House File 2108 - Introduced HOUSE FILE 2108 BY WILLEMS , SWAIM , WITTNEBEN , HANSON , WENTHE , THOMAS , and MUHLBAUER A BILL FOR An Act providing for the adjustment of state foundation aid 1 amounts payable to school districts with certain enrollment 2 levels. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5084YH (3) 84 md/sc

H.F. 2108 Section 1. Section 257.7, subsection 1, Code 2011, is 1 amended to read as follows: 2 1. Budgets. School districts are subject to chapter 24 . 3 The authorized expenditures of a school district during a base 4 year shall not exceed the lesser of the budget for that year 5 certified under section 24.17 plus any allowable amendments 6 permitted in this section , or the authorized budget, which is 7 the sum of the combined district cost for that year including 8 any adjustments required by section 257.16B , the actual 9 miscellaneous income received for that year, and the actual 10 unspent balance from the preceding year. 11 Sec. 2. Section 257.10, subsection 8, paragraph a, Code 12 2011, is amended to read as follows: 13 a. (1) Combined district cost is the sum of the regular 14 program district cost per pupil multiplied by the weighted 15 enrollment, the special education support services district 16 cost, the total teacher salary supplement district cost, the 17 total professional development supplement district cost, and 18 the total early intervention supplement district cost, plus the 19 sum of the additional district cost allocated to the district 20 to fund media services and educational services provided 21 through the area education agency, the area education agency 22 total teacher salary supplement district cost and the area 23 education agency total professional development supplement 24 district cost. 25 (2) For budget years beginning on or after July 1, 2013, 26 each school district’s combined district cost for the purposes 27 of determining a school district’s authorized expenditures 28 under section 257.7 shall be adjusted to reflect the adjustment 29 to the school district’s state foundation aid under section 30 257.16B. 31 Sec. 3. NEW SECTION . 257.16B State foundation aid 32 adjustment —— teacher salary and benefits support. 33 1. For budget years beginning on or after July 1, 2013, the 34 department of management shall, following the determination of 35 -1- LSB 5084YH (3) 84 md/sc 1/ 3

H.F. 2108 the total amount of state foundation aid payable to each school 1 district pursuant to section 257.16, subsection 1, adjust the 2 total amount of state foundation aid payable to each school 3 district as follows: 4 a. Each school district’s total amount of state foundation 5 aid shall be reduced by an amount equal to the school 6 district’s weighted enrollment divided by the total statewide 7 weighted enrollment, and then multiplied by fifteen million 8 dollars. The fifteen million dollars resulting from the 9 reduction in state foundation aid shall be apportioned as 10 provided in paragraph “b” . 11 b. Following the reduction in paragraph “a” , the department 12 of management shall, for each school district with a budget 13 enrollment of less than two thousand five hundred pupils, 14 increase each school district’s resulting total amount of state 15 foundation aid by an amount equal to the school district’s 16 budget enrollment divided by the total budget enrollment for 17 all school districts in the state with a budget enrollment of 18 less than two thousand five hundred pupils, and then multiplied 19 by fifteen million dollars. 20 2. The amount of the increase to a school district’s state 21 foundation aid determined under subsection 1, paragraph “b” , 22 in excess of the amount of the school district’s total state 23 foundation aid prior to any adjustment under this section shall 24 be used by the school district exclusively for teacher salaries 25 and benefits within the district. 26 3. The department of management shall notify each school 27 district of the amount of the adjustment to state foundation 28 aid under this section. Except for the adjustment to a 29 school district’s combined district cost for the purposes 30 of determining a school district’s authorized expenditures 31 under section 257.7, this section shall not result in the 32 recalculation of other state aid amounts or the recalculation 33 of any property tax levy for the budget year. 34 EXPLANATION 35 -2- LSB 5084YH (3) 84 md/sc 2/ 3

H.F. 2108 This bill provides for an adjustment of state foundation aid 1 amounts to certain school districts with certain enrollment 2 levels. 3 Under the bill, for budget years beginning on or after July 4 1, 2013, the department of management is required to adjust the 5 total amount of state foundation aid otherwise payable to each 6 school district under the school foundation funding formula. 7 Each school district’s total amount of state foundation aid 8 is first reduced by an amount equal to the school district’s 9 weighted enrollment divided by the total statewide weighted 10 enrollment, and then multiplied by $15 million. Those school 11 districts with a budget enrollment of less than 2,500 pupils 12 will then have the school district’s resulting total amount 13 of state foundation aid increased by an amount equal to the 14 school district’s budget enrollment divided by the total budget 15 enrollment for all school districts in the state with a budget 16 enrollment of less than 2,500 pupils, and then multiplied by 17 $15 million. 18 Under the bill, the amount of the increase to a school 19 district’s state foundation aid in excess of the amount of 20 the school district’s total state foundation aid prior to any 21 adjustment under the bill shall be used by the school district 22 exclusively for teacher salaries and benefits within the 23 district. 24 The bill includes a requirement that each school district 25 be notified of the adjustments made under the bill and 26 states that except for the adjustment to a school district’s 27 combined district cost for the purposes of determining a school 28 district’s authorized expenditures under Code section 257.7, 29 the adjustments to state foundation aid do not result in the 30 recalculation of other state aid amounts or the recalculation 31 of any property tax levy for the budget year. 32 -3- LSB 5084YH (3) 84 md/sc 3/ 3