Fiscal Note
Fiscal Services Division
HF 2653 – Educational Requirements, Waiver (LSB6324HV.1)
Staff Contact: Michael Peters (515.281.6934) michael.peters@legis.iowa.gov
Fiscal Note Version – Final Action
Description
House File 2653 authorizes specific school districts to use revenue from the district
management levy to pay the costs of retention bonus payments to employees for the school
year beginning July 1, 2024. Eligible school districts are required to have been the subject of a
Proclamation of Disaster Emergency issued by the Governor on January 8, 2024. Under this
provision, affected school districts are permitted to spend up to $700,000 and are prohibited
from raising the amount of the district management levy to make retention payments. This
provision is repealed July 1, 2025. The Bill requires the State Board of Education and the State
Department of Education to waive specified educational duties, responsibilities, and
requirements for the specified school districts for the 2023-2024 school year.
The Bill takes effect upon enactment.
Background
On January 8, 2024, the Governor issued a Proclamation of Disaster Emergency for the Perry
Community School District (CSD) in Dallas County. Under Iowa Code section 29C.6, a
Proclamation of Disaster Emergency authorizes the use and deployment of all available State
resources, supplies, equipment, and materials as are reasonably necessary to assist those
citizens in the county or counties affected. Iowa Code chapter 29C describes the powers and
requirements associated with emergency management and security.
A school district may annually certify a tax on all taxable property of the school district for the
management levy. There are no levy rate restrictions. The district’s board of directors is
empowered to create a district management levy through Iowa Code section 298.4 to be used
to pay for the following purposes:
• Unemployment benefits.
• Payments of liability insurance premiums.
• Costs of judgments or settlements related to tort liability.
• Insurance agreements.
• Early retirement benefits.
• Mediation and arbitration, including but not limited to legal fees associated with such acts.
The FY 2024 management levy for the Perry CSD is 2.19767 per $1,000 in assessed property
value. Based on preliminary FY 2023 information from the Iowa Association of School Boards
(IASB), Perry CSD had $882,000 in the district’s management levy fund.
Assumption
Expenses that may be made from the district management levy for retention bonuses are
unknown.
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Fiscal Impact
House File 2653 permits the spending of up to $700,000 from a school district’s management
levy to pay for employee retention bonuses. The fiscal impact of the Bill is unknown.
Sources
Department of Revenue
Iowa Association of School Boards
Iowa League of Cities
/s/ Jennifer Acton
April 19, 2024
Doc ID 1449493
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov
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Statutes affected:
Introduced: 298.4, 256.7
Enrolled: 298.4