SF 389 (LSB 1637XS (8) 87)

SENATE FILE 389

BY  QUIRMBACH

A BILL FOR

An Act relating to school district funding by establishing a voter-approved district cost equity tax and levy or reduction, modifying provisions establishing the district cost per pupil, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.10, subsection 2, paragraphs a and b, Code 2017, are amended to read as follows:
   a.  For the budget year beginning July 1, 1992, and succeeding budget years beginning before July 1, 2028, the regular program district cost per pupil for each school district for a budget year is the regular program district cost per pupil for the base year plus the regular program supplemental state aid for the budget year except as otherwise provided in this subsection or otherwise adjusted under section 298.12, subsection 5.
   b.  If the regular program district cost per pupil of a school district for the budget year under paragraph “a” exceeds one hundred five percent of the regular program state cost per pupil for the budget year and the state percent of growth for the budget year is greater than two percent, the regular program district cost per pupil for the budget year for that district shall be reduced to one hundred five percent of the regular program state cost per pupil for the budget year. However, under such conditions, if the difference between the regular program district cost per pupil for the budget year and the regular program state cost per pupil for the budget year is greater than an amount equal to two percent multiplied by the regular program state cost per pupil for the base year, the regular program district cost per pupil for the budget year shall be reduced by the amount equal to two percent multiplied by the regular program state cost per pupil for the base year.
    Sec. 2.  Section 257.10, subsection 2, Code 2017, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  For the budget year beginning July 1, 2028, and each succeeding budget year, the regular program district cost per pupil for each school district for a budget year is the regular program state cost per pupil for the budget year.
    Sec. 3.  NEW SECTION.  298.12  District cost equity levy —— election.
   1.  In order to provide regular program district cost per pupil equity among all school districts in the state, the board of directors of a school district, following approval at election under subsection 2, may certify for levy by April 15 of the school year preceding the budget year, a tax on all taxable property in the school district for a district cost equity levy or following approval at an election held pursuant to subsection 5, shall reduce the school district’s regular program district cost per pupil to an amount not less than the regular program state cost per pupil.
   2.  a.  The board of directors of a school district may, on its own motion, or shall, upon receipt of a petition signed by eligible electors equal in number to at least thirty percent of the number of voters who voted at the last preceding regular school election, direct the county commissioner of elections to submit to the registered voters of the school district the question of whether to levy the district cost equity tax not to exceed an amount authorized under subsection 3 and for a period of time authorized by the voters, not to exceed ten years. The question shall be submitted at an election held on a date specified in section 39.2, subsection 4, paragraph “c”.
   b.  If a majority of the votes cast upon the proposition is in favor of the proposition, the board shall annually certify the amount required for a fiscal year to the county board of supervisors. The board of supervisors shall levy the amount certified. The amount shall be deposited in the general fund of the school district and may be used for any school general fund purpose.
   c.  The proposition to levy the district cost equity tax is not affected by a change in the boundaries of a school district, except as otherwise provided in this section. The district cost equity tax shall not be imposed in any reorganized school district unless the voters of each district involved in the reorganization had previously adopted the district cost equity tax. If each district involved in school reorganization under chapter 275 has adopted the district cost equity tax, and if the voters have not voted upon the proposition to levy the district cost equity tax in the reorganized district, the existing district cost equity tax shall be in effect for the reorganized district for the fewest number of approved years remaining in any of the districts and until discontinued pursuant to this section and for the lowest amount per pupil approved by the school districts involved in the reorganization. 
   d.  Once approved at an election, the authority of the board to levy and collect the district cost equity tax shall continue for the number of years authorized at election unless the board votes to rescind the levy and collection of the tax or the voters of the school district by majority vote approve the discontinuance of the levy and collection of the tax. The tax may be discontinued before the end of the period of years authorized at election in the manner provided for imposition of the tax under this section.
   3.  a.  For budget years beginning on or after July 1, 2018, but before July 1, 2028, the amount certified by a school district for levy under this section for a school budget year shall not exceed an amount equal to the difference between the school district’s regular program district cost per pupil and the highest regular program district cost per pupil among all school districts in the state, not to exceed one hundred seventy-five dollars, multiplied by the school district’s weighted enrollment for the budget year.
   b.  For budget years beginning on or after July 1, 2028, the amount certified by a school district for levy under this section for a school budget year shall not exceed an amount equal to one hundred seventy-five dollars multiplied by the school district’s weighted enrollment for the budget year.
   4.  Revenues received by a school district under this section are miscellaneous income and shall not be included in any computation of a school district’s cost for any future budget year.
