House File 383 - Introduced HOUSE FILE 383 BY WINCKLER , ABDUL-SAMAD , ANDERSON , BEARINGER , BENNETT , BRECKENRIDGE , BROWN-POWERS , COHOON , DERRY , DONAHUE , EHLERT , FORBES , GAINES , GASKILL , HALL , HEDDENS , HUNTER , ISENHART , JACOBY , JAMES , JUDGE , KACENA , KONFRST , KRESSIG , KURTH , KURTZ , LENSING , MASCHER , MATSON , McCONKEY , B. MEYER , NIELSEN , OLDSON , OLSON , OURTH , PRICHARD , RUNNING-MARQUARDT , M. SMITH , R. SMITH , STAED , STECKMAN , SUNDE , THEDE , WESSEL-KROESCHELL , WILLIAMS , and WOLFE A BILL FOR An Act relating to public school funding by establishing 1 the state percent of growth and the categorical state 2 percent of growth for the budget year beginning July 1, 3 2019, specifying citation references, modifying provisions 4 relating to the property tax replacement payments, and 5 including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 2081YH (4) 88 md/jh

H.F. 383 Section 1. Section 257.1, subsection 1, Code 2019, is 1 amended to read as follows: 2 1. Program established. A state school foundation program 3 is established for the school year commencing July 1, 1991, and 4 succeeding school years. This chapter shall be known and may 5 be cited as the “Fund Iowa’s Future Act” . 6 Sec. 2. Section 257.8, subsections 1 and 2, Code 2019, are 7 amended to read as follows: 8 1. State percent of growth. The state percent of growth 9 for the budget year beginning July 1, 2016, is two and 10 twenty-five hundredths percent. The state percent of growth 11 for the budget year beginning July 1, 2017, is one and eleven 12 hundredths percent. The state percent of growth for the 13 budget year beginning July 1, 2018, is one percent. The 14 state percent of growth for the budget year beginning July 1, 15 2019, is three percent. The state percent of growth for each 16 subsequent budget year shall be established by statute which 17 shall be enacted within thirty days of the transmission of the 18 governor’s budget required by February 1 under section 8.21 19 during the regular legislative session beginning in the base 20 year. 21 2. Categorical state percent of growth. The categorical 22 state percent of growth for the budget year beginning July 23 1, 2016, is two and twenty-five hundredths percent. The 24 categorical state percent of growth for the budget year 25 beginning July 1, 2017, is one and eleven hundredths percent. 26 The categorical state percent of growth for the budget year 27 beginning July 1, 2018, is one percent. The categorical state 28 percent of growth for the budget year beginning July 1, 2019, 29 is three percent. The categorical state percent of growth 30 for each budget year shall be established by statute which 31 shall be enacted within thirty days of the transmission of the 32 governor’s budget required by February 1 under section 8.21 33 during the regular legislative session beginning in the base 34 year. The categorical state percent of growth may include 35 -1- LSB 2081YH (4) 88 md/jh 1/ 4

