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House File 340 - IntroducedA Bill ForAn Act 1relating to public education funding by extending the
2period of time for collecting sales tax for deposit in the
3secure an advanced vision for education fund, authorizing
4uses for revenues received from the fund, and authorizing
5school districts to adopt a district cost per pupil budget
6adjustment.
7BE 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 notify the department of management of the amount of the
12budget adjustment to be received, subject to the limitations
13of subsection 2, paragraph “a”.
142. a. For budget years beginning on or after July 1, 2018,
15each school district that approved a budget adjustment under
16subsection 1 shall receive a budget adjustment for that budget
17year in an amount not to exceed the difference between the
18school district’s regular program district cost per pupil and
19the highest regular program district cost per pupil among all
20school districts in the state multiplied by the district’s
21weighted enrollment. The resolution adopted under subsection 1
22may specify a budget adjustment amount that is less than the
23maximum amount authorized under this paragraph “a”.
24b. The school district shall fund the budget adjustment
25solely using moneys from its distribution of moneys received
26from the secure an advanced vision for education fund under
27section 423F.2. Amounts used to fund the budget adjustment may
28be used for any school general fund purpose.
293. A budget adjustment received under this section shall
30not affect the eligibility for or amount of any other budget
31adjustment authorized by law for the same budget year. In
32addition, a budget adjustment under this section shall be
33limited to the budget year for which the adjustment was
34authorized and shall not be included in any computation of a
35school district’s cost for any future budget year.
-1-1 Sec. 3. Section 423.2, subsection 11, paragraph b,
2subparagraph (3), Code 2017, is amended to read as follows:
3(3) Transfer one-sixth of the remaining revenues to the
4secure an advanced vision for education fund created in section
5423F.2. This subparagraph (3) is repealed December 31, 2029
6 effective January 1, 2050.
7 Sec. 4. Section 423.2, subsection 14, Code 2017, is amended
8to read as follows:
914. The sales tax rate of six percent is reduced to five
10percent on January 1, 2030 2050.
11 Sec. 5. Section 423.5, subsection 5, Code 2017, is amended
12to read as follows:
135. The use tax rate of six percent is reduced to five
14percent on January 1, 2030 2050.
15 Sec. 6. Section 423.43, subsection 1, paragraph b, Code
162017, is amended to read as follows:
17b. Subsequent to the deposit into the general fund of
18the state and after the transfer of such revenues collected
19under chapter 423B, the department shall transfer one-sixth of
20such remaining revenues to the secure an advanced vision for
21education fund created in section 423F.2. This paragraph is
22repealed December 31, 2029 effective January 1, 2050.
23 Sec. 7. Section 423F.3, subsection 1, paragraph d, Code
242017, is amended to read as follows:
25d. For any authorized school infrastructure purpose or
26project of the school district as defined in subsection 6.
27 Sec. 8. Section 423F.3, subsection 3, paragraph b, Code
282017, is amended to read as follows:
29b. If the board of directors intends to use funds for
30purposes or projects other than those listed in paragraph
31“a”, or change the use of funds to purposes or projects other
32than those listed in paragraph “a”, the board shall adopt a
33revenue purpose statement or amend an existing revenue purpose
34statement, subject to approval of the electors, listing the
35proposed use of the funds. School districts shall submit the
-2-1statement to the voters no later than sixty days prior to the
2expiration of any existing revenue purpose statement or change
3in use not included in the existing revenue purpose statement.
4 Sec. 9. Section 423F.3, subsection 6, Code 2017, is amended
5by adding the following new paragraph:
6 NEW PARAGRAPH. 0d. For school budget years beginning on or
7after July 1, 2018, “school infrastructure” includes any of the
8following:
9(1) School district transportation costs.
10(2) Costs of funding a district cost per pupil equity budget
11adjustment under section 257.14A.
12(3) Costs incurred by the school district to administer
13assessments required under section 256.7 subsection 21,
14paragraph “b”, subparagraphs (1) and (2).
