A bill for an act requiring the establishment of the state percent of growth and categorical state percent of growth for two consecutive budget years during the first regular session of the general assembly, and including effective date provisions.

This bill requires Iowa's legislature to set two specific budget growth percentages during the first regular session of each general assembly: the "state percent of growth" (a statewide funding rate) and the "categorical state percent of growth" (a rate for specific education programs like teacher supplements and transportation aid). For the 2022-2024 budget years, it fixes these rates at 2.5% or 3% as specified, and mandates that future rates be set within 30 days after the governor submits the budget. After initial setting, the legislature may only increase - never decrease - these percentages for the second budget year covered. The bill directly affects state budget planning for education funding and requires these rates to be established for two consecutive budget years.