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Senate Study Bill 1081 - IntroducedA Bill ForAn Act 1relating to school funding by establishing the state
2percent of growth and the categorical state percent of
3growth for the budget year beginning July 1, 2023, modifying
4provisions relating to the property tax replacement
5payments and the transportation equity payments, making
6appropriations, and including effective date provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 257.8, subsections 1 and 2, Code 2023,
2are amended to read as follows:
31. State percent of growth. The state percent of growth for
4the budget year beginning July 1, 2020, is two and three-tenths
5percent. The state percent of growth for the budget year
6beginning July 1, 2021, is two and four-tenths percent. The
7state percent of growth for the budget year beginning July 1,
82022, is two and one-half percent. The state percent of growth
9for the budget year beginning July 1, 2023, is two percent.
10 The state percent of growth for each subsequent budget year
11shall be established by statute which shall be enacted within
12thirty days of the transmission of the governor’s budget
13required by February 1 under section 8.21 during the regular
14legislative session beginning in the base year.
152. Categorical state percent of growth. The categorical
16state percent of growth for the budget year beginning July 1,
172020, is two and three-tenths percent. The categorical state
18percent of growth for the budget year beginning July 1, 2021,
19is two and four-tenths percent. The categorical state percent
20of growth for the budget year beginning July 1, 2022, is two
21and one-half percent. The categorical state percent of growth
22for the budget year beginning July 1, 2023, is two percent.
23 The categorical state percent of growth for each budget
24year shall be established by statute which shall be enacted
25within thirty days of the transmission of the governor’s
26budget required by February 1 under section 8.21 during the
27regular legislative session beginning in the base year. The
28categorical state percent of growth may include state percents
29of growth for the teacher salary supplement, the professional
30development supplement, the early intervention supplement, the
31teacher leadership supplement, and for budget years beginning
32on or after July 1, 2020, transportation equity aid payments
33under section 257.16C.
34 Sec. 2. Section 257.16B, subsections 1 and 2, Code 2023, are
35amended to read as follows:
-1- 11. For each fiscal year beginning on or after July 1, 2020
2 2021, there is appropriated from the general fund of the state
3to the department of education an amount necessary to make all
4school district property tax replacement payments under this
5section, as calculated in subsection 2.
62. a. For the budget year beginning July 1, 2020, the
7department of management shall calculate for each school
8district all of the following:
9(1) The regular program state cost per pupil for the budget
10year beginning July 1, 2012, multiplied by one hundred percent
11less the regular program foundation base per pupil percentage
12pursuant to section 257.1 for the budget year beginning July
131, 2020.
14(2) The regular program state cost per pupil for the budget
15year beginning July 1, 2020, multiplied by one hundred percent
16less the regular program foundation base per pupil percentage
17pursuant to section 257.1 for the budget year beginning July
181, 2020.
19(3) The amount of each school district’s property tax
20replacement payment. Each school district’s property tax
21replacement payment equals the school district’s weighted
22enrollment for the budget year beginning July 1, 2020,
23multiplied by the remainder of the amount calculated for
24the school district under subparagraph (2) minus the amount
25calculated for the school district under subparagraph (1).
26b. a. For the budget year beginning July 1, 2021, the
27department of management shall calculate for each school
28district all of the following:
29(1) The regular program state cost per pupil for the budget
30year beginning July 1, 2012, multiplied by one hundred percent
31less the regular program foundation base per pupil percentage
32pursuant to section 257.1 for the budget year beginning July
331, 2021.
34(2) The regular program state cost per pupil for the budget
35year beginning July 1, 2021, multiplied by one hundred percent
-2-1less the regular program foundation base per pupil percentage
2pursuant to section 257.1 for the budget year beginning July
31, 2021.
4(3) The amount of each school district’s property tax
5replacement payment. Each school district’s property tax
6replacement payment equals the school district’s weighted
7enrollment for the budget year beginning July 1, 2021,
8multiplied by the remainder of the amount calculated for
9the school district under subparagraph (2) minus the amount
10calculated for the school district under subparagraph (1).
11c. b. (1) For each the budget year beginning on or after
12 July 1, 2022, the amount of each school district’s property
13tax replacement payment shall be the product of the school
14district’s weighted enrollment for the budget year multiplied
15by the per pupil property tax replacement amount for the budget
16year calculated under subparagraph (2).
