SF 167 (LSB 2403SV (1) 91)

SENATE FILE 167

BY  COMMITTEE ON EDUCATION

(SUCCESSOR TO SSB 1053)

A BILL FOR

An Act relating to school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2025, modifying provisions relating to the property tax replacement payments, 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 2025, are amended to read as follows:
   1.  State percent of growth.  The state percent of growth for the budget year beginning July 1, 2022, is two and one-half percent. 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 budget year 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 base year.
   2.  Categorical state percent of growth.  The categorical state percent of growth for the budget year beginning July 1, 2022, is two and one-half percent. 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. The categorical state percent of growth for each budget year 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 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.  Section 257.16B, subsections 1 and 2, Code 2025, are amended to read as follows:
   1.  For each fiscal year beginning on or after July 1, 2022 2023, there is appropriated from the general fund of the state to the department of education an amount necessary to make all school district property tax replacement payments under this section, as calculated in subsection 2.
   2.  a.  (1)  For the budget year beginning July 1, 2022, the amount of each school district’s property tax replacement payment shall be the product of the school district’s weighted enrollment for the budget year multiplied by the per pupil property tax replacement amount for the budget year calculated under subparagraph (2).
   (2)  The per pupil property tax replacement amount for the budget year beginning July 1, 2022, is equal to the sum of one hundred fifty-three dollars plus the difference between the following:
   (a)  The regular program state cost per pupil for the budget year beginning July 1, 2022, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1 for the budget year beginning July 1, 2022.
   (b)  The regular program state cost per pupil for the budget year beginning July 1, 2021, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1 for the budget year beginning July 1, 2022.
   b.  a.  (1)  For the budget year beginning July 1, 2023, the amount of each school district’s property tax replacement payment shall be the product of the school district’s weighted enrollment for the budget year multiplied by the per pupil property tax replacement amount for the budget year calculated under subparagraph (2).
   (2)  The per pupil property tax replacement amount for the budget year beginning July 1, 2023, is equal to the sum of one hundred fifty-three dollars plus the difference between the following:
   (a)  The regular program state cost per pupil for the budget year beginning July 1, 2023, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1 for the budget year beginning July 1, 2023.
   (b)  The regular program state cost per pupil for the budget year beginning July 1, 2021, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1 for the budget year beginning July 1, 2023.
   c.  b.  (1)  For each the budget year beginning on or after July 1, 2024, the amount of each school district’s property tax replacement payment shall be the product of the school district’s weighted enrollment for the budget year multiplied by the per pupil property tax replacement amount for the budget year calculated under subparagraph (2).
   (2)  The per pupil property tax replacement amount for the budget years year beginning on or after July 1, 2024, is equal to the sum of one hundred fifty-three dollars plus the difference between the following:
   (a)  The regular program state cost per pupil for the budget year beginning July 1, 2024, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1 for the applicable budget year under this paragraph beginning July 1, 2024.
   (b)  The regular program state cost per pupil for the budget year beginning July 1, 2021, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1 for the applicable budget year under this paragraph beginning July 1, 2024.
   c.  (1)  For each budget year beginning on or after July 1, 2025, the amount of each school district’s property tax replacement payment shall be the product of the school district’s weighted enrollment for the budget year multiplied by the per pupil property tax replacement amount for the budget year calculated under subparagraph (2).
   (2)  The per pupil property tax replacement amount for budget years beginning on or after July 1, 2025, is equal to the sum of one hundred fifty-three dollars plus the difference between the following:
   (a)  The regular program state cost per pupil for the budget year beginning July 1, 2025, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1 for the applicable budget year under this paragraph.
   (b)  The regular program state cost per pupil for the budget year beginning July 1, 2021, multiplied by one hundred percent less the regular program foundation base per pupil percentage pursuant to section 257.1 for the applicable budget year under this paragraph.
    Sec. 3.  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 school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2025, and modifying provisions relating to the property tax replacement payments.
   The bill establishes a state percent of growth of 2 percent for the budget year beginning July 1, 2025. The state percent of growth is used to calculate the amount of supplemental state aid for a budget year as part of the state school foundation program. The bill also establishes a categorical state percent of growth of 2 percent for the budget year beginning July 1, 2025. The categorical state percent of growth is generally used to calculate the amount of supplemental state aid for each of the categorical funding supplements.
   Code section 257.16B provides for school district property tax replacement payments. For each budget year beginning on or after July 1, 2024, the amount of each school district’s property tax replacement payment is the product of the school district’s weighted enrollment for the budget year multiplied by the per pupil property tax replacement amount for the budget year. The per pupil property tax replacement amount for budget years beginning on or after July 1, 2024, is equal to the sum of $153 plus the difference between the following: (1) the regular program state cost per pupil for the budget year beginning July 1, 2024, multiplied by 100 percent less the regular program foundation base per pupil percentage; and (2) the regular program state cost per pupil for the budget year beginning July 1, 2021, multiplied by 100 percent less the regular program foundation base per pupil percentage.
   The bill modifies the property tax replacement payment calculation for budget years beginning on or after July 1, 2025. For budget years beginning on or after July 1, 2025, the amount of each school district’s property tax replacement payment is the product of the school district’s weighted enrollment for the budget year multiplied by the per pupil property tax replacement amount for the budget year. The per pupil property tax replacement amount for budget years beginning on or after July 1, 2025, is equal to the sum of $153 plus the difference between the following: (1) the regular program state cost per pupil for the budget year beginning July 1, 2025, multiplied by 100 percent less the regular program foundation base per pupil percentage; and (2) the regular program state cost per pupil for the budget year beginning July 1, 2021, multiplied by 100 percent less the regular program foundation base per pupil percentage. The regular program foundation base per pupil percentage is 88.4 percent.
   The bill takes effect upon enactment.