Senate Study Bill 1081 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON ROZENBOOM) A BILL FOR An Act relating to school funding by establishing the state 1 percent of growth and the categorical state percent of 2 growth for the budget year beginning July 1, 2023, modifying 3 provisions relating to the property tax replacement 4 payments and the transportation equity payments, making 5 appropriations, and including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1327XC (4) 90 md/jh
S.F. _____ Section 1. Section 257.8, subsections 1 and 2, Code 2023, 1 are amended to read as follows: 2 1. State percent of growth. The state percent of growth for 3 the budget year beginning July 1, 2020, is two and three-tenths 4 percent. The state percent of growth for the budget year 5 beginning July 1, 2021, is two and four-tenths percent. The 6 state percent of growth for the budget year beginning July 1, 7 2022, is two and one-half percent. The state percent of growth 8 for the budget year beginning July 1, 2023, is two percent. 9 The state percent of growth for each subsequent budget year 10 shall be established by statute which shall be enacted within 11 thirty days of the transmission of the governors budget 12 required by February 1 under section 8.21 during the regular 13 legislative session beginning in the base year. 14 2. Categorical state percent of growth. The categorical 15 state percent of growth for the budget year beginning July 1, 16 2020, is two and three-tenths percent. The categorical state 17 percent of growth for the budget year beginning July 1, 2021, 18 is two and four-tenths percent. The categorical state percent 19 of growth for the budget year beginning July 1, 2022, is two 20 and one-half percent. The categorical state percent of growth 21 for the budget year beginning July 1, 2023, is two percent. 22 The categorical state percent of growth for each budget 23 year shall be established by statute which shall be enacted 24 within thirty days of the transmission of the governors 25 budget required by February 1 under section 8.21 during the 26 regular legislative session beginning in the base year. The 27 categorical state percent of growth may include state percents 28 of growth for the teacher salary supplement, the professional 29 development supplement, the early intervention supplement, the 30 teacher leadership supplement, and for budget years beginning 31 on or after July 1, 2020, transportation equity aid payments 32 under section 257.16C . 33 Sec. 2. Section 257.16B, subsections 1 and 2, Code 2023, are 34 amended to read as follows: 35 -1- LSB 1327XC (4) 90 md/jh 1/ 7
S.F. _____ 1. For each fiscal year beginning on or after July 1, 2020 1 2021 , there is appropriated from the general fund of the state 2 to the department of education an amount necessary to make all 3 school district property tax replacement payments under this 4 section , as calculated in subsection 2 . 5 2. a. For the budget year beginning July 1, 2020, the 6 department of management shall calculate for each school 7 district all of the following: 8 (1) The regular program state cost per pupil for the budget 9 year beginning July 1, 2012, multiplied by one hundred percent 10 less the regular program foundation base per pupil percentage 11 pursuant to section 257.1 for the budget year beginning July 12 1, 2020. 13 (2) The regular program state cost per pupil for the budget 14 year beginning July 1, 2020, multiplied by one hundred percent 15 less the regular program foundation base per pupil percentage 16 pursuant to section 257.1 for the budget year beginning July 17 1, 2020. 18 (3) The amount of each school districts property tax 19 replacement payment. Each school districts property tax 20 replacement payment equals the school districts weighted 21 enrollment for the budget year beginning July 1, 2020, 22 multiplied by the remainder of the amount calculated for 23 the school district under subparagraph (2) minus the amount 24 calculated for the school district under subparagraph (1). 25 b. a. For the budget year beginning July 1, 2021, the 26 department of management shall calculate for each school 27 district all of the following: 28 (1) The regular program state cost per pupil for the budget 29 year beginning July 1, 2012, multiplied by one hundred percent 30 less the regular program foundation base per pupil percentage 31 pursuant to section 257.1 for the budget year beginning July 32 1, 2021. 33 (2) The regular program state cost per pupil for the budget 34 year beginning July 1, 2021, multiplied by one hundred percent 35 -2- LSB 1327XC (4) 90 md/jh 2/ 7