17(2) The per pupil property tax replacement amount for
18the budget years year beginning on or after July 1, 2022, is
19equal to the sum of one hundred fifty-three dollars plus the
20difference between the following:
21(a) The regular program state cost per pupil for the budget
22year beginning July 1, 2022, multiplied by one hundred percent
23less the regular program foundation base per pupil percentage
24pursuant to section 257.1 for the applicable budget year under
25this paragraph beginning July 1, 2022.
26(b) The regular program state cost per pupil for the budget
27year beginning July 1, 2021, multiplied by one hundred percent
28less the regular program foundation base per pupil percentage
29pursuant to section 257.1 for the applicable budget year under
30this paragraph beginning July 1, 2022.
31c. (1) For each budget year beginning on or after July
321, 2023, the amount of each school district’s property
33tax replacement payment shall be the product of the school
34district’s weighted enrollment for the budget year multiplied
35by the per pupil property tax replacement amount for the budget
-3-1year calculated under subparagraph (2).
2(2) The per pupil property tax replacement amount for budget
3years beginning on or after July 1, 2023, is equal to the sum
4of one hundred fifty-three dollars plus the difference between
5the following:
6(a) The regular program state cost per pupil for the budget
7year beginning July 1, 2023, multiplied by one hundred percent
8less the regular program foundation base per pupil percentage
9pursuant to section 257.1 for the applicable budget year under
10this paragraph.
11(b) The regular program state cost per pupil for the budget
12year beginning July 1, 2021, multiplied by one hundred percent
13less the regular program foundation base per pupil percentage
14pursuant to section 257.1 for the applicable budget year under
15this paragraph.
16 Sec. 3. Section 257.16C, subsection 3, paragraph d, Code
172023, is amended to read as follows:
18d. (1) For the fiscal year beginning July 1, 2019, there
19is appropriated from the general fund of the state to the
20department of management for deposit in the transportation
21equity fund the sum of nineteen million dollars, or so much
22thereof as is necessary, to be used for the purposes of this
23section.
24(2) For the fiscal year beginning July 1, 2020, there
25is appropriated from the general fund of the state to the
26department of management for deposit in the transportation
27equity fund the sum of the following, or so much thereof as is
28necessary, to be used for the purposes of this section:
29(a) The amount appropriated to the transportation equity
30fund under this paragraph for the immediately preceding fiscal
31year.
32(b) The product of the amount determined under subparagraph
33division (a) multiplied by the categorical percent of growth
34under section 257.8, subsection 2, for the budget year
35beginning on the same date of the fiscal year for which the
-4-1appropriation is made.
2(c) Seven million two hundred fifty-three thousand
3eighty-eight dollars.
4(3) (1) For the fiscal year beginning July 1, 2021, and
5 the fiscal year beginning July 1, 2022, and the fiscal year
6beginning July 1, 2023, there is appropriated from the general
7fund of the state to the department of management for deposit
8in the transportation equity fund an amount necessary to make
9all transportation equity aid payments under subsection 2, to
10be used for the purposes of this section.
11(4) (2) For each fiscal year beginning on or after July
121, 2023 2024, there is appropriated from the general fund of
13the state to the department of management for deposit in the
14transportation equity fund the sum of the following, or so much
15thereof as is necessary, to be used for the purposes of this
16section:
17(a) The amount appropriated to the transportation equity
18fund under this paragraph for the immediately preceding fiscal
19year.
20(b) The product of the amount determined under subparagraph
21division (a) multiplied by the categorical percent of growth
22under section 257.8, subsection 2, for the budget year
23beginning on the same date of the fiscal year for which the
24appropriation is made.
25 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate
26importance, takes effect upon enactment.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to school funding by establishing the
31state percent of growth and the categorical state percent of
32growth for the budget year beginning July 1, 2023, modifying
33provisions relating to the property tax replacement payments,
34and modifying appropriations for school transportation funding.
35The bill establishes a state percent of growth of 2 percent
-5-1for the budget year beginning July 1, 2023. The state percent
2of growth is used to calculate the amount of supplemental state
3aid for a budget year as part of the state school foundation
4program. The bill also establishes a categorical state percent
5of growth of 2 percent for the budget year beginning July 1,
62023. The categorical state percent of growth is generally
7used to calculate the amount of supplemental state aid for each
8of the categorical funding supplements.
