Senate Study Bill 1117 SENATE/HOUSE FILE BY (PROPOSED DEPARTMENT OF EDUCATION BILL) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to incentives for school district reorganizations 2 and shared operational functions, and making an appropriation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1228XD 82 5 ak/je/5 PAG LIN 1 1 Section 1. Section 257.3, subsection 2, paragraph d, Code 1 2 2007, is amended to read as follows: 1 3 d. For purposes of this section, a reorganized school 1 4 district is one which absorbs at least thirty percent of the 1 5 enrollment of the school district affected by a reorganization 1 6 or dissolved during a dissolution and in which action to bring 1 7 about a reorganization or dissolution is initiated by a vote 1 8 of the board of directors or jointly by the affected boards of 1 9 directors to take effect on or after July 1,20022007, and on 1 10 or before July 1,20062015. Each district which initiated, 1 11 by a vote of the board of directors or jointly by the affected 1 12 boards, action to bring about a reorganization or dissolution 1 13 to take effect on or after July 1,20022007, and on or before 1 14 July 1,20062015, shall certify the date and the nature of 1 15 the action taken to the department of education by January 1 1 16 of the year in which the reorganization or dissolution takes 1 17 effect. For a reorganization or dissolution that took effect 1 18 on or after July 1, 2002, and on or before July 1, 2006, the 1 19 reorganized school district shall continue to receive the 1 20 benefits of paragraphs "a" and "b" of this subsection for the 1 21 time specified in those paragraphs. 1 22 Sec. 2. Section 257.11, subsection 2, paragraph c, Code 1 23 2007, is amended by striking the paragraph and inserting in 1 24 lieu thereof the following: 1 25 c. Pupils attending class for all or a substantial portion 1 26 of a school day pursuant to a whole grade sharing agreement 1 27 executed under sections 282.10 through 282.12 shall be 1 28 eligible for supplementary weighting pursuant to this 1 29 subsection. A school district which executes a whole grade 1 30 sharing agreement and which adopts a resolution jointly with 1 31 other affected boards to study the question of undergoing a 1 32 reorganization or dissolution to take effect on or before July 1 33 1, 2014, shall receive a weighting of one=tenth of the 1 34 percentage of the pupil's school day during which the pupil 1 35 attends classes in another district, attends classes taught by 2 1 a teacher who is jointly employed under section 280.15, or 2 2 attends classes taught by a teacher who is employed by another 2 3 school district. A district shall be eligible for 2 4 supplementary weighting pursuant to this paragraph for a 2 5 maximum of three years. Receipt of supplementary weighting 2 6 for a second and third year shall be conditioned upon 2 7 submission of information resulting from the study to the 2 8 school budget review committee indicating progress toward the 2 9 objective of reorganization on or before July 1, 2014. 2 10 Sec. 3. Section 257.11, subsection 5, paragraph a, Code 2 11 2007, is amended to read as follows: 2 12 a. For the school budget year beginning July 1, 2002,and 2 13 succeeding budget yearsthrough the school budget year 2 14 beginning July 1, 2007, in order to provide additional funds 2 15 for school districts in which a regional academy is located, a 2 16 supplementary weighting plan for determining enrollment is 2 17 adopted. 2 18 Sec. 4. Section 257.11, Code 2007, is amended by adding 2 19 the following new subsection: 2 20 NEW SUBSECTION. 5A. SHARED OPERATIONAL FUNCTIONS == 2 21 INCREASED STUDENT OPPORTUNITIES. 2 22 a. In order to provide additional funding to increase 2 23 student opportunities for school districts that share 2 24 operational functions, a supplementary weighting of two 2 25 hundredths per pupil shall be assigned to pupils enrolled in a 2 26 district that shares with a political subdivision one or more 2 27 operational functions in the areas of superintendent 2 28 management, business management, human resources, 2 29 transportation, or operation and maintenance for at least 2 30 twenty percent of the school year. The additional weighting 2 31 shall be assigned for each discrete operational function 2 32 shared. For the purposes of this section, "political 2 33 subdivision" means a city, township, county, school 2 34 corporation, merged area, area education agency, institution 2 35 governed by the state board of regents, or any other 3 1 governmental subdivision. 