A bill for an act relating to the timing for establishment of the state percent of growth and the categorical state percent of growth, and including effective date provisions.

HF 2131 modifies the timing for setting annual funding growth rates in Iowa's state budget. It establishes specific growth percentages (e.g., 3% for 2023, 2.5% for 2024) for the "state percent of growth" and "categorical state percent of growth" through 2027, then requires these rates to be set by law within 30 days after the governor submits the budget for future years. For budget years starting July 1, 2026-2027, the rate must be set within 30 days of the governor's 2026 budget submission. For years starting July 1, 2028 onward, the rate must be set within 30 days after the governor's budget submission during the legislative session preceding the budget year. This directly affects how Iowa calculates state funding for programs like education and transportation.