SF 2041 (LSB 5002XS (3) 86)

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 growth and the categorical state percent of growth and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.2, subsection 11, Code 2016, is amended to read as follows:
   11.  “State percent of growth” means the percent of growth which is established by statute pursuant to section 257.8, and which is used in determining the supplemental state aid.
    Sec. 2.  Section 257.8, subsections 1 and 2, Code 2016, are amended to read as follows:
   1.  State percent of growth.
   a.  The state percent of growth for the budget year beginning July 1, 2013, is two percent. The state percent of growth for the budget year beginning July 1, 2014, is four percent. The state percent of growth for the budget year beginning July 1, 2015, is one and twenty-five hundredths percent. The state percent of growth for each subsequent budget year shall be established by statute which shall be enacted within thirty days of the submission in the year preceding the base year of the governor’s budget under section 8.21 or as otherwise provided in paragraph “b”. The establishment of the state percent of growth for a budget year shall be the only subject matter of the bill which enacts the state percent of growth for a budget year.
   b.  If a statute establishing the state percent of growth for a budget year is not enacted by March 1 immediately preceding the budget year, the state percent of growth for that budget year shall be a percentage equal to the school finance inflation factor as determined under subsection 6.
   2.  Categorical state percent of growth.
   a.  The categorical state percent of growth for the budget year beginning July 1, 2013, is two percent. The categorical state percent of growth for the budget year beginning July 1, 2014, is four percent. The categorical state percent of growth for the budget year beginning July 1, 2015, is one and twenty-five hundredths percent. The categorical state percent of growth for each budget year shall be established by statute which shall be enacted within thirty days of the submission in the year preceding the base year of the governor’s budget under section 8.21 or as otherwise provided in paragraph “b”. The establishment of the categorical state percent of growth for a budget year shall be the only subject matter of the bill which enacts the categorical state percent of growth for a budget year. The categorical state percent of growth may include state percents of growth for the teacher salary supplement, the professional development supplement, the early intervention supplement, and the teacher leadership supplement.
   b.  If a statute establishing the categorical state percent of growth for a budget year is not enacted by March 1 immediately preceding the budget year, the categorical state percent of growth for that budget year shall be a percentage equal to the school finance inflation factor as determined under subsection 6.
    Sec. 3.  Section 257.8, Code 2016, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  “School finance inflation factor” is an index, expressed as a percentage rounded to the nearest one-hundredth of one percent, calculated by the department of management, that is the average of the annual percentage change in the consumer price index for all urban consumers as computed by the federal department of labor, bureau of labor statistics, for the three completed calendar years immediately preceding the beginning of the budget year for which the school finance inflation factor is being calculated. However, if the school finance inflation factor for a budget year is less than zero percent, the school finance inflation factor for that budget year shall be zero percent, and if the school finance inflation factor for a budget year is greater than three percent, the school finance inflation factor for that budget year shall be three percent.
    Sec. 4.  APPLICABILITY.  This Act applies to school budget years beginning on or after July 1, 2017.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill modifies the statutory requirements for the establishment of the state percent of growth and the categorical state percent of growth for purposes of the school funding formula.
   Current law requires the state percent of growth and the categorical state percent of growth to each be established by statute within 30 days of the submission of the governor’s budget in the year preceding the base year.
   The bill provides that if the statute establishing the state percent of growth is not enacted by March 1 immediately preceding the budget year, the state percent of growth for that budget year shall be the school finance inflation factor as determined in the bill. The bill also establishes similar requirements for establishing the categorical state percent of growth for a budget year.
   Under the bill, the school finance inflation factor for a budget year is an index, expressed as a percentage rounded to the nearest one-hundredth of 1 percent, that is the average of the annual percentage change in the consumer price index for all urban consumers for the three completed calendar years immediately preceding the beginning of the budget year for which the school finance inflation factor is being calculated. However, if the school finance inflation factor for a budget year is less than 0 percent, the school finance inflation factor for that budget year shall be 0 percent, and if the school finance inflation factor for a budget year is greater than 3 percent, the school finance inflation factor for that budget year shall be 3 percent.
   The bill applies to school budget years beginning on or after July 1, 2017.