9Code section 257.16B provides for school district property
10tax replacement payments. For each budget year beginning on
11or after July 1, 2022, the amount of each school district’s
12property tax replacement payment is the product of the school
13district’s weighted enrollment for the budget year multiplied
14by the per pupil property tax replacement amount for the budget
15year. The per pupil property tax replacement amount for budget
16years beginning on or after July 1, 2022, is equal to the
17sum of $153 plus the difference between the following: (1)
18the regular program state cost per pupil for the budget year
19beginning July 1, 2022, multiplied by 100 percent less the
20regular program foundation base per pupil percentage; and (2)
21the regular program state cost per pupil for the budget year
22beginning July 1, 2021, multiplied by 100 percent less the
23regular program foundation base per pupil percentage. The
24regular program foundation base per pupil percentage is 88.4
25percent.
26The bill modifies the property tax replacement payment
27calculation for budget years beginning on or after July 1,
282023. For budget years beginning on or after July 1, 2023,
29the amount of each school district’s property tax replacement
30payment is the product of the school district’s weighted
31enrollment for the budget year multiplied by the per pupil
32property tax replacement amount for the budget year. The
33per pupil property tax replacement amount for budget years
34beginning on or after July 1, 2023, is equal to the sum of $153
35plus the difference between the following: (1) the regular
-6-1program state cost per pupil for the budget year beginning July
21, 2023, multiplied by 100 percent less the regular program
3foundation base per pupil percentage; and (2) the regular
4program state cost per pupil for the budget year beginning July
51, 2021, multiplied by 100 percent less the regular program
6foundation base per pupil percentage.
7For each fiscal year beginning on or after July 1, 2023,
8Code section 257.16C appropriates from the general fund of the
9state to the transportation equity fund the sum of the amount
10appropriated for the immediately preceding fiscal year plus
11the product of the amount appropriated for the immediately
12preceding fiscal year multiplied by the categorical percent
13of growth for the corresponding school budget year. The bill
14modifies the appropriation for the fiscal year beginning
15July 1, 2023, such that the total appropriated is equal to
16the amount necessary to make all transportation equity aid
17payments.
18The bill takes effect upon enactment.
-7-md/jh
2percent of growth and the categorical state percent of
3growth for the budget year beginning July 1, 2023, modifying
4provisions relating to the property tax replacement
5payments and the transportation equity payments, making
6appropriations, and including effective date provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 257.8, subsections 1 and 2, Code 2023,
2are amended to read as follows:
31. State percent of growth. The state percent of growth for
4the budget year beginning July 1, 2020, is two and three-tenths
5percent. The state percent of growth for the budget year
6beginning July 1, 2021, is two and four-tenths percent. The
7state percent of growth for the budget year beginning July 1,
82022, is two and one-half percent. The state percent of growth
9for the budget year beginning July 1, 2023, is two percent.
10 The state percent of growth for each subsequent budget year
11shall be established by statute which shall be enacted within
12thirty days of the transmission of the governor’s budget
13required by February 1 under section 8.21 during the regular
14legislative session beginning in the base year.
152. Categorical state percent of growth. The categorical
16state percent of growth for the budget year beginning July 1,
172020, is two and three-tenths percent. The categorical state
18percent of growth for the budget year beginning July 1, 2021,
19is two and four-tenths percent. The categorical state percent
20of growth for the budget year beginning July 1, 2022, is two
21and one-half percent. The categorical state percent of growth
22for the budget year beginning July 1, 2023, is two percent.
23 The categorical state percent of growth for each budget
24year shall be established by statute which shall be enacted
25within thirty days of the transmission of the governor’s
26budget required by February 1 under section 8.21 during the
27regular legislative session beginning in the base year. The
28categorical state percent of growth may include state percents
29of growth for the teacher salary supplement, the professional
30development supplement, the early intervention supplement, the
31teacher leadership supplement, and for budget years beginning
32on or after July 1, 2020, transportation equity aid payments
33under section 257.16C.
34 Sec. 2. Section 257.16B, subsections 1 and 2, Code 2023, are
35amended to read as follows:
-1- 11. For each fiscal year beginning on or after July 1, 2020
2 2021, there is appropriated from the general fund of the state
3to the department of education an amount necessary to make all
4school district property tax replacement payments under this
5section, as calculated in subsection 2.
