Senate File 290 - Introduced
SENATE FILE
BY WARNSTADT
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to school finance by increasing the foundation
2 property tax, increasing the regular program and special
3 education support services foundation base, distributing
4 specified program funds on a per pupil basis through the
5 school finance formula, making an appropriation, and providing
6 an effective date and applicability provision.
7 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 to read as follows:
1 3 For the budget year commencing July 1, 1999 2006, and for
1 4 each succeeding budget year, the regular program foundation
1 5 base per pupil is eighty=seven and five=tenths one hundred
1 6 percent of the regular program state cost per pupil. For the
1 7 budget year commencing July 1, 1991 2006, and for each
1 8 succeeding budget year, the special education support services
1 9 foundation base is seventy=nine one hundred percent of the
1 10 special education support services state cost per pupil. The
1 11 combined foundation base is the sum of the regular program
1 12 foundation base and the special education support services
1 13 foundation base.
1 14 Sec. 2. Section 257.3, subsection 1, unnumbered paragraph
1 15 1, Code 2005, is amended to read as follows:
1 16 Except as provided in subsections 2 and 3, a school
1 17 district shall cause to be levied each year, for the school
1 18 general fund, a foundation property tax equal to five nine
1 19 dollars and forty ten cents per thousand dollars of assessed
1 20 valuation on all taxable property in the district. The county
1 21 auditor shall spread the foundation levy over all taxable
1 22 property in the district.
1 23 Sec. 3. Section 257.3, subsection 2, paragraphs a and b,
1 24 Code 2005, are amended to read as follows:
1 25 a. Notwithstanding subsection 1, a reorganized school
1 26 district shall cause a foundation property tax of four eight
1 27 dollars and forty ten cents per thousand dollars of assessed
1 28 valuation to be levied on all taxable property which, in the
1 29 year preceding a reorganization, was within a school district
1 30 affected by the reorganization as defined in section 275.1, or
1 31 in the year preceding a dissolution was a part of a school
1 32 district that dissolved if the dissolution proposal has been
1 33 approved by the director of the department of education
1 34 pursuant to section 275.55.
1 35 b. In succeeding school years, the foundation property tax
2 1 levy on that portion shall be increased to the rate of four
2 2 eight dollars and ninety sixty cents per thousand dollars of
2 3 assessed valuation the first succeeding year, five eight
2 4 dollars and fifteen eighty=five cents per thousand dollars of
2 5 assessed valuation the second succeeding year, and five nine
2 6 dollars and forty ten cents per thousand dollars of assessed
2 7 valuation the third succeeding year and each year thereafter.
2 8 Sec. 4. Section 257.8, Code 2005, is amended by adding the
2 9 following new subsection:
2 10 NEW SUBSECTION. 4A. ALTERNATIVE ALLOWABLE GROWTH == 2006
2 11 FORMULA ADJUSTMENTS.
2 12 a. Notwithstanding the calculation in subsection 2, the
2 13 department of management shall calculate the regular program
2 14 allowable growth for the budget year beginning July 1, 2006,
2 15 by multiplying the state percent of growth for the budget year
2 16 by the regular program state cost per pupil for the base year,
2 17 and adding to the resulting product a per pupil amount
2 18 corresponding to the amounts appropriated for the fiscal year
2 19 beginning July 1, 2005, and ending June 30, 2006, for phase I
2 20 pursuant to section 294A.25, and for the student achievement
2 21 and teacher quality program established in chapter 284. For
2 22 purposes of determining the amount of a budget adjustment as
2 23 defined in section 257.14, amounts added to allowable growth
2 24 pursuant to this paragraph shall be subtracted from the school
2 25 district's regular program cost per pupil for the budget year
2 26 beginning July 1, 2006, prior to determining the amount of the
2 27 adjustment.
2 28 b. A school district shall calculate allowable growth
2 29 pursuant to the provisions of subsection 2 for the budget year
2 30 beginning July 1, 2007, and succeeding budget years, utilizing
2 31 a regular program state cost per pupil figure which
2 32 incorporates the increases in regular program allowable growth
2 33 calculated pursuant to paragraph "a".
2 34 Sec. 5. Section 257.10, subsection 4, Code 2005, is
2 35 amended by adding the following new unnumbered paragraph:
3 1 NEW UNNUMBERED PARAGRAPH. For the budget year beginning
3 2 July 1, 2006, and succeeding budget years, the department of
3 3 management shall increase the special education support
3 4 services district cost per pupil, for a school district that
3 5 has a special education support services district cost per
3 6 pupil which falls below the special education support services
3 7 state cost per pupil, to equal the state cost per pupil for
3 8 special education support services.
3 9 Sec. 6. Section 284.4, subsection 2, Code 2005, is amended
3 10 to read as follows:
3 11 2. By July 1, 2002 2006, each school district shall
3 12 participate in the student achievement and teacher quality
3 13 program if the general assembly appropriates moneys for
3 14 purposes of the student achievement and teacher quality
3 15 program established pursuant to this chapter utilizing funds
3 16 distributed on a per pupil basis pursuant to the increase in
3 17 allowable growth for the school budget year beginning July 1,
3 18 2006, in section 257.8, subsection 4A.
