Senate Study Bill 1142 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON QUIRMBACH) A BILL FOR An Act relating to school district property tax replacement 1 payments and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2184XC (2) 86 md/sc

S.F. _____ Section 1. Section 257.16B, subsection 2, paragraph b, 1 unnumbered paragraph 1, Code 2015, is amended to read as 2 follows: 3 For each the budget year beginning on or after July 1, 2014, 4 the department of management shall calculate for each school 5 district all of the following: 6 Sec. 2. Section 257.16B, subsection 2, paragraph b, 7 subparagraph (3), Code 2015, is amended to read as follows: 8 (3) The amount of each school district’s property tax 9 replacement payment. Each school district’s property tax 10 replacement payment equals the school district’s weighted 11 enrollment for the budget year beginning July 1, 2014, 12 multiplied by the remainder of the amount calculated for 13 the school district under subparagraph (2) minus the amount 14 calculated for the school district under subparagraph (1). 15 Sec. 3. Section 257.16B, subsection 2, Code 2015, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . c. For each budget year beginning on or 18 after July 1, 2015, unless otherwise provided by law, the 19 department of management shall calculate for each school 20 district all of the following: 21 (1) The regular program state cost per pupil for the budget 22 year beginning July 1, 2012, multiplied by one hundred percent 23 less the regular program foundation base per pupil percentage 24 pursuant to section 257.1. 25 (2) The regular program state cost per pupil for the budget 26 year beginning July 1, 2015, multiplied by one hundred percent 27 less the regular program foundation base per pupil percentage 28 pursuant to section 257.1. 29 (3) The amount of each school district’s property tax 30 replacement payment. Each school district’s property tax 31 replacement payment equals the school district’s weighted 32 enrollment for the budget year multiplied by the remainder 33 of the amount calculated for the school district under 34 subparagraph (2) minus the amount calculated for the school 35 -1- LSB 2184XC (2) 86 md/sc 1/ 3

S.F. _____ district under subparagraph (1). 1 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 immediate importance, takes effect upon enactment. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 Current Code section 257.16B provides for school district 7 property tax replacement payments. For the budget year 8 beginning July 1, 2013, each school district’s property tax 9 replacement payment amount is equal to the school district’s 10 weighted enrollment for that budget year multiplied by the 11 difference of the following: (1) the regular program state 12 cost per pupil for the budget year beginning July 1, 2013, 13 multiplied by 100 percent less the regular program foundation 14 base per pupil percentage; and (2) the regular program state 15 cost per pupil for the budget year beginning July 1, 2012, 16 multiplied by 100 percent less the regular program foundation 17 base per pupil percentage. For each budget year beginning on 18 or after July 1, 2014, each school district’s property tax 19 replacement payment amount is equal to the school district’s 20 weighted enrollment for the budget year multiplied by the 21 difference of the following: (1) the regular program state 22 cost per pupil for the budget year beginning July 1, 2014, 23 multiplied by 100 percent less the regular program foundation 24 base per pupil percentage; and (2) the regular program state 25 cost per pupil for the budget year beginning July 1, 2012, 26 multiplied by 100 percent less the regular program foundation 27 base per pupil percentage. 28 This bill modifies the replacement payment calculation 29 for budget years beginning on or after July 1, 2015. For 30 each budget year beginning on or after July 1, 2015, unless 31 otherwise provided by law, each school district’s property tax 32 replacement payment amount is equal to the school district’s 33 weighted enrollment for the budget year multiplied by the 34 difference of the following: (1) the regular program state 35 -2- LSB 2184XC (2) 86 md/sc 2/ 3

S.F. _____ cost per pupil for the budget year beginning July 1, 2015, 1 multiplied by 100 percent less the regular program foundation 2 base per pupil percentage; and (2) the regular program state 3 cost per pupil for the budget year beginning July 1, 2012, 4 multiplied by 100 percent less the regular program foundation 5 base per pupil percentage. 6 -3- LSB 2184XC (2) 86 md/sc 3/ 3