HF5108

Purpose

• This bill changes how school district operating referendums (funding votes) are proposed, noticed to taxpayers, and renewed. It limits the ability of a school board to renew an existing referendum without voter approval and adds specific notice and timing requirements to make sure taxpayers are informed before a vote.

Main Provisions

• Referendum revenue and voter approval

  • Increases to referendum revenue must be approved by voters in a referendum.
  • The referendum to increase revenue must be held one or two calendar years before the higher levy authority becomes payable (and only one election per calendar year).
  • Ballots must state the maximum increase per adjusted pupil unit (APU) and may describe a schedule that changes by year or that increases annually with inflation.
  • The ballot may compare the proposed increase to any expiring existing referendum authority and show the increase as an amount over the expiring authority.
  • The authority can cover up to ten years and must designate the number of years.

• Ballot and notice content

  • The ballot may include a textual portion with required information and a question similar to: “Shall the increase in the revenue proposed by petition to the board of School District No...be approved?”
  • If approved, the revenue is certified for the number of years approved or until revoked/reduced later by voters.
  • The ballot can state that existing referendum authority is expiring and show the projected increase over the first year.
  • The bill governs how “per adjusted pupil unit” is abbreviated on the ballot.

• Renewal of existing levies

  • The notice may indicate that an existing referendum levy is expiring and project the anticipated increase in the first year if renewed.
  • For renewals at the same per-pupil amount as the previous year, the notice must conform to the renewal rules.

• Notice to taxpayers

  • Boards must mail a notice to every taxpayer at least 15 days but no more than 45 days before the referendum.
  • Notices are sent to taxpayers listed in county records (county auditor or treasurer). If a name isn’t on the records, the person is treated as having waived notice unless they request inclusion.
  • Notices must show the anticipated tax increase in dollars for typical property types (residential homesteads, agricultural homesteads, apartments, and commercial/industrial properties).
  • Notices may show the impact of an expiring levy and the projected increase for the first year.

• Renewal and revocation/reduction

  • A renewal may extend an operating referendum at the same per-pupil amount; the notice may state that the referendum can be renewed once for an additional term by the school board.
  • A separate revocation or reduction referendum may be called to reduce the revenue amount; it must specify the per-adjusted-pupil-unit reduction.
  • Revenue approved by voters must be available for future years at least once before a revocation or reduction referendum can occur for those years.
  • A revocation or reduction vote requires 50 percent plus one of those voting to pass.
  • Only one revocation or reduction referendum may be held for any specific year and for years thereafter.

• Administrative requirements

  • At least 15 days before the referendum, the district must submit a copy of the notice to the commissioner and to the county auditor in each county where the district is located.
  • Within 15 days after certification of results (or after a recount), the district must notify the commissioner of the results.

Significant Changes to Existing Law

• Adds explicit notice and voter-approval requirements for renewing operating referendums, reducing the board’s authority to renew without voter involvement unless proper notice is provided.
• Establishes detailed, standardized notice content and timing to inform taxpayers about tax impact by property type.
• Introduces a formal revocation/reduction mechanism with a clear 50%+1 threshold and a limit on revocation/reduction referendums.
• Allows inflation-indexed or year-to-year varying increase schedules for revenue per adjusted pupil unit, within a maximum of ten years.
• Requires more formal reporting to the commissioner and county auditors, and ties ballot language to specific per-pupil metrics.

Relevant Terms - operating referendum - referendum revenue - per adjusted pupil unit (PAPU) / adjusted pupil unit - adjusted pupil unit - inflation / rate of inflation - ballot - notice to taxpayers - county auditor / county treasurer records - renewal of levy / existing levy expiring - revocation / reduction referendum - 50 percent plus one (majority) threshold - first Tuesday after the first Monday in November (Election timing) - Section 275.60 notice - authority / levy authority - tax impact projections (by property type: residential homestead, agricultural homestead, apartment, commercial/industrial)