3 19 Sec. 7. Section 284.5, subsection 8, Code 2005, is amended
3 20 to read as follows:
3 21 8. If the general assembly appropriates moneys for
3 22 purposes of this section, a A school district or area
3 23 education agency is eligible to receive state assistance for
3 24 up to two years under this section for each teacher the school
3 25 district or area education agency employs who was formerly
3 26 employed in an accredited nonpublic school or in another state
3 27 as a first=year teacher. The school district or area
3 28 education agency employing the teacher shall determine the
3 29 conditions and requirements of a teacher participating in a
3 30 program in accordance with this subsection. The school
3 31 district or area education agency that employs the teacher
3 32 shall recommend the teacher for an educational license if the
3 33 teacher, through a comprehensive evaluation, is determined to
3 34 demonstrate competence in the Iowa teaching standards.
3 35 Sec. 8. Section 294A.6, Code 2005, is amended by adding
4 1 the following new unnumbered paragraph:
4 2 NEW UNNUMBERED PARAGRAPH. For the budget year beginning
4 3 July 1, 2006, and succeeding budget years, the total minimum
4 4 salary supplement, as described in section 294A.5, subsection
4 5 2, to be paid to each school district and area education
4 6 agency under phase I shall be funded by a proportionate
4 7 percentage of the dollar increase in allowable growth for the
4 8 school budget year beginning July 1, 2006, pursuant to section
4 9 257.8, subsection 4A, which shall increase in subsequent years
4 10 by each year's state percent of growth. The proportion of a
4 11 school district's budget which corresponds to the amount of
4 12 funding for phase I based on the increase in allowable growth
4 13 for the school budget year beginning July 1, 2006, shall be
4 14 utilized exclusively for phase I.
4 15 Sec. 9. Section 294A.22, Code 2005, is amended to read as
4 16 follows:
4 17 294A.22 PAYMENTS.
4 18 Payments for each phase phase II of the educational
4 19 excellence program shall be made by the department of
4 20 administrative services on a monthly basis commencing on
4 21 October 15 and ending on June 15 of each fiscal year, taking
4 22 into consideration the relative budget and cash position of
4 23 the state resources. The payments shall be separate from
4 24 state aid payments made pursuant to sections 257.16 and
4 25 257.35. The payments made under this section to a school
4 26 district or area education agency may be combined and a
4 27 separate accounting of the amount paid for each program shall
4 28 be included.
4 29 Any payments made to school districts or area education
4 30 agencies for phase II under this chapter are miscellaneous
4 31 income for purposes of chapter 257.
4 32 Payments made to a teacher by a school district or area
4 33 education agency under this chapter are wages for the purposes
4 34 of chapter 91A.
4 35 If funds appropriated are insufficient to pay Phase II
5 1 allocations in full, the department of administrative services
5 2 shall prorate payments to school districts and area education
5 3 agencies.
5 4 Sec. 10. Section 425A.3, subsection 1, Code 2005, is
5 5 amended to read as follows:
5 6 1. The family farm tax credit fund shall be apportioned
5 7 each year in the manner provided in this chapter so as to give
5 8 a credit against the tax on each eligible tract of
5 9 agricultural land within the several school districts of the
5 10 state in which the levy for the general school fund exceeds
5 11 five nine dollars and forty ten cents per thousand dollars of
5 12 assessed value. The amount of the credit on each eligible
5 13 tract of agricultural land shall be the amount the tax levied
5 14 for the general school fund exceeds the amount of tax which
5 15 would be levied on each eligible tract of agricultural land
5 16 were the levy for the general school fund five nine dollars
5 17 and forty ten cents per thousand dollars of assessed value for
5 18 the previous year. However, in the case of a deficiency in
5 19 the family farm tax credit fund to pay the credits in full,
5 20 the credit on each eligible tract of agricultural land in the
5 21 state shall be proportionate and applied as provided in this
5 22 chapter.
5 23 Sec. 11. Section 425A.5, Code 2005, is amended to read as
5 24 follows:
5 25 425A.5 COMPUTATION BY COUNTY AUDITOR.
5 26 The family farm tax credit allowed each year shall be
5 27 computed as follows: On or before April 1, the county auditor
5 28 shall list by school districts all tracts of agricultural land
5 29 which are entitled to credit, the taxable value for the
5 30 previous year, the budget from each school district for the
5 31 previous year, and the tax rate determined for the general
5 32 fund of the school district in the manner prescribed in
5 33 section 444.3 for the previous year, and if the tax rate is in
5 34 excess of five nine dollars and forty ten cents per thousand
5 35 dollars of assessed value, the auditor shall multiply the tax
6 1 levy which is in excess of five nine dollars and forty ten
6 2 cents per thousand dollars of assessed value by the total
6 3 taxable value of the agricultural land entitled to credit in
6 4 the school district, and on or before April 1, certify the
6 5 total amount of credit and the total number of acres entitled
6 6 to the credit to the department of revenue.