62. a. For the budget year beginning July 1, 2020, the
7department of management shall calculate for each school
8district all of the following:
9(1) The regular program state cost per pupil for the budget
10year beginning July 1, 2012, multiplied by one hundred percent
11less the regular program foundation base per pupil percentage
12pursuant to section 257.1 for the budget year beginning July
131, 2020.
14(2) The regular program state cost per pupil for the budget
15year beginning July 1, 2020, multiplied by one hundred percent
16less the regular program foundation base per pupil percentage
17pursuant to section 257.1 for the budget year beginning July
181, 2020.
19(3) The amount of each school district’s property tax
20replacement payment. Each school district’s property tax
21replacement payment equals the school district’s weighted
22enrollment for the budget year beginning July 1, 2020,
23multiplied by the remainder of the amount calculated for
24the school district under subparagraph (2) minus the amount
25calculated for the school district under subparagraph (1).
26b. a. For the budget year beginning July 1, 2021, the
27department of management shall calculate for each school
28district all of the following:
29(1) The regular program state cost per pupil for the budget
30year beginning July 1, 2012, multiplied by one hundred percent
31less the regular program foundation base per pupil percentage
32pursuant to section 257.1 for the budget year beginning July
331, 2021.
34(2) The regular program state cost per pupil for the budget
35year beginning July 1, 2021, multiplied by one hundred percent
-2-1less the regular program foundation base per pupil percentage
2pursuant to section 257.1 for the budget year beginning July
31, 2021.
4(3) The amount of each school district’s property tax
5replacement payment. Each school district’s property tax
6replacement payment equals the school district’s weighted
7enrollment for the budget year beginning July 1, 2021,
8multiplied by the remainder of the amount calculated for
9the school district under subparagraph (2) minus the amount
10calculated for the school district under subparagraph (1).
11c. b. (1) For each the budget year beginning on or after
12 July 1, 2022, the amount of each school district’s property
13tax replacement payment shall be the product of the school
14district’s weighted enrollment for the budget year multiplied
15by the per pupil property tax replacement amount for the budget
16year calculated under subparagraph (2).
17(2) The per pupil property tax replacement amount for
18the budget years year beginning on or after July 1, 2022, is
19equal to the sum of one hundred fifty-three dollars plus the
20difference between the following:
21(a) The regular program state cost per pupil for the budget
22year beginning July 1, 2022, multiplied by one hundred percent
23less the regular program foundation base per pupil percentage
24pursuant to section 257.1 for the applicable budget year under
25this paragraph beginning July 1, 2022.
26(b) The regular program state cost per pupil for the budget
27year beginning July 1, 2021, multiplied by one hundred percent
28less the regular program foundation base per pupil percentage
29pursuant to section 257.1 for the applicable budget year under
30this paragraph beginning July 1, 2022.
31c. (1) For each budget year beginning on or after July
321, 2023, the amount of each school district’s property
33tax replacement payment shall be the product of the school
34district’s weighted enrollment for the budget year multiplied
35by the per pupil property tax replacement amount for the budget
-3-1year calculated under subparagraph (2).
2(2) The per pupil property tax replacement amount for budget
3years beginning on or after July 1, 2023, is equal to the sum
4of one hundred fifty-three dollars plus the difference between
5the following:
6(a) The regular program state cost per pupil for the budget
7year beginning July 1, 2023, multiplied by one hundred percent
8less the regular program foundation base per pupil percentage
9pursuant to section 257.1 for the applicable budget year under
10this paragraph.
11(b) The regular program state cost per pupil for the budget
12year beginning July 1, 2021, multiplied by one hundred percent
13less the regular program foundation base per pupil percentage
14pursuant to section 257.1 for the applicable budget year under
15this paragraph.
16 Sec. 3. Section 257.16C, subsection 3, paragraph d, Code
172023, is amended to read as follows:
18d. (1) For the fiscal year beginning July 1, 2019, there
19is appropriated from the general fund of the state to the
20department of management for deposit in the transportation
21equity fund the sum of nineteen million dollars, or so much
22thereof as is necessary, to be used for the purposes of this
23section.
