SF 166 — A bill for an act relating to the state school foundation program, by modifying requirements for the enactment of the state percents of growth, establishing state percents of growth, modifying provisions relating to school district property tax replacement payments, and including effective date and applicability provisions. (Formerly SSB 1028.) Effective 2-8-17.

Senate File 166 - IntroducedEnrolled SENATESenate FILEFile 166 BYAN COMMITTEEACT ONRELATING EDUCATION (SUCCESSOR TO SSBTHE 1028)STATE ASCHOOL BILLFOUNDATION FORPROGRAM, AnBY ActMODIFYING relatingREQUIREMENTS toFOR theTHE stateENACTMENT schoolOF foundationTHE program,STATE byPERCENTS modifyingOF requirementsGROWTH, forESTABLISHING theSTATE enactmentPERCENTS ofOF theGROWTH, stateMODIFYING percentsPROVISIONS ofRELATING growth,TO establishingSCHOOL stateDISTRICT percentsPROPERTY ofTAX growth,REPLACEMENT modifyingPAYMENTS, provisionsAND relatingINCLUDING toEFFECTIVE schoolDATE districtAND propertyAPPLICABILITY taxPROVISIONS. replacement payments, and including effective date and applicability provisions.

TLSBSection 2206SV1. (2) 87 md/sc S.F.

166 Section 1.

The state percent of growth for each subsequent budget year shall be established by statute which shall be enacted within thirty days of the submission in the year preceding the base year transmission of the governor’s budget required by February 1 under section 8.21 during the regular legislative session beginning in the base yearyear. .

2.Senate File 166, p.

2 2.

The establishment of the categorical state percent of growth for a budget year shall be the only subject matter of the bill which enacts the categorical state percent of growth LSBfor 2206SVa (2)budget 87year. -1- md/sc 1/4 S.F.

166 for a budget year.

NEWSenate PARAGRAPHFile .166, p.

3 NEW PARAGRAPH.

Each school district’s property tax replacement payment equals the school district’s weighted LSBenrollment 2206SVfor the budget year multiplied by the remainder of the amount calculated for the school district under subparagraph (2) 87minus -2-the md/scamount 2/4calculated S.F.for the school district under subparagraph (1).

166 enrollment for the budget year multiplied by the remainder of the amount calculated for the school district under subparagraph (2) minus the amount calculated for the school district under subparagraph (1).

EXPLANATION______________________________ The______________________________ inclusionJACK ofWHITVER thisLINDA explanationUPMEYER doesPresident notof constitutethe agreementSenate withSpeaker of the explanation’sHouse substanceI byhereby thecertify membersthat ofthis bill originated in the generalSenate assembly.and is known as Senate File 166, Eighty-seventh General Assembly.

This______________________________ billW. relates to the state school foundation program, by modifying requirements for the enactment of the state percents of growth, establishing state percents of growth, and modifying provisions relating to school district property tax replacement payments.

TheCHARLES billSMITHSON establishesSecretary a state percent of growth of 1.11 percent for the budgetSenate yearApproved beginning_______________, July2017 1,______________________________ 2017.TERRY E.

TheBRANSTAD stateGovernor percent of growth is used to calculate the amount of supplemental state aid for a budget year as part of the state school foundation program.

The bill also establishes a categorical state percent of growth of 1.11 percent for the budget year beginning July 1, 2017.

The categorical state percent of growth is used to calculate the amount of supplemental state aid for each of the categorical funding supplements.

Current Code section 257.8 requires bills establishing the state percent of growth and the categorical state percent of growth to be enacted within 30 days of the submission in the year preceding the base year of the governor’s budget.

Code section 257.8 also requires the state percent of growth and the categorical state percent of growth to be enacted in separate bills and be the only subject matter of each bill.

The bill strikes the subject matter requirement for such bills and specifies that the enactment deadline for bills establishing LSB 2206SV (2) 87 -3- md/sc 3/4 S.F.

166 the state percent of growth and the categorical state percent of growth is within 30 days of transmission of the governor’s budget, which Code section 8.21 requires by February 1 of the regular legislative session beginning in the base year.

Current Code section 257.16B provides for school district property tax replacement payments.

For each budget year beginning on or after July 1, 2016, each school district’s property tax replacement payment amount is equal to the school district’s weighted enrollment for the budget year multiplied by the difference of the following:

(1) the regular program state cost per pupil for the budget year beginning July 1, 2016, multiplied by 100 percent less the regular program foundation base per pupil percentage;

and (2) the regular program state cost per pupil for the budget year beginning July 1, 2012, multiplied by 100 percent less the regular program foundation base per pupil percentage.

Under current law, the regular program foundation base per pupil percentage is 87.5 percent.

The bill modifies the replacement payment calculation for budget years beginning on or after July 1, 2017.

For each budget year beginning on or after July 1, 2017, each school district’s property tax replacement payment amount is equal to the school district’s weighted enrollment for the budget year multiplied by the difference of the following:

(1) the regular program state cost per pupil for the budget year beginning July 1, 2017, multiplied by 100 percent less the regular program foundation base per pupil percentage;

and (2) the regular program state cost per pupil for the budget year beginning July 1, 2012, multiplied by 100 percent less the regular program foundation base per pupil percentage.

The bill takes effect upon enactment and applies to school budget years beginning on or after July 1, 2017.

LSB 2206SV (2) 87 -4- md/sc 4/4