House File 559 - Introduced HOUSE FILE 559 BY SHEETS A BILL FOR An Act relating to school district funding by modifying school 1 budget review committee authority to recommend fiscal 2 reviews and to provide transportation assistance aid, 3 specifying uses of the district management levy, authorizing 4 school districts to levy for transportation costs, and 5 including applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 2078YH (8) 85 md/sc

H.F. 559 Section 1. Section 257.31, subsection 17, paragraph a, Code 1 2013, is amended to read as follows: 2 a. If a district’s average transportation costs per pupil 3 exceed the state average transportation costs per pupil 4 determined under paragraph “c” by one hundred fifty percent , 5 the committee may grant transportation assistance aid to the 6 district. Such aid shall be miscellaneous income and shall not 7 be included in district cost. 8 Sec. 2. Section 257.31, subsection 18, Code 2013, is amended 9 by striking the subsection and inserting in lieu thereof the 10 following: 11 18. The committee is authorized to recommend that the 12 department implement a phase II on-site visit to conduct a 13 fiscal review pursuant to section 256.11, subsection 10, 14 paragraph “b” , subparagraph (1), subparagraph division (e), as 15 follows: 16 a. If a school district exceeds its authorized budget 17 or carries a negative unspent balance for the most recently 18 completed budget year and for each of the two budget years 19 preceding that budget year and the school district is not 20 eligible for a phase II on-site visit recommendation to conduct 21 a fiscal review under paragraph “b” , the committee may, but is 22 not required to, recommend that the department conduct such a 23 phase II on-site visit unless the school district’s unspent 24 balance for the most recently completed budget year is greater 25 than the difference of four-thirds of the unspent balance for 26 the budget year preceding the most recently completed budget 27 year minus one-half of the unspent balance for the budget year 28 two years preceding the most recently completed budget year. 29 b. If a school district exceeds its authorized budget 30 or carries a negative unspent balance for the most recently 31 completed budget year and for each of the four budget years 32 preceding that budget year and the school district was not 33 recommended for a phase II on-site visit to conduct a fiscal 34 review under this subsection for the budget year preceding the 35 -1- LSB 2078YH (8) 85 md/sc 1/ 5

H.F. 559 most recently completed budget year, the committee may, but is 1 not required to, recommend that the department conduct such a 2 phase II on-site visit. 3 Sec. 3. Section 298.4, subsection 1, Code 2013, is amended 4 by adding the following new paragraph: 5 NEW PARAGRAPH . f. To pay the costs of mediation and 6 arbitration including but not limited to legal fees associated 7 with such mediation or arbitration. 8 Sec. 4. NEW SECTION . 298.17 Transportation cost 9 supplemental levy. 10 1. The board of directors of a school district with district 11 transportation costs per pupil in excess of the state average 12 transportation costs per pupil, as those amounts are determined 13 under section 257.31, subsection 17, paragraph “c” , may certify 14 for levy by April 15 of the school year preceding the budget 15 year, a tax on all taxable property in the school district for 16 a transportation cost supplemental levy. The revenue from the 17 tax levied in this section shall be placed in the general fund 18 of the school district and expended for the purposes authorized 19 under subsection 3. 20 2. The amount certified by a school district for levy 21 under this section for a school budget year shall not exceed 22 an amount equal to the district’s actual enrollment used to 23 calculate the district’s average transportation costs per pupil 24 under section 257.31, subsection 17, paragraph “c”, multiplied 25 by the remainder of the district’s average transportation costs 26 per pupil minus the state average transportation costs per 27 pupil, as those amounts are determined under section 257.31, 28 subsection 17, paragraph “c” . However, such resulting amount 29 shall be reduced by the amount of transportation assistance aid 30 received by the district under section 257.31, subsection 17, 31 for the same budget year, if applicable. 32 3. Revenues received by a school district from a levy 33 imposed under this section shall be expended only for the 34 cost of repairing, maintaining, and fueling school district 35 -2- LSB 2078YH (8) 85 md/sc 2/ 5

