House File 578 - Introduced
HOUSE FILE
BY BOAL, ELGIN, FREEMAN,
JOCHUM, McCARTHY, PETERSEN,
D. TAYLOR, LUKAN, and
DANDEKAR
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 2669YH 81
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PAG LIN
1 1 Section 1. Section 257.13, Code 2005, 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, 2005, 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 which is receiving a budget
1 17 adjustment for a budget year pursuant to section 257.14 shall
1 18 receive on=time funding for increased enrollment, reduced by
1 19 the amount of the budget adjustment for that budget year. The
1 20 resulting 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 determined amount of additional funding which
1 30 would have been generated by local property tax revenues, the
1 31 district's total state school aid otherwise available under
1 32 this chapter for the next following budget year.
1 33 4. There is appropriated each fiscal year from the general
1 34 fund of the state to the department of education an amount
1 35 required to pay the additional funding authorized under this
2 1 section corresponding to the following schedule:
2 2 a. For the fiscal year beginning July 1, 2005, and ending
2 3 June 30, 2006, twenty percent of the amount required to pay
2 4 the additional funding.
2 5 b. For the fiscal year beginning July 1, 2006, and ending
2 6 June 30, 2007, forty percent of the amount required to pay the
2 7 additional funding.
2 8 c. For the fiscal year beginning July 1, 2007, and ending
2 9 June 30, 2008, sixty percent of the amount required to pay the
2 10 additional funding.
2 11 d. For the fiscal year beginning July 1, 2008, and ending
2 12 June 30, 2009, eighty percent of the amount required to pay
2 13 the additional funding.
2 14 e. For the fiscal year beginning July 1, 2009, and each
2 15 succeeding fiscal year, one hundred percent of the amount
2 16 required to pay the additional funding.
2 17 The amount required to pay the additional funding pursuant
2 18 to this section shall be determined annually by the department
2 19 of management, and shall be paid to school districts in the
2 20 same manner as other state aid payable under section 257.16.
2 21 5. APPLICABILITY AND EFFECTIVE DATE. This Act, being
2 22 deemed of immediate importance, takes effect upon enactment
2 23 and applies to the computation of school aid under the state
2 24 school foundation program for the school budget year beginning
2 25 July 1, 2005.
2 26 EXPLANATION
2 27 This bill provides additional funding for school districts
2 28 that have increasing enrollments.
2 29 The bill provides that for the school budget year beginning
2 30 July 1, 2005, and succeeding budget years, if a district's
2 31 actual enrollment for the budget year is greater than its
2 32 budget enrollment for the budget year, the district shall
2 33 receive an on=time funding budget adjustment. The bill
2 34 provides that the adjustment shall be in an amount equal to
2 35 the difference between the actual enrollment for the budget
3 1 year and the budget enrollment for the budget year, multiplied
3 2 by the district cost per pupil. The bill makes an adjustment
3 3 to the budget guarantee provisions of Code section 257.14 to
3 4 reflect the amount of the adjustment received. The bill
3 5 provides that the additional funding received under this
3 6 section is miscellaneous income to the school district.
3 7 The bill provides that the additional funding received in a
3 8 given budget year will impact the following year's state aid
3 9 levels. The bill provides that the amount which would have
3 10 been generated by property taxes if the actual (increased)
3 11 enrollment figure was used in determining the district cost
3 12 will be calculated by the department of management. This
3 13 amount will reduce the level of state aid available to the
3 14 district for the following year, but not by more than the
3 15 amount determined that would have been generated by property
3 16 taxes.
3 17 The bill provides for an appropriation from the general
3 18 fund of the state to the department of education for the
3 19 fiscal year beginning July 1, 2005, and ending June 30, 2006,
3 20 of 20 percent of the amount required to pay the additional
3 21 funding. The bill provides that in succeeding fiscal years
3 22 this percentage increases by 20 percent each year, until it
3 23 reaches 100 percent for the fiscal year beginning July 1,
3 24 2009, and succeeding fiscal years. The bill provides that the
3 25 amount required to pay the additional funding shall be
3 26 determined annually by the department of management, and shall
3 27 be paid to school districts in the same manner as other state
3 28 aid payable under Code section 257.16.
3 29 The bill takes effect upon enactment and applies to the
3 30 school budget year beginning July 1, 2005, and succeeding
3 31 budget years.
3 32 LSB 2669YH 81
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