This bill amends the timing for establishing the state percent of growth and the categorical state percent of growth in Iowa. It specifies that for the budget years beginning July 1, 2026, and July 1, 2027, these growth percentages must be enacted within 30 days of the governor's budget submission during the 2026 regular legislative session. Additionally, for budget years starting on or after July 1, 2028, the bill mandates that the state percent of growth and categorical state percent of growth be established within 30 days of the governor's budget submitted during the regular legislative session that occurs in the budget year preceding the base year.

The bill also includes specific percentages for the state percent of growth for the upcoming budget years, with 3% for 2023, 2.5% for 2024, and 2% for 2025. It further clarifies that the categorical state percent of growth for the budget year beginning July 1, 2025, will be 5% for the transportation equity fund. The bill takes effect immediately upon enactment.