House File 433 - Introduced HOUSE FILE 433 BY SHEETS and GASSMAN A BILL FOR An Act establishing a district cash reserve budget adjustment. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2350YH (6) 86 md/sc

H.F. 433 Section 1. Section 257.2, subsection 2, Code 2015, is 1 amended by striking the subsection. 2 Sec. 2. NEW SECTION . 257.14A District cash reserve budget 3 adjustment. 4 1. The board of directors of a school district that wishes 5 to receive the budget adjustment under this section may adopt a 6 resolution by May 15 preceding the budget year and shall notify 7 the department of management of the adoption of the resolution 8 and the amount of the budget adjustment to be received. 9 2. a. For budget years beginning on or after July 1, 10 2016, each school district that satisfies the requirements of 11 subsection 1 shall be eligible for a budget adjustment for 12 that budget year in an amount not to exceed an amount equal to 13 the district’s budget enrollment multiplied by the quotient 14 obtained by dividing the sum of the maximum amount of the cash 15 reserve levy available to each school district in the state as 16 determined under section 298.10, subsection 3, for the budget 17 year by the statewide budget enrollment for the base year. 18 b. The resolution adopted under subsection 1 may specify 19 a budget adjustment amount that is less than the amount 20 authorized under paragraph “a” . 21 c. The school district shall fund the budget adjustment 22 increase either by using moneys from its unexpended fund 23 balance or by using cash reserve moneys subject to the 24 limitation in section 298.10. 25 3. A budget adjustment received under this section shall 26 not affect the eligibility for or amount of any other budget 27 adjustment authorized by law for the same budget year. In 28 addition, a budget adjustment under this section shall be 29 limited to the budget year for which the adjustment was 30 authorized and shall not be included in any computation of a 31 school district’s cost for any future budget year. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -1- LSB 2350YH (6) 86 md/sc 1/ 2

H.F. 433 This bill establishes a district cash reserve budget 1 adjustment. The board of directors of a school district that 2 wishes to receive the budget adjustment under the bill may 3 adopt a resolution by May 15 preceding the budget year and 4 shall notify the department of management of the adoption of 5 the resolution and the amount of the budget adjustment to be 6 received. 7 For budget years beginning on or after July 1, 2016, each 8 school district that adopts the required resolution shall be 9 eligible for a budget adjustment for that budget year in an 10 amount not to exceed an amount equal to the district’s budget 11 enrollment multiplied by the quotient obtained by dividing the 12 sum of the maximum amount of the cash reserve levy available 13 to each school district in the state as determined under Code 14 section 298.10(3) for the budget year by the statewide budget 15 enrollment for the base year. 16 The bill provides that the budget adjustment resolution may 17 specify a budget adjustment amount that is less than the amount 18 authorized in the bill. The school district is required to 19 fund the budget adjustment increase either by using moneys from 20 its unexpended fund balance or by using cash reserve moneys 21 subject to the cash reserve levy limitation in Code section 22 298.10. 23 The bill specifies that the budget adjustment received does 24 not affect the eligibility for or amount of any other budget 25 adjustment authorized by law for the same budget year and that 26 the budget adjustment under the bill is limited to the budget 27 year for which the adjustment was authorized and shall not be 28 included in any computation of a school district’s cost for any 29 future budget year. 30 -2- LSB 2350YH (6) 86 md/sc 2/ 2