House File 848 - Introduced HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 288) (SUCCESSOR TO HF 139) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to education funding by increasing the regular 2 program foundation base, establishing a community college 3 local workforce and economic development fund and levy, and 4 providing effective and applicability dates. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2134HZ 81 7 rn/pj/5 PAG LIN 1 1 Section 1. Section 257.1, subsection 2, unnumbered 1 2 paragraph 2, Code 2005, is amended by striking the unnumbered 1 3 paragraph and inserting in lieu thereof the following: 1 4 The regular program foundation base per pupil is the 1 5 following: 1 6 a. For the budget year commencing July 1, 2006, the 1 7 regular program foundation base per pupil is eighty=nine and 1 8 twenty=eight hundredths percent of the regular program state 1 9 cost per pupil. 1 10 b. For the budget year commencing July 1, 2007, the 1 11 regular program foundation base per pupil is ninety=one and 1 12 six hundredths percent of the regular program state cost per 1 13 pupil. 1 14 c. For the budget year commencing July 1, 2008, the 1 15 regular program foundation base per pupil is ninety=two and 1 16 eighty=four hundredths percent of the regular program state 1 17 cost per pupil. 1 18 d. For the budget year commencing July 1, 2009, the 1 19 regular program foundation base per pupil is ninety=four and 1 20 sixty=two hundredths percent of the regular program state cost 1 21 per pupil. 1 22 e. For the budget year commencing July 1, 2010, the 1 23 regular program foundation base per pupil is ninety=six and 1 24 forty hundredths percent of the regular program state cost per 1 25 pupil. 1 26 f. For the budget year commencing July 1, 2011, the 1 27 regular program foundation base per pupil is ninety=eight and 1 28 eighteen hundredths percent of the regular program state cost 1 29 per pupil. 1 30 g. For the budget year commencing July 1, 2012, and 1 31 succeeding budget years, the regular program foundation base 1 32 per pupil is one hundred percent of the regular program state 1 33 cost per pupil. 1 34 For each budget year the special education support services 1 35 foundation base is seventy=nine percent of the special 2 1 education support services state cost per pupil. The combined 2 2 foundation base is the sum of the regular program foundation 2 3 base and the special education support services foundation 2 4 base. 2 5 Sec. 2. NEW SECTION. 260C.22A LOCAL WORKFORCE AND 2 6 ECONOMIC DEVELOPMENT FUND == LEVY. 2 7 1. LOCAL WORKFORCE AND ECONOMIC DEVELOPMENT FUND. A local 2 8 workforce and economic development fund is created at each 2 9 community college. Moneys shall be deposited and expended 2 10 from the fund as provided under this section. 2 11 2. LEVY. In addition to the tax authorized under section 2 12 260C.17, a local workforce and economic development levy is 2 13 created. The board of directors of a community college may 2 14 certify for levy by March 15 for collection in the subsequent 2 15 fiscal year, a tax on all taxable property in the merged area 2 16 for the community college local workforce and economic 2 17 development fund. The sum of the moneys collected by a 2 18 community college under the levy shall not exceed the sum of 2 19 twenty percent of the following for the fiscal year beginning 2 20 July 1, 2006, forty percent of the following for the fiscal 2 21 year beginning July 1, 2007, sixty percent of the following 2 22 for the fiscal year beginning July 1, 2008, and eighty percent 2 23 of the following for fiscal years beginning on or after July 2 24 1, 2009: 2 25 a. The community college's budgeted employer contributions 2 26 under the Federal Insurance Contributions Act, as defined in 2 27 section 97C.2, for the fiscal year of collection. 2 28 b. The community college's budgeted employer contributions 2 29 to the community college's employees' retirement systems for 2 30 the fiscal year of collection. 2 31 c. The community college's budgeted utility costs for the 2 32 fiscal year of collection. As used in this paragraph, 2 33 "utility costs" includes the cost of electricity, water, waste 2 34 collection, fuel oil and gas for heating, heat, and air 2 35 conditioning expenditures. "Utility costs" does not include 3 1 telephone service, or gas used in laboratories and shops for 3 2 community college purposes. 