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House File 124 - IntroducedA Bill ForAn Act 1relating to school district funding by establishing a
2district cost per pupil equity budget adjustment for certain
3budget years, requiring property tax rate reductions for
4school districts using the district cost per pupil equity
5budget adjustment, and including effective date provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 257.2, subsection 2, Code 2017, is
2amended by striking the subsection.
3 Sec. 2. NEW SECTION. 257.14A District cost per pupil equity
4— budget adjustment.
51. The board of directors of a school district with a
6regular program district cost per pupil that is less than the
7highest regular program district cost per pupil among all
8school districts in the state for the same budget year that
9wishes to receive the budget adjustment under this section may
10adopt a resolution by May 15 preceding the budget year and
11shall within ten days of adoption of the resolution notify
12the department of management of the amount of the budget
13adjustment to be received. The resolution adopted by the board
14of directors shall specify the board’s intent to use such funds
15authorized under subsection 2, paragraph “b”, without any
16corresponding increase to the school district’s cash reserve
17levy or other property tax levy of the school district for the
18current budget year or any future budget year to replenish such
19amounts.
202. a. For budget years beginning on or after July 1, 2017,
21but before July 1, 2020, each school district that satisfies
22the requirements of subsection 1 shall be eligible for a
23budget adjustment for that budget year in an amount not to
24exceed the difference between the school district’s regular
25program district cost per pupil and the highest regular program
26district cost per pupil among all school districts in the state
27multiplied by the district’s budget enrollment. The resolution
28adopted under subsection 1 may specify a budget adjustment
29amount that is less than the maximum amount authorized under
30this paragraph “a”.
31b. The school district shall fund the budget adjustment
32either by using moneys from its unexpended fund balance or by
33using cash reserve moneys.
343. A budget adjustment received under this section shall
35not affect the eligibility for or amount of any other budget
-1-1adjustment authorized by law for the same budget year. In
2addition, a budget adjustment under this section shall be
3limited to the budget year for which the adjustment was
4authorized and shall not be included in any computation of a
5school district’s cost for any future budget year.
64. For each budget year that a school district authorizes
7a budget adjustment under this section, the department of
8management shall, following property tax levy rate calculations
9and state foundation aid amount calculations under this chapter
10or any other applicable provision of law, reduce each of
11the following property tax levy rates imposed by the school
12district for that budget year by one percent:
13a. The foundation property tax levy rate under section
14257.3.
15b. The additional property tax levy rate under section
16257.4.
17c. The instructional support property tax levy rate under
18section 257.19.
19d. The educational improvement property tax levy rate under
20section 257.29.
21e. The cash reserve levy rate under section 298.10.
22 Sec. 3. Section 257.34, Code 2017, is amended to read as
23follows:
24257.34 Cash reserve information.
251. If a school district receives less state school
26foundation aid under section 257.1 than is due under that
27section for a base year and the school district uses funds
28from its cash reserve during the base year to make up for
29the amount of state aid not paid, the board of directors of
30the school district shall include in its general fund budget
31document information about the amount of the cash reserve used
32to replace state school foundation aid not paid.
332. If a school district uses funds from its cash reserve
34during the base year to fund a budget adjustment under section
35257.14A, the board of directors of the school district shall
-2-1include in its general fund budget document information about
2the amount of the cash reserve used for such purpose.
3 Sec. 4. IMPLEMENTATION. Notwithstanding the deadline
4for adopting a resolution to approve the budget adjustment
5in section 257.14A, subsection 1, for the school budget
6year beginning July 1, 2017, the resolution of the board of
7directors of a school district shall be approved not later than
8June 10, 2017.
9 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
10immediate importance, takes effect upon enactment.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill establishes a district cost per pupil equity
15budget adjustment. The board of directors of a school district
16with a regular program district cost per pupil that is less
17than the highest regular program district cost per pupil among
18all school districts in the state for the same budget year may
19annually adopt a resolution to receive the budget adjustment
20authorized in the bill. Following adoption of the resolution
21the board of directors must within 10 days notify the
22department of management of the amount of the budget adjustment
23to be received. The bill requires the resolution adopted by
24the board of directors to specify the board’s intent to use the
25authorized funding sources without any corresponding increase
26to the school district’s cash reserve levy or other property
27tax levy of the school district for the current budget year or
28any future budget year to replenish the funding sources used.
