House File 2182 - Introduced HOUSE FILE 2182 BY THEDE , STECKMAN , HUNTER , T. TAYLOR , KEARNS , ANDERSON , McCONKEY , BEARINGER , PRICHARD , WOLFE , H. MILLER , DUNKEL , DAWSON , LYKAM , FORBES , BENNETT , GAINES , ABDUL-SAMAD , MASCHER , KELLEY , BROWN-POWERS , L. MILLER , SHEETS , COHOON , GASSMAN , GASKILL , STAED , OLDSON , HANSON , STUTSMAN , OURTH , LENSING , MEYER , BYRNES , JACOBY , FISHER , and WINCKLER 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 5161YH (4) 86 md/sc

H.F. 2182 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. The resolution adopted by the board of directors 13 shall specify the board’s intent to use such funds authorized 14 under subsection 2, paragraph “b” , without any corresponding 15 increase to the school district’s cash reserve levy or other 16 property tax levy of the school district for the current budget 17 year or any future budget year to replenish such amounts. 18 2. a. For budget years beginning on or after July 1, 2016, 19 but before July 1, 2019, each school district that satisfies 20 the requirements of subsection 1 shall be eligible for a 21 budget adjustment for that budget year in an amount not to 22 exceed the difference between the school district’s regular 23 program district cost per pupil and the highest regular program 24 district cost per pupil among all school districts in the state 25 multiplied by the district’s budget enrollment. The resolution 26 adopted under subsection 1 may specify a budget adjustment 27 amount that is less than the maximum amount authorized under 28 this paragraph “ a ”. 29 b. The school district shall fund the budget adjustment 30 either by using moneys from its unexpended fund balance or by 31 using cash reserve moneys. 32 3. A budget adjustment received under this section shall 33 not affect the eligibility for or amount of any other budget 34 adjustment authorized by law for the same budget year. In 35 -1- LSB 5161YH (4) 86 md/sc 1/ 4

H.F. 2182 addition, a budget adjustment under this section shall be 1 limited to the budget year for which the adjustment was 2 authorized and shall not be included in any computation of a 3 school district’s cost for any future budget year. 4 Sec. 3. Section 257.34, Code 2016, is amended to read as 5 follows: 6 257.34 Cash reserve information. 7 1. If a school district receives less state school 8 foundation aid under section 257.1 than is due under that 9 section for a base year and the school district uses funds 10 from its cash reserve during the base year to make up for 11 the amount of state aid not paid, the board of directors of 12 the school district shall include in its general fund budget 13 document information about the amount of the cash reserve used 14 to replace state school foundation aid not paid. 15 2. If a school district uses funds from its cash reserve 16 during the base year to fund a budget adjustment under section 17 257.14A, the board of directors of the school district shall 18 include in its general fund budget document information about 19 the amount of the cash reserve used for such purpose. 20 Sec. 4. IMPLEMENTATION. Notwithstanding the deadline 21 for adopting a resolution to approve the budget adjustment 22 in section 257.14A, subsection 1, for the school budget 23 year beginning July 1, 2016, the resolution of the board of 24 directors of a school district shall be approved not later than 25 June 10, 2016. 26 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 27 immediate importance, takes effect upon enactment. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill establishes a district cost per pupil equity 32 budget adjustment. The board of directors of a school district 33 with a regular program district cost per pupil that is less 34 than the highest regular program district cost per pupil among 35 -2- LSB 5161YH (4) 86 md/sc 2/ 4

H.F. 2182 all school districts in the state for the same budget year may 1 annually adopt a resolution to receive the budget adjustment 2 authorized in the bill. Following adoption of the resolution 3 the board of directors must notify the department of management 4 of the adoption of the resolution and the amount of the budget 5 adjustment to be received. The bill requires the resolution 6 adopted by the board of directors to specify the board’s intent 7 to use the authorized funding sources without any corresponding 8 increase to the school district’s cash reserve levy or other 9 property tax levy of the school district for the current budget 10 year or any future budget year to replenish the funding sources 11 used. 12 For budget years beginning on or after July 1, 2016, but 13 before July 1, 2019, each eligible school district is eligible 14 for a budget adjustment for that budget year in an amount 15 equal to the difference between the school district’s regular 16 program district cost per pupil and the highest regular program 17 district cost per pupil among all school districts in the 18 state multiplied by the district’s budget enrollment. The 19 resolution authorizing the budget adjustment may specify a 20 budget adjustment amount that is less than the maximum amount 21 authorized under the bill. The bill requires the school 22 district to fund the budget adjustment either by using moneys 23 from its unexpended fund balance or by using cash reserve 24 moneys. 25 The bill specifies that the budget adjustment received does 26 not affect the eligibility for or amount of any other budget 27 adjustment authorized by law for the same budget year and that 28 the budget adjustment under the bill is limited to the budget 29 year for which the adjustment was authorized and shall not be 30 included in any computation of a school district’s cost for any 31 future budget year. 32 Under the bill, if a school district uses funds from its 33 cash reserve during the base year to fund a budget adjustment 34 authorized in the bill, the board of directors of the school 35 -3- LSB 5161YH (4) 86 md/sc 3/ 4

H.F. 2182 district shall include in its general fund budget document 1 information about the amount of the cash reserve used for such 2 purpose. 3 Notwithstanding the May 15 deadline for adopting a 4 resolution to approve the budget adjustment provided for in the 5 bill, for the school budget year beginning July 1, 2016, the 6 resolution of the board of directors of a school district must 7 be approved not later than June 10, 2016. 8 The bill takes effect upon enactment. 9 -4- LSB 5161YH (4) 86 md/sc 4/ 4