House File 2072 - Introduced HOUSE FILE 2072 BY WINCKLER , HUNTER , MASCHER , KEARNS , BERRY , STECKMAN , ABDUL-SAMAD , GASKILL , and WESSEL-KROESCHELL A BILL FOR An Act relating to school district funding by establishing a 1 district cost per pupil equity budget adjustment for certain 2 budget years and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5054HH (6) 86 md/sc

H.F. 2072 Section 1. Section 257.2, subsection 2, Code 2016, is 1 amended by striking the subsection. 2 Sec. 2. NEW SECTION . 257.14A District cost per pupil equity 3 —— budget adjustment. 4 1. The board of directors of a school district with a 5 regular program district cost per pupil that is less than the 6 highest regular program district cost per pupil among all 7 school districts in the state for the same budget year that 8 wishes to receive the budget adjustment under this section may 9 adopt a resolution by May 15 preceding the budget year and 10 shall notify the department of management of the adoption of 11 the resolution and the amount of the budget adjustment to be 12 received. 13 2. a. For budget years beginning on or after July 1, 2016, 14 but before July 1, 2019, each school district that satisfies 15 the requirements of subsection 1 shall be eligible for a 16 budget adjustment for that budget year in an amount not to 17 exceed the difference between the school district’s regular 18 program district cost per pupil and the highest regular program 19 district cost per pupil among all school districts in the state 20 multiplied by the district’s budget enrollment. The resolution 21 adopted under subsection 1 may specify a budget adjustment 22 amount that is less than the maximum amount authorized under 23 this paragraph “ a ”. 24 b. The school district shall fund the budget adjustment 25 either by using moneys from its unexpended fund balance or by 26 using cash reserve moneys. 27 3. A budget adjustment received under this section shall 28 not affect the eligibility for or amount of any other budget 29 adjustment authorized by law for the same budget year. In 30 addition, a budget adjustment under this section shall be 31 limited to the budget year for which the adjustment was 32 authorized and shall not be included in any computation of a 33 school district’s cost for any future budget year. 34 Sec. 3. Section 257.34, Code 2016, is amended to read as 35 -1- LSB 5054HH (6) 86 md/sc 1/ 3

H.F. 2072 follows: 1 257.34 Cash reserve information. 2 1. If a school district receives less state school 3 foundation aid under section 257.1 than is due under that 4 section for a base year and the school district uses funds 5 from its cash reserve during the base year to make up for 6 the amount of state aid not paid, the board of directors of 7 the school district shall include in its general fund budget 8 document information about the amount of the cash reserve used 9 to replace state school foundation aid not paid. 10 2. If a school district uses funds from its cash reserve 11 during the base year to fund a budget adjustment under section 12 257.14A, the board of directors of the school district shall 13 include in its general fund budget document information about 14 the amount of the cash reserve used for such purpose. 15 Sec. 4. IMPLEMENTATION. Notwithstanding the deadline 16 for adopting a resolution to approve the budget adjustment 17 in section 257.14A, subsection 1, for the school budget 18 year beginning July 1, 2016, the resolution of the board of 19 directors of a school district shall be approved not later than 20 June 10, 2016. 21 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 22 immediate importance, takes effect upon enactment. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill establishes a district cost per pupil equity 27 budget adjustment. The board of directors of a school district 28 with a regular program district cost per pupil that is less 29 than the highest regular program district cost per pupil among 30 all school districts in the state for the same budget year may 31 annually adopt a resolution to receive the budget adjustment 32 authorized in the bill. Following adoption of the resolution 33 the board of directors must notify the department of management 34 of the adoption of the resolution and the amount of the budget 35 -2- LSB 5054HH (6) 86 md/sc 2/ 3

H.F. 2072 adjustment to be received. 1 For budget years beginning on or after July 1, 2016, but 2 before July 1, 2019, each eligible school district is eligible 3 for a budget adjustment for that budget year in an amount 4 equal to the difference between the school district’s regular 5 program district cost per pupil and the highest regular program 6 district cost per pupil among all school districts in the 7 state multiplied by the district’s budget enrollment. The 8 resolution authorizing the budget adjustment may specify a 9 budget adjustment amount that is less than the maximum amount 10 authorized under the bill. The bill requires the school 11 district to fund the budget adjustment either by using moneys 12 from its unexpended fund balance or by using cash reserve 13 moneys. 14 The bill specifies that the budget adjustment received does 15 not affect the eligibility for or amount of any other budget 16 adjustment authorized by law for the same budget year and that 17 the budget adjustment under the bill is limited to the budget 18 year for which the adjustment was authorized and shall not be 19 included in any computation of a school district’s cost for any 20 future budget year. 21 Under the bill, if a school district uses funds from its 22 cash reserve during the base year to fund a budget adjustment 23 authorized in the bill, the board of directors of the school 24 district shall include in its general fund budget document 25 information about the amount of the cash reserve used for such 26 purpose. 27 Notwithstanding the May 15 deadline for adopting a 28 resolution to approve the budget adjustment provided for in the 29 bill, for the school budget year beginning July 1, 2016, the 30 resolution of the board of directors of a school district must 31 be approved not later than June 10, 2016. 32 The bill takes effect upon enactment. 33 -3- LSB 5054HH (6) 86 md/sc 3/ 3