S.F. 389 Section 1. Section 257.10, subsection 2, paragraphs a and b, 1 Code 2017, are amended to read as follows: 2 a. For the budget year beginning July 1, 1992, and 3 succeeding budget years beginning before July 1, 2028 , the 4 regular program district cost per pupil for each school 5 district for a budget year is the regular program district 6 cost per pupil for the base year plus the regular program 7 supplemental state aid for the budget year except as otherwise 8 provided in this subsection or otherwise adjusted under section 9 298.12, subsection 5 . 10 b. If the regular program district cost per pupil of a 11 school district for the budget year under paragraph “a” exceeds 12 one hundred five percent of the regular program state cost 13 per pupil for the budget year and the state percent of growth 14 for the budget year is greater than two percent, the regular 15 program district cost per pupil for the budget year for that 16 district shall be reduced to one hundred five percent of the 17 regular program state cost per pupil for the budget year. 18 However, under such conditions, if the difference between the 19 regular program district cost per pupil for the budget year and 20 the regular program state cost per pupil for the budget year 21 is greater than an amount equal to two percent multiplied by 22 the regular program state cost per pupil for the base year, the 23 regular program district cost per pupil for the budget year 24 shall be reduced by the amount equal to two percent multiplied 25 by the regular program state cost per pupil for the base year. 26 Sec. 2. Section 257.10, subsection 2, Code 2017, is amended 27 by adding the following new paragraph: 28 NEW PARAGRAPH . c. For the budget year beginning July 1, 29 2028, and each succeeding budget year, the regular program 30 district cost per pupil for each school district for a budget 31 year is the regular program state cost per pupil for the budget 32 year. 33 Sec. 3. NEW SECTION . 298.12 District cost equity levy —— 34 election. 35 -1- LSB 1637XS (8) 87 md/sc 1/ 7

S.F. 389 1. In order to provide regular program district cost per 1 pupil equity among all school districts in the state, the 2 board of directors of a school district, following approval 3 at election under subsection 2, may certify for levy by April 4 15 of the school year preceding the budget year, a tax on all 5 taxable property in the school district for a district cost 6 equity levy or following approval at an election held pursuant 7 to subsection 5, shall reduce the school district’s regular 8 program district cost per pupil to an amount not less than the 9 regular program state cost per pupil. 10 2. a. The board of directors of a school district may, on 11 its own motion, or shall, upon receipt of a petition signed by 12 eligible electors equal in number to at least thirty percent of 13 the number of voters who voted at the last preceding regular 14 school election, direct the county commissioner of elections 15 to submit to the registered voters of the school district the 16 question of whether to levy the district cost equity tax not to 17 exceed an amount authorized under subsection 3 and for a period 18 of time authorized by the voters, not to exceed ten years. 19 The question shall be submitted at an election held on a date 20 specified in section 39.2, subsection 4, paragraph “c” . 21 b. If a majority of the votes cast upon the proposition is 22 in favor of the proposition, the board shall annually certify 23 the amount required for a fiscal year to the county board of 24 supervisors. The board of supervisors shall levy the amount 25 certified. The amount shall be deposited in the general fund 26 of the school district and may be used for any school general 27 fund purpose. 28 c. The proposition to levy the district cost equity tax 29 is not affected by a change in the boundaries of a school 30 district, except as otherwise provided in this section. 31 The district cost equity tax shall not be imposed in any 32 reorganized school district unless the voters of each district 33 involved in the reorganization had previously adopted the 34 district cost equity tax. If each district involved in school 35 -2- LSB 1637XS (8) 87 md/sc 2/ 7

S.F. 389 reorganization under chapter 275 has adopted the district 1 cost equity tax, and if the voters have not voted upon the 2 proposition to levy the district cost equity tax in the 3 reorganized district, the existing district cost equity tax 4 shall be in effect for the reorganized district for the fewest 5 number of approved years remaining in any of the districts and 6 until discontinued pursuant to this section and for the lowest 7 amount per pupil approved by the school districts involved in 8 the reorganization. 9 d. Once approved at an election, the authority of the 10 board to levy and collect the district cost equity tax shall 11 continue for the number of years authorized at election unless 12 the board votes to rescind the levy and collection of the tax 13 or the voters of the school district by majority vote approve 14 the discontinuance of the levy and collection of the tax. The 15 tax may be discontinued before the end of the period of years 16 authorized at election in the manner provided for imposition 17 of the tax under this section. 18 3. a. For budget years beginning on or after July 1, 2018, 19 but before July 1, 2028, the amount certified by a school 20 district for levy under this section for a school budget year 21 shall not exceed an amount equal to the difference between 22 the school district’s regular program district cost per pupil 23 and the highest regular program district cost per pupil among 24 all school districts in the state, not to exceed one hundred 25 seventy-five dollars, multiplied by the school district’s 26 weighted enrollment for the budget year. 27 b. For budget years beginning on or after July 1, 2028, 28 the amount certified by a school district for levy under this 29 section for a school budget year shall not exceed an amount 30 equal to one hundred seventy-five dollars multiplied by the 31 school district’s weighted enrollment for the budget year. 32 4. Revenues received by a school district under this section 33 are miscellaneous income and shall not be included in any 34 computation of a school district’s cost for any future budget 35 -3- LSB 1637XS (8) 87 md/sc 3/ 7

