Senate
Study
Bill
3096

Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
EDUCATION
BILL
BY
CHAIRPERSON
SINCLAIR)
A
BILL
FOR
An
Act
relating
to
public
school
funding
by
establishing
a
1
state
percent
of
growth
and
the
categorical
state
percent
2
of
growth
for
the
budget
year
beginning
July
1,
2020,
3
modifying
provisions
and
references
relating
to
the
property
4
tax
replacement
payment,
and
including
effective
date
5
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
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Section
1.
Section
257.8,
subsections
1
and
2,
Code
2020,
1
are
amended
to
read
as
follows:
2
1.
State
percent
of
growth.
The
state
percent
of
growth
3
for
the
budget
year
beginning
July
1,
2017,
is
one
and
eleven
4
hundredths
percent.
The
state
percent
of
growth
for
the
5
budget
year
beginning
July
1,
2018,
is
one
percent.
The
6
state
percent
of
growth
for
the
budget
year
beginning
July
1,
7
2019,
is
two
and
six
hundredths
percent.
The
state
percent
8
of
growth
for
the
budget
year
beginning
July
1,
2020,
is
two
9
and
onetenth
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
1,
17
2017,
is
one
and
eleven
hundredths
percent.
The
categorical
18
state
percent
of
growth
for
the
budget
year
beginning
July
19
1,
2018,
is
one
percent.
The
categorical
state
percent
of
20
growth
for
the
budget
year
beginning
July
1,
2019,
is
two
and
21
six
hundredths
percent.
The
categorical
state
percent
of
22
growth
for
the
budget
year
beginning
July
1,
2020,
is
two
and
23
onetenth
percent.
The
categorical
state
percent
of
growth
24
for
each
budget
year
shall
be
established
by
statute
which
25
shall
be
enacted
within
thirty
days
of
the
transmission
of
the
26
governor’s
budget
required
by
February
1
under
section
8.21
27
during
the
regular
legislative
session
beginning
in
the
base
28
year.
The
categorical
state
percent
of
growth
may
include
29
state
percents
of
growth
for
the
teacher
salary
supplement,
the
30
professional
development
supplement,
the
early
intervention
31
supplement,
the
teacher
leadership
supplement,
and
for
budget
32
years
beginning
on
or
after
July
1,
2020,
transportation
equity
33
aid
payments
under
section
257.16C
.
34
Sec.
2.
Section
257.16B,
subsections
1
and
2,
Code
2020,
are
35
1
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amended
to
read
as
follows:
1
1.
For
each
fiscal
year
beginning
on
or
after
July
1,
2017
2
2018
,
there
is
appropriated
from
the
general
fund
of
the
state
3
to
the
department
of
education
an
amount
necessary
to
make
all
4
school
district
property
tax
replacement
payments
under
this
5
section
,
as
calculated
in
subsection
2
.
6
2.
a.
For
the
budget
year
beginning
July
1,
2017,
the
7
department
of
management
shall
calculate
for
each
school
8
district
all
of
the
following:
9
(1)
The
regular
program
state
cost
per
pupil
for
the
budget
10
year
beginning
July
1,
2012,
multiplied
by
one
hundred
percent
11
less
the
regular
program
foundation
base
per
pupil
percentage
12
pursuant
to
section
257.1
.
13
(2)
The
regular
program
state
cost
per
pupil
for
the
budget
14
year
beginning
July
1,
2017,
multiplied
by
one
hundred
percent
15
less
the
regular
program
foundation
base
per
pupil
percentage
16
pursuant
to
section
257.1
.
17
(3)
The
amount
of
each
school
district’s
property
tax
18
replacement
payment.
Each
school
district’s
property
tax
19
replacement
payment
equals
the
school
district’s
weighted
20
enrollment
for
the
budget
year
beginning
July
1,
2017,
21
multiplied
by
the
remainder
of
the
amount
calculated
for
22
the
school
district
under
subparagraph
(2)
minus
the
amount
23
calculated
for
the
school
district
under
subparagraph
(1).
24
b.
a.
For
the
budget
year
beginning
July
1,
2018,
the
25
department
of
management
shall
calculate
for
each
school
26
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,
2018,
multiplied
by
one
hundred
percent
33
less
the
regular
program
foundation
base
per
pupil
percentage
34
pursuant
to
section
257.1
.
35
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(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
beginning
July
1,
2018,
4
multiplied
by
the
remainder
of
the
amount
calculated
for
5
the
school
district
under
subparagraph
(2)
minus
the
amount
6
calculated
for
the
school
district
under
subparagraph
(1).
7
c.
b.
For
each
the
budget
year
beginning
on
or
after
July
8
1,
2019,
the
department
of
management
shall
calculate
for
each
9
school
district
all
of
the
following:
10
(1)
The
regular
program
state
cost
per
pupil
for
the
budget
11
year
beginning
July
1,
2012,
multiplied
by
one
hundred
percent
12
less
the
regular
program
foundation
base
per
pupil
percentage
13
pursuant
to
section
257.1
.
14
(2)
The
regular
program
state
cost
per
pupil
for
the
budget
15
year
beginning
July
1,
2019,
multiplied
by
one
hundred
percent
16
less
the
regular
program
foundation
base
per
pupil
percentage
17
pursuant
to
section
257.1
.
18
(3)
The
amount
of
each
school
district’s
property
tax
19
replacement
payment.
