S.F. 2268 Section 1. Section 256C.3, subsection 3, paragraph h, Code 1 2014, is amended to read as follows: 2 h. Provision for ensuring that children receiving care from 3 other child care arrangements can participate in the preschool 4 program with minimal disruption due to transportation and 5 movement from one site to another. The children participating 6 in the preschool program may be transported by the school 7 district to activities associated with the program along with 8 other children. 9 Sec. 2. Section 256C.3, subsection 4, Code 2014, is amended 10 by adding the following new paragraph: 11 NEW PARAGRAPH . e. Development and implementation of a plan 12 for the school district’s preschool program to have sufficient 13 capacity to operate without a waiting list for school budget 14 years beginning on or after July 1, 2017. 15 Sec. 3. Section 256C.4, subsection 1, paragraphs g and h, 16 Code 2014, are amended to read as follows: 17 g. For the fiscal year beginning July 1, 2011 2014 , and 18 each succeeding fiscal year, of the amount of preschool 19 foundation aid received by a school district for a fiscal year 20 in accordance with section 257.16 , not more than five ten 21 percent may be used by the school district for administering 22 the district’s approved local program. Outreach activities 23 and rent for facilities not owned by the school district are 24 permissive uses of the administrative funds. 25 h. For the fiscal year beginning July 1, 2012 2014 , and 26 each succeeding fiscal year, of the amount of preschool 27 foundation aid received by a school district for a fiscal year 28 in accordance with section 257.16 , not less than ninety-five 29 ninety percent of the per pupil amount shall be passed through 30 to a community-based provider for each pupil enrolled in 31 the district’s approved local program. For the fiscal year 32 beginning July 1, 2011 2014 , and each succeeding fiscal year, 33 not more than five ten percent of the amount of preschool 34 foundation aid passed through to a community-based provider 35 -1- LSB 5796SV (2) 85 jp/sc 1/ 7

S.F. 2268 may be used by the community-based provider for administrative 1 costs. The costs of outreach activities and rent for 2 facilities not owned by the school district are permissive 3 administrative costs. 4 Sec. 4. Section 256C.4, subsection 2, paragraph b, Code 5 2014, is amended to read as follows: 6 b. The enrollment count of eligible students shall not 7 include a child who is included in the enrollment count 8 determined under section 257.6 or a child who is served by 9 a an existing preschool program already receiving state or 10 federal funds for the purpose of the provision of providing 11 four-year-old preschool programming while the child is being 12 served by the existing program. Such preschool programming 13 However, the enrollment count of eligible students may include 14 a child being served by an existing preschool program if 15 the preschool programming in the existing program has been 16 enhanced as a result of preschool program expansion incentive 17 state aid provided under section 256C.7. For the purposes 18 of this chapter an “existing preschool program” includes but 19 is not limited to shared visions and other child development 20 assistance programs provided under chapter 256A and section 21 279.51 , special education programs provided under section 22 256B.9 , school ready children grant programs and other programs 23 provided under chapter 256I , and federal head start programs 24 and the services funded by Tit. I of the federal Elementary and 25 Secondary Education Act of 1965. 26 Sec. 5. Section 256C.5, subsection 1, unnumbered paragraph 27 1, Code 2014, is amended to read as follows: 28 For the purposes of this section and section 256C.4 chapter, 29 unless the context otherwise requires : 30 Sec. 6. NEW SECTION . 256C.7 Preschool program expansion 31 incentive. 32 1. For the purposes of this section, unless the context 33 otherwise requires: 34 a. “Base incentive enrollment” means the average of the 35 -2- LSB 5796SV (2) 85 jp/sc 2/ 7

S.F. 2268 actual enrollments of eligible students in the preschool 1 programming provided by a school district on October 1, 2011, 2 October 1, 2012, and October 1, 2013. 3 b. “Incentive period” means the budget years beginning July 4 1, 2015, July 1, 2016, and July 1, 2017. 5 c. “Incentive enrollment” means the amount by which the 6 actual enrollment of eligible students in the preschool 7 programming provided by a school district on October 1 of 8 the base year exceeds the school district’s base incentive 9 enrollment. 10 d. “Incentive state aid” means the product of twenty percent 11 of the regular program state cost per pupil for the budget year 12 multiplied by the school district’s incentive enrollment in the 13 base year. 14 2. a. A preschool program expansion incentive is 15 established in accordance with this section. In order to be 16 eligible for the incentive, a school district must develop and 17 implement a preschool program expansion plan, approved by the 18 department, to expand enrollment of eligible students in the 19 school district’s preschool programming. In addition, the 20 school district shall work with existing preschool program 21 providers to expand hours and otherwise enhance the preschool 22 programming available to the children participating in the 23 programs. The plan’s goal shall be that by the end of the 24 incentive period the district’s preschool programming will 25 be available without a waiting list to each child wanting to 26 enroll in the programming. 27 b. The elements addressed in the preschool program expansion 28 plan shall include but are not limited to the following: 29 (1) How the school district will work in collaboration with 30 participating families, early care providers, and community 31 partners, as described in section 256C.3, subsection 3, 32 to provide the preschool programming in as convenient and 33 cost-effective a manner as possible for the families of the 34 four-year-old children who are eligible for the programming. 35 -3- LSB 5796SV (2) 85 jp/sc 3/ 7

