HF 337 (LSB 1146YH (7) 87)

HOUSE FILE 337

BY  SHEETS

A BILL FOR

An Act relating to public school funding by establishing a transportation equity program to provide prioritized funding for certain school districts based on average transportation costs per pupil, providing for adjustments to regular program state foundation aid amounts payable to school districts, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.7, subsection 1, Code 2017, is amended to read as follows:
   1.  Budgets.  School districts are subject to chapter 24. The authorized expenditures of a school district during a base year shall not exceed the lesser of the budget for that year certified under section 24.17, including any adjustments required by sections 257.17A and 257.17B, plus any allowable amendments permitted in this section, or the authorized budget, which is the sum of the combined district cost for that year, the actual miscellaneous income received for that year, and the actual unspent balance from the preceding year, including any adjustments required by sections 257.17A and 257.17B.
    Sec. 2.  NEW SECTION.  257.17A  Transportation equity program —— fund —— appropriation.
   1.  In response to the transportation costs per pupil inequity among school districts in this state, this section and section 257.17B establish a transportation equity program to provide prioritized funding for school districts based on each school district’s average transportation costs per pupil by modifying the allocation of the total amount of foundation program aid growth among school districts using a methodology based upon the proportional amount that each school district’s transportation costs per pupil exceed or are less than the average transportation costs per pupil.
   2.  a.  For the budget year beginning July 1, 2018, and each succeeding budget year for which the state percent of growth is greater than zero, each school district shall receive transportation equity aid in an amount calculated by the department of management equal to the school district’s budget enrollment multiplied by the school district’s adjusted transportation equity amount for the budget year. The adjusted transportation equity amount for each school district is an amount equal to the state aid growth factor per pupil minus eighty percent of the district transportation equity factor.
   b.  For purposes of this section:
   (1)  “Average transportation costs per pupil” means the same as calculated for districts under section 257.31, subsection 17.
   (2)  “Base year state aid” equals the product of eighty-seven and five-tenths percent of the state cost per pupil for the base year multiplied by the statewide budget enrollment for the base year, minus the statewide foundation property tax for the base year.
   (3)  “Budget year state aid” equals the product of eighty-seven and five-tenths percent of the state cost per pupil for the budget year multiplied by the statewide budget enrollment for the budget year, minus the statewide foundation property tax for the budget year.
   (4)  “District average transportation costs per pupil” means the same as calculated under section 257.31, subsection 17.
   (5)  “District transportation costs per pupil differential” means an amount equal to the state average transportation costs per pupil minus the district average transportation costs per pupil.
   (6)  “District transportation equity factor” means an amount equal to the product of the district transportation costs per pupil differential multiplied by the state aid growth factor per pupil then divided by the state transportation costs per pupil differential.
   (7)  “State aid growth factor” for a budget year is the budget year state aid amount minus the base year state aid amount, but not less than zero.
   (8)  “State aid growth factor per pupil” equals state aid growth factor divided by the statewide budget enrollment for the budget year.
   (9)  “State average transportation costs per pupil” means the same as calculated under section 257.31, subsection 17.
   (10)  “State transportation costs per pupil differential” means an amount equal to the difference between the state average transportation costs per pupil and the statewide minimum transportation costs per pupil for the same budget year.
   (11)  “Statewide minimum transportation costs per pupil” means the lowest district average transportation costs per pupil among all school districts in the state.
   3.  a.  A transportation equity fund is created as a separate and distinct fund in the state treasury under the control of the department of management. Moneys in the fund include revenues credited to the fund, appropriations made to the fund, and other moneys deposited in the fund. For each fiscal year beginning on or after July 1, 2018, there is appropriated all moneys in the fund to the department of management for purposes of making transportation equity aid payments under this section, as calculated under subsection 2.
   b.  For the budget year beginning July 1, 2018, and each succeeding budget year for which the state percent of growth is greater than zero, there is appropriated from the general fund of the state to the department of management to be credited to the transportation equity fund, an amount equal to the sum of the budget enrollments for all school districts in the state multiplied by the state aid growth factor per pupil for the budget year.
   4.  Transportation equity aid payments shall be paid by the department of management at the same time and in the same manner as foundation aid is paid under section 257.16.
   5.  Transportation equity aid payments received under this section are miscellaneous income and shall be deposited in the general fund of the school district. Transportation equity aid payments received under this section shall not affect the receipt of transportation assistance aid received under section 257.31, subsection 17.
    Sec. 3.  NEW SECTION.  257.17B  Regular program state foundation aid reduction.
   1.  For the budget year beginning July 1, 2018, and each succeeding budget year for which the state percent of growth is greater than zero, the department of management shall, following the determination of the total amount of state foundation aid payable to each school district under section 257.16, subsection 1, and notwithstanding the minimum foundation aid provisions in section 257.1, subsection 2, reduce the total amount of regular program state foundation aid payable to each school district by an amount equal to the school district’s budget enrollment multiplied by the state aid growth factor per pupil as defined in section 257.17A.
   2.  The department of management shall annually notify each school district of the amount of the reduction in regular program state foundation aid under this section. This section shall not result in the recalculation of other state aid amounts or the recalculation of any property tax levy rate for the budget year.
   3.  The department of management shall adopt rules necessary to implement this section, including rules that prescribe all necessary reporting requirements for school districts.
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 public school funding by establishing a transportation equity program and requiring reductions to regular program state foundation aid amounts payable to school districts.
   The bill establishes a transportation equity program to provide prioritized funding for school districts based on each school district’s average transportation costs per pupil. For the budget year beginning July 1, 2018, and each succeeding budget year for which the state percent of growth is greater than zero, each qualified school district receives transportation equity aid in an amount equal to the school district’s budget enrollment multiplied by the school district’s adjusted transportation equity amount as calculated in the bill.
   The bill creates a transportation equity fund under the control of the department of management. For the budget year beginning July 1, 2018, and each budget year thereafter, the appropriation is equal to the sum of the budget enrollments for all school districts in the state multiplied by the state aid growth factor per pupil for the budget year.
   Transportation equity aid payments received under the bill are miscellaneous income and must be deposited in the general fund of the school district. Transportation equity aid does not affect the receipt or amount of transportation assistance aid received by a school district from the school budget review committee under Code section 257.31(17).
   Under the bill, for budget years beginning on or after July 1, 2018, for which the state percent of growth is greater than zero, the department of management is required to reduce the total amount of regular program state foundation aid payable to each school district under the school foundation funding formula. The amount of the reduction is equal to the school district’s budget enrollment multiplied by the state aid growth factor per pupil as calculated in the bill.
   The department of management is required to notify each school district annually of the amount of the reduction to regular program state foundation aid. The bill does not permit the recalculation of other state aid amounts or the recalculation of any property tax levy rate for the budget year following the reductions imposed under the bill.