A bill for an act relating to school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2025, modifying provisions relating to the property tax replacement payments, and including effective date provisions.

This bill sets a 2% annual growth rate for state school funding starting in the 2025 budget year (July 1, 2025), affecting Iowa school districts through their state aid calculations. It establishes two specific rates: a "state percent of growth" (2% for 2025) for general funding and a "categorical state percent of growth" (2% for 2025) for targeted programs like teacher pay supplements and early intervention. School districts receive property tax replacement payments based on these rates, calculated using a formula tied to enrollment and per-pupil funding adjustments. The rates for 2025 are fixed, but future rates will be set annually by the legislature.