This bill allows certain school districts in Iowa to increase their cash reserve levy for the school budget year beginning July 1, 2026, if they experienced a reduction of $100 million or more in taxable value due to a correction of a single property during the previous school budget year. Specifically, the bill permits these districts to exceed the limitations set forth in Code section 298.10 for their proposed cash reserve levy, provided they also reduce one or more of their other property tax levies, including the district management levy under Code section 298.4, by an amount equal to or greater than the increase in the cash reserve levy. This ensures that the total property tax dollars do not exceed the limits established under Code section 24.2A.

Additionally, the bill requires any school district wishing to adjust its levy rates to notify the department of management in a prescribed manner, after which the department will make the necessary adjustments to the property tax levy rates. The bill is deemed to be of immediate importance and takes effect upon enactment.