HF 2102 (LSB 5466YH (3) 86)

HOUSE FILE 2102

BY  SHEETS, HEARTSILL, SALMON, and MAXWELL

A BILL FOR

An Act relating to school district spending authority by establishing a district cash reserve budget adjustment.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.2, subsection 2, Code 2016, is amended by striking the subsection.
    Sec. 2.  NEW SECTION.  257.14A  District cash reserve budget adjustment.
   1.  The board of directors of a school district that wishes to receive the budget adjustment under this section may adopt a resolution by May 15 preceding the budget year and shall notify the department of management of the adoption of the resolution and the amount of the budget adjustment to be received. 
   2.  a.  For budget years beginning on or after July 1, 2017, each school district that satisfies the requirements of subsection 1 shall be eligible for a budget adjustment for that budget year in an amount not to exceed an amount equal to the district’s budget enrollment multiplied by the quotient obtained by dividing the sum of the maximum amount of the cash reserve levy available to each school district in the state as determined under section 298.10, subsection 3, for the budget year by the statewide budget enrollment for the base year. 
   b.  The resolution adopted under subsection 1 may specify a budget adjustment amount that is less than the amount authorized under paragraph “a”.
   c.  The school district shall fund the budget adjustment increase either by using moneys from its unexpended fund balance or by using cash reserve moneys subject to the limitation in section 298.10.
   3.  A budget adjustment received under this section shall not affect the eligibility for or amount of any other budget adjustment authorized by law for the same budget year. In addition, a budget adjustment under this section shall be limited to the budget year for which the adjustment was authorized and shall not be included in any computation of a school district’s cost for any future budget year.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill establishes a district cash reserve budget adjustment. The board of directors of a school district that wishes to receive the budget adjustment under the bill may adopt a resolution by May 15 preceding the budget year and shall notify the department of management of the adoption of the resolution and the amount of the budget adjustment to be received. 
   For budget years beginning on or after July 1, 2017, each school district that adopts the required resolution shall be eligible for a budget adjustment for that budget year in an amount not to exceed an amount equal to the district’s budget enrollment multiplied by the quotient obtained by dividing the sum of the maximum amount of the cash reserve levy available to each school district in the state as determined under Code section 298.10(3) for the budget year by the statewide budget enrollment for the base year. 
   The bill provides that the budget adjustment resolution may specify a budget adjustment amount that is less than the amount authorized in the bill. The school district is required to fund the budget adjustment increase either by using moneys from its unexpended fund balance or by using cash reserve moneys subject to the cash reserve levy limitation in Code section 298.10.
   The bill specifies that the budget adjustment received does not affect the eligibility for or amount of any other budget adjustment authorized by law for the same budget year and that the budget adjustment under the bill is limited to the budget year for which the adjustment was authorized and shall not be included in any computation of a school district’s cost for any future budget year.