3 2 b. Supplementary weighting pursuant to this subsection 3 3 shall be available to a school district for a maximum of five 3 4 years during the period commencing with the budget year 3 5 beginning July 1, 2008, through the budget year beginning July 3 6 1, 2014. The minimum amount of additional weighting for which 3 7 a school district shall be eligible is an amount equivalent to 3 8 ten additional pupils, and the maximum amount of additional 3 9 weighting for which a school district shall be eligible is an 3 10 amount equivalent to forty additional pupils. Receipt of 3 11 supplementary weighting by a school district pursuant to this 3 12 subsection for more than one year shall be contingent upon the 3 13 annual submission of information by the district to the 3 14 department documenting cost savings directly attributable to 3 15 the shared operational functions. Criteria for determining 3 16 the number of years for which supplementary weighting shall be 3 17 received pursuant to this subsection, subject to the five=year 3 18 maximum, and for determining qualification of operational 3 19 functions for supplementary weighting shall be determined by 3 20 the department by rule, through consideration of long=term 3 21 savings by the school district or increased student 3 22 opportunities. 3 23 c. This subsection is repealed effective June 30, 2015. 3 24 Sec. 5. Section 257.11A, Code 2007, is amended to read as 3 25 follows: 3 26 257.11A SUPPLEMENTARY WEIGHTING AND SCHOOL REORGANIZATION. 3 27 1. In determining weighted enrollment under section 257.6, 3 28 if the board of directors of a school district has approved a 3 29 contract for sharing pursuant to section 257.11 and the school 3 30 district has approved an action to bring about a 3 31 reorganization to take effect on and after July 1,20022007, 3 32 and on or before July 1,20062015, the reorganized school 3 33 district shall include, for a period of three years following 3 34 the effective date of the reorganization, additional pupils 3 35 added by the application of the supplementary weighting plan, 4 1 equal to the pupils added by the application of the 4 2 supplementary weighting plan in the year preceding the 4 3 reorganization. For the purposes of this subsection, the 4 4 weighted enrollment for the period of three years following 4 5 the effective date of reorganization shall include the 4 6 supplementary weighting in the base year used for determining 4 7 the combined district cost for the first year of the 4 8 reorganization. However, the weighting shall be reduced by 4 9 the supplementary weighting added for a pupil whose residency 4 10 is not within the reorganized district. 4 11 2. For purposes of this section, a reorganized district is 4 12 one in which the reorganization was approved in an election 4 13 pursuant to sections 275.18 and 275.20 and takes effect on or 4 14 after July 1,20022007, and on or before July 1,20062014. 4 15 Each district which initiates, by a vote of the board of 4 16 directors or jointly by the affected boards, action to bring 4 17 about a reorganization or dissolution to take effect on or 4 18 after July 1,20022007, and on or before July 1,20062014, 4 19 shall certify the date and the nature of the action taken to 4 20 the department of education by January 1 of the year in which 4 21 the reorganization or dissolution takes effect. 4 223. Notwithstanding subsection 1, a school district which 4 23 was participating in a whole grade sharing arrangement during 4 24 the budget year beginning July 1, 2001, and which received a 4 25 maximum of two years of supplementary weighting pursuant to 4 26 section 257.11, subsection 2, paragraph "c", shall include 4 27 additional pupils added by the application of the 4 28 supplementary weighting plan, equal to the pupils added by the 4 29 application of the supplementary weighting plan in the year 4 30 preceding the reorganization, for a period of four years 4 31 following the effective date of the reorganization.4 324.3. A school district shall be eligible for a combined 4 33 maximum total of six years of supplementary weighting under 4 34 the provisions of this section and section 257.11, subsection 4 35 2, paragraph "c". A school district participating in a whole 5 1 grade sharing arrangement during the budget year beginning 5 2 July 1, 2001, that adopted a resolution jointly with other 5 3 affected boards to study the question of undergoing a 5 4 reorganization or dissolution to take effect on or after July 5 5 1, 2002, and on or before July 1, 2006, shall continue to 5 6 receive the supplementary weighting to which it was entitled 5 7 pursuant to the provisions of this section and section 257.11, 5 8 subsection 2, paragraph "c". 