Senate File 262 - Introduced SENATE FILE 262 BY DONAHUE A BILL FOR An Act requiring the establishment of the state percent of 1 growth and categorical state percent of growth for two 2 consecutive budget years during the first regular session 3 of the general assembly, and including effective date 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2100XS (3) 91 jm/md

S.F. 262 Section 1. Section 257.8, subsections 1 and 2, Code 2025, 1 are amended to read as follows: 2 1. State percent of growth. During the first regular 3 session of the Ninety-first General Assembly and during the 4 first regular session of each subsequent general assembly 5 thereafter, the general assembly shall establish by statute 6 the state percent of growth for both the budget year beginning 7 during the first regular session of the general assembly and 8 for the succeeding budget year. After enactment of the state 9 percent of growth for the succeeding budget year during the 10 first regular session, the general assembly may increase 11 but shall not decrease the state percent of growth for that 12 succeeding budget year. The state percent of growth for 13 the budget year beginning July 1, 2022, is two and one-half 14 percent. The state percent of growth for the budget year 15 beginning July 1, 2023, is three percent. The state percent 16 of growth for the budget year beginning July 1, 2024, is two 17 and one-half percent. The state percent of growth for each 18 subsequent budget year shall be established by statute which 19 shall be enacted within thirty days of the transmission of the 20 governor’s budget required by February 1 under section 8.21 21 during the regular legislative session beginning in the base 22 year. 23 2. Categorical state percent of growth. During the first 24 regular session of the Ninety-first General Assembly and 25 during the first regular session of each subsequent general 26 assembly thereafter, the general assembly shall establish by 27 statute the categorical state percent of growth for both the 28 budget year beginning during the first regular session of the 29 general assembly and for the succeeding budget year. After 30 enactment of the categorical state percent of growth for the 31 succeeding budget year during the first regular session, the 32 general assembly may increase but shall not decrease the 33 categorical state percent of growth for that succeeding budget 34 year. The categorical state percent of growth for the budget 35 -1- LSB 2100XS (3) 91 jm/md 1/ 2

S.F. 262 year beginning July 1, 2022, is two and one-half percent. 1 The categorical state percent of growth for the budget year 2 beginning July 1, 2023, is three percent. The categorical 3 state percent of growth for the budget year beginning July 4 1, 2024, is two and one-half percent. The categorical state 5 percent of growth for each budget year shall be established 6 by statute which shall be enacted within thirty days of the 7 transmission of the governor’s budget required by February 8 1 under section 8.21 during the regular legislative session 9 beginning in the base year. The categorical state percent of 10 growth may include state percents of growth for the teacher 11 salary supplement, the professional development supplement, 12 the early intervention supplement, the teacher leadership 13 supplement, and for budget years beginning on or after July 1, 14 2020, transportation equity aid payments under section 257.16C . 15 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 16 importance, takes effect upon enactment. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill requires the establishment of the state percent 21 of growth and categorical state percent of growth for two 22 consecutive budget years during the first regular session of 23 the general assembly. 24 The bill also specifies that after enactment of the state 25 percent of growth and the categorical state percent of growth 26 for the second budget year during the first regular session, 27 the general assembly may increase but shall not decrease either 28 the state percent of growth or the categorical state percent 29 of growth for that budget year. 30 The bill takes effect upon enactment. 31 -2- LSB 2100XS (3) 91 jm/md 2/ 2