Senate Study Bill 3107 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON QUIRMBACH) A BILL FOR An Act relating to school district property tax replacement 1 payments. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5828XC (2) 85 md/sc

S.F. _____ Section 1. Section 257.16B, subsection 2, paragraph b, 1 unnumbered paragraph 1, Code 2014, is amended to read as 2 follows: 3 For each the budget year beginning on or after July 1, 2014, 4 the department of management shall calculate for each school 5 district all of the following: 6 Sec. 2. Section 257.16B, subsection 2, paragraph b, 7 subparagraph (3), Code 2014, is amended to read as follows: 8 (3) The amount of each school district’s property tax 9 replacement payment. Each school district’s property tax 10 replacement payment equals the school district’s weighted 11 enrollment for the budget year beginning July 1, 2014, 12 multiplied by the remainder of the amount calculated for 13 the school district under subparagraph (2) minus the amount 14 calculated for the school district under subparagraph (1). 15 Sec. 3. Section 257.16B, subsection 2, Code 2014, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . c. For each budget year beginning on 18 or after July 1, 2015, the department of management shall 19 calculate for each school district all of the following: 20 (1) The regular program state cost per pupil for the budget 21 year beginning July 1, 2012, multiplied by one hundred percent 22 less the regular program foundation base per pupil percentage 23 pursuant to section 257.1. 24 (2) The regular program state cost per pupil for the budget 25 year beginning July 1, 2015, multiplied by one hundred percent 26 less the regular program foundation base per pupil percentage 27 pursuant to section 257.1. 28 (3) The amount of each school district’s property tax 29 replacement payment. Each school district’s property tax 30 replacement payment equals the school district’s weighted 31 enrollment for the budget year multiplied by the remainder 32 of the amount calculated for the school district under 33 subparagraph (2) minus the amount calculated for the school 34 district under subparagraph (1). 35 -1- LSB 5828XC (2) 85 md/sc 1/ 3

S.F. _____ EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 Current Code section 257.16B provides for school district 4 property tax replacement payments. For the budget year 5 beginning July 1, 2013, each school district’s property tax 6 replacement payment amount is equal to the school district’s 7 weighted enrollment for that budget year multiplied by the 8 difference of the following: (1) the regular program state 9 cost per pupil for the budget year beginning July 1, 2013, 10 multiplied by 100 percent less the regular program foundation 11 base per pupil percentage; and (2) the regular program state 12 cost per pupil for the budget year beginning July 1, 2012, 13 multiplied by 100 percent less the regular program foundation 14 base per pupil percentage. For each budget year beginning on 15 or after July 1, 2014, each school district’s property tax 16 replacement payment amount is equal to the school district’s 17 weighted enrollment for the budget year multiplied by the 18 difference of the following: (1) the regular program state 19 cost per pupil for the budget year beginning July 1, 2014, 20 multiplied by 100 percent less the regular program foundation 21 base per pupil percentage; and (2) the regular program state 22 cost per pupil for the budget year beginning July 1, 2012, 23 multiplied by 100 percent less the regular program foundation 24 base per pupil percentage. 25 This bill modifies the replacement payment calculation for 26 budget years beginning on or after July 1, 2015. For each 27 budget year beginning on or after July 1, 2015, each school 28 district’s property tax replacement payment amount is equal to 29 the school district’s weighted enrollment for the budget year 30 multiplied by the difference of the following: (1) the regular 31 program state cost per pupil for the budget year beginning July 32 1, 2015, multiplied by 100 percent less the regular program 33 foundation base per pupil percentage; and (2) the regular 34 program state cost per pupil for the budget year beginning July 35 -2- LSB 5828XC (2) 85 md/sc 2/ 3

S.F. _____ 1, 2012, multiplied by 100 percent less the regular program 1 foundation base per pupil percentage. 2 -3- LSB 5828XC (2) 85 md/sc 3/ 3