The Iowa Legislature’s push to limit yearly growth of property taxes, signed by the governor in the last week of the session, includes a change that affects school bond issues.
Until now, a bond referendum could be held at any of five dates in a two-year cycle, as seen on this page from the Department of Education about the Physical Plant and Equipment Levy. PPELs are often paired with revenue purpose statements, which spell out how a school is to spend sales tax money. This law will result in either their separation or a delay in the latter if the district wants to keep them together. A PPEL is separate from a bond issue.
A number of districts, including North Tama, had votes in March where the only thing being voted on was a bond issue. Green Mountain-Garwin had a PPEL, revenue purpose statement, and a school board vacancy.
Now those March and September bond votes are things of the past. Here’s what House File 718 says on the timing: “For any political subdivision of this state, if the special election is in whole or in part for the question of issuing bonds or other indebtedness, the first Tuesday after the first Monday in November.” A consolidation vote may still take place on the other specified dates.
The bill text, which does not set an odd/even rule, doesn’t match the Legislative Services Agency’s fiscal note issued April 24. Separately, that LSA note points out that local governments, including schools, will incur costs under the new rule that every registered voter must be mailed a paper copy of the text of the bond measure. (The bill text includes an exception to the “unfunded mandate” law.)
This means that 2023 is the last year where schools get more than one shot in 12 months, and November is the only option. (Those six votes that sank North Tama’s bond issue are looming pretty large.) In even-numbered years, bond issues will have to compete for attention with every position from county supervisor up to governor or president. Ironically, the even-year general election wasn’t on the list of options before.
Finally, the bill bans schools from creating a new Public Education and Recreation Levy, or “playground levy”. Only 28 districts, including BCLUW and East Marshall, had the levy in 2022, according to this map from the Iowa Association of School Boards. Those that have one may keep it.