House File 218
HOUSE FILE
BY BOAL, HUSER, MURPHY, KRAMER,
DANDEKAR, WATTS, JACOBS,
ELGIN, and FOEGE
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing on=time funding for school districts with
2 increasing enrollments, making an appropriation, and providing
3 effective and applicability dates.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2146HH 80
6 rn/cl/14
PAG LIN
1 1 Section 1. Section 257.13, Code 2003, is amended by
1 2 striking the section and inserting in lieu thereof the
1 3 following:
1 4 257.13 ON=TIME FUNDING BUDGET ADJUSTMENT.
1 5 1. For the school budget year beginning July 1, 2003, and
1 6 succeeding budget years, if a district's actual enrollment for
1 7 the budget year, determined under section 257.6, is greater
1 8 than its budget enrollment for the budget year, the district
1 9 shall receive an on=time funding budget adjustment. The
1 10 adjustment shall be in an amount equal to the difference
1 11 between the actual enrollment for the budget year and the
1 12 budget enrollment for the budget year, multiplied by the
1 13 district cost per pupil. The additional funding received
1 14 under this section is miscellaneous income to the school
1 15 district.
1 16 2. A school district that is receiving a budget adjustment
1 17 for a budget year pursuant to section 257.14 shall receive on=
1 18 time funding for increased enrollment, reduced by the amount
1 19 of the budget adjustment for that budget year. The resulting
1 20 amount shall not be less than zero.
1 21 3. If a district receives additional funding under this
1 22 section for a budget year, the department of management shall
1 23 determine the amount of the additional funding which would
1 24 have been generated by local property tax revenues, in
1 25 proportion to the amount of funding actually received pursuant
1 26 to this section, if the actual enrollment for the budget year
1 27 had been used in determining district cost for that budget
1 28 year. The department of management shall reduce, but not by
1 29 more than the amount of the additional funding, the district's
1 30 total state school aid otherwise available under this chapter
1 31 for the next budget year by the amount so determined, and
1 32 shall increase the district's additional property tax levy for
1 33 the next budget year by the amount necessary to compensate for
1 34 the reduction in state aid, so that the local property tax for
1 35 the next following year will be increased only by the amount
2 1 which it would have been increased in the budget year if the
2 2 enrollment calculated in this section could have been used to
2 3 establish the levy.
2 4 4. There is appropriated each fiscal year from the general
2 5 fund of the state to the department of education the amount
2 6 required to pay additional funding authorized under this
2 7 section, which shall be paid to school districts in the same
2 8 manner as other state aid payable under section 257.16.
2 9 Sec. 2. APPLICABILITY AND EFFECTIVE DATE. This Act, being
2 10 deemed of immediate importance, takes effect upon enactment
2 11 and applies to the computation of school aid under the state
2 12 school foundation program for the school budget year beginning
2 13 July 1, 2003.
2 14 EXPLANATION
2 15 This bill provides additional funding for school districts
2 16 that have increasing enrollments.
2 17 The bill provides that for the school budget year beginning
2 18 July 1, 2003, and succeeding budget years, if a district's
2 19 actual enrollment for the budget year is greater than its
2 20 budget enrollment for the budget year, the district shall
2 21 receive an on=time funding budget adjustment. The bill
2 22 provides that the adjustment shall be in an amount equal to
2 23 the difference between the actual enrollment for the budget
2 24 year and the budget enrollment for the budget year, multiplied
2 25 by the district cost per pupil. The bill makes an adjustment
2 26 to the budget guarantee provisions of Code section 257.14 to
2 27 reflect the amount of the adjustment received. The bill
2 28 provides that the additional funding received under the bill
2 29 is miscellaneous income to the school district, and will be
2 30 paid to school districts in the same manner as other state aid
2 31 is paid pursuant to Code section 257.16.
2 32 The bill provides that the additional funding received in a
2 33 given budget year will impact the following year's state aid
2 34 and property tax levels. The bill provides that the amount
2 35 which would have been generated by property taxes if the
3 1 actual (increased) enrollment figure was used in determining
3 2 the district cost will be calculated by the department of
3 3 management. This amount will reduce the level of state aid
3 4 available to the district for the following year, but not by
3 5 more than the amount of the additional funding. The bill
3 6 provides that the district's additional property tax levy for
3 7 the following budget year will then be increased by the amount
3 8 necessary to compensate for the reduction in state aid.
3 9 The bill takes effect upon enactment and applies to the
3 10 school budget year beginning July 1, 2003.
3 11 LSB 2146HH 80
3 12 rn/cl/14