House File 487 - Introduced



                                       HOUSE FILE       
                                       BY  WISE


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for a gradual increase in state funding for the
  2    instructional support program and incorporation of the program
  3    into the school finance formula, and providing an effective
  4    date.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2178HH 81
  7 rn/sh/8

PAG LIN



  1  1    Section 1.  Section 257.8, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  4A.  ALTERNATE ALLOWABLE GROWTH ==
  1  4 INSTRUCTIONAL SUPPORT PROGRAM.
  1  5    a.  Notwithstanding the calculation in subsection 2, for
  1  6 purposes of providing additional funding for instructional
  1  7 support, the department of management shall calculate the
  1  8 regular program allowable growth for the budget years
  1  9 beginning July 1, 2006, through July 1, 2010, by multiplying
  1 10 the state percent of growth for the budget year by the regular
  1 11 program state cost per pupil for the base year, and adding to
  1 12 the resulting product the following:
  1 13    (1)  For the budget year beginning July 1, 2006, fifty=one
  1 14 dollars and twenty cents.
  1 15    (2)  For the budget year beginning July 1, 2007, fifty=one
  1 16 dollars and twenty cents.
  1 17    (3)  For the budget year beginning July 1, 2008, fifty=one
  1 18 dollars and twenty cents.
  1 19    (4)  For the budget year beginning July 1, 2009, fifty=one
  1 20 dollars and twenty cents.
  1 21    (5)  For the budget year beginning July 1, 2010, fifty=one
  1 22 dollars and twenty cents.
  1 23    For purposes of determining the amount of a budget
  1 24 adjustment as defined in section 257.14, amounts added to
  1 25 allowable growth pursuant to this paragraph "a" shall be
  1 26 subtracted from the school district's regular program cost per
  1 27 pupil for the budget years beginning July 1, 2006, through
  1 28 July 1, 2010, prior to determining the amount of the
  1 29 adjustment.
  1 30    b.  A school district shall calculate allowable growth
  1 31 pursuant to the provisions of subsection 2 for the budget
  1 32 years beginning July 1, 2007, and succeeding budget years,
  1 33 utilizing a regular program state cost per pupil figure which
  1 34 incorporates the increases in regular program allowable growth
  1 35 calculated pursuant to paragraph "a".
  2  1    Sec. 2.  Section 257.20, Code 2005, is amended by striking
  2  2 the section and inserting in lieu thereof the following:
  2  3    257.20  INSTRUCTIONAL SUPPORT == STATE FUNDING.
  2  4    1.  For the budget year beginning July 1, 2006, and for
  2  5 succeeding budget years, instructional support state aid shall
  2  6 be provided through the annual increases in allowable growth
  2  7 pursuant to the schedule contained in section 257.8,
  2  8 subsection 4A.  The remaining portion of instructional support
  2  9 program funding for the budget years beginning July 1, 2006,
  2 10 through July 1, 2009, shall be derived from local funding
  2 11 using either the instructional support property tax or a
  2 12 combination of the instructional support property tax and an
  2 13 instructional support income surtax.  For the budget year
  2 14 commencing July 1, 2010, and succeeding budget years, the
  2 15 increase in allowable growth pursuant to section 257.8,
  2 16 subsection 4A, shall provide one hundred percent of the
  2 17 funding for instructional support.
  2 18    2.  For the budget years beginning July 1, 2006, through
  2 19 July 1, 2009, the board of directors of a school district
  2 20 adopting a resolution to participate in the instructional
  2 21 support program, or of a district reaching the expiration of
  2 22 the period for which the instructional support program was
  2 23 adopted, may impose or renew local funding only through the
  2 24 budget year beginning July 1, 2009.
  2 25    Sec. 3.  Section 257.27, Code 2005, is amended to read as
  2 26 follows:
  2 27    257.27  CONTINUATION OF INSTRUCTIONAL SUPPORT PROGRAM.
  2 28    At the expiration of the period for which the instructional
  2 29 support program was adopted, the program may be extended for a
  2 30 period of not exceeding five or ten years in the manner
  2 31 provided in section 257.18.
  2 32    If the voters do not approve adoption of the instructional
  2 33 support program, the board shall wait at least one hundred
  2 34 twenty days following the election before taking action to
  2 35 adopt the program or resubmit the proposition.
  3  1    Sec. 4.  NEW SECTION.  257.27A  FUTURE REPEAL.
  3  2    Sections 257.18 through 257.27 are repealed July 1, 2010.
  3  3    Sec. 5.  EFFECTIVE DATE.  This Act takes effect July 1,
  3  4 2006.
  3  5                           EXPLANATION
  3  6    This bill provides for the gradual incorporation of the
  3  7 instructional support program into the school finance formula.
  3  8    The bill provides for additional increases in allowable
  3  9 growth over a five=year period beginning July 1, 2006.  The
  3 10 bill provides that the additional increases in allowable
  3 11 growth shall be in the amount of $51.20, which corresponds to
  3 12 the current amount of instructional support state and local
  3 13 funding divided by weighted enrollment.  The bill provides
  3 14 that school districts shall calculate the regular program
  3 15 allowable growth for the budget year beginning July 1, 2007,
  3 16 and succeeding budget years, utilizing a regular program state
  3 17 cost per pupil figure which incorporates these increases in
  3 18 regular program allowable growth.
  3 19    The bill provides that for purposes of determining the
  3 20 amount of a budget adjustment pursuant to Code section 257.14,
  3 21 the alternative allowable growth increases shall be subtracted
  3 22 from the school district's regular program cost per pupil
  3 23 prior to determining the amount of the adjustment.
  3 24    The bill makes changes to instructional support program
  3 25 provisions relating to participation in the program and
  3 26 imposition of property tax or income surtax, and provides for
  3 27 the future repeal of the program effective July 1, 2010.
  3 28    The bill takes effect July 1, 2006.
  3 29 LSB 2178HH 81
  3 30 rn:nh/sh/8