S.F. 2268 (2) A specification of the roles of the early care providers 1 and community partners in support of the expansion plan. 2 (3) A delineation of the specific steps for expanding hours 3 and otherwise enhancing the preschool programming available to 4 the children participating in the existing preschool programs 5 located in the school district. 6 (4) Identification of specific outcomes and progress 7 measures for the expansion plan. 8 (5) Detailed plans for contacting and soliciting enrollment 9 of eligible students, particularly from low-income families, 10 non-English speaking families, and families from ethnic and 11 racial groups underrepresented in the district’s preschool 12 program enrollment. 13 3. The department of education shall specify other 14 requirements and required elements for preschool expansion 15 plans and for approval of plans by the department, including 16 but not limited to submission provisions, annual updates, and 17 documentation of collaboration efforts with and input from 18 participating families, early care providers, and community 19 partners. 20 4. During the incentive period, in addition to the 21 regular preschool foundation aid based on the preschool 22 budget enrollment, the school district implementing a 23 preschool expansion plan approved by the department shall 24 receive incentive state aid based on the district’s incentive 25 enrollment. The incentive state aid shall be paid as part of 26 the state aid payments made to school districts in accordance 27 with section 257.16. 28 5. A school district shall utilize its incentive state aid 29 to defray increases in costs in connection with the school 30 district’s preschool program expansion plan. Such costs shall 31 include but are not limited to renovation and other facility 32 costs connected with expansion, outreach, one-time expenses, 33 and other costs identified as eligible by the department. 34 Sec. 7. Section 257.16, Code 2014, is amended by adding the 35 -4- LSB 5796SV (2) 85 jp/sc 4/ 7

S.F. 2268 following new subsection: 1 NEW SUBSECTION . 1A. For the fiscal years in which the 2 preschool program expansion incentive applies in accordance 3 with section 256C.7, the appropriation made in subsection 1 4 shall include the amount necessary to pay incentive state aid 5 in accordance with section 256C.7. This subsection is repealed 6 on July 1, 2018. 7 Sec. 8. STATE MANDATE FUNDING SPECIFIED. In accordance 8 with section 25B.2, subsection 3, the state cost of requiring 9 compliance with any state mandate included in this Act shall 10 be paid by a school district from state school foundation aid 11 received by the school district under section 257.16. This 12 specification of the payment of the state cost shall be deemed 13 to meet all of the state funding-related requirements of 14 section 25B.2, subsection 3, and no additional state funding 15 shall be necessary for the full implementation of this Act 16 by and enforcement of this Act against all affected school 17 districts. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to the statewide preschool program for 22 four-year-old children by establishing a preschool program 23 expansion incentive and authorizing state aid for the 24 incentive. The bill also addresses costs allowed under the 25 program. 26 Code section 256C.3, relating to preschool program 27 requirements, is amended to require each school district to 28 implement a plan for the school district’s preschool program to 29 have sufficient capacity to operate without a waiting list for 30 school budget years beginning on or after July 1, 2017. 31 To be eligible for the preschool expansion incentive, 32 a school district must develop and implement a preschool 33 expansion plan, approved by the department, in order to expand 34 enrollment of eligible students in the school district’s 35 -5- LSB 5796SV (2) 85 jp/sc 5/ 7

S.F. 2268 preschool programming. Requirements for the plan are 1 provided in the bill, including how the school district will 2 collaborate with participating families, early care providers, 3 and community partners to expand the district’s preschool 4 enrollment. The department of education is to specify other 5 requirements for the plan and for approval of plans by the 6 department. 7 Current law in Code section 256C.4 prohibits inclusion 8 in the preschool program of children already included in a 9 school’s enrollment count for purposes of the school aid 10 foundation formula or children who are served by an existing 11 preschool program already receiving state or federal funds for 12 the purpose of providing four-year-old preschool programming 13 while the child is being served by the existing program. The 14 bill allows inclusion of children participating in an existing 15 program if the preschool programming in the existing program 16 has been enhanced as part of the expansion incentive. 17 The incentive program will operate for the three school 18 budget years beginning July 1, 2015, July 1, 2016, and July 19 1, 2017. For those three budget years, a school district is 20 eligible to receive incentive state aid for the increase in 21 the actual enrollment of eligible students in the preschool 22 programming provided by a school district in the immediately 23 preceding school year over the base incentive enrollment. 24 The base incentive enrollment is the average of the actual 25 enrollments of eligible students in the school district’s 26 preschool programming on October 1, 2011, October 1, 2012, 27 and October 1, 2013. The amount of incentive state aid is 28 equal to 20 percent of the regular program state cost per pupil 29 multiplied by the enrollment increase. 30 The incentive state aid is required to be used to defray 31 increases in costs in connection with the school district’s 32 preschool expansion plan. Such costs may include renovation 33 and other facility costs connected with expansion, outreach, 34 one-time expenses, and other costs identified as eligible by 35 -6- LSB 5796SV (2) 85 jp/sc 6/ 7

S.F. 2268 the department. 1 The bill also addresses administration and other costs under 2 the preschool program in amendments to Code sections 256C.3 and 3 256C.4. Authorization is provided for a school district to 4 transport the children participating in the preschool program 5 along with other children. The allowable administrative costs 6 for school districts are increased from 5 to 10 percent. 7 Also, the costs of outreach activities and facility rent are 8 permitted as administrative costs. 9 The bill may include a state mandate as defined in Code 10 section 25B.3. The bill requires that the state cost of 11 any state mandate included in the bill be paid by a school 12 district from state school foundation aid received by the 13 school district under section 257.16. The specification is 14 deemed to constitute state compliance with any state mandate 15 funding-related requirements of Code section 25B.2. The 16 inclusion of this specification is intended to reinstate the 17 requirement of political subdivisions to comply with any state 18 mandates included in the bill. 19 -7- LSB 5796SV (2) 85 jp/sc 7/ 7