Senate Study Bill 3122 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON ROZENBOOM) A BILL FOR An Act relating to school funding by establishing the state 1 percent of growth and the categorical state percent of 2 growth for the budget year beginning July 1, 2024, and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5925XC (4) 90 dg/jh

S.F. _____ Section 1. Section 257.8, subsections 1 and 2, Code 2024, 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, 2021, is two and four-tenths 4 percent. The state percent of growth for the budget year 5 beginning July 1, 2022, is two and one-half percent. The state 6 percent of growth for the budget year beginning July 1, 2023, 7 is three percent. The general assembly shall establish the 8 state percent of growth for the budget year beginning July 1, 9 2024, during the 2024 regular session. The state percent of 10 growth for each subsequent budget year shall be established 11 by statute which shall be enacted within thirty days of the 12 transmission of the governor’s budget required by February 13 1 under section 8.21 during the regular legislative session 14 beginning in the base year. 15 2. Categorical state percent of growth. The categorical 16 state percent of growth for the budget year beginning July 1, 17 2021, is two and four-tenths percent. The categorical state 18 percent of growth for the budget year beginning July 1, 2022, 19 is two and one-half percent. The categorical state percent of 20 growth for the budget year beginning July 1, 2023, is three 21 percent. The general assembly shall establish the categorical 22 state percent of growth for the budget year beginning July 1, 23 2024, during the 2024 regular session. 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, the teacher leadership 32 supplement, and for budget years beginning on or after July 1, 33 2020, transportation equity aid payments under section 257.16C . 34 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 35 -1- LSB 5925XC (4) 90 dg/jh 1/ 2

S.F. _____ importance, takes effect upon enactment. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to school funding by establishing the 5 state percent of growth and the categorical state percent of 6 growth for the budget year beginning July 1, 2024. 7 The state percent of growth is used to calculate the amount 8 of supplemental state aid for a budget year as part of the 9 state school foundation program. The categorical state 10 percent of growth is generally used to calculate the amount 11 of supplemental state aid for each of the categorical funding 12 supplements. The bill provides that the general assembly shall 13 establish the state percent of growth and the categorical state 14 percent of growth for the budget year beginning July 1, 2024, 15 during the 2024 regular session. 16 The bill takes effect upon enactment. 17 -2- LSB 5925XC (4) 90 dg/jh 2/ 2