S.F. 389 year. 1 5. a. The board of directors of a school district may, on 2 its own motion, or shall, upon receipt of a petition signed by 3 eligible electors equal in number to at least thirty percent of 4 the number of voters who voted at the last preceding regular 5 school election, direct the county commissioner of elections 6 to submit to the registered voters of the school district the 7 question of whether to reduce the school district’s regular 8 program district cost per pupil to an amount not less than 9 the regular program state cost per pupil for a period of 10 time authorized by the voters, but ending not later than the 11 conclusion of the budget year beginning July 1, 2027. The 12 question shall be submitted at an election held on a date 13 specified in section 39.2, subsection 4, paragraph “c” . 14 b. If a majority of the votes cast upon the proposition 15 is in favor of the proposition, the school district’s regular 16 program district cost per pupil under section 257.10, 17 subsection 2, paragraph “a” , shall be reduced to the amount 18 approved at election, subject to the durational limitation in 19 paragraph “a” . 20 c. The reduction of a school district’s regular program 21 district cost per pupil is not affected by a change in the 22 boundaries of a school district, except as otherwise provided 23 in this section. A reduction of the school district’s 24 regular program district cost per pupil shall not apply to any 25 reorganized school district unless the voters of each district 26 involved in the reorganization had previously approved such a 27 reduction. If each district involved in school reorganization 28 under chapter 275 has approved such a reduction, and if the 29 voters have not voted upon the reduction proposition in the 30 reorganized district, the reduction shall be in effect for 31 the reorganized district for the fewest number of approved 32 years remaining in any of the districts and until discontinued 33 pursuant to this section and for the highest regular program 34 district cost per pupil approved by the school districts 35 -4- LSB 1637XS (8) 87 md/sc 4/ 7

S.F. 389 involved in the reorganization. 1 d. Once approved at an election, the reduction shall 2 continue for the number of years authorized at election unless 3 the board votes to rescind the reduction or the voters of the 4 school district by majority vote approve the discontinuance of 5 the reduction. The reduction may be discontinued before the 6 end of the period of years authorized at election in the manner 7 provided for imposition of the tax under this section. 8 Sec. 4. APPLICABILITY. This Act applies to school budget 9 years beginning on or after July 1, 2018. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill authorizes the board of directors of a school 14 district, following voter approval, to certify for levy a tax 15 on all taxable property in the school district for a district 16 cost equity levy or to reduce the district’s regular program 17 district cost per pupil. 18 The board of directors of a school district may, on its 19 own motion, or shall, upon receipt of a petition signed by 20 eligible electors equal in number to at least 30 percent of the 21 number of voters who voted at the last preceding regular school 22 election, direct the county commissioner of elections to submit 23 to the registered voters of the school district the question of 24 whether to levy the district cost equity tax and the length of 25 time authorized to impose the levy, not to exceed 10 years. If 26 the proposition is approved by majority vote, the board shall 27 annually certify the amount required for a fiscal year to the 28 county board of supervisors, not to exceed the maximum annual 29 amount determined in the bill. 30 The amount collected from the levy shall be placed in the 31 general fund of the school district and may be used for any 32 authorized school purpose. Once approved at an election, the 33 authority of the board to levy and collect the district cost 34 equity tax shall continue for the number of years authorized 35 -5- LSB 1637XS (8) 87 md/sc 5/ 7

S.F. 389 at election unless the board votes to rescind the levy or the 1 voters of the school district by majority vote approve the 2 discontinuance of the levy. 3 For budget years beginning or after July 1, 2018, but before 4 July 1, 2028, the amount certified by a school district for 5 levy for a school budget year shall not exceed an amount 6 equal to the difference between the school district’s regular 7 program district cost per pupil and the highest regular program 8 district cost per pupil among all school districts in the 9 state, not to exceed $175, multiplied by the school district’s 10 budget enrollment. For budget years beginning on or after July 11 1, 2028, the amount certified by a school district for levy for 12 a school budget year shall not exceed an amount equal to $175 13 multiplied by the school district’s weighted enrollment for the 14 budget year. 15 The bill specifies that revenues received by a school 16 district from a district cost equity levy are miscellaneous 17 income and shall not be included in the calculation of district 18 cost in any future budget year. 19 The bill also provides that the board of directors of a 20 school district may, on its own motion, or shall, upon receipt 21 of a petition signed by eligible electors equal in number to 22 at least 30 percent of the number of voters who voted at the 23 last preceding regular school election, direct the county 24 commissioner of elections to submit to the registered voters 25 of the school district the question of whether to reduce the 26 school district’s regular program district cost per pupil to an 27 amount not less than the regular program state cost per pupil 28 for a period of time authorized by the voters, but ending not 29 later than the conclusion of the budget year beginning July 1, 30 2027. If a majority of the votes cast upon the proposition 31 is in favor of the proposition, the school district’s regular 32 program district cost per pupil shall be reduced to the amount 33 approved at election subject to the time limitation in the 34 bill. Once approved at an election, the reduction shall 35 -6- LSB 1637XS (8) 87 md/sc 6/ 7

S.F. 389 continue for the number of years authorized at election unless 1 the board votes to rescind the reduction or the voters of the 2 school district by majority vote approve the discontinuance of 3 the reduction. 4 The bill also provides that for the budget year beginning 5 July 1, 2028, and each succeeding budget year, the regular 6 program district cost per pupil for each school district for a 7 budget year is the regular program state cost per pupil for the 8 budget year. 9 The bill applies to school budget years beginning on or after 10 July 1, 2018. 11 -7- LSB 1637XS (8) 87 md/sc 7/ 7