Senate Study Bill 1053 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON EVANS) 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, 2025, modifying 3 provisions relating to the property tax replacement 4 payments, and including effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2403XC (2) 91 jm/md
S.F. _____ Section 1. Section 257.8, subsections 1 and 2, Code 2025, 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, 2022, is two and one-half 4 percent. The state percent of growth for the budget year 5 beginning July 1, 2023, is three percent. The state percent of 6 growth for the budget year beginning July 1, 2024, is two and 7 one-half percent. The state percent of growth for the budget 8 year beginning July 1, 2025, is two percent. The state percent 9 of growth for each subsequent budget year shall be established 10 by statute which shall be enacted within thirty days of the 11 transmission of the governors budget required by February 12 1 under section 8.21 during the regular legislative session 13 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 16 1, 2022, is two and one-half percent. The categorical state 17 percent of growth for the budget year beginning July 1, 2023, 18 is three percent. The categorical state percent of growth for 19 the budget year beginning July 1, 2024, is two and one-half 20 percent. The categorical state percent of growth for the 21 budget year beginning July 1, 2025, is two percent. The 22 categorical state percent of growth for each budget year shall 23 be established by statute which shall be enacted within thirty 24 days of the transmission of the governors budget required by 25 February 1 under section 8.21 during the regular legislative 26 session beginning in the base year. The categorical state 27 percent of growth may include state percents of growth for 28 the teacher salary supplement, the professional development 29 supplement, the early intervention supplement, the teacher 30 leadership supplement, and for budget years beginning on or 31 after July 1, 2020, transportation equity aid payments under 32 section 257.16C . 33 Sec. 2. Section 257.16B, subsections 1 and 2, Code 2025, are 34 amended to read as follows: 35 -1- LSB 2403XC (2) 91 jm/md 1/ 5
S.F. _____ 1. For each fiscal year beginning on or after July 1, 2022 1 2023 , 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. (1) For the budget year beginning July 1, 2022, 6 the amount of each school districts property tax replacement 7 payment shall be the product of the school districts weighted 8 enrollment for the budget year multiplied by the per pupil 9 property tax replacement amount for the budget year calculated 10 under subparagraph (2). 11 (2) The per pupil property tax replacement amount for the 12 budget year beginning July 1, 2022, is equal to the sum of one 13 hundred fifty-three dollars plus the difference between the 14 following: 15 (a) The regular program state cost per pupil for the budget 16 year beginning July 1, 2022, multiplied by one hundred percent 17 less the regular program foundation base per pupil percentage 18 pursuant to section 257.1 for the budget year beginning July 19 1, 2022. 20 (b) The regular program state cost per pupil for the budget 21 year beginning July 1, 2021, multiplied by one hundred percent 22 less the regular program foundation base per pupil percentage 23 pursuant to section 257.1 for the budget year beginning July 24 1, 2022. 25 b. a. (1) For the budget year beginning July 1, 2023, 26 the amount of each school districts property tax replacement 27 payment shall be the product of the school districts weighted 28 enrollment for the budget year multiplied by the per pupil 29 property tax replacement amount for the budget year calculated 30 under subparagraph (2). 31 (2) The per pupil property tax replacement amount for the 32 budget year beginning July 1, 2023, is equal to the sum of one 33 hundred fifty-three dollars plus the difference between the 34 following: 35 -2- LSB 2403XC (2) 91 jm/md 2/ 5
S.F. _____ (a) The regular program state cost per pupil for the budget 1 year beginning July 1, 2023, multiplied by one hundred percent 2 less the regular program foundation base per pupil percentage 3 pursuant to section 257.1 for the budget year beginning July 4 1, 2023. 5 (b) The regular program state cost per pupil for the budget 6 year beginning July 1, 2021, multiplied by one hundred percent 7 less the regular program foundation base per pupil percentage 8 pursuant to section 257.1 for the budget year beginning July 9 1, 2023. 10 c. b. (1) For each the budget year beginning on or after 11 July 1, 2024, 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, 2024, 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, 2024, 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, 2024 . 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, 2024 . 30 c. (1) For each budget year beginning on or after July 31 1, 2025, 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 2403XC (2) 91 jm/md 3/ 5
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, 2025, 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, 2025, 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. EFFECTIVE DATE. This Act, being deemed of immediate 16 importance, takes effect upon enactment. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanations substance by the members of the general assembly. 20 This bill relates to school funding by establishing the 21 state percent of growth and the categorical state percent 22 of growth for the budget year beginning July 1, 2025, and 23 modifying provisions relating to the property tax replacement 24 payments. 25 The bill establishes a state percent of growth of 2 percent 26 for the budget year beginning July 1, 2025. The state percent 27 of growth is used to calculate the amount of supplemental state 28 aid for a budget year as part of the state school foundation 29 program. The bill also establishes a categorical state percent 30 of growth of 2 percent for the budget year beginning July 1, 31 2025. The categorical state percent of growth is generally 32 used to calculate the amount of supplemental state aid for each 33 of the categorical funding supplements. 34 Code section 257.16B provides for school district property 35 -4- LSB 2403XC (2) 91 jm/md 4/ 5
S.F. _____ tax replacement payments. For each budget year beginning on 1 or after July 1, 2024, the amount of each school districts 2 property tax replacement payment is the product of the school 3 districts weighted enrollment for the budget year multiplied 4 by the per pupil property tax replacement amount for the budget 5 year. The per pupil property tax replacement amount for budget 6 years beginning on or after July 1, 2024, is equal to the 7 sum of $153 plus the difference between the following: (1) 8 the regular program state cost per pupil for the budget year 9 beginning July 1, 2024, multiplied by 100 percent less the 10 regular program foundation base per pupil percentage; and (2) 11 the regular program state cost per pupil for the budget year 12 beginning July 1, 2021, multiplied by 100 percent less the 13 regular program foundation base per pupil percentage. 14 The bill modifies the property tax replacement payment 15 calculation for budget years beginning on or after July 1, 16 2025. For budget years beginning on or after July 1, 2025, 17 the amount of each school districts property tax replacement 18 payment is the product of the school districts weighted 19 enrollment for the budget year multiplied by the per pupil 20 property tax replacement amount for the budget year. The 21 per pupil property tax replacement amount for budget years 22 beginning on or after July 1, 2025, is equal to the sum of $153 23 plus the difference between the following: (1) the regular 24 program state cost per pupil for the budget year beginning July 25 1, 2025, multiplied by 100 percent less the regular program 26 foundation base per pupil percentage; and (2) the regular 27 program state cost per pupil for the budget year beginning July 28 1, 2021, multiplied by 100 percent less the regular program 29 foundation base per pupil percentage. The regular program 30 foundation base per pupil percentage is 88.4 percent. 31 The bill takes effect upon enactment. 32 -5- LSB 2403XC (2) 91 jm/md 5/ 5