SSB 3249 (LSB 5106XG (12) 83)

SENATE/HOUSE FILE _____

BY  (PROPOSED GOVERNOR’S BUDGET BILL)

A BILL FOR

An Act relating to state financial matters, providing for properly related matters, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
STANDING APPROPRIATIONS

AND RELATED MATTERS
    Section 1.  BUDGET PROCESS FOR FISCAL YEAR 2011-2012.
   1.  For the budget process applicable to the fiscal year beginning July 1, 2011, on or before October 1, 2010, in lieu of the information specified in section 8.23, subsection 1, unnumbered paragraph 1, and paragraph “a”, all departments and establishments of the government shall transmit to the director of the department of management, on blanks to be furnished by the director, estimates of their expenditure requirements, including every proposed expenditure, for the ensuing fiscal year, together with supporting data and explanations as called for by the director of the department of management after consultation with the legislative services agency.
   2.  The estimates of expenditure requirements shall be in a form specified by the director of the department of management, and the expenditure requirements shall include all proposed expenditures and shall be prioritized by program or the results to be achieved. The estimates shall be accompanied by performance measures for evaluating the effectiveness of the programs or results.
    Sec. 2.  LIMITATION OF STANDING APPROPRIATIONS.  

Notwithstanding the standing appropriations in the following designated sections for the fiscal year beginning July 1, 2010, and ending June 30, 2011, the amounts appropriated from the general fund of the state pursuant to these sections for the following designated purposes shall not exceed the following amounts:
   1.  For payment for nonpublic school transportation under section 285.2:

.................................................. $  7,060,931

   If total approved claims for reimbursement for nonpublic school pupil transportation exceed the amount appropriated in accordance with this subsection, the department of education shall prorate the amount of each approved claim.

   2.  For the state’s share of the cost of the peace officers’ retirement benefits under section 411.20:

.................................................. $  2,253,159

   3.  For operational support grants and community cultural grants under section 99F.11, subsection 3, paragraph “d”, subparagraph (1):

.................................................. $    443,300

   4.  For regional tourism marketing under section 99F.11, subsection 3, paragraph “d”, subparagraph (2):

.................................................. $    862,028

   5.  For the enforcement of chapter 453D relating to tobacco product manufacturers under section 453D.8:

.................................................. $     19,591

   6.  For the center for congenital and inherited disorders central registry under section 144.13A, subsection 4, paragraph “a”:

.................................................. $    161,360

   7.  For primary and secondary child abuse prevention programs under section 144.13A, subsection 4, paragraph “a”:

.................................................. $    174,076

   8.  For programs for at-risk children under section 279.51:

.................................................. $ 11,493,891

   The amount of any reduction in this subsection shall be prorated among the programs specified in section 279.51, subsection 1, paragraphs “a”, “b”, and “c”.
    Sec. 3.  INSTRUCTIONAL SUPPORT STATE AID.  Notwithstanding the standing appropriation provided under section 257.20, an appropriation from the general fund of the state to the department of education for the fiscal year beginning July 1, 2010, and ending June 30, 2011, shall not be made for purposes of paying instructional support state aid.
    Sec. 4.  IOWA MATHEMATICS AND SCIENCE COALITION.  For the fiscal year beginning July 1, 2010, the university of northern Iowa shall maintain the efforts of the Iowa mathematics and science coalition that were initiated pursuant to section 294A.25, subsection 11, Code 2009.
    Sec. 5.  PROPERTY TAX CREDIT FUND —— PAYMENTS IN LIEU OF GENERAL FUND REIMBURSEMENT.
   1.  a.  A property tax credit fund shall be created in the office of the treasurer of state to be used for the purposes of this section.
   b.  There is appropriated from the general fund of the state to the property tax credit fund created in paragraph “a” for the fiscal year beginning July 1, 2010, and ending June 30, 2011, the sum of $91,256,037.
   c.  Notwithstanding the requirements in section 8.56, subsections 3 and 4, there is appropriated from the cash reserve fund to the property tax credit fund created in paragraph “a” for the fiscal year beginning July 1, 2010, and ending June 30, 2011, the sum of $54,684,481.
   d.  Notwithstanding section 8.33, the surplus existing in the property tax credit fund created pursuant to 2009 Iowa Acts, chapter 179, section 9, at the conclusion of the fiscal year beginning July 1, 2009, and ending June 30, 2010, is transferred to the property tax credit fund created in paragraph “a”.
   2.  There is appropriated from the property tax credit fund for the fiscal year beginning July 1, 2010, and ending June 30, 2011, the following amounts for the following designated purposes:
   a.  For reimbursement for the homestead property tax credit under section 425.1:

.................................................. $ 90,407,718

   b.  For reimbursement for the family farm and agricultural land tax credits under sections 425A.1 and 426.1:

.................................................. $ 32,395,131

   c.  For reimbursement for the military service tax credit under section 426A.1A:

.................................................. $  2,370,995

   d.  For implementing the elderly and disabled tax credit and reimbursement pursuant to sections 425.16 through 425.39:

.................................................. $ 20,779,200

   If the director of revenue determines that the amount of claims for credit for property taxes due pursuant to paragraphs “a”, “b”, “c”, and “d”, plus the amount of claims for reimbursement for rent constituting property taxes paid which are to be paid during the fiscal year may exceed the total amount appropriated, the director shall estimate the percentage of the credits and reimbursements which will be funded by the appropriation. The county treasurer shall notify the director of the amount of property tax credits claimed by June 8, 2010. The director shall estimate the percentage of the property tax credits and rent reimbursement claims that will be funded by the appropriation and notify the county treasurer of the percentage estimate by June 15, 2010. The estimated percentage shall be used in computing for each claim the amount of property tax credit and reimbursement for rent constituting property taxes paid for that fiscal year. If the director overestimates the percentage of funding, claims for reimbursement for rent constituting property taxes paid shall be paid until they can no longer be paid at the estimated percentage of funding. Rent reimbursement claims filed after that point in time shall receive priority and shall be paid in the following fiscal year.
    Sec. 6.  PERFORMANCE OF DUTY.  There is appropriated from the cash reserve fund created in section 8.56 to the executive council for the fiscal year beginning July 1, 2010, and ending June 30, 2011, the following amount, or so much thereof as is necessary, to be used for the purposes designated:

   For performance of duty by the executive council in sections 7D.29 and 29C.20:

.................................................. $ 30,000,000

   The funding from the appropriation made in this section shall be utilized before any funding from the general fund of the state.
    Sec. 7.  CASH RESERVE FUND APPROPRIATIONS.  Section 8.56, subsections 3 and 4, shall not apply to any appropriation made in this Act from the cash reserve fund created in section 8.56.
    Sec. 8.  EFFECTIVE DATES.  The section of this Act creating the property tax credit fund, being deemed of immediate importance, takes effect upon enactment.

DIVISION II
DISASTER-RELATED CASUALTY LOSSES
    Sec. 9.  Section 422.9, subsection 2, Code Supplement 2009, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  j.  A taxpayer is allowed to take the deductions for disaster-related casualty losses allowed under section 165(h) of the Internal Revenue Code, as amended by the federal Emergency Economic Stabilization Act of 2008, Pub. L. No. 110-343, in computing taxable income for state tax purposes.
    Sec. 10.  EFFECTIVE UPON ENACTMENT AND RETROACTIVE APPLICABILITY.  This division of this Act, being deemed of immediate importance, takes effect upon enactment and applies retroactively to January 1, 2008, for tax years beginning on or after that date.
EXPLANATION
   This bill relates to state financial matters. The bill is divided into divisions.
   DIVISION I. For the budget process applicable to FY 2011-2012, state agencies are required to submit estimates and other expenditure information as called for by the director of management instead of the information required under Code section 8.23.
   The division limits the standing unlimited appropriation for FY 2010-2011 for payment for nonpublic school transportation and for the state’s share of the cost of the peace officers’ retirement benefits. The division limits the standing limited appropriation for FY 2010-2011 for operational support grants and community cultural grants, for regional tourism marketing, for the enforcement of Code chapter 453D, for the center for congenital and inherited disorders central registry, for primary and secondary child abuse prevention programs, and for programs for at-risk children.
   The division eliminates for FY 2010-2011 a standing appropriation for instructional support state aid.
   The division requires the university of northern Iowa to maintain efforts of the Iowa mathematics and science coalition.
   For FY 2010-2011, the division funds the following property tax credits from the property tax credit fund created in the bill instead of entirely funded from the general fund of the state: homestead, agricultural land and family farm, military service, and elderly and disabled tax credit and reimbursement. The division appropriates moneys from the general fund and the cash reserve fund for deposit in the property tax credit fund. These provisions take effect upon enactment.
   The division appropriates moneys from the cash reserve fund to the executive council for FY 2010-2011 for performance of duty by the executive council. The division requires that such moneys must be used prior to the standing appropriation made from the general fund for the same purposes.
   The division appropriates moneys from the cash reserve fund to the general fund of the state for FY 2010-2011.
   The division provides that certain cash reserve fund requirements do not apply to any appropriations made in the division from the cash reserve fund.
   DIVISION II. This division of the bill relates to disaster-related casualty losses.
   The division allows a taxpayer to take the deduction for disaster-related casualty losses allowed under section 165(h) of the Internal Revenue Code, as amended by the federal Emergency Economic Stabilization Act of 2008, in computing taxable income for state tax purposes. The division takes effect upon enactment and applies retroactively to January 1, 2008, for tax years beginning on or after that date.