29For budget years beginning on or after July 1, 2017, but
30before July 1, 2020, each eligible school district is eligible
31for a budget adjustment for that budget year in an amount
32equal to the difference between the school district’s regular
33program district cost per pupil and the highest regular program
34district cost per pupil among all school districts in the
35state multiplied by the district’s budget enrollment. The
-3-1resolution authorizing the budget adjustment may specify a
2budget adjustment amount that is less than the maximum amount
3authorized under the bill. The bill requires the school
4district to fund the budget adjustment either by using moneys
5from its unexpended fund balance or by using cash reserve
6moneys.
7The bill specifies that the budget adjustment received does
8not affect the eligibility for or amount of any other budget
9adjustment authorized by law for the same budget year and that
10the budget adjustment under the bill is limited to the budget
11year for which the adjustment was authorized and shall not be
12included in any computation of a school district’s cost for any
13future budget year.
14For each budget year that a school district authorizes a
15budget adjustment under the bill, the department of management
16is required to, following property tax levy rate calculations
17and state foundation aid amount calculations under Code
18chapter 257 or any other applicable provision of law, reduce
19each of the following property tax levy rates imposed by
20the school district for that budget year by 1 percent: (1)
21foundation property tax levy rate under Code section 257.3; (2)
22additional property tax levy rate under Code section 257.4; (3)
23instructional support property tax levy rate under Code section
24257.19; (4) educational improvement property tax levy rate
25under Code section 257.29; and (5) school district levy rate
26for cash reserve under Code section 298.10.
27Under the bill, if a school district uses funds from its
28cash reserve during the base year to fund a budget adjustment
29authorized in the bill, the board of directors of the school
30district shall include in its general fund budget document
31information about the amount of the cash reserve used for such
32purpose.
33Notwithstanding the May 15 deadline for adopting a
34resolution to approve the budget adjustment provided for in the
35bill, for the school budget year beginning July 1, 2017, the
-4-1resolution of the board of directors of a school district must
2be approved not later than June 10, 2017.
3The bill takes effect upon enactment.
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2district cost per pupil equity budget adjustment for certain
3budget years, requiring property tax rate reductions for
4school districts using the district cost per pupil equity
5budget adjustment, and including effective date provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 257.2, subsection 2, Code 2017, is
2amended by striking the subsection.
3 Sec. 2. NEW SECTION. 257.14A District cost per pupil equity
4— budget adjustment.
51. The board of directors of a school district with a
6regular program district cost per pupil that is less than the
7highest regular program district cost per pupil among all
8school districts in the state for the same budget year that
9wishes to receive the budget adjustment under this section may
10adopt a resolution by May 15 preceding the budget year and
11shall within ten days of adoption of the resolution notify
12the department of management of the amount of the budget
13adjustment to be received. The resolution adopted by the board
14of directors shall specify the board’s intent to use such funds
15authorized under subsection 2, paragraph “b”, without any
16corresponding increase to the school district’s cash reserve
17levy or other property tax levy of the school district for the
18current budget year or any future budget year to replenish such
19amounts.
202. a. For budget years beginning on or after July 1, 2017,
21but before July 1, 2020, each school district that satisfies
22the requirements of subsection 1 shall be eligible for a
23budget adjustment for that budget year in an amount not to
24exceed the difference between the school district’s regular
25program district cost per pupil and the highest regular program
26district cost per pupil among all school districts in the state
27multiplied by the district’s budget enrollment. The resolution
28adopted under subsection 1 may specify a budget adjustment
29amount that is less than the maximum amount authorized under
30this paragraph “a”.
31b. The school district shall fund the budget adjustment
32either by using moneys from its unexpended fund balance or by
33using cash reserve moneys.
343. A budget adjustment received under this section shall
35not affect the eligibility for or amount of any other budget
-1-1adjustment authorized by law for the same budget year. In
2addition, a budget adjustment under this section shall be
3limited to the budget year for which the adjustment was
4authorized and shall not be included in any computation of a
5school district’s cost for any future budget year.