   5.  a.  The board of directors of a school district may, on its own motion, or shall, upon receipt of a petition signed by eligible electors equal in number to at least thirty percent of the number of voters who voted at the last preceding regular school election, direct the county commissioner of elections to submit to the registered voters of the school district the question of whether to reduce the school district’s regular program district cost per pupil to an amount not less than the regular program state cost per pupil for a period of time authorized by the voters, but ending not later than the conclusion of the budget year beginning July 1, 2027. The question shall be submitted at an election held on a date specified in section 39.2, subsection 4, paragraph “c”.
   b.  If a majority of the votes cast upon the proposition is in favor of the proposition, the school district’s regular program district cost per pupil under section 257.10, subsection 2, paragraph “a”, shall be reduced to the amount approved at election, subject to the durational limitation in paragraph “a”.
   c.  The reduction of a school district’s regular program district cost per pupil is not affected by a change in the boundaries of a school district, except as otherwise provided in this section. A reduction of the school district’s regular program district cost per pupil shall not apply to any reorganized school district unless the voters of each district involved in the reorganization had previously approved such a reduction. If each district involved in school reorganization under chapter 275 has approved such a reduction, and if the voters have not voted upon the reduction proposition in the reorganized district, the reduction shall be in effect for the reorganized district for the fewest number of approved years remaining in any of the districts and until discontinued pursuant to this section and for the highest regular program district cost per pupil approved by the school districts involved in the reorganization. 
   d.  Once approved at an election, the reduction shall continue for the number of years authorized at election unless the board votes to rescind the reduction or the voters of the school district by majority vote approve the discontinuance of the reduction. The reduction may be discontinued before the end of the period of years authorized at election in the manner provided for imposition of the tax under this section.
    Sec. 4.  APPLICABILITY.  This Act applies to school budget years beginning on or after July 1, 2018.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill authorizes the board of directors of a school district, following voter approval, to certify for levy a tax on all taxable property in the school district for a district cost equity levy or to reduce the district’s regular program district cost per pupil.
   The board of directors of a school district may, on its own motion, or shall, upon receipt of a petition signed by eligible electors equal in number to at least 30 percent of the number of voters who voted at the last preceding regular school election, direct the county commissioner of elections to submit to the registered voters of the school district the question of whether to levy the district cost equity tax and the length of time authorized to impose the levy, not to exceed 10 years. If the proposition is approved by majority vote, the board shall annually certify the amount required for a fiscal year to the county board of supervisors, not to exceed the maximum annual amount determined in the bill. 
   The amount collected from the levy shall be placed in the general fund of the school district and may be used for any authorized school purpose. Once approved at an election, the authority of the board to levy and collect the district cost equity tax shall continue for the number of years authorized at election unless the board votes to rescind the levy or the voters of the school district by majority vote approve the discontinuance of the levy.
   For budget years beginning or after July 1, 2018, but before July 1, 2028, the amount certified by a school district for levy for a school budget year shall not exceed an amount equal to the difference between the school district’s regular program district cost per pupil and the highest regular program district cost per pupil among all school districts in the state, not to exceed $175, multiplied by the school district’s budget enrollment. For budget years beginning on or after July 1, 2028, the amount certified by a school district for levy for a school budget year shall not exceed an amount equal to $175 multiplied by the school district’s weighted enrollment for the budget year.
   The bill specifies that revenues received by a school district from a district cost equity levy are miscellaneous income and shall not be included in the calculation of district cost in any future budget year.
   The bill also provides that the board of directors of a school district may, on its own motion, or shall, upon receipt of a petition signed by eligible electors equal in number to at least 30 percent of the number of voters who voted at the last preceding regular school election, direct the county commissioner of elections to submit to the registered voters of the school district the question of whether to reduce the school district’s regular program district cost per pupil to an amount not less than the regular program state cost per pupil for a period of time authorized by the voters, but ending not later than the conclusion of the budget year beginning July 1, 2027. If a majority of the votes cast upon the proposition is in favor of the proposition, the school district’s regular program district cost per pupil shall be reduced to the amount approved at election subject to the time limitation in the bill. Once approved at an election, the reduction shall continue for the number of years authorized at election unless the board votes to rescind the reduction or the voters of the school district by majority vote approve the discontinuance of the reduction.
   The bill also provides that for the budget year beginning July 1, 2028, and each succeeding budget year, the regular program district cost per pupil for each school district for a budget year is the regular program state cost per pupil for the budget year. 
   The bill applies to school budget years beginning on or after July 1, 2018.