H.F. 559 transportation equipment and school buses, as defined in 1 section 321.1, subsection 69. 2 4. Except for an adjustment in the amount certified for 3 levy under subsection 2, imposition of a transportation cost 4 supplemental levy under this section shall not affect a school 5 district’s eligibility for transportation assistance under 6 section 257.31, subsection 17. 7 5. Revenues received by a school district under this section 8 shall not be included in district cost and such amounts shall 9 be miscellaneous income. 10 Sec. 5. APPLICABILITY. The section of this Act amending 11 section 257.31, subsection 17, applies to school budget years 12 beginning on or after July 1, 2014. 13 Sec. 6. APPLICABILITY. The section of this Act amending 14 section 298.4 applies to school budget years beginning on or 15 after July 1, 2014. 16 Sec. 7. APPLICABILITY. The section of this Act enacting 17 section 298.17 applies to school budget years beginning on or 18 after July 1, 2014. 19 EXPLANATION 20 Current Code section 257.31(17) provides that if a school 21 district’s average transportation costs per pupil exceed the 22 state average transportation costs per pupil by 150 percent, 23 the school budget review committee may grant transportation 24 assistance aid to the district. This bill allows such 25 transportation assistance aid to be granted by the committee 26 if a school district’s average transportation costs per pupil 27 exceed the state average transportation costs per pupil. 28 Current Code section 257.31(18) provides that if a school 29 district exceeds its authorized budget or carries a negative 30 unspent balance for two or more consecutive years, the school 31 budget review committee may recommend that the department 32 of education implement a phase II on-site visit to conduct 33 a fiscal review pursuant to Code section 256.11(10). The 34 bill strikes current Code section 257.31(18), and enacts a 35 -3- LSB 2078YH (8) 85 md/sc 3/ 5

H.F. 559 methodology for the school budget review committee to utilize 1 when determining whether the committee may make recommendations 2 for the department of education to implement a phase II on-site 3 visit to conduct a fiscal review pursuant to Code section 4 256.11(10). 5 The bill authorizes a school district to use revenue from the 6 district management levy under Code section 298.4 to pay the 7 costs of mediation and arbitration including but not limited to 8 legal fees associated with such mediation or arbitration. 9 The bill authorizes the board of directors of a school 10 district with district transportation costs per pupil in excess 11 of the state average transportation costs per pupil, as those 12 amounts are determined under Code section 257.31(17)(c), to 13 certify for levy a tax on all taxable property in the school 14 district for a transportation cost supplemental levy. The 15 amount certified by a school district for levy for a school 16 budget year shall not exceed an amount equal to the district’s 17 actual enrollment used to calculate the district’s average 18 transportation costs per pupil multiplied by the remainder of 19 the district’s average transportation costs per pupil minus 20 the state average transportation costs per pupil. The bill 21 provides, however, that such resulting amount shall be reduced 22 by the amount of transportation assistance aid received by the 23 district under Code section 257.31(17) for the same budget 24 year, if applicable. 25 The bill specifies that revenues received by a school 26 district from a levy imposed under the bill shall be expended 27 only for the cost of repairing, maintaining, and fueling school 28 district transportation equipment and school buses. The bill 29 provides that except for an adjustment in the amount that 30 may be certified for levy, imposition of a transportation 31 supplemental levy does not affect a school district’s 32 eligibility for transportation assistance under Code section 33 257.31(17). 34 The bill specifies that revenues received by a school 35 -4- LSB 2078YH (8) 85 md/sc 4/ 5

H.F. 559 district from a transportation cost supplemental levy shall 1 not be included in district cost and such amounts shall be 2 miscellaneous income. 3 The section of the bill amending Code section 257.31(17) 4 applies to school budget years beginning on or after July 1, 5 2014. The section of the bill amending Code section 298.4 6 applies to school budget years beginning on or after July 1, 7 2014. The section of the bill enacting Code section 298.17 8 applies to school budget years beginning on or after July 1, 9 2014. 10 -5- LSB 2078YH (8) 85 md/sc 5/ 5