House File 2316 - Reprinted HOUSE FILE 2316 BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 658) (As Amended and Passed by the House February 10, 2022 ) A BILL FOR An Act relating to public school funding by establishing the 1 state percent of growth and the categorical state percent of 2 growth for the budget year beginning July 1, 2022, modifying 3 provisions relating to the regular program state cost per 4 pupil, modifying provisions relating to the property tax 5 replacement payment and the transportation equity payments, 6 and including effective date provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 HF 2316 (2) 89 md/jh/md

H.F. 2316 Section 1. Section 257.8, subsections 1 and 2, Code 2022, 1 are amended to read as follows: 2 1. State percent of growth. The state percent of growth 3 for the budget year beginning July 1, 2019, is two and six 4 hundredths percent. The state percent of growth for the budget 5 year beginning July 1, 2020, is two and three-tenths percent. 6 The state percent of growth for the budget year beginning July 7 1, 2021, is two and four-tenths percent. The state percent 8 of growth for the budget year beginning July 1, 2022, is two 9 and one-half percent. The state percent of growth for each 10 subsequent budget year shall be established by statute which 11 shall be enacted within thirty days of the transmission of the 12 governor’s budget required by February 1 under section 8.21 13 during the regular legislative session beginning in the base 14 year. 15 2. Categorical state percent of growth. The categorical 16 state percent of growth for the budget year beginning July 17 1, 2019, is two and six hundredths percent. The categorical 18 state percent of growth for the budget year beginning July 19 1, 2020, is two and three-tenths percent. The categorical 20 state percent of growth for the budget year beginning July 1, 21 2021, is two and four-tenths percent. The categorical state 22 percent of growth for the budget year beginning July 1, 2022, 23 is two and one-half percent. The categorical state percent of 24 growth for each budget year shall be established by statute 25 which shall be enacted within thirty days of the transmission 26 of the governor’s budget required by February 1 under section 27 8.21 during the regular legislative session beginning in the 28 base year. The categorical state percent of growth may include 29 state percents of growth for the teacher salary supplement, the 30 professional development supplement, the early intervention 31 supplement, the teacher leadership supplement, and for budget 32 years beginning on or after July 1, 2020, transportation equity 33 aid payments under section 257.16C . 34 Sec. 2. Section 257.9, subsection 2, Code 2022, is amended 35 -1- HF 2316 (2) 89 md/jh/md 1/ 6

H.F. 2316 to read as follows: 1 2. Regular program state cost per pupil for 1992-1993 and 2 succeeding years. 3 a. For the budget year beginning July 1, 1992, and 4 succeeding budget years beginning before July 1, 2018, the 5 regular program state cost per pupil for a budget year is the 6 regular program state cost per pupil for the base year plus the 7 regular program supplemental state aid for the budget year. 8 b. For the budget year beginning July 1, 2018, the regular 9 program state cost per pupil is the regular program state 10 cost per pupil for the base year plus the regular program 11 supplemental state aid for the budget year, plus five dollars. 12 c. For the budget year beginning July 1, 2019, the regular 13 program state cost per pupil is the regular program state 14 cost per pupil for the base year plus the regular program 15 supplemental state aid for the budget year, plus five dollars. 16 d. For the budget year beginning July 1, 2020, the regular 17 program state cost per pupil is the regular program state 18 cost per pupil for the base year plus the regular program 19 supplemental state aid for the budget year, plus ten dollars. 20 e. For the budget year beginning July 1, 2021, the regular 21 program state cost per pupil is the regular program state 22 cost per pupil for the base year plus the regular program 23 supplemental state aid for the budget year, plus ten dollars. 24 f. For the budget year beginning July 1, 2022, the regular 25 program state cost per pupil is the regular program state 26 cost per pupil for the base year plus the regular program 27 supplemental state aid for the budget year, plus five dollars. 28 f. g. For the budget year beginning July 1, 2022 2023 , and 29 succeeding budget years, the regular program state cost per 30 pupil for a budget year is the regular program state cost per 31 pupil for the base year plus the regular program supplemental 32 state aid for the budget year. 33 Sec. 3. Section 257.16B, subsections 1 and 2, Code 2022, are 34 amended to read as follows: 35 -2- HF 2316 (2) 89 md/jh/md 2/ 6