3 3 d. The moneys the community college would receive from the 3 4 collection of a property tax of ten cents per thousand dollars 3 5 of assessed valuation for the fiscal year of collection. 3 6 Taxes imposed pursuant to this section shall be certified, 3 7 levied, and collected in the manner provided for in section 3 8 260C.17. 3 9 3. USE OF FUNDS. Moneys collected under the levy shall be 3 10 deposited in the community college's local workforce and 3 11 economic development fund. Moneys deposited in the fund are 3 12 at the disposal of the community college to be spent only on 3 13 the following, provided that no more than fifteen percent of 3 14 the moneys deposited may be used as provided under paragraph 3 15 "f" and provided that seventy percent of the moneys used as 3 16 provided in paragraphs "a" through "e" shall be used on 3 17 projects in the areas of advanced manufacturing, information 3 18 technology and insurance, and life sciences which include the 3 19 areas of biotechnology, health care technology, and nursing 3 20 care technology: 3 21 a. Projects for which an agreement with the community 3 22 college and an employer within the community college's merged 3 23 area meet all of the requirements of the accelerated career 3 24 education program under chapter 260G. 3 25 b. Projects for which an agreement with the community 3 26 college and a business meet all the requirements of the Iowa 3 27 jobs training Act under chapter 260F. However, such projects 3 28 are not subject to the maximum advance or award limitations 3 29 contained in section 260F.6, subsection 2, or the allocation 3 30 limitations contained in section 260F.8, subsection 1. 3 31 c. For the development and implementation of career 3 32 academies that are designed to provide new career preparation 3 33 opportunities for high school students and that are formally 3 34 linked with postsecondary career and technical education 3 35 programs. For purposes of this section, "career academy" 4 1 means a program of study that combines a minimum of two years 4 2 of secondary education with an associate degree, or the 4 3 equivalent, career preparatory program in a nonduplicative, 4 4 sequential course of study that is standards=based, integrates 4 5 academic and technical instruction, utilizes work=based and 4 6 worksite learning where appropriate and available, utilizes an 4 7 individual career planning process with parent involvement, 4 8 and leads to an associate degree or postsecondary diploma or 4 9 certificate in a career field that prepares an individual for 4 10 entry and advancement in a high=skill and rewarding career 4 11 field and further education. The department of economic 4 12 development, in conjunction with the state board of education 4 13 and the division of community colleges and workforce 4 14 preparation of the department of education, shall adopt 4 15 administrative rules for the development and implementation of 4 16 such career academies pursuant to section 256.11, subsection 4 17 5, paragraph "g", section 260C.1, and Title II of Pub. L. No. 4 18 105=332, the Carl D. Perkins Vocational and Technical 4 19 Education Act of 1998. 4 20 d. Programs and courses that provide vocational and 4 21 technical training and programs for in=service training and 4 22 retraining of workers under section 260C.1, subsections 2 and 4 23 3. 4 24 e. Job retention projects under section 260F.9. 4 25 f. Student support services, including but not limited to: 4 26 (1) Student counseling, including personal counseling, 4 27 academic counseling, behavioral counseling, and career 4 28 counseling. 4 29 (2) Support groups for high=need students. 4 30 (3) Student mentoring. 4 31 (4) Orientation to college classes taught in high school 4 32 which include career planning. 4 33 (5) Back=to=college training for nontraditional students. 4 34 (6) Utilization of software for assessing the students' 4 35 work interests, listing current job openings, and projecting 5 1 future job openings in the state of Iowa to assist students in 5 2 planning their careers. 