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:
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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.
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