House File 2136 - Introduced HOUSE FILE 2136 BY SHEETS , HEARTSILL , WHEELER , MAXWELL , SALMON , DOLECHECK , LANDON , HAGER , and GASSMAN A BILL FOR An Act relating to school district spending authority by 1 establishing a district cash reserve budget adjustment. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5610HH (3) 87 md/jh

H.F. 2136 Section 1. Section 257.2, subsection 2, Code 2018, is 1 amended by striking the subsection. 2 Sec. 2. NEW SECTION . 257.14A District cash reserve budget 3 adjustment. 4 1. The board of directors of a school district that wishes 5 to receive the budget adjustment under this section shall 6 adopt a resolution by May 15 preceding the budget year and 7 shall within ten days of adoption of the resolution notify the 8 department of management of the adoption of the resolution and 9 the amount of the budget adjustment to be received, subject to 10 the limitations of subsection 2. 11 2. a. For budget years beginning on or after July 1, 12 2019, each school district for which a resolution is adopted 13 under subsection 1 shall receive a budget adjustment for that 14 budget year in an amount not to exceed an amount equal to 15 the district’s budget enrollment multiplied by the quotient 16 obtained by the department of management by dividing the sum 17 of the maximum amount of the cash reserve levy available to 18 each school district in the state as determined under section 19 298.10, subsection 3, for the budget year, by the statewide 20 total budget enrollment for the base year. 21 b. The resolution adopted under subsection 1 may specify a 22 budget adjustment amount that is less than the maximum amount 23 authorized under paragraph “a” . 24 c. The school district shall fund the budget adjustment 25 increase either by using moneys from its unexpended fund 26 balance or by using cash reserve moneys subject to the 27 limitation in section 298.10. 28 3. A budget adjustment received under this section shall 29 not affect the eligibility for or amount of any other budget 30 adjustment authorized by law for the same budget year. In 31 addition, a budget adjustment under this section shall be 32 limited to the budget year for which the adjustment was 33 authorized and shall not be included in any computation of a 34 school district’s cost for any future budget year. 35 -1- LSB 5610HH (3) 87 md/jh 1/ 2

H.F. 2136 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill establishes a district cash reserve budget 4 adjustment. The board of directors of a school district that 5 wishes to receive the budget adjustment under the bill shall 6 adopt a resolution by May 15 preceding the budget year and 7 shall notify the department of management of the adoption of 8 the resolution and the amount of the budget adjustment to be 9 received. 10 For budget years beginning on or after July 1, 2019, 11 each school district that adopts the required resolution 12 shall receive a budget adjustment for that budget year in an 13 amount not to exceed an amount equal to the district’s budget 14 enrollment multiplied by the quotient obtained by dividing the 15 sum of the maximum amount of the cash reserve levy available 16 to each school district in the state as determined under Code 17 section 298.10(3) for the budget year, by the statewide total 18 budget enrollment for the base year. 19 The bill provides that the budget adjustment resolution 20 may specify a budget adjustment amount that is less than the 21 maximum amount authorized in the bill. The school district 22 is required to fund the budget adjustment increase either by 23 using moneys from its unexpended fund balance or by using cash 24 reserve moneys subject to the cash reserve levy limitation in 25 Code section 298.10. 26 The bill specifies that the budget adjustment received does 27 not affect the eligibility for or amount of any other budget 28 adjustment authorized by law for the same budget year and that 29 the budget adjustment under the bill is limited to the budget 30 year for which the adjustment was authorized and shall not be 31 included in any computation of a school district’s cost for any 32 future budget year. 33 -2- LSB 5610HH (3) 87 md/jh 2/ 2