HF 113 (LSB 1234YH (2) 91)

HOUSE FILE 113

BY  HARRIS

A BILL FOR

An Act authorizing expenditures from certain funds by small school districts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 298.3, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  a.  In addition to the authorized purposes of the revenues from the physical plant and equipment levy under this section, for up to a five-year period, a school district with a budget enrollment of two hundred students or less for each of the three most recent school budget years prior to such period may use the unencumbered and unobligated moneys remaining in the physical plant and equipment levy fund for any school district general fund purpose other than for salaries or benefits.
   b.  Prior to approving the use of the unencumbered and unobligated moneys remaining in the fund, the board of directors of the school district must adopt a resolution directing the county commissioner of elections to submit the question approving such use to the registered voters of the school district. The board of directors of a school district may, with approval of sixty percent of the voters voting on the question, use the unencumbered and unobligated moneys as provided in paragraph “a”. The election shall be held on a date specified in section 39.2, subsection 4, paragraph “c”.
   c.  The board of directors of the school district may adopt a resolution directing the county commissioner of elections to submit the question anew as provided in this subsection five years after the previous election or after expiration of the authorized period, whichever is earlier.
    Sec. 2.  Section 298A.6, Code 2025, is amended to read as follows:
   298A.6  Public education and recreation levy fund.
   1.  The public education and recreation levy fund is a special revenue fund. A public education and recreation levy fund must be established in any school corporation which levies the tax authorized under section 300.2 or which receives revenue from a chapter 28E agreement authorized under section 300.1.
   2.  a.  In addition to the authorized purposes of the revenues from the public education and recreation levy, for up to a five-year period, a school district with a budget enrollment of two hundred students or less for each of the three most recent school budget years prior to such period may use the unencumbered and unobligated moneys remaining in the public education and recreation levy fund for any school district general fund purpose, other than for salaries or benefits.
   b.  Prior to approving the use of the unencumbered and unobligated moneys remaining in the fund, the board of directors of the school district must adopt a resolution directing the county commissioner of elections to submit the question approving such use to the registered voters of the school district. The board of directors of a school district may, with approval of sixty percent of the voters voting on the question, use the unencumbered and unobligated moneys as provided in paragraph “a”. The election shall be held on a date specified in section 39.2, subsection 4, paragraph “c”.
   c.  The board of directors of the school district may adopt a resolution directing the county commissioner of elections to submit the question anew as provided in this subsection five years after the previous election or after expiration of the authorized period, whichever is earlier.
    Sec. 3.  Section 423F.3, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  7A.  After July 1, 2025, a school district with a budget enrollment of two hundred students or less for each of the three most recent school budget years may adopt a new revenue purpose statement that includes the expenditure of unencumbered and unobligated revenues received under this chapter for up to a five-year period for any school district general fund purpose, other than for salaries or benefits. Such a revenue purpose statement must be approved by at least sixty percent of the total votes cast on the proposition.
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 expenditures from certain funds by small school districts.
   Under the bill, a school district with a budget enrollment of 200 students or less for each of the three most recent budget years may use, for up to five years, the unencumbered and unobligated moneys remaining in the physical plant and equipment levy fund (PPEL) and public education and recreation levy fund (PERL) for any school district general fund purpose, other than for salary and benefits. The bill also permits such a school district to adopt a new revenue purpose statement that includes the use of unobligated and unreserved revenues received from the secure an advanced vision for education fund (SAVE) for up to five years for any school district general fund purpose, other than for salary and benefits. Such use authorizations must be approved at an election where the question or the revenue purpose statement, as applicable, receives at least 60 percent approval.