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