64. For each budget year that a school district authorizes
7a budget adjustment under this section, the department of
8management shall, following property tax levy rate calculations
9and state foundation aid amount calculations under this chapter
10or any other applicable provision of law, reduce each of
11the following property tax levy rates imposed by the school
12district for that budget year by one percent:
13a. The foundation property tax levy rate under section
14257.3.
15b. The additional property tax levy rate under section
16257.4.
17c. The instructional support property tax levy rate under
18section 257.19.
19d. The educational improvement property tax levy rate under
20section 257.29.
21e. The cash reserve levy rate under section 298.10.
22 Sec. 3. Section 257.34, Code 2017, is amended to read as
23follows:
24257.34 Cash reserve information.
251. If a school district receives less state school
26foundation aid under section 257.1 than is due under that
27section for a base year and the school district uses funds
28from its cash reserve during the base year to make up for
29the amount of state aid not paid, the board of directors of
30the school district shall include in its general fund budget
31document information about the amount of the cash reserve used
32to replace state school foundation aid not paid.
332. If a school district uses funds from its cash reserve
34during the base year to fund a budget adjustment under section
35257.14A, the board of directors of the school district shall
-2-1include in its general fund budget document information about
2the amount of the cash reserve used for such purpose.
3 Sec. 4. IMPLEMENTATION. Notwithstanding the deadline
4for adopting a resolution to approve the budget adjustment
5in section 257.14A, subsection 1, for the school budget
6year beginning July 1, 2017, the resolution of the board of
7directors of a school district shall be approved not later than
8June 10, 2017.
9 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
10immediate importance, takes effect upon enactment.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill establishes a district cost per pupil equity
15budget adjustment. The board of directors of a school district
16with a regular program district cost per pupil that is less
17than the highest regular program district cost per pupil among
18all school districts in the state for the same budget year may
19annually adopt a resolution to receive the budget adjustment
20authorized in the bill. Following adoption of the resolution
21the board of directors must within 10 days notify the
22department of management of the amount of the budget adjustment
23to be received. The bill requires the resolution adopted by
24the board of directors to specify the board’s intent to use the
25authorized funding sources without any corresponding increase
26to the school district’s cash reserve levy or other property
27tax levy of the school district for the current budget year or
28any future budget year to replenish the funding sources used.
29For budget years beginning on or after July 1, 2017, but
30before July 1, 2020, each eligible school district is eligible
31for a budget adjustment for that budget year in an amount
32equal to the difference between the school district’s regular
33program district cost per pupil and the highest regular program
34district cost per pupil among all school districts in the
35state multiplied by the district’s budget enrollment. The
-3-1resolution authorizing the budget adjustment may specify a
2budget adjustment amount that is less than the maximum amount
3authorized under the bill. The bill requires the school
4district to fund the budget adjustment either by using moneys
5from its unexpended fund balance or by using cash reserve
6moneys.
7The bill specifies that the budget adjustment received does
8not affect the eligibility for or amount of any other budget
9adjustment authorized by law for the same budget year and that
10the budget adjustment under the bill is limited to the budget
11year for which the adjustment was authorized and shall not be
12included in any computation of a school district’s cost for any
13future budget year.
14For each budget year that a school district authorizes a
15budget adjustment under the bill, the department of management
16is required to, following property tax levy rate calculations
17and state foundation aid amount calculations under Code
18chapter 257 or any other applicable provision of law, reduce
19each of the following property tax levy rates imposed by
20the school district for that budget year by 1 percent: (1)
21foundation property tax levy rate under Code section 257.3; (2)
22additional property tax levy rate under Code section 257.4; (3)
23instructional support property tax levy rate under Code section
24257.19; (4) educational improvement property tax levy rate
25under Code section 257.29; and (5) school district levy rate
26for cash reserve under Code section 298.10.
27Under the bill, if a school district uses funds from its
28cash reserve during the base year to fund a budget adjustment
29authorized in the bill, the board of directors of the school
30district shall include in its general fund budget document
31information about the amount of the cash reserve used for such
32purpose.
33Notwithstanding the May 15 deadline for adopting a
34resolution to approve the budget adjustment provided for in the
35bill, for the school budget year beginning July 1, 2017, the
-4-1resolution of the board of directors of a school district must
2be approved not later than June 10, 2017.
3The bill takes effect upon enactment.
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