House File 306 - Introduced HOUSE FILE 306 BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 109) (COMPANION TO SF 172 BY SINCLAIR) A BILL FOR An Act relating to public school funding by establishing the 1 state percent of growth and the categorical state percent of 2 growth for the budget year beginning July 1, 2019, modifying 3 provisions relating to the property tax replacement 4 payments, and including effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2288HV (2) 88 md/jh

H.F. 306 Section 1. Section 257.8, subsections 1 and 2, Code 2019, 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, 2016, is two and twenty-five 4 hundredths percent. The state percent of growth for the budget 5 year beginning July 1, 2017, is one and eleven hundredths 6 percent. The state percent of growth for the budget year 7 beginning July 1, 2018, is one percent. The state percent of 8 growth for the budget year beginning July 1, 2019, is two and 9 six hundredths 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, 2016, is two and twenty-five hundredths percent. The 18 categorical state percent of growth for the budget year 19 beginning July 1, 2017, is one and eleven hundredths percent. 20 The categorical state percent of growth for the budget year 21 beginning July 1, 2018, is one percent. The categorical state 22 percent of growth for the budget year beginning July 1, 2019, 23 is two and six hundredths percent. The categorical state 24 percent of growth for each budget year shall be established 25 by statute which shall be enacted within thirty days of the 26 transmission of the governor’s budget required by February 27 1 under section 8.21 during the regular legislative session 28 beginning in the base year. The categorical state percent of 29 growth may include state percents of growth for the teacher 30 salary supplement, the professional development supplement, 31 the early intervention supplement, and the teacher leadership 32 supplement. 33 Sec. 2. Section 257.16B, subsection 1, Code 2019, is amended 34 to read as follows: 35 -1- LSB 2288HV (2) 88 md/jh 1/ 4

H.F. 306 1. For each fiscal year beginning on or after July 1, 2013 1 2017 , there is appropriated from the general fund of the state 2 to the department of education an amount necessary to make all 3 school district property tax replacement payments under this 4 section , as calculated in subsection 2 . 5 Sec. 3. Section 257.16B, subsection 2, paragraphs a, b, c, 6 and d, Code 2019, are amended by striking the paragraphs. 7 Sec. 4. Section 257.16B, subsection 2, paragraph f, 8 unnumbered paragraph 1, Code 2019, is amended to read as 9 follows: 10 For each the budget year beginning on or after July 1, 2018, 11 the department of management shall calculate for each school 12 district all of the following: 13 Sec. 5. Section 257.16B, subsection 2, paragraph f, 14 subparagraph (3), Code 2019, is amended to read as follows: 15 (3) The amount of each school district’s property tax 16 replacement payment. Each school district’s property tax 17 replacement payment equals the school district’s weighted 18 enrollment for the budget year beginning July 1, 2018, 19 multiplied by the remainder of the amount calculated for 20 the school district under subparagraph (2) minus the amount 21 calculated for the school district under subparagraph (1). 22 Sec. 6. Section 257.16B, subsection 2, Code 2019, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . g. For each budget year beginning on 25 or after July 1, 2019, the department of management shall 26 calculate for each school district all of the following: 27 (1) The regular program state cost per pupil for the budget 28 year beginning July 1, 2012, multiplied by one hundred percent 29 less the regular program foundation base per pupil percentage 30 pursuant to section 257.1. 31 (2) The regular program state cost per pupil for the budget 32 year beginning July 1, 2019, multiplied by one hundred percent 33 less the regular program foundation base per pupil percentage 34 pursuant to section 257.1. 35 -2- LSB 2288HV (2) 88 md/jh 2/ 4

H.F. 306 (3) The amount of each school district’s property tax 1 replacement payment. Each school district’s property tax 2 replacement payment equals the school district’s weighted 3 enrollment for the budget year multiplied by the remainder 4 of the amount calculated for the school district under 5 subparagraph (2) minus the amount calculated for the school 6 district under subparagraph (1). 7 Sec. 7. EFFECTIVE DATE. This Act, being deemed of immediate 8 importance, takes effect upon enactment. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to public school funding by establishing 13 the state percent of growth and the categorical state percent 14 of growth for the budget year beginning July 1, 2019, and 15 modifying provisions relating to the property tax replacement 16 payments. 17 The bill establishes a state percent of growth of 2.06 18 percent for the budget year beginning July 1, 2019. The 19 state percent of growth is used to calculate the amount 20 of supplemental state aid for a budget year as part of the 21 state school foundation program. The bill also establishes 22 a categorical state percent of growth of 2.06 percent for 23 the budget year beginning July 1, 2019. The categorical 24 state percent of growth is used to calculate the amount of 25 supplemental state aid for each of the categorical funding 26 supplements. 27 Code section 257.16B provides for school district property 28 tax replacement payments. For each budget year beginning on 29 or after July 1, 2018, each school district’s property tax 30 replacement payment amount is equal to the school district’s 31 weighted enrollment for the budget year multiplied by the 32 difference of the following: (1) the regular program state 33 cost per pupil for the budget year beginning July 1, 2018, 34 multiplied by 100 percent less the regular program foundation 35 -3- LSB 2288HV (2) 88 md/jh 3/ 4

H.F. 306 base per pupil percentage; and (2) the regular program state 1 cost per pupil for the budget year beginning July 1, 2012, 2 multiplied by 100 percent less the regular program foundation 3 base per pupil percentage. The regular program foundation base 4 per pupil percentage is 87.5 percent. 5 The bill modifies the property tax replacement payment 6 calculation for budget years beginning on or after July 1, 7 2019. For budget years beginning on or after July 1, 2019, 8 each school district’s property tax replacement payment amount 9 is equal to the school district’s weighted enrollment for the 10 budget year multiplied by the difference of the following: (1) 11 the regular program state cost per pupil for the budget year 12 beginning July 1, 2019, multiplied by 100 percent less the 13 regular program foundation base per pupil percentage; and (2) 14 the regular program state cost per pupil for the budget year 15 beginning July 1, 2012, multiplied by 100 percent less the 16 regular program foundation base per pupil percentage. 17 The bill takes effect upon enactment. 18 -4- LSB 2288HV (2) 88 md/jh 4/ 4