15 Sec. 10. Section 423F.3, subsection 7, Code 2017, is amended
16to read as follows:
177. The general assembly shall not alter the purposes for
18which the revenues received under this section may be used from
19infrastructure and purposes, property tax relief purposes,
20and budget adjustment purposes under section 257.14A to any
21other purpose unless the bill is approved by a vote of at least
22two-thirds of the members of both chambers of the general
23assembly and is signed by the governor.
24 Sec. 11. Section 423F.6, Code 2017, is amended to read as
25follows:
26423F.6 Repeal.
27This chapter is repealed December 31, 2029 effective January
281, 2050.
29 Sec. 12. IMPLEMENTATION. The approval requirement of
30section 423F.3, subsection 7, Code 2017, shall not apply to
31this Act.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill relates to public education funding by extending
-3-1the period of time for collecting sales tax for deposit in
2the secure an advanced vision for education (SAVE) fund,
3authorizing uses for funding received from the fund, and
4authorizing school districts to adopt a district cost per pupil
5equity budget adjustment.
6Code section 423.2 imposes a state tax of 6 percent upon
7the sales price of all sales of tangible personal property,
8consisting of goods, wares, merchandise, and other items
9designated by statute, sold at retail in the state to
10consumers, unless specifically exempted by statute. Generally,
11by operation of law, a sale subject to the sales tax is also
12subject to the use tax. Following the transfer of amounts
13required by statute, if applicable, one-sixth of the remaining
14state sales tax revenue from the 6 percent tax is transferred
15to the SAVE fund created in Code section 423F.2. Moneys in
16the SAVE fund are allocated to school districts on a per pupil
17basis to be used for infrastructure and property tax relief
18purposes specified in Code chapter 423F. Under current law,
19the sales tax rate of 6 percent is reduced to 5 percent on
20January 1, 2030, and Code chapter 423F, along with other
21corresponding provisions, is repealed December 31, 2029.
22This bill extends the 6 percent sales tax rate, the
23allocation to the SAVE fund, and the statutory repeal of Code
24chapter 423F until January 1, 2050.
25The bill establishes a district cost per pupil equity budget
26adjustment. The board of directors of a school district with
27a regular program district cost per pupil that is less than
28the highest regular program district cost per pupil among all
29school districts in the state for the same budget year may
30annually adopt a resolution to receive the budget adjustment
31authorized in the bill.
32For budget years beginning on or after July 1, 2018,
33an eligible school district that has approved the budget
34adjustment shall receive a budget adjustment in an amount not
35to exceed the difference between the school district’s regular
-4-1program district cost per pupil and the highest regular program
2district cost per pupil among all school districts in the state
3multiplied by the district’s weighted enrollment. The bill
4requires the school district to fund the budget adjustment by
5using moneys received from the SAVE fund. Amounts used to fund
6the budget adjustment may be used for any school general fund
7purpose.
8The bill specifies that the budget adjustment received does
9not affect the eligibility for or amount of any other budget
10adjustment authorized by law for the same budget year and that
11the amount of the budget adjustment shall not be included in
12any computation of a school district’s cost for any future
13budget year.
14As part of the restrictions on the use of revenues received
15from the SAVE fund, Code section 423F.3 defines “school
16infrastructure”. The bill authorizes additional purposes for
17which a school district may use funds received from the SAVE
18fund by modifying the definition of “school infrastructure”.
19Those additional purposes are: (1) transportation costs of
20a school district; (2) costs of funding a district cost per
21pupil equity budget adjustment, as authorized in the bill; and
22(3) costs incurred by a school district to administer certain
23student achievement assessments.
24Code section 423F.3, subsection 7, provides that the general
25assembly shall not alter the purposes for which SAVE fund
26revenues received may be used from infrastructure and property
27tax relief purposes to any other purpose unless the bill is
28approved by a vote of at least two-thirds of the members of
29both chambers of the general assembly and is signed by the
30governor. The bill specifies that such approval requirement
31does not apply to the bill.
