House File 565 H-1192 Amend House File 565 as follows: 1 1. Page 1, after line 24 by inserting: 2 < Sec. ___. Section 257.2, subsection 2, Code 2017, 3 is amended by striking the subsection. > 4 2. Page 2, after line 3 by inserting: 5 < Sec. ___. NEW SECTION . 257.14A District cost per 6 pupil equity —— budget adjustment. 7 1. The board of directors of a school district 8 with a regular program district cost per pupil that is 9 less than the highest regular program district cost 10 per pupil among all school districts in the state for 11 the same budget year that wishes to receive the budget 12 adjustment under this section may adopt a resolution 13 by May 15 preceding the budget year and shall within 14 ten days of adoption of the resolution notify the 15 department of management of the amount of the budget 16 adjustment to be received. 17 2. a. For budget years beginning on or after 18 July 1, 2017, each school district that satisfies the 19 requirements of subsection 1 shall be eligible for a 20 budget adjustment for that budget year in an amount not 21 to exceed the difference between the school district’s 22 regular program district cost per pupil and the 23 highest regular program district cost per pupil among 24 all school districts in the state multiplied by the 25 district’s budget enrollment. The resolution adopted 26 under subsection 1 may specify a budget adjustment 27 amount that is less than the maximum amount authorized 28 under this paragraph “ a ”. 29 b. The school district shall fund the budget 30 adjustment either by using moneys from its unexpended 31 fund balance or by using cash reserve moneys. 32 3. A budget adjustment received under this section 33 shall not affect the eligibility for or amount of any 34 other budget adjustment authorized by law for the same 35 -1- HF565.1485 (1) 87 md/jh 1/ 3 #1. #2.

budget year. In addition, a budget adjustment under 1 this section shall be limited to the budget year for 2 which the adjustment was authorized and shall not be 3 included in any computation of a school district’s cost 4 for any future budget year. 5 Sec. ___. Section 257.34, Code 2017, is amended to 6 read as follows: 7 257.34 Cash reserve information. 8 1. If a school district receives less state school 9 foundation aid under section 257.1 than is due under 10 that section for a base year and the school district 11 uses funds from its cash reserve during the base year 12 to make up for the amount of state aid not paid, the 13 board of directors of the school district shall include 14 in its general fund budget document information about 15 the amount of the cash reserve used to replace state 16 school foundation aid not paid. 17 2. If a school district uses funds from its 18 cash reserve during the base year to fund a budget 19 adjustment under section 257.14A, the board of 20 directors of the school district shall include in its 21 general fund budget document information about the 22 amount of the cash reserve used for such purpose. > 23 3. Page 7, after line 24 by inserting: 24 < Sec. ___. IMPLEMENTATION. Notwithstanding the 25 deadline for adopting a resolution to approve the 26 budget adjustment in section 257.14A, subsection 1, 27 for the school budget year beginning July 1, 2017, 28 the resolution of the board of directors of a school 29 district shall be approved not later than June 10, 30 2017. 31 Sec. ___. EFFECTIVE UPON ENACTMENT. The following 32 provisions of this Act, being deemed of immediate 33 importance, take effect upon enactment: 34 1. The section of this Act amending section 257.2, 35 -2- HF565.1485 (1) 87 md/jh 2/ 3 #3.

subsection 2. 1 2. The section of this Act enacting section 2 257.14A. 3 3. The section of this Act amending section 4 257.34. > 5 4. Title page, by striking lines 2 through 4 6 and inserting < the establishment of school district 7 flexibility funds, authorizing the transfer and 8 expenditure of certain unexpended and unobligated 9 funds, establishing a budget adjustment, and including 10 effective date provisions. > 11 5. By renumbering as necessary. 12 ______________________________ WINCKLER of Scott ______________________________ KURTH of Scott ______________________________ THEDE of Scott -3- HF565.1485 (1) 87 md/jh 3/ 3 #4. #5.