Senate File 2413 - Enrolled PAG LIN 1 1 SENATE FILE 2413 1 2 1 3 AN ACT 1 4 RELATING TO SCHOOL BUDGETS, INCLUDING BY PROVIDING FOR REQUESTS 1 5 AND APPLICATIONS SUBMITTED BY SCHOOL DISTRICTS TO THE SCHOOL 1 6 BUDGET REVIEW COMMITTEE AND DOCUMENTS SUBMITTED TO OTHER 1 7 STATE AGENCIES CONCERNING SCHOOL DISTRICT FINANCES, AND 1 8 PROVIDING AN EFFECTIVE DATE. 1 9 1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 11 1 12 Section 1. Section 257.13, subsection 2, Code 2007, is 1 13 amended to read as follows: 1 14 2. The board of directors of a school district that wishes 1 15 to receive an on=time funding budget adjustment shall adopt a 1 16 resolution to receive the adjustment and notify the school 1 17 budget review committeeby November 1,annually, but not 1 18 earlier than November 1, as determined by the department of 1 19 education. The school budget review committee shall establish 1 20 a modified allowable growth in an amount determined pursuant 1 21 to subsection 1. 1 22 Sec. 2. Section 257.14, subsection 2, Code 2007, is 1 23 amended to read as follows: 1 24 2. For the budget years commencing July 1, 2002, and July 1 25 1, 2003, if the department of management determines that the 1 26 regular program district cost of a school district for a 1 27 budget year is less than the total of the regular program 1 28 district cost plus any adjustment added under this section for 1 29 the base year for that school district, the school district 1 30 shall be eligible to receive a budget adjustment for that 1 31 district for that budget year up to an amount equal to the 1 32 difference. The board of directors of a school district that 1 33 wishes to receive a budget adjustment pursuant to this 1 34 subsection shall adopt a resolution to receive the budget 1 35 adjustment byAprilMay 15, annually, and shall notify the 2 1 department of management of the adoption of the resolution and 2 2 the amount of the budget adjustment to be received. 2 3 Sec. 3. Section 257.14, subsection 3, unnumbered paragraph 2 4 2, Code 2007, is amended to read as follows: 2 5 The board of directors of a school district that wishes to 2 6 receive a budget adjustment pursuant to this subsection shall 2 7 adopt a resolution to receive the budget adjustment byApril2 8 May 15, annually, and shall notify the department of 2 9 management of the adoption of the resolution and the amount of 2 10 the budget adjustment to be received. 2 11 Sec. 4. MODIFIED ALLOWABLE GROWTH GRANTED FOR A CHANGE IN 2 12 ACCOUNTING OR BUDGETING METHODS. Notwithstanding any 2 13 provision in chapter 257 or title 289 of the Iowa 2 14 administrative code to the contrary, this section applies to a 2 15 school district, required to budget on the generally accepted 2 16 accounting principles basis of budgeting beginning with fiscal 2 17 year beginning July 1, 2006, and ending June 30, 2007. 2 18 1. a. If the school district determines that the amount 2 19 of modified allowable growth granted for the change in 2 20 accounting or budgeting methods was not adequate as provided 2 21 in 289 IAC 6.5, the school district requested on March 10, 2 22 2008, modified allowable growth for the conversion to the 2 23 generally accepted accounting principles basis of budgeting 2 24 and the school district has been notified by the department of 2 25 education that it is likely to have a negative unspent 2 26 authorized budget on June 30, 2008, or June 30, 2009, and the 2 27 school budget review committee has not previously considered a 2 28 timely submitted request, the school district may make a 2 29 request to the school budget review committee to grant 2 30 additional modified allowable growth for purposes of 2 31 increasing the amount of the school district's unspent 2 32 balance. The request must include a verification from the 2 33 school district's independent auditor of the amount by which 2 34 the change to generally accepted accounting principles basis 2 35 of budgeting contributed to the district's negative unspent 3 1 authorized budget. 3 2 b. The school budget review committee must receive the 3 3 request described in paragraph "a" on or before August 15, 3 4 2008. 3 5 2. Except as provided in subsection 1, the school budget 3 6 review committee shall approve or disapprove the request using 3 7 the same criteria as if the request had been submitted at its 3 8 May 2006 regular meeting. 3 9 Sec. 5. ON=TIME FUNDING BUDGET ADJUSTMENTS. 3 10 Notwithstanding any provision in chapter 257 or title 289 of 3 11 the Iowa administrative code to the contrary, all of the 3 12 following shall apply: 3 13 1. a. If the board of directors of a school district 3 14 determines under section 257.6 that the school district's 3 15 actual enrollment for the budget year beginning July 1, 2006, 3 16 and ending June 30, 2007, was greater than its budget 3 17 enrollment for the budget year, the district shall be eligible 3 18 to receive an on=time funding budget adjustment as provided in 3 19 section 257.13. 3 20 b. A school district that wishes to receive an on=time 3 21 funding budget adjustment under paragraph "a" shall adopt a 3 22 resolution to receive the adjustment and notify the school 3 23 budget review committee in the same manner as provided in 3 24 section 257.13 and submit an application to the school budget 3 25 review committee as provided in 289 IAC 7.4. The school 3 26 budget review committee must receive the application on or 3 27 before August 15, 2008. 3 28 c. Except as otherwise provided in paragraphs "a" and "b", 3 29 the school budget review committee shall approve or disapprove 3 30 the application using the same criteria as if the application 3 31 had been submitted on November 1, 2006. However, the school 3 32 budget review committee shall not approve a timely submitted 3 33 application that it previously considered. 3 34 2. a. If the board of directors of a school district 3 35 determines under section 257.6 that the school district's 4 1 actual enrollment for the budget year beginning July 1, 2007, 4 2 and ending June 30, 2008, was greater than its budget 4 3 enrollment for the budget year, the district shall be eligible 4 4 to receive an on=time funding budget adjustment as provided in 4 5 section 257.13. 4 6 b. A school district that wishes to receive an on=time 4 7 funding budget adjustment under paragraph "a" shall adopt a 4 8 resolution to receive the adjustment and notify the school 4 9 budget review committee in the same manner as provided in 4 10 section 257.13 and submit an application to the school budget 4 11 review committee as provided in 289 IAC 7.4. The school 4 12 budget review committee must receive the application on or 4 13 before August 15, 2008. 4 14 c. Except as otherwise provided in paragraphs "a" and "b", 4 15 the school budget review committee shall approve or disapprove 4 16 the application using the same criteria as if the application 4 17 had been submitted on November 1, 2007. However, the school 4 18 budget review committee shall not approve a timely submitted 4 19 application that it previously considered. 4 20 Sec. 6. EFFECTIVE DATE. This Act, being deemed of 4 21 immediate importance, takes effect upon enactment. 4 22 4 23 4 24 4 25 JOHN P. KIBBIE 4 26 President of the Senate 4 27 4 28 4 29 4 30 PATRICK J. MURPHY 4 31 Speaker of the House 4 32 4 33 I hereby certify that this bill originated in the Senate and 4 34 is known as Senate File 2413, Eighty=second General Assembly. 4 35 5 1 5 2 5 3 MICHAEL E. MARSHALL 5 4 Secretary of the Senate 5 5 Approved , 2008 5 6 5 7 5 8 5 9 CHESTER J. CULVER 5 10 Governor