6 7 Sec. 12. Section 426.3, Code 2005, is amended to read as
6 8 follows:
6 9 426.3 WHERE CREDIT GIVEN.
6 10 The agricultural land credit fund shall be apportioned each
6 11 year in the manner hereinafter provided so as to give a credit
6 12 against the tax on each tract of agricultural lands within the
6 13 several school districts of the state in which the levy for
6 14 the general school fund exceeds five nine dollars and forty
6 15 ten cents per thousand dollars of assessed value; the amount
6 16 of such credit on each tract of such lands shall be the amount
6 17 the tax levied for the general school fund exceeds the amount
6 18 of tax which would be levied on said tract of such lands were
6 19 the levy for the general school fund five nine dollars and
6 20 forty ten cents per thousand dollars of assessed value for the
6 21 previous year, except in the case of a deficiency in the
6 22 agricultural land credit fund to pay said credits in full, in
6 23 which case the credit on each eligible tract of such lands in
6 24 the state shall be proportionate and shall be applied as
6 25 hereinafter provided.
6 26 Sec. 13. Section 426.6, unnumbered paragraph 1, Code 2005,
6 27 is amended to read as follows:
6 28 The agricultural land tax credit allowed each year shall be
6 29 computed as follows: On or before April 1, the county auditor
6 30 shall list by school districts all tracts of agricultural
6 31 lands which are entitled to credit, together with the taxable
6 32 value for the previous year, together with the budget from
6 33 each school district for the previous year, and the tax rate
6 34 determined for the general fund of the district in the manner
6 35 prescribed in section 444.3 for the previous year, and if such
7 1 tax rate is in excess of five nine dollars and forty ten cents
7 2 per thousand dollars of assessed value, the auditor shall
7 3 multiply the tax levy which is in excess of five nine dollars
7 4 and forty ten cents per thousand dollars of assessed value by
7 5 the total taxable value of the agricultural lands entitled to
7 6 credit in the district, and on or before April 1, certify the
7 7 amount to the department of revenue.
7 8 Sec. 14. Section 294A.25, Code 2005, is repealed.
7 9 Sec. 15. EFFECTIVE AND APPLICABILITY DATES.
7 10 1. The sections of this Act increasing the regular program
7 11 foundation base and the special education support services
7 12 foundation base, increasing the foundation property tax, and
7 13 incorporating funding for student achievement and teacher
7 14 quality and phase I of the educational excellence program into
7 15 the school finance formula, take effect July 1, 2005, and are
7 16 applicable to the school budget year beginning July 1, 2006,
7 17 and succeeding budget years.
7 18 2. The sections of this Act amending provisions relating
7 19 to the family farm tax credit and the agricultural land tax
7 20 credit take effect January 1, 2007, for taxes payable in the
7 21 fiscal year beginning July 1, 2007.
7 22 EXPLANATION
7 23 This bill provides for an increase in the foundation
7 24 property tax imposed under the state school foundation program
7 25 pursuant to Code section 257.3, from the current level of
7 26 $5.40 to $9.10 per $1,000 of assessed valuation on all taxable
7 27 property in a school district.
7 28 The bill also provides for an increase in the regular
7 29 program foundation base and the special education support
7 30 services foundation base under the state school foundation
7 31 program from the current foundation base level of 87.5 percent
7 32 and 79 percent, respectively, to the level of 100 percent.
7 33 The foundation base is the specified percentage of the state
7 34 cost per pupil calculation which is paid as state aid to
7 35 school districts, above and beyond the foundation property
8 1 tax.
8 2 The bill additionally provides for an increase in allowable
8 3 growth for the school budget year beginning July 1, 2006, in
8 4 an amount determined by the department of management to be
8 5 equivalent on a per pupil basis to the amount appropriated for
8 6 the school budget year beginning July 1, 2005, for the student
8 7 achievement and teacher quality program in Code chapter 284,
8 8 and phase I of the educational excellence fund pursuant to
8 9 Code section 294A.25. This amount shall be distributed on a
8 10 per pupil basis pursuant to the formula. The bill makes
8 11 conforming changes to Code chapters 284 and 294A.
8 12 The bill also provides conforming changes to provisions of
8 13 the family farm tax credit and the agricultural land tax
8 14 credit contained in Code chapters 425A and 426 relating to the
8 15 increase in the level of the foundation property tax.
8 16 The bill provides that provisions increasing the regular
8 17 program foundation base and the special education support
8 18 services foundation base, increasing the foundation property
8 19 tax, and incorporating funding for student achievement and
8 20 teacher quality and phase I of the educational excellence
8 21 program into the school finance formula, take effect July 1,
8 22 2005, and are applicable to the school budget year beginning
8 23 July 1, 2006, and succeeding budget years. The bill provides
8 24 that provisions amending the family farm tax credit and the
8 25 agricultural land tax credit take effect January 1, 2007, for
8 26 taxes payable in the fiscal year beginning July 1, 2007.
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