S.F. _____ less the regular program foundation base per pupil percentage 1 pursuant to section 257.1 for the budget year beginning July 2 1, 2021. 3 (3) The amount of each school districts property tax 4 replacement payment. Each school districts property tax 5 replacement payment equals the school districts weighted 6 enrollment for the budget year beginning July 1, 2021, 7 multiplied by the remainder of the amount calculated for 8 the school district under subparagraph (2) minus the amount 9 calculated for the school district under subparagraph (1). 10 c. b. (1) For each the budget year beginning on or after 11 July 1, 2022, the amount of each school districts property 12 tax replacement payment shall be the product of the school 13 districts weighted enrollment for the budget year multiplied 14 by the per pupil property tax replacement amount for the budget 15 year calculated under subparagraph (2). 16 (2) The per pupil property tax replacement amount for 17 the budget years year beginning on or after July 1, 2022, is 18 equal to the sum of one hundred fifty-three dollars plus the 19 difference between the following: 20 (a) The regular program state cost per pupil for the budget 21 year beginning July 1, 2022, multiplied by one hundred percent 22 less the regular program foundation base per pupil percentage 23 pursuant to section 257.1 for the applicable budget year under 24 this paragraph beginning July 1, 2022 . 25 (b) The regular program state cost per pupil for the budget 26 year beginning July 1, 2021, multiplied by one hundred percent 27 less the regular program foundation base per pupil percentage 28 pursuant to section 257.1 for the applicable budget year under 29 this paragraph beginning July 1, 2022 . 30 c. (1) For each budget year beginning on or after July 31 1, 2023, the amount of each school districts property 32 tax replacement payment shall be the product of the school 33 districts weighted enrollment for the budget year multiplied 34 by the per pupil property tax replacement amount for the budget 35 -3- LSB 1327XC (4) 90 md/jh 3/ 7
S.F. _____ year calculated under subparagraph (2). 1 (2) The per pupil property tax replacement amount for budget 2 years beginning on or after July 1, 2023, is equal to the sum 3 of one hundred fifty-three dollars plus the difference between 4 the following: 5 (a) The regular program state cost per pupil for the budget 6 year beginning July 1, 2023, multiplied by one hundred percent 7 less the regular program foundation base per pupil percentage 8 pursuant to section 257.1 for the applicable budget year under 9 this paragraph. 10 (b) The regular program state cost per pupil for the budget 11 year beginning July 1, 2021, multiplied by one hundred percent 12 less the regular program foundation base per pupil percentage 13 pursuant to section 257.1 for the applicable budget year under 14 this paragraph. 15 Sec. 3. Section 257.16C, subsection 3, paragraph d, Code 16 2023, is amended to read as follows: 17 d. (1) For the fiscal year beginning July 1, 2019, there 18 is appropriated from the general fund of the state to the 19 department of management for deposit in the transportation 20 equity fund the sum of nineteen million dollars, or so much 21 thereof as is necessary, to be used for the purposes of this 22 section . 23 (2) For the fiscal year beginning July 1, 2020, there 24 is appropriated from the general fund of the state to the 25 department of management for deposit in the transportation 26 equity fund the sum of the following, or so much thereof as is 27 necessary, to be used for the purposes of this section : 28 (a) The amount appropriated to the transportation equity 29 fund under this paragraph for the immediately preceding fiscal 30 year. 31 (b) The product of the amount determined under subparagraph 32 division (a) multiplied by the categorical percent of growth 33 under section 257.8, subsection 2 , for the budget year 34 beginning on the same date of the fiscal year for which the 35 -4- LSB 1327XC (4) 90 md/jh 4/ 7
