SSB 1145 (LSB 2185XC (6) 86)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON QUIRMBACH)

A BILL FOR

An Act relating to school district property tax replacement payments for certain budget years and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.16B, subsection 2, paragraph b, unnumbered paragraph 1, Code 2015, is amended to read as follows:

   For each the budget year beginning on or after July 1, 2014, the department of management shall calculate for each school district all of the following:
    Sec. 2.  Section 257.16B, subsection 2, paragraph b, subparagraph (3), Code 2015, is amended to read as follows:
   (3)  The amount of each school district’s property tax replacement payment. Each school district’s property tax replacement payment equals the school district’s weighted enrollment for the budget year beginning July 1, 2014, multiplied by the remainder of the amount calculated for the school district under subparagraph (2) minus the amount calculated for the school district under subparagraph (1).
    Sec. 3.  Section 257.16B, subsection 2, Code 2015, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  c.  For the budget year beginning July 1, 2015, the department of management shall calculate for each school district all of the following:
   (1)  The regular program state cost per pupil for the budget year beginning July 1, 2012, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1.
   (2)  The regular program state cost per pupil for the budget year beginning July 1, 2015, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1.
   (3)  The amount of each school district’s property tax replacement payment. Each school district’s property tax replacement payment equals the school district’s weighted enrollment for the budget year beginning July 1, 2015, multiplied by the remainder of the amount calculated for the school district under subparagraph (2) minus the amount calculated for the school district under subparagraph (1).
   NEW PARAGRAPH.  d.  For each budget year beginning on or after July 1, 2016, the department of management shall calculate for each school district all of the following:
   (1)  The regular program state cost per pupil for the budget year beginning July 1, 2012, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1.
   (2)  The regular program state cost per pupil for the budget year beginning July 1, 2016, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1.
   (3)  The amount of each school district’s property tax replacement payment. Each school district’s property tax replacement payment equals the school district’s weighted enrollment for the budget year multiplied by the remainder of the amount calculated for the school district under subparagraph (2) minus the amount calculated for the school district under subparagraph (1).
    Sec. 4.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Current Code section 257.16B provides for school district property tax replacement payments. For the budget year beginning July 1, 2013, each school district’s property tax replacement payment amount is equal to the school district’s weighted enrollment for that budget year multiplied by the difference of the following: (1) the regular program state cost per pupil for the budget year beginning July 1, 2013, multiplied by 100 percent less the regular program foundation base per pupil percentage; and (2) the regular program state cost per pupil for the budget year beginning July 1, 2012, multiplied by 100 percent less the regular program foundation base per pupil percentage. For each budget year beginning on or after July 1, 2014, each school district’s property tax replacement payment amount is equal to the school district’s weighted enrollment for the budget year multiplied by the difference of the following: (1) the regular program state cost per pupil for the budget year beginning July 1, 2014, multiplied by 100 percent less the regular program foundation base per pupil percentage; and (2) the regular program state cost per pupil for the budget year beginning July 1, 2012, multiplied by 100 percent less the regular program foundation base per pupil percentage.
   The bill modifies the replacement payment calculation for the budget year beginning July 1, 2015. For the budget year beginning July 1, 2015, each school district’s property tax replacement payment amount is equal to the school district’s weighted enrollment for the budget year beginning July 1, 2015, multiplied by the difference of the following: (1) the regular program state cost per pupil for the budget year beginning July 1, 2015, multiplied by 100 percent less the regular program foundation base per pupil percentage; and (2) the regular program state cost per pupil for the budget year beginning July 1, 2012, multiplied by 100 percent less the regular program foundation base per pupil percentage.
   The bill also modifies the replacement payment calculation for budget years beginning on or after July 1, 2016. For each budget year beginning on or after July 1, 2016, each school district’s property tax replacement payment amount is equal to the school district’s weighted enrollment for the budget year multiplied by the difference of the following: (1) the regular program state cost per pupil for the budget year beginning July 1, 2016, multiplied by 100 percent less the regular program foundation base per pupil percentage; and (2) the regular program state cost per pupil for the budget year beginning July 1, 2012, multiplied by 100 percent less the regular program foundation base per pupil percentage.