 < DIVISION ___ 4 REQUIREMENTS FOR ESTABLISHING 5 STATE PERCENTS OF GROWTH 6 Sec. ___. Section 257.2, subsection 11, Code 2016, 7 is amended to read as follows: 8 11. “State percent of growth” means the percent 9 of growth which is established by statute pursuant to 10 section 257.8 , and which is used in determining the 11 supplemental state aid. 12 Sec. ___. Section 257.8, subsections 1 and 2, Code 13 2016, are amended to read as follows: 14 1. State percent of growth. 15 a. The state percent of growth for the budget year 16 beginning July 1, 2013, is two percent. The state 17 percent of growth for the budget year beginning July 18 1, 2014, is four percent. The state percent of growth 19 for the budget year beginning July 1, 2015, is one and 20 twenty-five hundredths percent. The state percent of 21 growth for each subsequent budget year beginning before 22 July 1, 2017, shall be established by statute which 23 shall be enacted within thirty days of the submission 24 in the year preceding the base year of the governor’s 25 budget under section 8.21 . The state percent of growth 26 for the budget year beginning July 1, 2017, and each 27 subsequent budget year, shall be established by statute 28 which shall be enacted within fourteen days following 29 the first meeting of the revenue estimating conference 30 held in March pursuant to section 8.22A, subsection 2, 31 during the year preceding the base year or shall be 32 established as otherwise provided in paragraph “b” . 33 The establishment of the state percent of growth for 34 a budget year shall be the only subject matter of the 35 -1- SF2323.3748 (2) 86 md/sc 1/ 6 #1.

bill which enacts the state percent of growth for a 1 budget year. 2 b. For each budget year beginning on or after July 3 1, 2017, for which the state percent of growth has not 4 been established by statute within the applicable time 5 period specified in paragraph “a” , the state percent 6 of growth for that budget year shall be a percentage 7 equal to the school finance factor as determined under 8 subsection 6. 9 2. Categorical state percent of growth. 10 a. The categorical state percent of growth for the 11 budget year beginning July 1, 2013, is two percent. 12 The categorical state percent of growth for the budget 13 year beginning July 1, 2014, is four percent. The 14 categorical state percent of growth for the budget 15 year beginning July 1, 2015, is one and twenty-five 16 hundredths percent. The categorical state percent of 17 growth for each budget year beginning before July 1, 18 2017, shall be established by statute which shall be 19 enacted within thirty days of the submission in the 20 year preceding the base year of the governor’s budget 21 under section 8.21 . The categorical state percent of 22 growth for the budget year beginning July 1, 2017, and 23 each subsequent budget year, shall be established by 24 statute which shall be enacted within fourteen days 25 following the first meeting of the revenue estimating 26 conference held in March pursuant to section 8.22A, 27 subsection 2, during the year preceding the base 28 year or shall be established as otherwise provided in 29 paragraph “b” . The establishment of the categorical 30 state percent of growth for a budget year shall be 31 the only subject matter of the bill which enacts 32 the categorical state percent of growth for a budget 33 year. The categorical state percent of growth may 34 include state percents of growth for the teacher salary 35 -2- SF2323.3748 (2) 86 md/sc 2/ 6

supplement, the professional development supplement, 1 the early intervention supplement, and the teacher 2 leadership supplement. 3 b. For each budget year beginning on or after July 4 1, 2017, for which the categorical state percent of 5 growth has not been established by statute within the 6 applicable time period specified in paragraph “a” , the 7 categorical state percent of growth for that budget 8 year shall be a percentage equal to the school finance 9 factor as determined under subsection 6. 10 Sec. ___. Section 257.8, Code 2016, is amended by 11 adding the following new subsection: 12 NEW SUBSECTION . 6. a. “School finance factor” 13 is an index, expressed as a percentage rounded to the 14 nearest one-hundredth of one percent, calculated by the 15 department of management, that is the percentage change 16 between the following: 17 (1) The general fund revenue estimate made during 18 the first revenue estimating conference meeting held in 19 March pursuant to section 8.22A, subsection 2, during 20 the year preceding the base year for the fiscal year 21 beginning July 1 of the calendar year in which the 22 meeting is held. 23 (2) The general fund revenue estimate made by the 24 revenue estimating conference during the first meeting 25 held in March pursuant to section 8.22A, subsection 2, 26 during the year preceding the base year for the fiscal 27 year beginning July 1 of the calendar year following 28 the calendar year in which the meeting is held. 29 b. If the school finance factor for a budget year, 30 as calculated under paragraph “a” , is less than zero 31 percent, the school finance factor for that budget year 32 shall be zero percent. > 33 2. Title page, line 5, after < matters, > by 34 inserting < modifying requirements for establishment of 35 -3- SF2323.3748 (2) 86 md/sc 3/ 6

state percents of growth, > 1 3. By renumbering, redesignating, and correcting 2 internal references as necessary. 3 ______________________________ WINCKLER of Scott ______________________________ ABDUL-SAMAD of Polk ______________________________ ANDERSON of Polk ______________________________ BERRY of Black Hawk ______________________________ COHOON of Des Moines ______________________________ DAWSON of Woodbury ______________________________ GASKILL of Wapello ______________________________ HANSON of Jefferson -4- SF2323.3748 (2) 86 md/sc 4/ 6 #3.

______________________________ HUNTER of Polk ______________________________ ISENHART of Dubuque ______________________________ JACOBY of Johnson ______________________________ KEARNS of Lee ______________________________ KELLEY of Jasper ______________________________ KRESSIG of Black Hawk ______________________________ LENSING of Johnson ______________________________ MASCHER of Johnson ______________________________ H. MILLER of Webster -5- SF2323.3748 (2) 86 md/sc 5/ 6

______________________________ OLSON of Polk ______________________________ STECKMAN of Cerro Gordo ______________________________ STUTSMAN of Johnson ______________________________ T. TAYLOR of Linn ______________________________ THEDE of Scott -6- SF2323.3748 (2) 86 md/sc 6/ 6