HF 306 — A bill for an act relating to public school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2019, modifying provisions relating to the property tax replacement payments, and including effective date provisions. (Formerly HSB 109.) Effective 2-19-19.

House File 306 - IntroducedEnrolled HOUSEHouse FILEFile 306 BYAN COMMITTEEACT ONRELATING EDUCATION (SUCCESSOR TO HSBPUBLIC 109)SCHOOL (COMPANIONFUNDING TO SF 172 BY SINCLAIR)ESTABLISHING ATHE BILLSTATE FORPERCENT AnOF ActGROWTH relatingAND toTHE publicCATEGORICAL schoolSTATE fundingPERCENT byOF establishingGROWTH theFOR stateTHE percentBUDGET ofYEAR growthBEGINNING andJULY the categorical state percent of growth for the budget year beginning July 1, 2019, modifyingMODIFYING provisionsPROVISIONS relatingRELATING toTO theTHE propertyPROPERTY taxTAX replacementREPLACEMENT payments,PAYMENTS, andAND includingINCLUDING effectiveEFFECTIVE dateDATE provisions.PROVISIONS.

TLSBSection 2288HV1. (2) 88 md/jh H.F.

306 Section 1.

The categorical state percent of growth for the budget year beginningHouse JulyFile 1,306, 2017,p. is one and eleven hundredths percent.

2 beginning July 1, 2017, is one and eleven hundredths percent.

LSB1. 2288HV (2) 88 -1- md/jh 1/4 H.F.

306 1.

Section 257.16B, subsection 2, Code 2019, is amended byHouse addingFile the306, followingp. new paragraph:

3 by adding the following new paragraph:

LSB(3) 2288HVThe (2)amount 88of -2-each md/jhschool 2/4district’s H.F.property tax replacement payment.

306 (3) The amount of each school district’s property tax replacement payment.

EXPLANATION______________________________ The______________________________ inclusionLINDA ofUPMEYER thisCHARLES explanationSCHNEIDER doesSpeaker notof constitutethe agreementHouse withPresident of the explanation’sSenate substanceI byhereby thecertify membersthat ofthis bill originated in the generalHouse assembly.and is known as House File 306, Eighty-eighth General Assembly.

This______________________________ billCARMINE relatesBOAL toChief publicClerk school funding by establishing the state percent of growth and the categoricalHouse stateApproved percent_______________, of2019 growth______________________________ forKIM theREYNOLDS budgetGovernor year beginning July 1, 2019, and modifying provisions relating to the property tax replacement payments.

The bill establishes a state percent of growth of 2.06 percent for the budget year beginning July 1, 2019.

The state 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 2.06 percent for the budget year beginning July 1, 2019.

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

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

For each budget year beginning on or after July 1, 2018, 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, 2018, multiplied by 100 percent less the regular program foundation LSB 2288HV (2) 88 -3- md/jh 3/4 H.F.

306 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 regular program foundation base per pupil percentage is 87.5 percent.

The bill modifies the property tax replacement payment calculation for budget years beginning on or after July 1, 2019.

For budget years beginning on or after July 1, 2019, 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, 2019, 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.

LSB 2288HV (2) 88 -4- md/jh 4/4