H.F. 2022 Section 1. Section 257.1, subsection 2, paragraph b, Code 1 2011, is amended by striking the paragraph and inserting in 2 lieu thereof the following: 3 b. (1) The regular program foundation base per pupil is the 4 following: 5 (a) For the budget year commencing July 1, 2012, the 6 regular program foundation base per pupil is eighty-seven and 7 five-tenths percent of the regular program state cost per 8 pupil. 9 (b) For the budget year commencing July 1, 2013, the 10 regular program foundation base per pupil is eighty-nine and 11 twenty-eight hundredths percent of the regular program state 12 cost per pupil. 13 (c) For the budget year commencing July 1, 2014, the 14 regular program foundation base per pupil is ninety-one and six 15 hundredths percent of the regular program state cost per pupil. 16 (d) For the budget year commencing July 1, 2015, the regular 17 program foundation base per pupil is ninety-two and eighty-four 18 hundredths percent of the regular program state cost per pupil. 19 (e) For the budget year commencing July 1, 2016, the regular 20 program foundation base per pupil is ninety-four and sixty-two 21 hundredths percent of the regular program state cost per pupil. 22 (f) For the budget year commencing July 1, 2017, the regular 23 program foundation base per pupil is ninety-six and forty 24 hundredths percent of the regular program state cost per pupil. 25 (g) For the budget year commencing July 1, 2018, the regular 26 program foundation base per pupil is ninety-eight and eighteen 27 hundredths percent of the regular program state cost per pupil. 28 (h) For the budget year commencing July 1, 2019, and 29 succeeding budget years, the regular program foundation base 30 per pupil is one hundred percent of the regular program state 31 cost per pupil. 32 (2) For each budget year, the special education support 33 services foundation base is seventy-nine percent of the special 34 education support services state cost per pupil. The combined 35 -1- LSB 5401YH (2) 84 md/sc 1/ 6

H.F. 2022 foundation base is the sum of the regular program foundation 1 base, the special education support services foundation base, 2 the total teacher salary supplement district cost, the total 3 professional development supplement district cost, the total 4 early intervention supplement district cost, the total area 5 education agency teacher salary supplement district cost, 6 and the total area education agency professional development 7 supplement district cost. 8 Sec. 2. Section 257.4, subsection 1, paragraph b, Code 2011, 9 is amended to read as follows: 10 b. For the budget year beginning July 1, 2008, and 11 succeeding budget years beginning before July 1, 2019 , the 12 department of management shall annually determine an adjusted 13 additional property tax levy and a statewide maximum adjusted 14 additional property tax levy rate, not to exceed the statewide 15 average additional property tax levy rate, calculated by 16 dividing the total adjusted additional property tax levy 17 dollars statewide by the statewide total net taxable valuation. 18 For purposes of this paragraph, the adjusted additional 19 property tax levy shall be that portion of the additional 20 property tax levy corresponding to the state cost per pupil 21 multiplied by a school district’s weighted enrollment, and then 22 multiplied by one hundred percent less the regular program 23 foundation base per pupil percentage pursuant to section 24 257.1 . The For budget years beginning before July 1, 2019, the 25 district shall receive adjusted additional property tax levy 26 aid in an amount equal to the difference between the adjusted 27 additional property tax levy rate and the statewide maximum 28 adjusted additional property tax levy rate, as applied per 29 thousand dollars of assessed valuation on all taxable property 30 in the district. The statewide maximum adjusted additional 31 property tax levy rate shall be annually determined by the 32 department taking into account amounts allocated pursuant to 33 section 257.15, subsection 4 . The For budget years beginning 34 before July 1, 2019, the statewide maximum adjusted additional 35 -2- LSB 5401YH (2) 84 md/sc 2/ 6

H.F. 2022 property tax levy rate shall be annually determined by the 1 department taking into account amounts allocated pursuant to 2 section 257.15, subsection 4 , and the balance of the property 3 tax equity and relief fund created in section 257.16A at the 4 end of the calendar year. 5 Sec. 3. Section 257.15, subsection 4, Code 2011, is amended 6 to read as follows: 7 4. a. Allocations for maximum adjusted additional property 8 tax levy rate calculation and adjusted additional property 9 tax levy aid. The For fiscal years beginning before July 1, 10 2019, the department of management shall allocate from amounts 11 appropriated pursuant to section 257.16, subsection 1 , and from 12 funds appropriated from the property tax equity and relief 13 fund created in section 257.16A for the purpose of calculating 14 the statewide maximum adjusted additional property tax levy 15 rate and providing adjusted additional property tax levy aid 16 as provided in section 257.4, subsection 1 , paragraph “b” , 17 an amount equal to the sum of subparagraphs (1) and (2) as 18 follows: 19 (1) From the amount appropriated from the general fund of 20 the state pursuant to section 257.16, subsection 1 , equal to 21 the following: 22 (a) For the budget year beginning July 1, 2006, six million 23 dollars. 24 (b) For the budget year beginning July 1, 2007, twelve 25 million dollars. 26 (c) For the budget year beginning July 1, 2008, eighteen 27 million dollars. 28 (d) For the budget year beginning July 1, 2009, and 29 succeeding budget years beginning before July 1, 2019 , 30 twenty-four million dollars. 31 (2) From the amount appropriated from the property tax 32 equity and relief fund created in section 257.16A . 33 b. After lowering all school district additional property 34 tax levy rates to the statewide maximum adjusted additional 35 -3- LSB 5401YH (2) 84 md/sc 3/ 6

