H.F. 84 Section 1. Section 275.12, subsection 5, Code 2015, is 1 amended to read as follows: 2 5. The petition may include a provision that the 3 voter-approved physical plant and equipment levy provided in 4 section 298.2 , the transportation cost supplement program 5 provided in section 298.17, or both, will be voted upon at the 6 election conducted under section 275.18 . The petition may also 7 include a provision that the revenue purpose statement provided 8 in section 423F.3 will be voted upon at the election conducted 9 under section 275.18 . 10 Sec. 2. Section 298.14, unnumbered paragraphs 1 and 2, Code 11 2015, are amended to read as follows: 12 For each fiscal year, the cumulative total of the percents of 13 surtax approved by the board of directors of a school district 14 and collected by the department of revenue under sections 15 257.21 , 257.29 , and 298.2 , and 298.17, and the enrichment 16 surtax under section 442.15 , Code 1989, and an income surtax 17 collected by a political subdivision under chapter 422D , shall 18 not exceed twenty percent. 19 A school district income surtax fund is created in the 20 office of treasurer of state. Income surtaxes collected by the 21 department of revenue under sections 257.21 , 257.29 , and 298.2 , 22 and 298.17, and section 442.15 , Code 1989, shall be deposited 23 in the school district income surtax fund to the credit of each 24 school district. A separate accounting of each surtax, by 25 school district, shall be maintained. 26 Sec. 3. NEW SECTION . 298.17 Transportation cost supplement 27 program —— election. 28 1. a. A transportation cost supplement program is 29 established to provide additional funding for school districts 30 in which the district transportation costs per pupil exceed the 31 state average transportation costs per pupil, as those amounts 32 are determined under section 257.31, subsection 17, paragraph 33 “c” . 34 b. The board of directors of a school district that 35 -1- LSB 1201HH (5) 86 md/sc 1/ 5

H.F. 84 satisfies the criteria of paragraph “a” , may direct the 1 county commissioner of elections to submit the question of 2 participation in the transportation cost supplement program to 3 the registered voters of the school district at an election 4 held on a date specified in section 39.2, subsection 4, 5 paragraph “c” . The question submitted to the voters of the 6 school district shall specify the period of consecutive years 7 that the school district may participate in the program, 8 if otherwise eligible under paragraph “a” , not to exceed 9 ten consecutive years. If a majority of those voting on 10 the question favors participation in the program, the board 11 shall adopt a resolution to participate and shall certify the 12 results of the election to the department of management and the 13 district shall participate in the program. If a majority of 14 those voting on the question does not favor participation, the 15 district shall not participate in the program. 16 2. The transportation cost supplement program shall provide 17 additional revenues each fiscal year not to exceed an amount 18 equal to the district’s actual enrollment used to calculate 19 the district’s average transportation costs per pupil under 20 section 257.31, subsection 17, paragraph “c” , multiplied by 21 the remainder of the district’s average transportation costs 22 per pupil minus the state average transportation costs per 23 pupil, as those amounts are determined under section 257.31, 24 subsection 17, paragraph “c” . However, such resulting amount 25 shall be reduced by the amount of transportation assistance 26 aid received by the district under section 257.31, subsection 27 17, for the same budget year, as defined in section 257.2, if 28 applicable. Certification of a district’s participation for a 29 budget year, the method of funding, and the amount to be raised 30 shall be made to the department of management not later than 31 April 15 of the base year, as defined in section 257.2. 32 3. The transportation cost supplement program shall be 33 funded by either a transportation cost supplement property 34 tax or by the combination of a transportation cost supplement 35 -2- LSB 1201HH (5) 86 md/sc 2/ 5

