Senate Study Bill 1145 - 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 for certain budget years and including effective 2 date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2185XC (6) 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 paragraphs: 17 NEW PARAGRAPH . c. For the budget year beginning July 1, 18 2015, the department of management shall calculate for each 19 school district all of the following: 20 (1) The regular program state cost per pupil for the budget 21 year beginning July 1, 2012, multiplied by one hundred percent 22 less the regular program foundation base per pupil percentage 23 pursuant to section 257.1. 24 (2) The regular program state cost per pupil for the budget 25 year beginning July 1, 2015, multiplied by one hundred percent 26 less the regular program foundation base per pupil percentage 27 pursuant to section 257.1. 28 (3) The amount of each school district’s property tax 29 replacement payment. Each school district’s property tax 30 replacement payment equals the school district’s weighted 31 enrollment for the budget year beginning July 1, 2015, 32 multiplied by the remainder of the amount calculated for 33 the school district under subparagraph (2) minus the amount 34 calculated for the school district under subparagraph (1). 35 -1- LSB 2185XC (6) 86 md/sc 1/ 3

S.F. _____ NEW PARAGRAPH . d. For each budget year beginning on 1 or after July 1, 2016, the department of management shall 2 calculate for each school district all of the following: 3 (1) The regular program state cost per pupil for the budget 4 year beginning July 1, 2012, multiplied by one hundred percent 5 less the regular program foundation base per pupil percentage 6 pursuant to section 257.1. 7 (2) The regular program state cost per pupil for the budget 8 year beginning July 1, 2016, multiplied by one hundred percent 9 less the regular program foundation base per pupil percentage 10 pursuant to section 257.1. 11 (3) The amount of each school district’s property tax 12 replacement payment. Each school district’s property tax 13 replacement payment equals the school district’s weighted 14 enrollment for the budget year multiplied by the remainder 15 of the amount calculated for the school district under 16 subparagraph (2) minus the amount calculated for the school 17 district under subparagraph (1). 18 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 19 immediate importance, takes effect upon enactment. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 Current Code section 257.16B provides for school district 24 property tax replacement payments. For the budget year 25 beginning July 1, 2013, each school district’s property tax 26 replacement payment amount is equal to the school district’s 27 weighted enrollment for that budget year multiplied by the 28 difference of the following: (1) the regular program state 29 cost per pupil for the budget year beginning July 1, 2013, 30 multiplied by 100 percent less the regular program foundation 31 base per pupil percentage; and (2) the regular program state 32 cost per pupil for the budget year beginning July 1, 2012, 33 multiplied by 100 percent less the regular program foundation 34 base per pupil percentage. For each budget year beginning on 35 -2- LSB 2185XC (6) 86 md/sc 2/ 3

S.F. _____ or after July 1, 2014, each school district’s property tax 1 replacement payment amount is equal to the school district’s 2 weighted enrollment for the budget year multiplied by the 3 difference of the following: (1) the regular program state 4 cost per pupil for the budget year beginning July 1, 2014, 5 multiplied by 100 percent less the regular program foundation 6 base per pupil percentage; and (2) the regular program state 7 cost per pupil for the budget year beginning July 1, 2012, 8 multiplied by 100 percent less the regular program foundation 9 base per pupil percentage. 10 The bill modifies the replacement payment calculation for 11 the budget year beginning July 1, 2015. For the budget year 12 beginning July 1, 2015, each school district’s property tax 13 replacement payment amount is equal to the school district’s 14 weighted enrollment for the budget year beginning July 1, 2015, 15 multiplied by the difference of the following: (1) the regular 16 program state cost per pupil for the budget year beginning July 17 1, 2015, multiplied by 100 percent less the regular program 18 foundation base per pupil percentage; and (2) the regular 19 program state cost per pupil for the budget year beginning July 20 1, 2012, multiplied by 100 percent less the regular program 21 foundation base per pupil percentage. 22 The bill also modifies the replacement payment calculation 23 for budget years beginning on or after July 1, 2016. For each 24 budget year beginning on or after July 1, 2016, each school 25 district’s property tax replacement payment amount is equal to 26 the school district’s weighted enrollment for the budget year 27 multiplied by the difference of the following: (1) the regular 28 program state cost per pupil for the budget year beginning July 29 1, 2016, multiplied by 100 percent less the regular program 30 foundation base per pupil percentage; and (2) the regular 31 program state cost per pupil for the budget year beginning July 32 1, 2012, multiplied by 100 percent less the regular program 33 foundation base per pupil percentage. 34 -3- LSB 2185XC (6) 86 md/sc 3/ 3