Iowa House Bill HF2613

Iowa 2023-2024 Regular Session

• Introduced: 2/19/24
• Engrossed: 2/22/24

Caption

A bill for an act relating to school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2024, modifying provisions relating to the property tax replacement payments, making appropriations, and including effective date provisions.(Formerly HSB 712.)

Impact

This bill modifies existing provisions related to property tax replacement payments, which provide fiscal support to school districts affected by property tax exemptions. Specifically, for any budget year starting on or after July 1, 2023, property tax replacement payments will be calculated based on the district's weighted enrollment and a defined per pupil replacement amount. For budget years commencing after July 1, 2024, this amount will start at $153 plus the calculated differences in regular program state costs per pupil.

Summary

House File 2613 (HF2613) aims to reform school funding by establishing a state percent of growth and a categorical state percent of growth for the budget year beginning July 1, 2024. The bill proposes a state percent of growth of 3%, which is a critical metric used to determine the amount of supplemental state aid provided to school districts under the state school foundation program. Such financial growth is pivotal in ensuring that school districts receive adequate resources to maintain and enhance educational programs.

Contention

The proposed changes sparked notable discussion among legislators. While supporters assert that the bill ensures a more stable and predictable funding structure for schools, critics express concerns that the changes may underfund certain districts or lead to inequities based on varying local property tax revenues. This contention arises particularly around the adequacy and fairness of property tax replacement calculations, which have historically been contentious points in education finance discussions.