HF 136 (LSB 2206HV (3) 87)

HOUSE FILE 136

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO HSB 55)

A BILL FOR

An Act relating to the state school foundation program, by modifying requirements for the enactment of the state percents of growth, establishing state percents of growth, modifying provisions relating to school district property tax replacement payments, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.8, subsections 1 and 2, Code 2017, are amended to read as follows:
   1.  State percent of growth.  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 the budget year beginning July 1, 2016, is two and twenty-five hundredths percent.  The state percent of growth for the budget year beginning July 1, 2017, is one and eleven 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 transmission of the governor’s budget required by February 1 under section 8.21 during the regular legislative session beginning in the base year. 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.
   2.  Categorical state percent of growth.  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 the budget year beginning July 1, 2016, is two and twenty-five hundredths percent.  The categorical state percent of growth for the budget year beginning July 1, 2017, is one and eleven 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 transmission of the governor’s budget required by February 1 under section 8.21 during the regular legislative session beginning in the base year. 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.
    Sec. 2.  Section 257.16B, subsection 2, paragraph d, unnumbered paragraph 1, Code 2017, is amended to read as follows:
   For each the budget year beginning on or after July 1, 2016, the department of management shall calculate for each school district all of the following:
    Sec. 3.  Section 257.16B, subsection 2, paragraph d, subparagraph (3), Code 2017, 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, 2016, 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.  Section 257.16B, subsection 2, Code 2017, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  For each budget year beginning on or after July 1, 2017, 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, 2017, 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. 5.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 6.  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 relates to the state school foundation program, by modifying requirements for the enactment of the state percents of growth, establishing state percents of growth, and modifying provisions relating to school district property tax replacement payments.
   The bill establishes a state percent of growth of 1.11 percent for the budget year beginning July 1, 2017. The state percent of growth is used to calculate the amount of supplemental state aid for a budget year as part of the state school foundation program. The bill also establishes a categorical state percent of growth of 1.11 percent for the budget year beginning July 1, 2017. The categorical state percent of growth is used to calculate the amount of supplemental state aid for each of the categorical funding supplements.
   Current Code section 257.8 requires bills establishing the state percent of growth and the categorical state percent of growth to be enacted within 30 days of the submission in the year preceding the base year of the governor’s budget. Code section 257.8 also requires the state percent of growth and the categorical state percent of growth to be enacted in separate bills and be the only subject matter of each bill. The bill strikes the subject matter requirement for such bills and specifies that the enactment deadline for bills establishing the state percent of growth and the categorical state percent of growth is within 30 days of transmission of the governor’s budget, which Code section 8.21 requires by February 1 of the regular legislative session beginning in the base year.
   Current Code section 257.16B provides for school district property tax replacement payments. 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. Under current law, the regular program foundation base per pupil percentage is 87.5 percent.
   The bill modifies the replacement payment calculation for budget years beginning on or after July 1, 2017. For each budget year beginning on or after July 1, 2017, 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, 2017, 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 takes effect upon enactment and applies to school budget years beginning on or after July 1, 2017.