Bill Text: IA HF21 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to school district funding by establishing a district cost per pupil equity budget adjustment for certain budget years and including effective date provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-01-17 - Introduced, referred to Education. H.J. 86. [HF21 Detail]
Download: Iowa-2017-HF21-Introduced.html
House File 21 - Introduced HOUSE FILE BY WINCKLER A BILL FOR 1 An Act relating to school district funding by establishing a 2 district cost per pupil equity budget adjustment for certain 3 budget years and including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1091YH (3) 87 md/sc/jh PAG LIN 1 1 Section 1. Section 257.2, subsection 2, Code 2017, is 1 2 amended by striking the subsection. 1 3 Sec. 2. NEW SECTION. 257.14A District cost per pupil equity 1 4 ==== budget adjustment. 1 5 1. The board of directors of a school district with a 1 6 regular program district cost per pupil that is less than the 1 7 highest regular program district cost per pupil among all 1 8 school districts in the state for the same budget year that 1 9 wishes to receive the budget adjustment under this section may 1 10 adopt a resolution by May 15 preceding the budget year and 1 11 shall within ten days of adoption of the resolution notify the 1 12 department of management of the amount of the budget adjustment 1 13 to be received. 1 14 2. a. For budget years beginning on or after July 1, 2017, 1 15 but before July 1, 2020, each school district that satisfies 1 16 the requirements of subsection 1 shall be eligible for a 1 17 budget adjustment for that budget year in an amount not to 1 18 exceed the difference between the school district's regular 1 19 program district cost per pupil and the highest regular program 1 20 district cost per pupil among all school districts in the state 1 21 multiplied by the district's budget enrollment. The resolution 1 22 adopted under subsection 1 may specify a budget adjustment 1 23 amount that is less than the maximum amount authorized under 1 24 this paragraph "a". 1 25 b. The school district shall fund the budget adjustment 1 26 either by using moneys from its unexpended fund balance or by 1 27 using cash reserve moneys. 1 28 3. A budget adjustment received under this section shall 1 29 not affect the eligibility for or amount of any other budget 1 30 adjustment authorized by law for the same budget year. In 1 31 addition, a budget adjustment under this section shall be 1 32 limited to the budget year for which the adjustment was 1 33 authorized and shall not be included in any computation of a 1 34 school district's cost for any future budget year. 1 35 Sec. 3. Section 257.34, Code 2017, is amended to read as 2 1 follows: 2 2 257.34 Cash reserve information. 2 3 1. If a school district receives less state school 2 4 foundation aid under section 257.1 than is due under that 2 5 section for a base year and the school district uses funds 2 6 from its cash reserve during the base year to make up for 2 7 the amount of state aid not paid, the board of directors of 2 8 the school district shall include in its general fund budget 2 9 document information about the amount of the cash reserve used 2 10 to replace state school foundation aid not paid. 2 11 2. If a school district uses funds from its cash reserve 2 12 during the base year to fund a budget adjustment under section 2 13 257.14A, the board of directors of the school district shall 2 14 include in its general fund budget document information about 2 15 the amount of the cash reserve used for such purpose. 2 16 Sec. 4. IMPLEMENTATION. Notwithstanding the deadline 2 17 for adopting a resolution to approve the budget adjustment 2 18 in section 257.14A, subsection 1, for the school budget 2 19 year beginning July 1, 2017, the resolution of the board of 2 20 directors of a school district shall be approved not later than 2 21 June 10, 2017. 2 22 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 23 immediate importance, takes effect upon enactment. 2 24 EXPLANATION 2 25 The inclusion of this explanation does not constitute agreement with 2 26 the explanation's substance by the members of the general assembly. 2 27 This bill establishes a district cost per pupil equity 2 28 budget adjustment. The board of directors of a school district 2 29 with a regular program district cost per pupil that is less 2 30 than the highest regular program district cost per pupil among 2 31 all school districts in the state for the same budget year may 2 32 annually adopt a resolution to receive the budget adjustment 2 33 authorized in the bill. Following adoption of the resolution 2 34 the board of directors must, within 10 days of its adoption, 2 35 notify the department of management of the amount of the budget 3 1 adjustment to be received. 3 2 For budget years beginning on or after July 1, 2017, but 3 3 before July 1, 2020, each eligible school district is eligible 3 4 for a budget adjustment for that budget year in an amount 3 5 equal to the difference between the school district's regular 3 6 program district cost per pupil and the highest regular program 3 7 district cost per pupil among all school districts in the 3 8 state multiplied by the district's budget enrollment. The 3 9 resolution authorizing the budget adjustment may specify a 3 10 budget adjustment amount that is less than the maximum amount 3 11 authorized under the bill. The bill requires the school 3 12 district to fund the budget adjustment either by using moneys 3 13 from its unexpended fund balance or by using cash reserve 3 14 moneys. 3 15 The bill specifies that the budget adjustment received does 3 16 not affect the eligibility for or amount of any other budget 3 17 adjustment authorized by law for the same budget year and that 3 18 the budget adjustment under the bill is limited to the budget 3 19 year for which the adjustment was authorized and shall not be 3 20 included in any computation of a school district's cost for any 3 21 future budget year. 3 22 Under the bill, if a school district uses funds from its 3 23 cash reserve during the base year to fund a budget adjustment 3 24 authorized in the bill, the board of directors of the school 3 25 district shall include in its general fund budget document 3 26 information about the amount of the cash reserve used for such 3 27 purpose. 3 28 Notwithstanding the May 15 deadline for adopting a 3 29 resolution to approve the budget adjustment provided for in the 3 30 bill, for the school budget year beginning July 1, 2017, the 3 31 resolution of the board of directors of a school district must 3 32 be approved not later than June 10, 2017. 3 33 The bill takes effect upon enactment. LSB 1091YH (3) 87 md/sc/jh