24(2) For the fiscal year beginning July 1, 2020, there
25is appropriated from the general fund of the state to the
26department of management for deposit in the transportation
27equity fund the sum of the following, or so much thereof as is
28necessary, to be used for the purposes of this section:
29(a) The amount appropriated to the transportation equity
30fund under this paragraph for the immediately preceding fiscal
31year.
32(b) The product of the amount determined under subparagraph
33division (a) multiplied by the categorical percent of growth
34under section 257.8, subsection 2, for the budget year
35beginning on the same date of the fiscal year for which the
-4-1appropriation is made.
2(c) Seven million two hundred fifty-three thousand
3eighty-eight dollars.
4(3) (1) For the fiscal year beginning July 1, 2021, and
5 the fiscal year beginning July 1, 2022, and the fiscal year
6beginning July 1, 2023, there is appropriated from the general
7fund of the state to the department of management for deposit
8in the transportation equity fund an amount necessary to make
9all transportation equity aid payments under subsection 2, to
10be used for the purposes of this section.
11(4) (2) For each fiscal year beginning on or after July
121, 2023 2024, there is appropriated from the general fund of
13the state to the department of management for deposit in the
14transportation equity fund the sum of the following, or so much
15thereof as is necessary, to be used for the purposes of this
16section:
17(a) The amount appropriated to the transportation equity
18fund under this paragraph for the immediately preceding fiscal
19year.
20(b) The product of the amount determined under subparagraph
21division (a) multiplied by the categorical percent of growth
22under section 257.8, subsection 2, for the budget year
23beginning on the same date of the fiscal year for which the
24appropriation is made.
25 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate
26importance, takes effect upon enactment.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to school funding by establishing the
31state percent of growth and the categorical state percent of
32growth for the budget year beginning July 1, 2023, modifying
33provisions relating to the property tax replacement payments,
34and modifying appropriations for school transportation funding.
35The bill establishes a state percent of growth of 2 percent
-5-1for the budget year beginning July 1, 2023. The state percent
2of growth is used to calculate the amount of supplemental state
3aid for a budget year as part of the state school foundation
4program. The bill also establishes a categorical state percent
5of growth of 2 percent for the budget year beginning July 1,
62023. The categorical state percent of growth is generally
7used to calculate the amount of supplemental state aid for each
8of the categorical funding supplements.
9Code section 257.16B provides for school district property
10tax replacement payments. For each budget year beginning on
11or after July 1, 2022, the amount of each school district’s
12property tax replacement payment is the product of the school
13district’s weighted enrollment for the budget year multiplied
14by the per pupil property tax replacement amount for the budget
15year. The per pupil property tax replacement amount for budget
16years beginning on or after July 1, 2022, is equal to the
17sum of $153 plus the difference between the following: (1)
18the regular program state cost per pupil for the budget year
19beginning July 1, 2022, multiplied by 100 percent less the
20regular program foundation base per pupil percentage; and (2)
21the regular program state cost per pupil for the budget year
22beginning July 1, 2021, multiplied by 100 percent less the
23regular program foundation base per pupil percentage. The
24regular program foundation base per pupil percentage is 88.4
25percent.
26The bill modifies the property tax replacement payment
27calculation for budget years beginning on or after July 1,
282023. For budget years beginning on or after July 1, 2023,
29the amount of each school district’s property tax replacement
30payment is the product of the school district’s weighted
31enrollment for the budget year multiplied by the per pupil
32property tax replacement amount for the budget year. The
33per pupil property tax replacement amount for budget years
34beginning on or after July 1, 2023, is equal to the sum of $153
35plus the difference between the following: (1) the regular
-6-1program state cost per pupil for the budget year beginning July
21, 2023, multiplied by 100 percent less the regular program
3foundation base per pupil percentage; and (2) the regular
4program state cost per pupil for the budget year beginning July
51, 2021, multiplied by 100 percent less the regular program
6foundation base per pupil percentage.
7For each fiscal year beginning on or after July 1, 2023,
8Code section 257.16C appropriates from the general fund of the
9state to the transportation equity fund the sum of the amount
10appropriated for the immediately preceding fiscal year plus
11the product of the amount appropriated for the immediately
12preceding fiscal year multiplied by the categorical percent
13of growth for the corresponding school budget year. The bill
14modifies the appropriation for the fiscal year beginning
15July 1, 2023, such that the total appropriated is equal to
16the amount necessary to make all transportation equity aid
17payments.
18The bill takes effect upon enactment.
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