Session Week 10
Fax: 563-355-9954

HOUSE APPROVES

1% ALLOWABLE GROWTH

On Tuesday, March 19, the House passed the allowable growth bill, which reestablishes the allowable growth rate for FY 03 at one percent.  SF 2315 was approved on a vote of 91-3.  The bill provides a $1,784,090,500 appropriation from the general fund for state aid to school districts.  This is an increase of $59,000,000 in state aid above adjusted FY 2002 (after the 4.3% across-the-board reduction). To fully fund a one percent allowable growth rate it would take $70 million. Therefore, the bill under-funds the state’s portion of allowable growth by $11 million.  The bill provides direction on how state aid would be reduced to districts if the school aid formula generates more state aid than the amount appropriated.  Under this adjustment, each district would have the same per pupil reduction to reach their FY 03 state aid level. School districts may elect to levy property taxes to make up the $11 million shortfall. With a one percent allowable growth rate, statewide property taxes will be raised $14.2 million, with another possible $27.8 million for the budget guarantee.

The bill would continue the area education agency (AEA) state aid reduction of $7.5 million for FY 03 and FY 04.  The reduction would equal the reduction AEAs received in FY 02. 

Earlier this year, the Legislature approved a one percent cut to most general fund appropriations for FY 02. K-12 education was spared the cut by backfilling their portion with $45 million in one time revenue from the Economic Emergency Fund (EEF). That $45 million is made up of $25 million from the EEF and another $20 million of wagering tax to backfill the funds for FY 03.

Due to the Governor’s resubmission of his FY 03 budget, the FY 04 allowable growth rate does not have to be set until April 3 according to Iowa law.  The Governor has recommended a three percent allowable growth for FY 04.

State aid is the primary source of K-12 funding and makes up 36 percent of the state’s general fund budget. A local school district’s budget is primarily determined by the number of students within the district multiplied by a district cost per pupil. Each year, the cost per pupil amount is increased by allowable growth. Allowable growth and enrollment changes are the two key factors in budget growth.

QUICK BUDGET FACTS

On Tuesday, March 19, House & Senate Republicans released budget targets for FY 2003.

 Appropriating $4,571.8 billion - $900,000 under the expenditure limitation.  

The targets represent a victory for fiscal responsibility while maintaining the commitment of Republicans to K-12 education.

The largest areas of increase in the budget include $59 million for school aid and $25 million for Medicaid.

  Ways & Means Update

Bills Passed In The Ways & Means

Committee This Week:

HF 2184  An act providing for utilization of physical plant and equipment levy revenue for technology expenditures.

HF 2480  An act relating to an increase in the resident hunting license fee and establishing a pheasant and quail restoration program and making an appropriation.

HSB 504  A Study Bill relating to the deferment of taxable income for start-up businesses.

Bills Assigned In The Ways & Means

Committee This Week:

HF 95  An act relating to the time of possession of deer venison, increasing the minimum fine for unlawful taking, possessing, injuring, or transporting protected species and game, and subjecting violators to a penalty.

HF 2236  An act regulating farmers market stands.

HF 2352  An act providing an Iowa individual income tax check-off for deposit in the free health clinic fund.

HF 2522  An act relating to tax credits under the new jobs and income program for farmers' cooperatives that own ethanol-producing facilities.

HF 2524  An act relating to the regulation of milk and milk products.

HF 2570  An act relating to volunteer fire fighters by creating a township fire department fund and allocating a certain portion of insurance premiums tax to the township fire department fund, and establishing a volunteer fire fighter pension task force.

HF 2580  An act establishing a pilot program to provide awards to Iowa students to attend an Iowa community college or postsecondary college or university, providing for the issuance of bonds to fund the program, appropriating certain gambling revenues to repay the bonds, providing for individual and corporate income tax deductions for contributions to the program, and providing an individual income tax credit for certain graduates of Iowa's community colleges or postsecondary colleges and universities who are employed within the state.

   Week in Review Archives

2002 Session
03-15-02
03-08-02
03-01-02
02-22-02
02-15-02
02-08-02
02-01-02
01-25-02
01-18-02

2001 Session
05-04-01
04-27-01
04-20-01
04-13-01
04-06-01
03-30-01
03-23-01
03-16-01
03-09-01
03-02-01
02-23-01
02-16-01
02-09-01
02-02-01
01-26-01
01-19-01
01-12-01

2000 Session
04-28-00
04-21-00
04-14-00
04-07-00
03-31-00
03-24-00
03-17-00
03-10-00
03-03-00
02-25-00