House File 2131 - Introduced HOUSE FILE 2131 BY LEVIN A BILL FOR An Act relating to the timing for establishment of the state 1 percent of growth and the categorical state percent of 2 growth, and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5572YH (3) 91 mb/md

H.F. 2131 Section 1. Section 257.8, subsections 1 and 2, Code 2026, 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, 2023, is three percent. The 4 state percent of growth for the budget year beginning July 1, 5 2024, is two and one-half percent. The state percent of growth 6 for the budget year beginning July 1, 2025, is two percent. 7 The state percent of growth for each subsequent the budget year 8 beginning July 1, 2026, and the state percent of growth for 9 the budget year beginning July 1, 2027, shall be established 10 by statute which shall be enacted within thirty days of the 11 transmission of the governor’s budget required by February 1 12 under section 8.21 during the 2026 regular legislative session 13 beginning in the base year . For the budget year beginning 14 July 1, 2028, and for each subsequent budget year, the state 15 percent of growth shall be established by statute which shall 16 be enacted within thirty days of the transmission of the 17 governor’s budget required by February 1 under section 8.21 18 during the regular legislative session beginning in the budget 19 year preceding the base year. 20 2. Categorical state percent of growth. The categorical 21 state percent of growth for the budget year beginning July 22 1, 2023, is three percent. The categorical state percent of 23 growth for the budget year beginning July 1, 2024, is two and 24 one-half percent. The categorical state percent of growth for 25 the budget year beginning July 1, 2025, is two percent, except 26 for calculating the appropriation to the transportation equity 27 fund under section 257.16C . The categorical state percent of 28 growth for purposes of calculating the appropriation to the 29 transportation equity fund under section 257.16C for the budget 30 year beginning July 1, 2025, is five percent. The categorical 31 state percent of growth for each the budget year beginning 32 July 1, 2026, and the categorical state percent of growth for 33 the budget year beginning July 1, 2027, shall be established 34 by statute which shall be enacted within thirty days of the 35 -1- LSB 5572YH (3) 91 mb/md 1/ 3

H.F. 2131 transmission of the governor’s budget required by February 1 1 under section 8.21 during the 2026 regular legislative session 2 beginning in the base year . For the budget year beginning July 3 1, 2028, and for each subsequent budget year, the categorical 4 state percent of growth shall be established by statute which 5 shall be enacted within thirty days of the transmission of the 6 governor’s budget required by February 1 under section 8.21 7 during the regular legislative session beginning in the budget 8 year preceding the base year. The categorical state percent 9 of growth may include state percents of growth for the teacher 10 salary supplement, the professional development supplement, 11 the early intervention supplement, the teacher leadership 12 supplement, and for budget years beginning on or after July 1, 13 2020, transportation equity aid payments under section 257.16C . 14 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 15 importance, takes effect upon enactment. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill relates to the timing of the establishment of the 20 state percent of growth and the categorical state percent of 21 growth. Current law requires the state percent of growth and 22 categorical state percent of growth for a budget year to be 23 enacted within 30 days of the transmission of the governor’s 24 budget during the regular legislative session preceding the 25 budget year. 26 For the budget years beginning July 1, 2026, and July 1, 27 2027, the bill requires that the state percent of growth and 28 categorical state percent of growth be enacted within 30 days 29 of the governor’s budget submitted during the 2026 regular 30 legislative session. For budget years beginning on or after 31 July 1, 2028, the state percent of growth and categorical state 32 percent of growth are required to be established within 30 33 days of the governor’s budget submitted during the regular 34 legislative session beginning in the budget year preceding the 35 -2- LSB 5572YH (3) 91 mb/md 2/ 3

H.F. 2131 base year. 1 The bill takes effect upon enactment. 2 -3- LSB 5572YH (3) 91 mb/md 3/ 3