House Study Bill 117 - 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, making appropriations, and including effective

6date 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 three 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 three 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. EFFECTIVE DATE. This Act, being deemed of immediate

17importance, takes effect upon enactment.

18EXPLANATION

19The inclusion of this explanation does not constitute agreement with

20the explanation’s substance by the members of the general assembly.

21This bill relates to school funding by establishing the

22state percent of growth and the categorical state percent

23of growth for the budget year beginning July 1, 2023, and

24modifying provisions relating to the property tax replacement

25payments.

26The bill establishes a state percent of growth of 3 percent

27for the budget year beginning July 1, 2023. The state percent

28of growth is used to calculate the amount of supplemental state

29aid for a budget year as part of the state school foundation

30program. The bill also establishes a categorical state percent

31of growth of 3 percent for the budget year beginning July 1,

322023. The categorical state percent of growth is generally

33used to calculate the amount of supplemental state aid for each

34of the categorical funding supplements.

35Code section 257.16B provides for school district property

-4-1tax replacement payments. For each budget year beginning on

2or after July 1, 2022, the amount of each school district’s

3property tax replacement payment is the product of the school

4district’s weighted enrollment for the budget year multiplied

5by the per pupil property tax replacement amount for the budget

6year. The per pupil property tax replacement amount for budget

7years beginning on or after July 1, 2022, is equal to the

8sum of $153 plus the difference between the following: (1)

9the regular program state cost per pupil for the budget year

10beginning July 1, 2022, multiplied by 100 percent less the

11regular program foundation base per pupil percentage; and (2)

12the regular program state cost per pupil for the budget year

13beginning July 1, 2021, multiplied by 100 percent less the

14regular program foundation base per pupil percentage. The

15regular program foundation base per pupil percentage is 88.4

16percent.

17The bill modifies the property tax replacement payment

18calculation for budget years beginning on or after July 1,

192023. For budget years beginning on or after July 1, 2023,

20the amount of each school district’s property tax replacement

21payment is the product of the school district’s weighted

22enrollment for the budget year multiplied by the per pupil

23property tax replacement amount for the budget year. The

24per pupil property tax replacement amount for budget years

25beginning on or after July 1, 2023, is equal to the sum of $153

26plus the difference between the following: (1) the regular

27program state cost per pupil for the budget year beginning July

281, 2023, multiplied by 100 percent less the regular program

29foundation base per pupil percentage; and (2) the regular

30program state cost per pupil for the budget year beginning July

311, 2021, multiplied by 100 percent less the regular program

32foundation base per pupil percentage.

33The bill takes effect upon enactment.

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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, making appropriations, and including effective

6date 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 three 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 three 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. EFFECTIVE DATE. This Act, being deemed of immediate

17importance, takes effect upon enactment.

18EXPLANATION

19The inclusion of this explanation does not constitute agreement with

20the explanation’s substance by the members of the general assembly.

21This bill relates to school funding by establishing the

22state percent of growth and the categorical state percent

23of growth for the budget year beginning July 1, 2023, and

24modifying provisions relating to the property tax replacement

25payments.

26The bill establishes a state percent of growth of 3 percent

27for the budget year beginning July 1, 2023. The state percent

28of growth is used to calculate the amount of supplemental state

29aid for a budget year as part of the state school foundation

30program. The bill also establishes a categorical state percent

31of growth of 3 percent for the budget year beginning July 1,

322023. The categorical state percent of growth is generally

33used to calculate the amount of supplemental state aid for each

34of the categorical funding supplements.

35Code section 257.16B provides for school district property

-4-1tax replacement payments. For each budget year beginning on

2or after July 1, 2022, the amount of each school district’s

3property tax replacement payment is the product of the school

4district’s weighted enrollment for the budget year multiplied

5by the per pupil property tax replacement amount for the budget

6year. The per pupil property tax replacement amount for budget

7years beginning on or after July 1, 2022, is equal to the

8sum of $153 plus the difference between the following: (1)

9the regular program state cost per pupil for the budget year

10beginning July 1, 2022, multiplied by 100 percent less the

11regular program foundation base per pupil percentage; and (2)

12the regular program state cost per pupil for the budget year

13beginning July 1, 2021, multiplied by 100 percent less the

14regular program foundation base per pupil percentage. The

15regular program foundation base per pupil percentage is 88.4

16percent.

17The bill modifies the property tax replacement payment

18calculation for budget years beginning on or after July 1,

192023. For budget years beginning on or after July 1, 2023,

20the amount of each school district’s property tax replacement

21payment is the product of the school district’s weighted

22enrollment for the budget year multiplied by the per pupil

23property tax replacement amount for the budget year. The

24per pupil property tax replacement amount for budget years

25beginning on or after July 1, 2023, is equal to the sum of $153

26plus the difference between the following: (1) the regular

27program state cost per pupil for the budget year beginning July

281, 2023, multiplied by 100 percent less the regular program

29foundation base per pupil percentage; and (2) the regular

30program state cost per pupil for the budget year beginning July

311, 2021, multiplied by 100 percent less the regular program

32foundation base per pupil percentage.

33The bill takes effect upon enactment.

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