Each
school
district’s
property
tax
20
replacement
payment
equals
the
school
district’s
weighted
21
enrollment
for
the
budget
year
beginning
July
1,
2019,
22
multiplied
by
the
remainder
of
the
amount
calculated
for
23
the
school
district
under
subparagraph
(2)
minus
the
amount
24
calculated
for
the
school
district
under
subparagraph
(1).
25
c.
For
each
budget
year
beginning
on
or
after
July
1,
2020,
26
the
department
of
management
shall
calculate
for
each
school
27
district
all
of
the
following:
28
(1)
The
regular
program
state
cost
per
pupil
for
the
budget
29
year
beginning
July
1,
2012,
multiplied
by
one
hundred
percent
30
less
the
regular
program
foundation
base
per
pupil
percentage
31
pursuant
to
section
257.1.
32
(2)
The
regular
program
state
cost
per
pupil
for
the
budget
33
year
beginning
July
1,
2020,
multiplied
by
one
hundred
percent
34
less
the
regular
program
foundation
base
per
pupil
percentage
35
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pursuant
to
section
257.1.
1
(3)
The
amount
of
each
school
district’s
property
tax
2
replacement
payment.
Each
school
district’s
property
tax
3
replacement
payment
equals
the
school
district’s
weighted
4
enrollment
for
the
budget
year
multiplied
by
the
remainder
5
of
the
amount
calculated
for
the
school
district
under
6
subparagraph
(2)
minus
the
amount
calculated
for
the
school
7
district
under
subparagraph
(1).
8
Sec.
3.
Section
257.16D,
subsection
2,
paragraph
b,
Code
9
2020,
is
amended
to
read
as
follows:
10
b.
The
moneys
available
in
a
fiscal
year
in
the
foundation
11
base
supplement
fund
shall
be
distributed
by
the
department
12
of
management
to
each
school
district
on
a
per
pupil
basis
13
calculated
using
each
school
district’s
weighted
enrollment,
14
as
defined
in
section
257.6
,
for
that
fiscal
year.
However,
15
the
amount
of
a
school
district’s
foundation
base
supplement
16
payment
for
a
budget
year
shall
not
exceed
an
amount
equal
to
17
the
product
of
the
school
district’s
weighted
enrollment
for
18
the
budget
year
multiplied
by
the
amount
for
the
budget
year
19
calculated
under
section
257.16B,
subsection
2
,
paragraph
“b”
,
20
subparagraph
(2),
product
of
the
regular
program
state
cost
per
21
pupil
for
the
budget
year
multiplied
by
one
hundred
percent
22
less
the
regular
program
foundation
base
per
pupil
percentage
23
pursuant
to
section
257.1,
minus
the
amount
of
the
school
24
district’s
property
tax
replacement
payment
under
section
25
257.16B
for
the
budget
year.
26
Sec.
4.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
27
importance,
takes
effect
upon
enactment.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
This
bill
relates
to
public
school
funding
by
establishing
32
the
state
percent
of
growth
and
the
categorical
state
percent
33
of
growth
for
the
budget
year
beginning
July
1,
2020,
and
34
modifying
provisions
and
references
relating
to
the
property
35
4
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tax
replacement
payments.
1
The
bill
establishes
a
state
percent
of
growth
of
2.1
percent
2
for
the
budget
year
beginning
July
1,
2020.
The
state
percent
3
of
growth
is
used
to
calculate
the
amount
of
supplemental
state
4
aid
for
a
budget
year
as
part
of
the
state
school
foundation
5
program.
The
bill
also
establishes
a
categorical
state
percent
6
of
growth
of
2.1
percent
for
the
budget
year
beginning
July
7
1,
2020.
The
categorical
state
percent
of
growth
is
used
to
8
calculate
the
amount
of
supplemental
state
aid
for
each
of
the
9
categorical
funding
supplements.
10
Code
section
257.16B
provides
for
school
district
property
11
tax
replacement
payments.
Under
current
law,
for
each
budget
12
year
beginning
on
or
after
July
1,
2019,
each
school
district’s
13
property
tax
replacement
payment
amount
is
equal
to
the
school
14
district’s
weighted
enrollment
for
the
budget
year
multiplied
15
by
the
difference
of
the
following:
(1)
the
regular
program
16
state
cost
per
pupil
for
the
budget
year
beginning
July
1,
17
2019,
multiplied
by
100
percent
less
the
regular
program
18
foundation
base
per
pupil
percentage;
and
(2)
the
regular
19
program
state
cost
per
pupil
for
the
budget
year
beginning
July
20
1,
2012,
multiplied
by
100
percent
less
the
regular
program
21
foundation
base
per
pupil
percentage.
The
regular
program
22
foundation
base
per
pupil
percentage
is
87.5
percent.
23
The
bill
modifies
the
property
tax
replacement
payment
24
calculation
for
budget
years
beginning
on
or
after
July
1,
25
2020.
For
budget
years
beginning
on
or
after
July
1,
2020,
26
each
school
district’s
property
tax
replacement
payment
amount
27
is
equal
to
the
school
district’s
weighted
enrollment
for
the
28
applicable
budget
year
multiplied
by
the
difference
of
the
29
following:
(1)
the
regular
program
state
cost
per
pupil
for
30
the
budget
year
beginning
July
1,
2020,
multiplied
by
100
31
percent
less
the
regular
program
foundation
base
per
pupil
32
percentage;
and
(2)
the
regular
program
state
cost
per
pupil
33
for
the
budget
year
beginning
July
1,
2012,
multiplied
by
100
34
percent
less
the
regular
program
foundation
base
per
pupil
35
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percentage.
1
The
bill
takes
effect
upon
enactment.
2
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