-5-md/sc/jh
2period of time for collecting sales tax for deposit in the
3secure an advanced vision for education fund, authorizing
4uses for revenues received from the fund, and authorizing
5school districts to adopt a district cost per pupil budget
6adjustment.
7BE 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 notify the department of management of the amount of the
12budget adjustment to be received, subject to the limitations
13of subsection 2, paragraph “a”.
142. a. For budget years beginning on or after July 1, 2018,
15each school district that approved a budget adjustment under
16subsection 1 shall receive a budget adjustment for that budget
17year in an amount not to exceed the difference between the
18school district’s regular program district cost per pupil and
19the highest regular program district cost per pupil among all
20school districts in the state multiplied by the district’s
21weighted enrollment. The resolution adopted under subsection 1
22may specify a budget adjustment amount that is less than the
23maximum amount authorized under this paragraph “a”.
24b. The school district shall fund the budget adjustment
25solely using moneys from its distribution of moneys received
26from the secure an advanced vision for education fund under
27section 423F.2. Amounts used to fund the budget adjustment may
28be used for any school general fund purpose.
293. A budget adjustment received under this section shall
30not affect the eligibility for or amount of any other budget
31adjustment authorized by law for the same budget year. In
32addition, a budget adjustment under this section shall be
33limited to the budget year for which the adjustment was
34authorized and shall not be included in any computation of a
35school district’s cost for any future budget year.
-1-1 Sec. 3. Section 423.2, subsection 11, paragraph b,
2subparagraph (3), Code 2017, is amended to read as follows:
3(3) Transfer one-sixth of the remaining revenues to the
4secure an advanced vision for education fund created in section
5423F.2. This subparagraph (3) is repealed December 31, 2029
6 effective January 1, 2050.
7 Sec. 4. Section 423.2, subsection 14, Code 2017, is amended
8to read as follows:
914. The sales tax rate of six percent is reduced to five
10percent on January 1, 2030 2050.
11 Sec. 5. Section 423.5, subsection 5, Code 2017, is amended
12to read as follows:
135. The use tax rate of six percent is reduced to five
14percent on January 1, 2030 2050.
15 Sec. 6. Section 423.43, subsection 1, paragraph b, Code
162017, is amended to read as follows:
17b. Subsequent to the deposit into the general fund of
18the state and after the transfer of such revenues collected
19under chapter 423B, the department shall transfer one-sixth of
20such remaining revenues to the secure an advanced vision for
21education fund created in section 423F.2. This paragraph is
22repealed December 31, 2029 effective January 1, 2050.
23 Sec. 7. Section 423F.3, subsection 1, paragraph d, Code
242017, is amended to read as follows:
25d. For any authorized school infrastructure purpose or
26project of the school district as defined in subsection 6.
27 Sec. 8. Section 423F.3, subsection 3, paragraph b, Code
282017, is amended to read as follows:
29b. If the board of directors intends to use funds for
30purposes or projects other than those listed in paragraph
31“a”, or change the use of funds to purposes or projects other
32than those listed in paragraph “a”, the board shall adopt a
33revenue purpose statement or amend an existing revenue purpose
34statement, subject to approval of the electors, listing the
35proposed use of the funds. School districts shall submit the
-2-1statement to the voters no later than sixty days prior to the
2expiration of any existing revenue purpose statement or change
3in use not included in the existing revenue purpose statement.
4 Sec. 9. Section 423F.3, subsection 6, Code 2017, is amended
5by adding the following new paragraph:
6 NEW PARAGRAPH. 0d. For school budget years beginning on or
7after July 1, 2018, “school infrastructure” includes any of the
8following:
9(1) School district transportation costs.
10(2) Costs of funding a district cost per pupil equity budget
11adjustment under section 257.14A.
12(3) Costs incurred by the school district to administer
13assessments required under section 256.7 subsection 21,
14paragraph “b”, subparagraphs (1) and (2).
