Senate File 40 - Introduced SENATE FILE BY BRUNKHORST Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to establishing the state percent of growth for 2 purposes of the state school foundation program and providing 3 applicability and contingent applicability dates. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1896XS 81 6 rn/pj/5 PAG LIN 1 1 Section 1. Section 257.8, subsection 1, Code 2005, is 1 2 amended to read as follows: 1 3 1. STATE PERCENT OF GROWTH.The state percent of growth 1 4 for the budget year beginning July 1, 2004, is two percent.1 5 The state percent of growth for the budget year beginning July 1 6 1, 2005, is four percent. The state percent of growth for the 1 7 budget year beginning July 1, 2006, is four percent. The 1 8 state percent of growth for each subsequent budget year shall 1 9 be established by statute which shall be enacted within thirty 1 10 days of the submission in the year preceding the base year of 1 11 the governor's budget under section 8.21. The establishment 1 12 of the state percent of growth for a budget year shall be the 1 13 only subject matter of the bill which enacts the state percent 1 14 of growth for a budget year. 1 15 Sec. 2. ALTERNATIVE STATE PERCENT OF GROWTH OF FIVE 1 16 PERCENT. Notwithstanding section 257.8, subsection 1, the 1 17 state percent of growth for the budget years beginning July 1, 1 18 2005, and July 1, 2006, is five percent if all state public 1 19 employee collective bargaining agreements entered into for 1 20 those years are modified pursuant to section 3 of this Act and 1 21 not declared invalid. 1 22 Sec. 3. STATE PUBLIC EMPLOYEE COLLECTIVE BARGAINING 1 23 AGREEMENT MODIFICATION. 1 24 1. Notwithstanding section 257.8, subsection 1, or any 1 25 other provision of law to the contrary, all collective 1 26 bargaining agreements between the state of Iowa and an 1 27 employee organization representing state employees shall 1 28 provide, for the fiscal period beginning July 1, 2005, and 1 29 ending June 30, 2007, as follows: 1 30 a. That any provision in the applicable collective 1 31 bargaining agreement providing for a cost=of=living 1 32 adjustment, or similar increase in pay, for the fiscal year 1 33 beginning July 1, 2005, shall be limited to a zero percent 1 34 adjustment or increase and moneys shall not be appropriated to 1 35 fund any upward adjustment or increase. 2 1 b. That any provision in the applicable collective 2 2 bargaining agreement providing for a cost=of=living 2 3 adjustment, or similar increase in pay, for the fiscal year 2 4 beginning July 1, 2006, shall be limited to a one percent 2 5 adjustment or increase and moneys shall not be appropriated to 2 6 fund any upward adjustment or increase above one percent. 2 7 Sec. 4. TEACHER PROFESSIONAL DEVELOPMENT == CONTINGENT 2 8 APPLICATION. Notwithstanding section 257.8, subsection 1, or 2 9 any other provision to the contrary, any Act establishing two 2 10 additional professional development days per school year for 2 11 teachers pursuant to a teacher compensation proposal shall not 2 12 take effect until a state percent of growth of at least five 2 13 percent has been established. 2 14 Sec. 5. APPLICABILITY. The section of this Act amending 2 15 section 257.8, subsection 1, and establishing a four percent 2 16 state percent of growth is applicable for computing state aid 2 17 under the state school foundation program for the school 2 18 budget year beginning July 1, 2006. The section of this Act 2 19 establishing an alternate state percent of growth of five 2 20 percent is contingently applicable under this Act for 2 21 computing state aid under the state school foundation program 2 22 for the school budget years beginning July 1, 2005, and July 2 23 1, 2006. 2 24 EXPLANATION 2 25 This bill establishes a state percent of growth of 4 2 26 percent for purposes of the state school foundation program 2 27 for the school budget year beginning July 1, 2006. The bill 2 28 also provides that notwithstanding these provisions, an 2 29 alternative state percent of growth for the budget years 2 30 beginning July 1, 2005, and July 1, 2006, of 5 percent shall 2 31 apply if all state public employee collective bargaining 2 32 agreements are modified as provided in the bill. 2 33 The bill provides that all collective bargaining agreements 2 34 between the state of Iowa and an employee organization 2 35 representing state employees shall provide that a cost=of= 3 1 living adjustment, or similar increase in pay, during the 3 2 fiscal year beginning July 1, 2005, shall be limited to zero 3 3 percent and moneys shall not be appropriated to fund any 3 4 upward adjustments or increases, and that a cost=of=living 3 5 adjustment, or similar increase in pay, during the fiscal year 3 6 beginning July 1, 2006, shall be limited to a 1 percent 3 7 adjustment or increase with no appropriations provided for 3 8 payments above 1 percent. 3 9 The bill also provides that any enacted Act establishing 3 10 two additional professional development days per school year 3 11 for teachers pursuant to a teacher compensation proposal shall 3 12 not take effect until a state percent of growth of at least 5 3 13 percent has been established. 3 14 The bill is applicable for state aid computation under the 3 15 school foundation program for the school budget year beginning 3 16 July 1, 2006, with regard to establishing a 4 percent 3 17 allowable growth, and is applicable for state aid computation 3 18 under the school foundation program for the school budget 3 19 years beginning July 1, 2005, and July 1, 2006, if the 3 20 alternative state percent of growth provisions establishing a 3 21 5 percent allowable growth become applicable pursuant to the 3 22 state public employee collective bargaining agreement 3 23 modification. 3 24 LSB 1896XS 81 3 25 rn:rj/pj/5.1