S.F. _____ H.F. _____ DIVISION I 1 STANDING APPROPRIATIONS 2 AND RELATED MATTERS 3 Section 1. BUDGET PROCESS FOR FISCAL YEAR 2011-2012. 4 1. For the budget process applicable to the fiscal year 5 beginning July 1, 2011, on or before October 1, 2010, in lieu 6 of the information specified in section 8.23, subsection 1, 7 unnumbered paragraph 1, and paragraph “a”, all departments and 8 establishments of the government shall transmit to the director 9 of the department of management, on blanks to be furnished by 10 the director, estimates of their expenditure requirements, 11 including every proposed expenditure, for the ensuing fiscal 12 year, together with supporting data and explanations as called 13 for by the director of the department of management after 14 consultation with the legislative services agency. 15 2. The estimates of expenditure requirements shall be 16 in a form specified by the director of the department of 17 management, and the expenditure requirements shall include all 18 proposed expenditures and shall be prioritized by program or 19 the results to be achieved. The estimates shall be accompanied 20 by performance measures for evaluating the effectiveness of the 21 programs or results. 22 Sec. 2. LIMITATION OF STANDING APPROPRIATIONS. 23 Notwithstanding the standing appropriations in the following 24 designated sections for the fiscal year beginning July 1, 2010, 25 and ending June 30, 2011, the amounts appropriated from the 26 general fund of the state pursuant to these sections for the 27 following designated purposes shall not exceed the following 28 amounts: 29 1. For payment for nonpublic school transportation under 30 section 285.2: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,060,931 32 If total approved claims for reimbursement for nonpublic 33 school pupil transportation exceed the amount appropriated in 34 accordance with this subsection, the department of education 35 -1- LSB 5106XG (12) 83 tm/jp 1/ 7

S.F. _____ H.F. _____ shall prorate the amount of each approved claim. 1 2. For the state’s share of the cost of the peace officers’ 2 retirement benefits under section 411.20: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,253,159 4 3. For operational support grants and community cultural 5 grants under section 99F.11, subsection 3, paragraph “d”, 6 subparagraph (1): 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 443,300 8 4. For regional tourism marketing under section 99F.11, 9 subsection 3, paragraph “d”, subparagraph (2): 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 862,028 11 5. For the enforcement of chapter 453D relating to tobacco 12 product manufacturers under section 453D.8: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,591 14 6. For the center for congenital and inherited disorders 15 central registry under section 144.13A, subsection 4, paragraph 16 “a”: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 161,360 18 7. For primary and secondary child abuse prevention 19 programs under section 144.13A, subsection 4, paragraph “a”: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 174,076 21 8. For programs for at-risk children under section 279.51: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,493,891 23 The amount of any reduction in this subsection shall be 24 prorated among the programs specified in section 279.51, 25 subsection 1, paragraphs “a”, “b”, and “c”. 26 Sec. 3. INSTRUCTIONAL SUPPORT STATE AID. Notwithstanding 27 the standing appropriation provided under section 257.20, 28 an appropriation from the general fund of the state to the 29 department of education for the fiscal year beginning July 1, 30 2010, and ending June 30, 2011, shall not be made for purposes 31 of paying instructional support state aid. 32 Sec. 4. IOWA MATHEMATICS AND SCIENCE COALITION. For the 33 fiscal year beginning July 1, 2010, the university of northern 34 Iowa shall maintain the efforts of the Iowa mathematics and 35 -2- LSB 5106XG (12) 83 tm/jp 2/ 7

S.F. _____ H.F. _____ science coalition that were initiated pursuant to section 1 294A.25, subsection 11, Code 2009. 2 Sec. 5. PROPERTY TAX CREDIT FUND —— PAYMENTS IN LIEU OF 3 GENERAL FUND REIMBURSEMENT. 4 1. a. A property tax credit fund shall be created in the 5 office of the treasurer of state to be used for the purposes of 6 this section. 7 b. There is appropriated from the general fund of the state 8 to the property tax credit fund created in paragraph “a” for 9 the fiscal year beginning July 1, 2010, and ending June 30, 10 2011, the sum of $91,256,037. 11 c. Notwithstanding the requirements in section 8.56, 12 subsections 3 and 4, there is appropriated from the cash 13 reserve fund to the property tax credit fund created in 14 paragraph “a” for the fiscal year beginning July 1, 2010, and 15 ending June 30, 2011, the sum of $54,684,481. 16 d. Notwithstanding section 8.33, the surplus existing 17 in the property tax credit fund created pursuant to 2009 18 Iowa Acts, chapter 179, section 9, at the conclusion of the 19 fiscal year beginning July 1, 2009, and ending June 30, 2010, 20 is transferred to the property tax credit fund created in 21 paragraph “a”. 22 2. There is appropriated from the property tax credit fund 23 for the fiscal year beginning July 1, 2010, and ending June 24 30, 2011, the following amounts for the following designated 25 purposes: 26 a. For reimbursement for the homestead property tax credit 27 under section 425.1: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,407,718 29 b. For reimbursement for the family farm and agricultural 30 land tax credits under sections 425A.1 and 426.1: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,395,131 32 c. For reimbursement for the military service tax credit 33 under section 426A.1A: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,370,995 35 -3- LSB 5106XG (12) 83 tm/jp 3/ 7

