Senate
File
2041

Introduced
SENATE
FILE
2041
BY
SINCLAIR
,
SCHULTZ
,
SHIPLEY
,
ROZENBOOM
,
KRAAYENBRINK
,
GUTH
,
BREITBACH
,
and
ANDERSON
A
BILL
FOR
An
Act
relating
to
the
establishment
of
the
state
percent
of
1
growth
and
the
categorical
state
percent
of
growth
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
257.2,
subsection
11,
Code
2016,
is
1
amended
to
read
as
follows:
2
11.
“State
percent
of
growth”
means
the
percent
of
growth
3
which
is
established
by
statute
pursuant
to
section
257.8
,
and
4
which
is
used
in
determining
the
supplemental
state
aid.
5
Sec.
2.
Section
257.8,
subsections
1
and
2,
Code
2016,
are
6
amended
to
read
as
follows:
7
1.
State
percent
of
growth.
8
a.
The
state
percent
of
growth
for
the
budget
year
beginning
9
July
1,
2013,
is
two
percent.
The
state
percent
of
growth
for
10
the
budget
year
beginning
July
1,
2014,
is
four
percent.
The
11
state
percent
of
growth
for
the
budget
year
beginning
July
1,
12
2015,
is
one
and
twentyfive
hundredths
percent.
The
state
13
percent
of
growth
for
each
subsequent
budget
year
shall
be
14
established
by
statute
which
shall
be
enacted
within
thirty
15
days
of
the
submission
in
the
year
preceding
the
base
year
16
of
the
governor’s
budget
under
section
8.21
or
as
otherwise
17
provided
in
paragraph
“b”
.
The
establishment
of
the
state
18
percent
of
growth
for
a
budget
year
shall
be
the
only
subject
19
matter
of
the
bill
which
enacts
the
state
percent
of
growth
for
20
a
budget
year.
21
b.
If
a
statute
establishing
the
state
percent
of
growth
22
for
a
budget
year
is
not
enacted
by
March
1
immediately
23
preceding
the
budget
year,
the
state
percent
of
growth
for
that
24
budget
year
shall
be
a
percentage
equal
to
the
school
finance
25
inflation
factor
as
determined
under
subsection
6.
26
2.
Categorical
state
percent
of
growth.
27
a.
The
categorical
state
percent
of
growth
for
the
budget
28
year
beginning
July
1,
2013,
is
two
percent.
The
categorical
29
state
percent
of
growth
for
the
budget
year
beginning
July
30
1,
2014,
is
four
percent.
The
categorical
state
percent
of
31
growth
for
the
budget
year
beginning
July
1,
2015,
is
one
and
32
twentyfive
hundredths
percent.
The
categorical
state
percent
33
of
growth
for
each
budget
year
shall
be
established
by
statute
34
which
shall
be
enacted
within
thirty
days
of
the
submission
in
35
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the
year
preceding
the
base
year
of
the
governor’s
budget
under
1
section
8.21
or
as
otherwise
provided
in
paragraph
“b”
.
The
2
establishment
of
the
categorical
state
percent
of
growth
for
a
3
budget
year
shall
be
the
only
subject
matter
of
the
bill
which
4
enacts
the
categorical
state
percent
of
growth
for
a
budget
5
year.
The
categorical
state
percent
of
growth
may
include
6
state
percents
of
growth
for
the
teacher
salary
supplement,
the
7
professional
development
supplement,
the
early
intervention
8
supplement,
and
the
teacher
leadership
supplement.
9
b.
If
a
statute
establishing
the
categorical
state
10
percent
of
growth
for
a
budget
year
is
not
enacted
by
March
1
11
immediately
preceding
the
budget
year,
the
categorical
state
12
percent
of
growth
for
that
budget
year
shall
be
a
percentage
13
equal
to
the
school
finance
inflation
factor
as
determined
14
under
subsection
6.
15
Sec.
3.
Section
257.8,
Code
2016,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
6.
“School
finance
inflation
factor”
is
18
an
index,
expressed
as
a
percentage
rounded
to
the
nearest
19
onehundredth
of
one
percent,
calculated
by
the
department
of
20
management,
that
is
the
average
of
the
annual
percentage
change
21
in
the
consumer
price
index
for
all
urban
consumers
as
computed
22
by
the
federal
department
of
labor,
bureau
of
labor
statistics,
23
for
the
three
completed
calendar
years
immediately
preceding
24
the
beginning
of
the
budget
year
for
which
the
school
finance
25
inflation
factor
is
being
calculated.
However,
if
the
school
26
finance
inflation
factor
for
a
budget
year
is
less
than
zero
27
percent,
the
school
finance
inflation
factor
for
that
budget
28
year
shall
be
zero
percent,
and
if
the
school
finance
inflation
29
factor
for
a
budget
year
is
greater
than
three
percent,
the
30
school
finance
inflation
factor
for
that
budget
year
shall
be
31
three
percent.
32
Sec.
4.
APPLICABILITY.
This
Act
applies
to
school
budget
33
years
beginning
on
or
after
July
1,
2017.
34
EXPLANATION
35
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The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
This
bill
modifies
the
statutory
requirements
for
the
3
establishment
of
the
state
percent
of
growth
and
the
4
categorical
state
percent
of
growth
for
purposes
of
the
school
5
funding
formula.
6
Current
law
requires
the
state
percent
of
growth
and
the
7
categorical
state
percent
of
growth
to
each
be
established
by
8
statute
within
30
days
of
the
submission
of
the
governor’s
9
budget
in
the
year
preceding
the
base
year.
10
The
bill
provides
that
if
the
statute
establishing
the
11
state
percent
of
growth
is
not
enacted
by
March
1
immediately
12
preceding
the
budget
year,
the
state
percent
of
growth
for
13
that
budget
year
shall
be
the
school
finance
inflation
factor
14
as
determined
in
the
bill.
The
bill
also
establishes
similar
15
requirements
for
establishing
the
categorical
state
percent
of
16
growth
for
a
budget
year.
17
Under
the
bill,
the
school
finance
inflation
factor
for
a
18
budget
year
is
an
index,
expressed
as
a
percentage
rounded
to
19
the
nearest
onehundredth
of
1
percent,
that
is
the
average
20
of
the
annual
percentage
change
in
the
consumer
price
index
21
for
all
urban
consumers
for
the
three
completed
calendar
years
22
immediately
preceding
the
beginning
of
the
budget
year
for
23
which
the
school
finance
inflation
factor
is
being
calculated.
24
However,
if
the
school
finance
inflation
factor
for
a
budget
25
year
is
less
than
0
percent,
the
school
finance
inflation
26
factor
for
that
budget
year
shall
be
0
percent,
and
if
the
27
school
finance
inflation
factor
for
a
budget
year
is
greater
28
than
3
percent,
the
school
finance
inflation
factor
for
that
29
budget
year
shall
be
3
percent.
30
The
bill
applies
to
school
budget
years
beginning
on
or
after
31
July
1,
2017.
32
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