H.F. 2316 1. For each fiscal year beginning on or after July 1, 2019 1 2020 , there is appropriated from the general fund of the state 2 to the department of education an amount necessary to make all 3 school district property tax replacement payments under this 4 section , as calculated in subsection 2 . 5 2. a. For the budget year beginning July 1, 2019, the 6 department of management shall calculate for each school 7 district all of the following: 8 (1) The regular program state cost per pupil for the budget 9 year beginning July 1, 2012, multiplied by one hundred percent 10 less the regular program foundation base per pupil percentage 11 pursuant to section 257.1 . 12 (2) The regular program state cost per pupil for the budget 13 year beginning July 1, 2019, multiplied by one hundred percent 14 less the regular program foundation base per pupil percentage 15 pursuant to section 257.1 . 16 (3) The amount of each school district’s property tax 17 replacement payment. Each school district’s property tax 18 replacement payment equals the school district’s weighted 19 enrollment for the budget year beginning July 1, 2019, 20 multiplied by the remainder of the amount calculated for 21 the school district under subparagraph (2) minus the amount 22 calculated for the school district under subparagraph (1). 23 b. a. For the budget year beginning July 1, 2020, the 24 department of management shall calculate for each school 25 district all of the following: 26 (1) The regular program state cost per pupil for the budget 27 year beginning July 1, 2012, multiplied by one hundred percent 28 less the regular program foundation base per pupil percentage 29 pursuant to section 257.1 for the budget year beginning July 30 1, 2020 . 31 (2) The regular program state cost per pupil for the budget 32 year beginning July 1, 2020, multiplied by one hundred percent 33 less the regular program foundation base per pupil percentage 34 pursuant to section 257.1 for the budget year beginning July 35 -3- HF 2316 (2) 89 md/jh/md 3/ 6

H.F. 2316 1, 2020 . 1 (3) The amount of each school district’s property tax 2 replacement payment. Each school district’s property tax 3 replacement payment equals the school district’s weighted 4 enrollment for the budget year beginning July 1, 2020, 5 multiplied by the remainder of the amount calculated for 6 the school district under subparagraph (2) minus the amount 7 calculated for the school district under subparagraph (1). 8 c. b. For each the budget year beginning on or after July 9 1, 2021, the department of management shall calculate for each 10 school district all of the following: 11 (1) The regular program state cost per pupil for the budget 12 year beginning July 1, 2012, multiplied by one hundred percent 13 less the regular program foundation base per pupil percentage 14 pursuant to section 257.1 for the budget year beginning July 15 1, 2021 . 16 (2) The regular program state cost per pupil for the budget 17 year beginning July 1, 2021, multiplied by one hundred percent 18 less the regular program foundation base per pupil percentage 19 pursuant to section 257.1 for the budget year beginning July 20 1, 2021 . 21 (3) The amount of each school district’s property tax 22 replacement payment. Each school district’s property tax 23 replacement payment equals the school district’s weighted 24 enrollment for the budget year beginning July 1, 2021, 25 multiplied by the remainder of the amount calculated for 26 the school district under subparagraph (2) minus the amount 27 calculated for the school district under subparagraph (1). 28 c. (1) For each budget year beginning on or after July 29 1, 2022, the amount of each school district’s property 30 tax replacement payment shall be the product of the school 31 district’s weighted enrollment for the budget year multiplied 32 by the per pupil property tax replacement amount for the budget 33 year calculated under subparagraph (2). 34 (2) The per pupil property tax replacement amount for budget 35 -4- HF 2316 (2) 89 md/jh/md 4/ 6

H.F. 2316 years beginning on or after July 1, 2022, is equal to the sum 1 of one hundred fifty-three dollars plus the difference between 2 the following: 3 (a) The regular program state cost per pupil for the budget 4 year beginning July 1, 2022, multiplied by one hundred percent 5 less the regular program foundation base per pupil percentage 6 pursuant to section 257.1 for the applicable budget year under 7 this paragraph. 8 (b) The regular program state cost per pupil for the budget 9 year beginning July 1, 2021, multiplied by one hundred percent 10 less the regular program foundation base per pupil percentage 11 pursuant to section 257.1 for the applicable budget year under 12 this paragraph. 13 Sec. 4. Section 257.16C, subsection 3, paragraph d, 14 subparagraphs (3) and (4), Code 2022, are amended to read as 15 follows: 16 (3) For the fiscal year beginning July 1, 2021, and the 17 fiscal year beginning July 1, 2022, there is appropriated from 18 the general fund of the state to the department of management 19 for deposit in the transportation equity fund an amount 20 necessary to make all transportation equity aid payments under 21 subsection 2 , to be used for the purposes of this section . 22 (4) For each fiscal year beginning on or after July 1, 23 2022 2023 , there is appropriated from the general fund of 24 the state to the department of management for deposit in the 25 transportation equity fund the sum of the following, or so much 26 thereof as is necessary, to be used for the purposes of this 27 section : 28 (a) The amount appropriated to the transportation equity 29 fund under this subparagraph paragraph for the immediately 30 preceding fiscal year. 31 (b) The product of the amount determined under subparagraph 32 division (a) multiplied by the categorical percent of growth 33 under section 257.8, subsection 2 , for the budget year 34 beginning on the same date of the fiscal year for which the 35 -5- HF 2316 (2) 89 md/jh/md 5/ 6

H.F. 2316 appropriation is made. 1 Sec. 5. CODE SECTION 257.8 —— IMPLEMENTATION. The 2 requirements of section 257.8, subsections 1 and 2, regarding 3 the enactment of bills establishing the state percent of growth 4 and the categorical state percent of growth within thirty 5 days of the transmission of the governor’s budget required by 6 February 1 under section 8.21 during the regular legislative 7 session beginning in the base year, do not apply to this Act. 8 Sec. 6. EFFECTIVE DATE. This Act, being deemed of immediate 9 importance, takes effect upon enactment. 10 -6- HF 2316 (2) 89 md/jh/md 6/ 6