S.F. _____ H.F. _____ d. For implementing the elderly and disabled tax credit and 1 reimbursement pursuant to sections 425.16 through 425.39: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,779,200 3 If the director of revenue determines that the amount 4 of claims for credit for property taxes due pursuant to 5 paragraphs “a”, “b”, “c”, and “d”, plus the amount of claims 6 for reimbursement for rent constituting property taxes paid 7 which are to be paid during the fiscal year may exceed the 8 total amount appropriated, the director shall estimate the 9 percentage of the credits and reimbursements which will be 10 funded by the appropriation. The county treasurer shall notify 11 the director of the amount of property tax credits claimed by 12 June 8, 2010. The director shall estimate the percentage of 13 the property tax credits and rent reimbursement claims that 14 will be funded by the appropriation and notify the county 15 treasurer of the percentage estimate by June 15, 2010. The 16 estimated percentage shall be used in computing for each claim 17 the amount of property tax credit and reimbursement for rent 18 constituting property taxes paid for that fiscal year. If 19 the director overestimates the percentage of funding, claims 20 for reimbursement for rent constituting property taxes paid 21 shall be paid until they can no longer be paid at the estimated 22 percentage of funding. Rent reimbursement claims filed after 23 that point in time shall receive priority and shall be paid in 24 the following fiscal year. 25 Sec. 6. PERFORMANCE OF DUTY. There is appropriated from 26 the cash reserve fund created in section 8.56 to the executive 27 council for the fiscal year beginning July 1, 2010, and ending 28 June 30, 2011, the following amount, or so much thereof as is 29 necessary, to be used for the purposes designated: 30 For performance of duty by the executive council in sections 31 7D.29 and 29C.20: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000,000 33 The funding from the appropriation made in this section 34 shall be utilized before any funding from the general fund of 35 -4- LSB 5106XG (12) 83 tm/jp 4/ 7

S.F. _____ H.F. _____ the state. 1 Sec. 7. CASH RESERVE FUND APPROPRIATIONS. Section 8.56, 2 subsections 3 and 4, shall not apply to any appropriation made 3 in this Act from the cash reserve fund created in section 8.56. 4 Sec. 8. EFFECTIVE DATES. The section of this Act creating 5 the property tax credit fund, being deemed of immediate 6 importance, takes effect upon enactment. 7 DIVISION II 8 DISASTER-RELATED CASUALTY LOSSES 9 Sec. 9. Section 422.9, subsection 2, Code Supplement 2009, 10 is amended by adding the following new paragraph: 11 NEW PARAGRAPH . j. A taxpayer is allowed to take the 12 deductions for disaster-related casualty losses allowed under 13 section 165(h) of the Internal Revenue Code, as amended by the 14 federal Emergency Economic Stabilization Act of 2008, Pub. 15 L. No. 110-343, in computing taxable income for state tax 16 purposes. 17 Sec. 10. EFFECTIVE UPON ENACTMENT AND RETROACTIVE 18 APPLICABILITY. This division of this Act, being deemed of 19 immediate importance, takes effect upon enactment and applies 20 retroactively to January 1, 2008, for tax years beginning on 21 or after that date. 22 EXPLANATION 23 This bill relates to state financial matters. The bill is 24 divided into divisions. 25 DIVISION I. For the budget process applicable to FY 26 2011-2012, state agencies are required to submit estimates and 27 other expenditure information as called for by the director 28 of management instead of the information required under Code 29 section 8.23. 30 The division limits the standing unlimited appropriation for 31 FY 2010-2011 for payment for nonpublic school transportation 32 and for the state’s share of the cost of the peace officers’ 33 retirement benefits. The division limits the standing limited 34 appropriation for FY 2010-2011 for operational support grants 35 -5- LSB 5106XG (12) 83 tm/jp 5/ 7

S.F. _____ H.F. _____ and community cultural grants, for regional tourism marketing, 1 for the enforcement of Code chapter 453D, for the center for 2 congenital and inherited disorders central registry, for 3 primary and secondary child abuse prevention programs, and for 4 programs for at-risk children. 5 The division eliminates for FY 2010-2011 a standing 6 appropriation for instructional support state aid. 7 The division requires the university of northern Iowa to 8 maintain efforts of the Iowa mathematics and science coalition. 9 For FY 2010-2011, the division funds the following property 10 tax credits from the property tax credit fund created in the 11 bill instead of entirely funded from the general fund of the 12 state: homestead, agricultural land and family farm, military 13 service, and elderly and disabled tax credit and reimbursement. 14 The division appropriates moneys from the general fund and the 15 cash reserve fund for deposit in the property tax credit fund. 16 These provisions take effect upon enactment. 17 The division appropriates moneys from the cash reserve fund 18 to the executive council for FY 2010-2011 for performance of 19 duty by the executive council. The division requires that such 20 moneys must be used prior to the standing appropriation made 21 from the general fund for the same purposes. 22 The division appropriates moneys from the cash reserve fund 23 to the general fund of the state for FY 2010-2011. 24 The division provides that certain cash reserve fund 25 requirements do not apply to any appropriations made in the 26 division from the cash reserve fund. 27 DIVISION II. This division of the bill relates to 28 disaster-related casualty losses. 29 The division allows a taxpayer to take the deduction for 30 disaster-related casualty losses allowed under section 165(h) 31 of the Internal Revenue Code, as amended by the federal 32 Emergency Economic Stabilization Act of 2008, in computing 33 taxable income for state tax purposes. The division takes 34 effect upon enactment and applies retroactively to January 1, 35 -6- LSB 5106XG (12) 83 tm/jp 6/ 7