15 Sec. 10. Section 423F.3, subsection 7, Code 2017, is amended
16to read as follows:
177. The general assembly shall not alter the purposes for
18which the revenues received under this section may be used from
19infrastructure and purposes, property tax relief purposes,
20and budget adjustment purposes under section 257.14A to any
21other purpose unless the bill is approved by a vote of at least
22two-thirds of the members of both chambers of the general
23assembly and is signed by the governor.
24 Sec. 11. Section 423F.6, Code 2017, is amended to read as
25follows:
26423F.6 Repeal.
27This chapter is repealed December 31, 2029 effective January
281, 2050.
29 Sec. 12. IMPLEMENTATION. The approval requirement of
30section 423F.3, subsection 7, Code 2017, shall not apply to
31this Act.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
35This bill relates to public education funding by extending
-3-1the period of time for collecting sales tax for deposit in
2the secure an advanced vision for education (SAVE) fund,
3authorizing uses for funding received from the fund, and
4authorizing school districts to adopt a district cost per pupil
5equity budget adjustment.
6Code section 423.2 imposes a state tax of 6 percent upon
7the sales price of all sales of tangible personal property,
8consisting of goods, wares, merchandise, and other items
9designated by statute, sold at retail in the state to
10consumers, unless specifically exempted by statute. Generally,
11by operation of law, a sale subject to the sales tax is also
12subject to the use tax. Following the transfer of amounts
13required by statute, if applicable, one-sixth of the remaining
14state sales tax revenue from the 6 percent tax is transferred
15to the SAVE fund created in Code section 423F.2. Moneys in
16the SAVE fund are allocated to school districts on a per pupil
17basis to be used for infrastructure and property tax relief
18purposes specified in Code chapter 423F. Under current law,
19the sales tax rate of 6 percent is reduced to 5 percent on
20January 1, 2030, and Code chapter 423F, along with other
21corresponding provisions, is repealed December 31, 2029.
22This bill extends the 6 percent sales tax rate, the
23allocation to the SAVE fund, and the statutory repeal of Code
24chapter 423F until January 1, 2050.
25The bill establishes a district cost per pupil equity budget
26adjustment. The board of directors of a school district with
27a regular program district cost per pupil that is less than
28the highest regular program district cost per pupil among all
29school districts in the state for the same budget year may
30annually adopt a resolution to receive the budget adjustment
31authorized in the bill.
32For budget years beginning on or after July 1, 2018,
33an eligible school district that has approved the budget
34adjustment shall receive a budget adjustment in an amount not
35to exceed the difference between the school district’s regular
-4-1program district cost per pupil and the highest regular program
2district cost per pupil among all school districts in the state
3multiplied by the district’s weighted enrollment. The bill
4requires the school district to fund the budget adjustment by
5using moneys received from the SAVE fund. Amounts used to fund
6the budget adjustment may be used for any school general fund
7purpose.
8The bill specifies that the budget adjustment received does
9not affect the eligibility for or amount of any other budget
10adjustment authorized by law for the same budget year and that
11the amount of the budget adjustment shall not be included in
12any computation of a school district’s cost for any future
13budget year.
14As part of the restrictions on the use of revenues received
15from the SAVE fund, Code section 423F.3 defines “school
16infrastructure”. The bill authorizes additional purposes for
17which a school district may use funds received from the SAVE
18fund by modifying the definition of “school infrastructure”.
19Those additional purposes are: (1) transportation costs of
20a school district; (2) costs of funding a district cost per
21pupil equity budget adjustment, as authorized in the bill; and
22(3) costs incurred by a school district to administer certain
23student achievement assessments.
24Code section 423F.3, subsection 7, provides that the general
25assembly shall not alter the purposes for which SAVE fund
26revenues received may be used from infrastructure and property
27tax relief purposes to any other purpose unless the bill is
28approved by a vote of at least two-thirds of the members of
29both chambers of the general assembly and is signed by the
30governor. The bill specifies that such approval requirement
31does not apply to the bill.
-5-md/sc/jh