5 3 Sec. 3. Section 260G.3, subsection 2, paragraph e, Code 5 4 2005, is amended to read as follows: 5 5 e. Moneys from a workforce training and economic 5 6 development fund created in section 260C.18A or 260C.22A, 5 7 based on the number of program job positions agreed to by the 5 8 employer to be available under the agreement, the amount of 5 9 which shall be calculated in the same manner as the program 5 10 job credits provided for in section 260G.4A. 5 11 Sec. 4. EFFECTIVE AND APPLICABILITY DATES. This Act takes 5 12 effect July 1, 2005, and is applicable to the school budget 5 13 year beginning July 1, 2006, and succeeding budget years. 5 14 EXPLANATION 5 15 This bill provides for an increase in the regular program 5 16 foundation base under the state school foundation program. 5 17 The foundation base is the specified percentage of the state 5 18 cost per pupil calculation which is paid as state aid to 5 19 school districts, above and beyond the uniform property tax 5 20 levy imposed in Code section 257.3. Beginning with the budget 5 21 year commencing July 1, 2006, the increase would be gradually 5 22 phased in over a seven=year period in equal annual increments, 5 23 from the current foundation base level of 87.5 percent to the 5 24 level of 100 percent. 5 25 The bill also establishes a community college local 5 26 workforce and economic development fund and levy. 5 27 The bill provides that the levy shall be certified by the 5 28 board of directors of each community college by March 15 for 5 29 collection in the subsequent fiscal year, and that the sum of 5 30 the moneys collected by a community college under the levy 5 31 shall not exceed a specified percentage of the sum of 5 32 designated community college employee=related contributions, 5 33 utility costs, and projected revenues. The percentages 5 34 correspond to 20 percent for the fiscal year beginning July 1, 5 35 2006, 40 percent for the fiscal year beginning July 1, 2007, 6 1 60 percent for the fiscal year beginning July 1, 2008, and 80 6 2 percent for fiscal years beginning on or after July 1, 2009. 6 3 The bill applies these percentages, for the given fiscal year 6 4 of collection, to the sum of a community college's budgeted 6 5 employer contributions under the federal Insurance 6 6 Contributions Act, a community college's budgeted employer 6 7 contributions to employees' retirement systems, a community 6 8 college's budgeted utility costs, as defined in the bill, and 6 9 moneys a community college would receive from the collection 6 10 of a property tax of 10 cents per $1,000 of assessed valuation 6 11 for the fiscal year of collection. The bill provides that the 6 12 new levy shall be certified, levied, and collected in the 6 13 manner provided for in Code section 260C.17. 6 14 The bill provides that levy revenue shall be deposited in 6 15 the local workforce and economic development fund, and may be 6 16 expended as specified in the bill. Authorized expenditures 6 17 include projects in which an agreement with the community 6 18 college and an employer within the community college's merged 6 19 area meets all of the requirements of the accelerated career 6 20 education program under Code chapter 260G; and projects in 6 21 which an agreement with the community college and a business 6 22 meets all the requirements of the Iowa jobs training Act under 6 23 Code chapter 260F with stated exemptions from advance, award, 6 24 and allocation limitations. The bill provides that revenue 6 25 may also be expended for the development and implementation of 6 26 career academies, as defined in the bill, designed to provide 6 27 new career preparation opportunities for high school students 6 28 that are formally linked with postsecondary career and 6 29 technical education programs; for programs and courses that 6 30 provide vocational and technical training and programs for in= 6 31 service training and retraining under Code section 260C.1, 6 32 subsections 2 and 3; for job retention projects under Code 6 33 section 260F.9; and for student support services, as defined 6 34 in the bill. The bill provides that no more than 15 percent 6 35 of the revenue deposited in the fund may be expended for 7 1 student support services, and that 70 percent of the revenue 7 2 allocated for all other authorized purposes shall be used on 7 3 projects in the areas of advanced manufacturing, information 7 4 technology and insurance, and life sciences. 7 5 The bill takes effect July 1, 2005, and is applicable for 7 6 the school budget year beginning July 1, 2006. 7 7 LSB 2134HZ 81 7 8 rn:rj/pj/5