H.F. 84 property tax and a transportation cost supplement income 1 surtax. The method of raising the transportation cost 2 supplement program moneys shall be determined by the board. 3 Subject to the limitation in section 298.14, if the board 4 uses a combination of a transportation property tax and a 5 transportation cost supplement income surtax, the board shall 6 determine the percent of income surtax to be imposed, expressed 7 as full percentage points, not to exceed twenty percent. 8 4. The department of management shall establish the amount 9 of the transportation cost supplement property tax to be levied 10 or the amount of the combination of the transportation cost 11 supplement property tax to be levied and the amount of the 12 transportation cost supplement income surtax to be imposed for 13 each school year that the transportation cost supplement amount 14 is authorized and the school district eligible under subsection 15 1, paragraph “a” . The transportation cost supplement property 16 tax and income surtax, if an income surtax is imposed, shall be 17 levied and imposed, collected, and paid to the school district 18 in the manner provided for the instructional support program in 19 sections 257.21 through 257.26. 20 5. Revenues received by a school district from a 21 transportation cost supplement property tax or income surtax 22 imposed under this section shall be deposited in the general 23 fund of the school district and expended only for the cost 24 of repairing, maintaining, and fueling school district 25 transportation equipment and school buses, as defined in 26 section 321.1, subsection 69. Revenues received by a school 27 district under this section are miscellaneous income. 28 6. Except for an adjustment in the total amount authorized 29 to be collected under subsection 2, participation in the 30 transportation cost supplement program under this section shall 31 not affect a school district’s eligibility for transportation 32 assistance under section 257.31, subsection 17. 33 7. Once approved at an election, the authority of the 34 board to use the transportation cost supplement program 35 -3- LSB 1201HH (5) 86 md/sc 3/ 5

H.F. 84 shall continue, subject to the period of years authorized at 1 election, until the board votes to discontinue the program or 2 the voters of the school district by majority vote order the 3 discontinuance of the program. The board shall submit at an 4 election held on a date specified in section 39.2, subsection 5 4, paragraph “c” , the question of whether to discontinue the 6 program upon the receipt of a petition signed by not less than 7 one hundred eligible electors or thirty percent of the number 8 of electors voting at the last preceding school election, 9 whichever is greater. 10 8. Participation in the transportation cost supplement 11 program is not affected by a change in the boundaries of the 12 school district. If each school district involved in a school 13 reorganization under chapter 275 has approved a transportation 14 cost supplement program, and if the voters have not voted upon 15 the question of participation in the program in the reorganized 16 district, the program shall be in effect for the reorganized 17 district that has been approved for the least amount and the 18 shortest time in any of the districts. 19 Sec. 4. APPLICABILITY. This Act applies to school budget 20 years beginning on or after July 1, 2016. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill establishes a transportation cost supplement 25 program to provide additional funding for school districts 26 in which the district transportation costs per pupil exceed 27 the state average transportation costs per pupil. Under the 28 bill, the board of directors of such a school district may 29 direct the county commissioner of elections to submit the 30 question of participation in the program to the registered 31 voters of the school district. The question submitted to the 32 voters shall specify the period of consecutive years that the 33 school district may participate in the program not to exceed 10 34 consecutive years. 35 -4- LSB 1201HH (5) 86 md/sc 4/ 5

H.F. 84 The transportation cost supplement program provides 1 additional revenue each fiscal year not to exceed an amount 2 equal to the district’s actual enrollment used to calculate 3 the district’s average transportation costs, multiplied by 4 the remainder of the district’s average transportation costs 5 per pupil minus the state average transportation costs per 6 pupil. This amount is required to be reduced by the amount of 7 transportation assistance aid received by the district under 8 current Code section 257.31(17), if any, for the same budget 9 year. 10 The bill authorizes the transportation cost supplement 11 program to be funded by either a transportation cost supplement 12 property tax or by the combination of a transportation cost 13 supplement property tax and a transportation cost supplement 14 income surtax. An income surtax imposed as part of the 15 transportation cost supplement program is subject to the 20 16 percent cumulative income surtax cap under Code section 298.14. 17 Revenues received by a school district from a transportation 18 cost supplement property tax or income surtax shall be 19 deposited in the general fund of the school district and 20 expended only for the cost of repairing, maintaining, and 21 fueling school district transportation equipment and school 22 buses, as defined in Code section 321.1(69). Revenues received 23 by a school district under this section are miscellaneous 24 income. 25 The bill provides that the transportation cost supplement 26 program may be discontinued by either school board action or 27 by petition and election and includes provisions relating to 28 participation in the transportation cost supplement program by 29 school districts involved in a school reorganization under Code 30 chapter 275. 31 The bill applies to school budget years beginning on or after 32 July 1, 2016. 33 -5- LSB 1201HH (5) 86 md/sc 5/ 5