Senate File 2164 - Introduced SENATE FILE 2164 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SSB 3109) (COMPANION TO LSB 6154HV BY COMMITTEE ON EDUCATION) A BILL FOR An Act relating to the state school foundation program by 1 establishing the state percent of growth and the categorical 2 state percent of growth for the budget year beginning July 3 1, 2018, modifying provisions relating to school district 4 property tax replacement payments, and including effective 5 date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 6154SV (2) 87 md/jh

S.F. 2164 Section 1. Section 257.8, subsections 1 and 2, Code 2018, 1 are amended to read as follows: 2 1. State percent of growth. The state percent of growth for 3 the budget year beginning July 1, 2015, is one and twenty-five 4 hundredths percent. The state percent of growth for the budget 5 year beginning July 1, 2016, is two and twenty-five hundredths 6 percent. The state percent of growth for the budget year 7 beginning July 1, 2017, is one and eleven hundredths percent. 8 The state percent of growth for the budget year beginning July 9 1, 2018, is one percent. The state percent of growth for each 10 subsequent budget year shall be established by statute which 11 shall be enacted within thirty days of the transmission of the 12 governor’s budget required by February 1 under section 8.21 13 during the regular legislative session beginning in the base 14 year. 15 2. Categorical state percent of growth. The categorical 16 state percent of growth for the budget year beginning July 17 1, 2015, is one and twenty-five hundredths percent. The 18 categorical state percent of growth for the budget year 19 beginning July 1, 2016, is two and twenty-five hundredths 20 percent. The categorical state percent of growth for 21 the budget year beginning July 1, 2017, is one and eleven 22 hundredths percent. The categorical state percent of growth 23 for the budget year beginning July 1, 2018, is one percent. 24 The categorical state percent of growth for each budget 25 year shall be established by statute which shall be enacted 26 within thirty days of the transmission of the governor’s 27 budget required by February 1 under section 8.21 during the 28 regular legislative session beginning in the base year. The 29 categorical state percent of growth may include state percents 30 of growth for the teacher salary supplement, the professional 31 development supplement, the early intervention supplement, and 32 the teacher leadership supplement. 33 Sec. 2. Section 257.16B, subsection 2, paragraph e, 34 unnumbered paragraph 1, Code 2018, is amended to read as 35 -1- LSB 6154SV (2) 87 md/jh 1/ 4

S.F. 2164 follows: 1 For each the budget year beginning on or after July 1, 2017, 2 the department of management shall calculate for each school 3 district all of the following: 4 Sec. 3. Section 257.16B, subsection 2, paragraph e, 5 subparagraph (3), Code 2018, is amended to read as follows: 6 (3) The amount of each school district’s property tax 7 replacement payment. Each school district’s property tax 8 replacement payment equals the school district’s weighted 9 enrollment for the budget year beginning July 1, 2017, 10 multiplied by the remainder of the amount calculated for 11 the school district under subparagraph (2) minus the amount 12 calculated for the school district under subparagraph (1). 13 Sec. 4. Section 257.16B, subsection 2, Code 2018, is amended 14 by adding the following new paragraph: 15 NEW PARAGRAPH . f. For each budget year beginning on 16 or after July 1, 2018, the department of management shall 17 calculate for each school district all of the following: 18 (1) The regular program state cost per pupil for the budget 19 year beginning July 1, 2012, multiplied by one hundred percent 20 less the regular program foundation base per pupil percentage 21 pursuant to section 257.1. 22 (2) The regular program state cost per pupil for the budget 23 year beginning July 1, 2018, multiplied by one hundred percent 24 less the regular program foundation base per pupil percentage 25 pursuant to section 257.1. 26 (3) The amount of each school district’s property tax 27 replacement payment. Each school district’s property tax 28 replacement payment equals the school district’s weighted 29 enrollment for the budget year multiplied by the remainder 30 of the amount calculated for the school district under 31 subparagraph (2) minus the amount calculated for the school 32 district under subparagraph (1). 33 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 34 immediate importance, takes effect upon enactment. 35 -2- LSB 6154SV (2) 87 md/jh 2/ 4

S.F. 2164 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 relates to the state school foundation program. 4 The bill establishes the state percent of growth and the 5 categorical state percent of growth for the budget year 6 beginning July 1, 2018. The bill establishes a state percent 7 of growth of 1 percent for the budget year beginning July 1, 8 2018. The state percent of growth is used to calculate the 9 amount of supplemental state aid for a budget year as part of 10 the state school foundation program. 11 The bill also establishes a categorical state percent of 12 growth of 1 percent for the budget year beginning July 1, 13 2018. The categorical state percent of growth is used to 14 calculate the amount of supplemental state aid for each of the 15 categorical funding supplements. 16 Code section 257.16B provides for school district property 17 tax replacement payments. For each budget year beginning on 18 or after July 1, 2017, each school district’s property tax 19 replacement payment amount is equal to the school district’s 20 weighted enrollment for the budget year multiplied by the 21 difference of the following: (1) the regular program state 22 cost per pupil for the budget year beginning July 1, 2017, 23 multiplied by 100 percent less the regular program foundation 24 base per pupil percentage; and (2) the regular program state 25 cost per pupil for the budget year beginning July 1, 2012, 26 multiplied by 100 percent less the regular program foundation 27 base per pupil percentage. The regular program foundation base 28 per pupil percentage is 87.5 percent. 29 The bill modifies the property tax replacement payment 30 calculation for budget years beginning on or after July 1, 31 2018. For budget years beginning on or after July 1, 2018, 32 each school district’s property tax replacement payment amount 33 is equal to the school district’s weighted enrollment for the 34 budget year multiplied by the difference of the following: (1) 35 -3- LSB 6154SV (2) 87 md/jh 3/ 4

S.F. 2164 the regular program state cost per pupil for the budget year 1 beginning July 1, 2018, multiplied by 100 percent less the 2 regular program foundation base per pupil percentage; and (2) 3 the regular program state cost per pupil for the budget year 4 beginning July 1, 2012, multiplied by 100 percent less the 5 regular program foundation base per pupil percentage. 6 The bill takes effect upon enactment. 7 -4- LSB 6154SV (2) 87 md/jh 4/ 4