H-1202

   Amend House File 564 as follows:
   1.  Page 8, after line 14 by inserting: 
<DIVISION ___
BUDGET ADJUSTMENT

   Sec. ___.  Section 257.2, subsection 2, Code 2017, is amended by striking the subsection.
   Sec. ___.  NEW SECTION.  257.14A  District cost per pupil equity —— budget adjustment.
   1.  The board of directors of a school district with a regular program district cost per pupil that is less than the highest regular program district cost per pupil among all school districts in the state for the same budget year that wishes to receive the budget adjustment under this section may adopt a resolution by May 15 preceding the budget year and shall within ten days of adoption of the resolution notify the department of management of the amount of the budget adjustment to be received.
   2.  a.  For budget years beginning on or after July 1, 2017, each school district that satisfies the requirements of subsection 1 shall be eligible for a budget adjustment for that budget year in an amount not to exceed the difference between the school district’s regular program district cost per pupil and the highest regular program district cost per pupil among all school districts in the state multiplied by the district’s budget enrollment. The resolution adopted under subsection 1 may specify a budget adjustment amount that is less than the maximum amount authorized under this paragraph “a”.
   b.  The school district shall fund the budget adjustment either by using moneys from its unexpended fund balance or by using cash reserve moneys.
   3.  A budget adjustment received under this section shall not affect the eligibility for or amount of any other budget adjustment authorized by law for the same budget year. In addition, a budget adjustment under this section shall be limited to the budget year for which the adjustment was authorized and shall not be included in any computation of a school district’s cost for any future budget year.
   Sec. ___.  Section 257.34, Code 2017, is amended to read as follows:
   257.34  Cash reserve information.

   1.  If a school district receives less state school foundation aid under section 257.1 than is due under that section for a base year and the school district uses funds from its cash reserve during the base year to make up for the amount of state aid not paid, the board of directors of the school district shall include in its general fund budget document information about the amount of the cash reserve used to replace state school foundation aid not paid.
   2.  If a school district uses funds from its cash reserve during the base year to fund a budget adjustment under section 257.14A, the board of directors of the school district shall include in its general fund budget document information about the amount of the cash reserve used for such purpose.
   Sec. ___.  IMPLEMENTATION.  Notwithstanding the deadline for adopting a resolution to approve the budget adjustment in section 257.14A, subsection 1, for the school budget year beginning July 1, 2017, the resolution of the board of directors of a school district shall be approved not later than June 10, 2017.
   Sec. ___.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, take effect upon enactment.>
   2.  Title page, line 2, by striking <expenditures and transfers> and inserting <expenditures, transfers, and budget adjustments>
   3.  By renumbering, redesignating, and correcting internal references as necessary.

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WINCKLER of Scott

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KURTH of Scott

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THEDE of Scott