S.F. _____ appropriation is made. 1 (c) Seven million two hundred fifty-three thousand 2 eighty-eight dollars. 3 (3) (1) For the fiscal year beginning July 1, 2021, and 4 the fiscal year beginning July 1, 2022, and the fiscal year 5 beginning July 1, 2023, there is appropriated from the general 6 fund of the state to the department of management for deposit 7 in the transportation equity fund an amount necessary to make 8 all transportation equity aid payments under subsection 2 , to 9 be used for the purposes of this section . 10 (4) (2) For each fiscal year beginning on or after July 11 1, 2023 2024 , there is appropriated from the general fund of 12 the state to the department of management for deposit in the 13 transportation equity fund the sum of the following, or so much 14 thereof as is necessary, to be used for the purposes of this 15 section : 16 (a) The amount appropriated to the transportation equity 17 fund under this paragraph for the immediately preceding fiscal 18 year. 19 (b) The product of the amount determined under subparagraph 20 division (a) multiplied by the categorical percent of growth 21 under section 257.8, subsection 2 , for the budget year 22 beginning on the same date of the fiscal year for which the 23 appropriation is made. 24 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate 25 importance, takes effect upon enactment. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanations substance by the members of the general assembly. 29 This bill relates to school funding by establishing the 30 state percent of growth and the categorical state percent of 31 growth for the budget year beginning July 1, 2023, modifying 32 provisions relating to the property tax replacement payments, 33 and modifying appropriations for school transportation funding. 34 The bill establishes a state percent of growth of 2 percent 35 -5- LSB 1327XC (4) 90 md/jh 5/ 7
S.F. _____ for the budget year beginning July 1, 2023. The state percent 1 of growth is used to calculate the amount of supplemental state 2 aid for a budget year as part of the state school foundation 3 program. The bill also establishes a categorical state percent 4 of growth of 2 percent for the budget year beginning July 1, 5 2023. The categorical state percent of growth is generally 6 used to calculate the amount of supplemental state aid for each 7 of the categorical funding supplements. 8 Code section 257.16B provides for school district property 9 tax replacement payments. For each budget year beginning on 10 or after July 1, 2022, the amount of each school districts 11 property tax replacement payment is the product of the school 12 districts weighted enrollment for the budget year multiplied 13 by the per pupil property tax replacement amount for the budget 14 year. The per pupil property tax replacement amount for budget 15 years beginning on or after July 1, 2022, is equal to the 16 sum of $153 plus the difference between the following: (1) 17 the regular program state cost per pupil for the budget year 18 beginning July 1, 2022, multiplied by 100 percent less the 19 regular program foundation base per pupil percentage; and (2) 20 the regular program state cost per pupil for the budget year 21 beginning July 1, 2021, multiplied by 100 percent less the 22 regular program foundation base per pupil percentage. The 23 regular program foundation base per pupil percentage is 88.4 24 percent. 25 The bill modifies the property tax replacement payment 26 calculation for budget years beginning on or after July 1, 27 2023. For budget years beginning on or after July 1, 2023, 28 the amount of each school districts property tax replacement 29 payment is the product of the school districts weighted 30 enrollment for the budget year multiplied by the per pupil 31 property tax replacement amount for the budget year. The 32 per pupil property tax replacement amount for budget years 33 beginning on or after July 1, 2023, is equal to the sum of $153 34 plus the difference between the following: (1) the regular 35 -6- LSB 1327XC (4) 90 md/jh 6/ 7
S.F. _____ program state cost per pupil for the budget year beginning July 1 1, 2023, multiplied by 100 percent less the regular program 2 foundation base per pupil percentage; and (2) the regular 3 program state cost per pupil for the budget year beginning July 4 1, 2021, multiplied by 100 percent less the regular program 5 foundation base per pupil percentage. 6 For each fiscal year beginning on or after July 1, 2023, 7 Code section 257.16C appropriates from the general fund of the 8 state to the transportation equity fund the sum of the amount 9 appropriated for the immediately preceding fiscal year plus 10 the product of the amount appropriated for the immediately 11 preceding fiscal year multiplied by the categorical percent 12 of growth for the corresponding school budget year. The bill 13 modifies the appropriation for the fiscal year beginning 14 July 1, 2023, such that the total appropriated is equal to 15 the amount necessary to make all transportation equity aid 16 payments. 17 The bill takes effect upon enactment. 18 -7- LSB 1327XC (4) 90 md/jh 7/ 7