5 9 Sec. 6. SCHOOL SHARING AND EFFICENCIES IN OPERATION 5 10 PROCESS == APPROPRIATION. For the fiscal year beginning July 5 11 1, 2007, and ending June 30, 2008, there is appropriated from 5 12 the general fund of the state to the department of education 5 13 the following amount, or so much thereof as is necessary, to 5 14 be used for the purposes designated in this section: 5 15 .................................................. $ 400,000 5 16 The amount appropriated pursuant to this section shall be 5 17 utilized by the department to assist school districts in 5 18 implementing shared operational functions. 5 19 EXPLANATION 5 20 This bill makes changes related to incentives for school 5 21 district reorganization and dissolution and shared operational 5 22 functions between school districts and political subdivisions. 5 23 The bill continues financial incentives for school 5 24 districts to reorganize under Code chapter 257 through the 5 25 school year ending June 30, 2014. The bill leaves intact the 5 26 reduced uniform levy for schools that reorganized prior to 5 27 July 1, 2006. 5 28 The bill strikes the current whole grade sharing 5 29 arrangement, and replaces it with a modified and simplified 5 30 version. The new provision allows school districts that 5 31 execute a whole grade sharing agreement and adopt a resolution 5 32 to study the effect of undergoing a reorganization or 5 33 dissolution to take effect on or before July 1, 2014, to 5 34 weight one=tenth of a percentage of a student's school day 5 35 during which the student attends classes in another district, 6 1 is taught by a teacher jointly employed, or attends classes 6 2 taught by a teacher employed by another district. This 6 3 supplementary weighting is available for a total of three 6 4 years. However, the second and third year of supplementary 6 5 weighting funding is dependent upon the school district's 6 6 progress toward reorganization. 6 7 The bill provides an additional funding for regional 6 8 academies through the school budget year beginning July 1, 6 9 2007. 6 10 The bill offers financial and operational support to help 6 11 school districts reorganize, consolidate, or dissolve 6 12 efficiently without allowing fiscal barriers to get in the 6 13 way. A supplementary weighting of two hundredths per pupil 6 14 will be given to a district that shares with a political 6 15 subdivision one or more of its administrative management, 6 16 business management, human resources, transportation, or 6 17 operational and maintenance functions for at least 20 percent 6 18 of the year. A political subdivision means a city, township, 6 19 county, school corporation, merged area, area education 6 20 agency, board of regents institution, or any other government 6 21 subdivision. This supplementary weighting is available for 6 22 five years, with a minimum equivalent weighting of 10 pupils 6 23 and a maximum equivalent weighting of 40 pupils. After the 6 24 first year of supplementary weighting, the school district 6 25 must submit evidence of cost savings attributable to the 6 26 shared operational functions. This section will be repealed 6 27 on June 30, 2015. 6 28 The bill also provides for supplementary weighting funding 6 29 for three years for a reorganized school district that is 6 30 equal to the funding that was received in the year preceding 6 31 the reorganization for a period. The bill leaves intact 6 32 supplementary weighting to schools that participated in whole 6 33 grade sharing and that eventually reorganized prior to July 1, 6 34 2006. 6 35 An appropriation of $400,000 from the general fund is 7 1 provided to assist schools in implementing shared operational 7 2 functions. 7 3 LSB 1228XD 82 7 4 ak:sc/je/5