H.F. 383 state percents of growth for the teacher salary supplement, the 1 professional development supplement, the early intervention 2 supplement, and the teacher leadership supplement. 3 Sec. 3. Section 257.16B, subsection 1, Code 2019, is amended 4 to read as follows: 5 1. For each fiscal year beginning on or after July 1, 2013 6 2017 , there is appropriated from the general fund of the state 7 to the department of education an amount necessary to make all 8 school district property tax replacement payments under this 9 section , as calculated in subsection 2 . 10 Sec. 4. Section 257.16B, subsection 2, paragraphs a, b, c, 11 and d, Code 2019, are amended by striking the paragraphs. 12 Sec. 5. Section 257.16B, subsection 2, paragraph f, 13 unnumbered paragraph 1, Code 2019, is amended to read as 14 follows: 15 For each the budget year beginning on or after July 1, 2018, 16 the department of management shall calculate for each school 17 district all of the following: 18 Sec. 6. Section 257.16B, subsection 2, paragraph f, 19 subparagraph (3), Code 2019, is amended to read as follows: 20 (3) The amount of each school district’s property tax 21 replacement payment. Each school district’s property tax 22 replacement payment equals the school district’s weighted 23 enrollment for the budget year beginning July 1, 2018, 24 multiplied by the remainder of the amount calculated for 25 the school district under subparagraph (2) minus the amount 26 calculated for the school district under subparagraph (1). 27 Sec. 7. Section 257.16B, subsection 2, Code 2019, is amended 28 by adding the following new paragraph: 29 NEW PARAGRAPH . g. For each budget year beginning on 30 or after July 1, 2019, the department of management shall 31 calculate for each school district all of the following: 32 (1) The regular program state cost per pupil for the budget 33 year beginning July 1, 2012, multiplied by one hundred percent 34 less the regular program foundation base per pupil percentage 35 -2- LSB 2081YH (4) 88 md/jh 2/ 4

H.F. 383 pursuant to section 257.1. 1 (2) The regular program state cost per pupil for the budget 2 year beginning July 1, 2019, multiplied by one hundred percent 3 less the regular program foundation base per pupil percentage 4 pursuant to section 257.1. 5 (3) The amount of each school district’s property tax 6 replacement payment. Each school district’s property tax 7 replacement payment equals the school district’s weighted 8 enrollment for the budget year multiplied by the remainder 9 of the amount calculated for the school district under 10 subparagraph (2) minus the amount calculated for the school 11 district under subparagraph (1). 12 Sec. 8. EFFECTIVE DATE. This Act, being deemed of immediate 13 importance, takes effect upon enactment. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to public school funding by establishing 18 the state percent of growth and the categorical state percent 19 of growth for the budget year beginning July 1, 2019, and 20 modifying provisions relating to the property tax replacement 21 payments. 22 The bill specifies that Code chapter 257 shall be known and 23 may be cited as the “Fund Iowa’s Future Act”. 24 The bill establishes a state percent of growth of 3 percent 25 for the budget year beginning July 1, 2019. The state percent 26 of growth is used to calculate the amount of supplemental state 27 aid for a budget year as part of the state school foundation 28 program. The bill also establishes a categorical state percent 29 of growth of 3 percent for the budget year beginning July 1, 30 2019. The categorical state percent of growth is used to 31 calculate the amount of supplemental state aid for each of the 32 categorical funding supplements. 33 Code section 257.16B provides for school district property 34 tax replacement payments. For each budget year beginning on 35 -3- LSB 2081YH (4) 88 md/jh 3/ 4

H.F. 383 or after July 1, 2018, each school district’s property tax 1 replacement payment amount is equal to the school district’s 2 weighted enrollment for the budget year multiplied by the 3 difference of the following: (1) the regular program state 4 cost per pupil for the budget year beginning July 1, 2018, 5 multiplied by 100 percent less the regular program foundation 6 base per pupil percentage; and (2) the regular program state 7 cost per pupil for the budget year beginning July 1, 2012, 8 multiplied by 100 percent less the regular program foundation 9 base per pupil percentage. The regular program foundation base 10 per pupil percentage is 87.5 percent. 11 The bill modifies the property tax replacement payment 12 calculation for budget years beginning on or after July 1, 13 2019. For budget years beginning on or after July 1, 2019, 14 each school district’s property tax replacement payment amount 15 is equal to the school district’s weighted enrollment for the 16 budget year multiplied by the difference of the following: (1) 17 the regular program state cost per pupil for the budget year 18 beginning July 1, 2019, multiplied by 100 percent less the 19 regular program foundation base per pupil percentage; and (2) 20 the regular program state cost per pupil for the budget year 21 beginning July 1, 2012, multiplied by 100 percent less the 22 regular program foundation base per pupil percentage. 23 The bill takes effect upon enactment. 24 -4- LSB 2081YH (4) 88 md/jh 4/ 4