Senate File 293 - Introduced
SENATE FILE
BY TINSMAN
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for increased flexibility in school district
2 utilization of funding when authorized by the school budget
3 review committee under specified circumstances.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1316XS 81
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PAG LIN
1 1 Section 1. Section 257.31, subsection 7, Code 2005, is
1 2 amended by striking the subsection and inserting in lieu
1 3 thereof the following:
1 4 7. The committee may authorize a school district to spend
1 5 a reasonable and specified amount from its unexpended cash
1 6 balance, reallocate revenues from board=approved property tax
1 7 levies, and exceed the limitation on the cumulative total of
1 8 the percents of income surtax approved by the board of
1 9 directors pursuant to section 298.14, upon submission by the
1 10 school district of evidence that such an expenditure,
1 11 reallocation, or limitation exception will assist the school
1 12 district in addressing any of the purposes or circumstances
1 13 specified in subsection 5, and thereby reduce or eliminate the
1 14 need for supplemental aid or modified allowable growth
1 15 pursuant to this section. A school district shall document
1 16 that an adequate amount of revenue is available for a purpose
1 17 or program for which a levy was originally authorized by the
1 18 board prior to approval for a reallocation of a portion of
1 19 that revenue pursuant to this subsection. Expenditures
1 20 authorized under this subsection shall not be included in
1 21 allowable growth or district cost, and shall be regarded as if
1 22 the expenditures were miscellaneous income. Any part of an
1 23 amount not actually spent for an authorized purpose pursuant
1 24 to this subsection shall revert to its former status.
1 25 EXPLANATION
1 26 This bill provides that the school budget review committee
1 27 may authorize a school district to spend a reasonable and
1 28 specified amount from its unexpended cash balance, reallocate
1 29 revenues from board=approved property tax levies, and exceed
1 30 the 20 percent limitation on the cumulative total of the
1 31 percents of income surtax approved by the board of directors
1 32 pursuant to Code section 298.14, upon submission by the school
1 33 district of evidence that the expenditure, reallocation, or
1 34 limitation exception will assist the district in addressing
1 35 problems, needs, or unusual circumstances for which
2 1 supplemental aid or modified allowable growth could otherwise
2 2 be granted by the committee.
2 3 Currently, utilization of an unexpended cash balance is
2 4 permitted under Code section 257.31 only for the following:
2 5 for furnishing, equipping, and contributing to the
2 6 construction of a new building or structure for which the
2 7 voters of the district have approved a bond issue as provided
2 8 by law or the tax levy provided in Code section 298.2; or for
2 9 the costs associated with the demolition of an unused school
2 10 building, or the conversion of an unused school building for
2 11 community use, in a school district involved in a dissolution
2 12 or reorganization under Code chapter 275, if the costs are
2 13 incurred within three years of the dissolution or
2 14 reorganization.
2 15 The bill specifies that a district must document that an
2 16 adequate amount of revenue is being generated for a purpose or
2 17 program for which a levy was originally authorized by the
2 18 board prior to approval for a reallocation of a portion of
2 19 that revenue. The bill provides that expenditures authorized
2 20 under the bill shall not be included in allowable growth or
2 21 district cost, shall be regarded as miscellaneous income, and
2 22 that any part of an amount not actually spent for an
2 23 authorized purpose shall revert to its former status.
2 24 LSB 1316XS 81
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