H.F. 2022 property tax levy rate under paragraph “a” , the department of 1 management shall use any remaining funds at the end of the 2 calendar year to further lower additional property taxes by 3 increasing for the budget year beginning the following July 4 1, the state foundation base percentage. If, however, the 5 state foundation base percentage is one hundred percent, the 6 department of management shall deposit those remaining funds 7 in the taxpayers trust fund created in section 8.57E. Moneys 8 used pursuant to this paragraph shall supplant an equal amount 9 of the appropriation made from the general fund of the state 10 pursuant to section 257.16 that represents the increase in 11 state foundation aid. 12 Sec. 4. Section 257.16A, subsections 2 and 3, Code 2011, are 13 amended to read as follows: 14 2. There For fiscal years beginning before July 1, 2019, 15 there is appropriated annually all moneys in the fund to the 16 department of management for purposes of section 257.15, 17 subsection 4 . 18 3. Notwithstanding Except as provided in subsection 4, 19 and notwithstanding section 8.33 , any moneys remaining in the 20 property tax equity and relief fund at the end of a fiscal year 21 shall not revert to any other fund but shall remain in the 22 property tax equity and relief fund for use as provided in this 23 section for the following fiscal year. 24 Sec. 5. Section 257.16A, Code 2011, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 4. Any moneys in the property tax equity 27 and relief fund on June 30, 2019, shall be deposited by the 28 department of management in the taxpayers trust fund created 29 in section 8.57E. 30 Sec. 6. Section 423F.2, subsection 3, Code 2011, is amended 31 to read as follows: 32 3. The moneys available in a fiscal year in the secure an 33 advanced vision for education fund shall be distributed by the 34 department of revenue to each school district in an amount 35 -4- LSB 5401YH (2) 84 md/sc 4/ 6

H.F. 2022 equal to the amount the school district would have received 1 pursuant to the formula in section 423E.4 as if the local 2 sales and services tax for school infrastructure purposes was 3 imposed. Moneys collected in a fiscal year beginning before 4 July 1, 2017, that are in excess of that needed to provide each 5 school district with its formula amount shall be distributed 6 and credited to the property tax equity and relief fund 7 created in section 257.16A . Moneys collected in a fiscal year 8 beginning on or after July 1, 2017, that are in excess of that 9 amount needed to provide each school district with its formula 10 amount shall be deposited in the taxpayers trust fund created 11 in section 8.57E. 12 EXPLANATION 13 This bill relates to state and school district finances by 14 increasing the regular program foundation base percentage. 15 The bill provides for an increase in the regular program 16 foundation base under the state school foundation program. 17 The foundation base is the specified percentage of the state 18 cost per pupil calculation which is paid as state aid to 19 school districts, above and beyond the uniform property tax 20 levy imposed in Code section 257.3. Beginning with the budget 21 year commencing July 1, 2013, the increase is phased in over 22 a seven-year period in annual increments, from the current 23 foundation base level of 87.5 percent to the level of 100 24 percent in the seventh year. 25 The bill provides that the department of management’s 26 determination of an adjusted additional property tax levy and a 27 statewide maximum adjusted additional property tax levy rate 28 only applies to budget years beginning before July 1, 2019. 29 The bill also provides that adjusted additional property tax 30 levy aid to school districts is only provided for budget years 31 beginning before July 1, 2019. The elimination of adjusted 32 additional property tax levy aid is the result of the regular 33 program foundation base percentage reaching 100 percent. 34 The bill sunsets the annual appropriation of $24 million for 35 -5- LSB 5401YH (2) 84 md/sc 5/ 6

H.F. 2022 adjusted additional property tax levy aid under Code section 1 257.15(4) for the fiscal year beginning July 1, 2019, and 2 provides that if the state foundation base percentage is 100 3 percent, the department of management shall deposit those 4 remaining funds allocated for adjusted additional property tax 5 levy aid in the taxpayers trust fund. 6 The bill specifies that any moneys in the property tax equity 7 and relief fund established under Code section 257.16A on June 8 30, 2019, shall be deposited by the department of management in 9 the taxpayers trust fund. 10 The bill provides that moneys collected in a fiscal year 11 beginning before July 1, 2017, in the secure an advanced vision 12 for education fund (SAVE) that are in excess of that needed to 13 provide each school district with its formula amount continue, 14 as under current law, to be distributed and credited to the 15 property tax equity and relief fund created in Code section 16 257.16A. The bill provides that such excess moneys collected 17 in a fiscal year beginning on or after July 1, 2017, shall be 18 deposited in the taxpayers trust fund. 19 -6- LSB 5401YH (2) 84 md/sc 6/ 6