HF 2131 (LSB 5572YH (3) 91)

HOUSE FILE 2131

BY  LEVIN

A BILL FOR

An Act relating to the timing for establishment of the state percent of growth and the categorical state percent of growth, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.8, subsections 1 and 2, Code 2026, are amended to read as follows:
   1.  State percent of growth.  The state percent of growth for the budget year beginning July 1, 2023, is three percent. The state percent of growth for the budget year beginning July 1, 2024, is two and one-half percent. The state percent of growth for the budget year beginning July 1, 2025, is two percent. The state percent of growth for each subsequent the budget year beginning July 1, 2026, and the state percent of growth for the budget year beginning July 1, 2027, shall be established by statute which shall be enacted within thirty days of the transmission of the governor’s budget required by February 1 under section 8.21 during the 2026 regular legislative session beginning in the base year.  For the budget year beginning July 1, 2028, and for each subsequent budget year, the state percent of growth shall be established by statute which shall be enacted within thirty days of the transmission of the governor’s budget required by February 1 under section 8.21 during the regular legislative session beginning in the budget year preceding the base year.
   2.  Categorical state percent of growth.  The categorical state percent of growth for the budget year beginning July 1, 2023, is three percent. The categorical state percent of growth for the budget year beginning July 1, 2024, is two and one-half percent. The categorical state percent of growth for the budget year beginning July 1, 2025, is two percent, except for calculating the appropriation to the transportation equity fund under section 257.16C. The categorical state percent of growth for purposes of calculating the appropriation to the transportation equity fund under section 257.16C for the budget year beginning July 1, 2025, is five percent. The categorical state percent of growth for each the budget year beginning July 1, 2026, and the categorical state percent of growth for the budget year beginning July 1, 2027, shall be established by statute which shall be enacted within thirty days of the transmission of the governor’s budget required by February 1 under section 8.21 during the 2026 regular legislative session beginning in the base year.  For the budget year beginning July 1, 2028, and for each subsequent budget year, the categorical state percent of growth shall be established by statute which shall be enacted within thirty days of the transmission of the governor’s budget required by February 1 under section 8.21 during the regular legislative session beginning in the budget year preceding the base year. The categorical state percent of growth may include state percents of growth for the teacher salary supplement, the professional development supplement, the early intervention supplement, the teacher leadership supplement, and for budget years beginning on or after July 1, 2020, transportation equity aid payments under section 257.16C.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the timing of the establishment of the state percent of growth and the categorical state percent of growth. Current law requires the state percent of growth and categorical state percent of growth for a budget year to be enacted within 30 days of the transmission of the governor’s budget during the regular legislative session preceding the budget year.
   For the budget years beginning July 1, 2026, and July 1, 2027, the bill requires that the state percent of growth and categorical state percent of growth be enacted within 30 days of the governor’s budget submitted during the 2026 regular legislative session. For budget years beginning on or after July 1, 2028, the state percent of growth and categorical state percent of growth are required to be established within 30 days of the governor’s budget submitted during the regular legislative session beginning in the budget year preceding the base year.
   The bill takes effect upon enactment.