Senate File 351 - Introduced SENATE FILE 351 BY ZAUN A BILL FOR An Act relating to school funding by establishing a school 1 district enrollment supplement program and making 2 appropriations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2460XS (2) 86 md/sc

S.F. 351 Section 1. Section 257.13, subsection 1, Code 2015, is 1 amended to read as follows: 2 1. For the school budget year beginning July 1, 2001, and 3 succeeding budget years beginning before July 1, 2016 , if a 4 district’s actual enrollment for the budget year, determined 5 under section 257.6 , is greater than its budget enrollment for 6 the budget year, the district shall be eligible to receive an 7 on-time funding budget adjustment. The adjustment shall be in 8 an amount equal to the difference between the actual enrollment 9 for the budget year and the budget enrollment for the budget 10 year, multiplied by the district cost per pupil. 11 Sec. 2. Section 257.13, Code 2015, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 4. This section is repealed July 1, 2016. 14 Sec. 3. NEW SECTION . 257.13A School district enrollment 15 supplement program —— appropriation. 16 1. A school district enrollment supplement program is 17 established to provide additional funding for school districts 18 in which the district’s actual enrollment for the budget year 19 exceeds the budget enrollment for the budget year. For the 20 school budget year beginning July 1, 2016, and succeeding 21 budget years, if a district’s actual enrollment for the budget 22 year, determined under section 257.6, is greater than its 23 budget enrollment for the budget year, the district may submit 24 a request to the school budget review committee for a school 25 district enrollment supplement. A request for an enrollment 26 supplement pursuant to this section must be received by the 27 school budget review committee by November 1. The school 28 budget review committee shall approve the request for the 29 enrollment supplement if the district meets the requirements of 30 this section and for the amount specified in subsection 3. 31 2. For each fiscal year beginning on or after July 1, 2016, 32 there is appropriated from the general fund of the state to the 33 department of education an amount necessary to make all school 34 district enrollment supplement payments under this section, as 35 -1- LSB 2460XS (2) 86 md/sc 1/ 4

S.F. 351 calculated in subsection 3. 1 3. The amount of each eligible school district’s enrollment 2 supplement shall be the difference between the school 3 district’s actual enrollment for the budget year minus the 4 school district’s budget enrollment for the budget year 5 multiplied by the regular program state cost per pupil for the 6 budget year. 7 4. School district enrollment supplement payments shall be 8 paid by the department of education in a lump sum at the same 9 time and in the same manner as the first monthly installment 10 is paid on or after January 1 of the budget year under section 11 257.16, subsection 2. 12 5. School district enrollment supplement payments received 13 under this section are miscellaneous income and shall be 14 deposited in the general fund of the school district. However, 15 the school district enrollment supplement amount shall not be 16 included in district cost. An enrollment supplement under this 17 chapter shall not affect the receipt or amount of a budget 18 adjustment received under section 257.14. 19 6. Except for an adjustment to an amount under section 20 257.31, subsection 5, participation in the school district 21 enrollment supplement program under this section shall not 22 affect a school district’s eligibility to receive an amount 23 from the school budget review committee under section 257.31. 24 Sec. 4. Section 257.31, subsection 5, paragraph a, Code 25 2015, is amended to read as follows: 26 a. Any unusual increase or decrease in enrollment. In 27 deciding a school district’s need for additional funds under 28 this paragraph, the school budget review committee shall 29 consider school district enrollment supplement amounts received 30 by the school district under section 257.13A for the same 31 budget year, and may accordingly adjust amounts granted for the 32 purposes of this paragraph. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 2460XS (2) 86 md/sc 2/ 4

S.F. 351 the explanation’s substance by the members of the general assembly. 1 Current Code section 257.13 provides that if a school 2 district’s actual enrollment for the budget year is greater 3 than its budget enrollment for the budget year, the district 4 shall be eligible to receive an on-time funding budget 5 adjustment approved by the school budget review committee. 6 This bill specifies that the provisions of current Code section 7 257.13 apply to school budget years beginning before July 1, 8 2016, and establishes a repeal date of July 1, 2016, for Code 9 section 257.13. 10 The bill establishes a school district enrollment supplement 11 program to provide additional funding for school districts in 12 which the district’s actual enrollment for the budget year 13 exceeds the budget enrollment for the budget year. For the 14 school budget year beginning July 1, 2016, and succeeding 15 budget years, if a district’s actual enrollment for the budget 16 year is greater than its budget enrollment for the budget 17 year, the district may submit a request to the school budget 18 review committee for a school district enrollment supplement. 19 The school budget review committee is required to approve the 20 request for the enrollment supplement if the district meets the 21 requirements of the bill. 22 The amount of each eligible school district’s enrollment 23 supplement is the difference between the school district’s 24 actual enrollment for the budget year minus the school 25 district’s budget enrollment for the budget year multiplied by 26 the regular program state cost per pupil for the budget year. 27 The bill establishes a standing appropriation for each 28 fiscal year beginning on or after July 1, 2016, for an amount 29 necessary to make all school district enrollment supplement 30 payments under the bill. The bill specifies that school 31 district enrollment supplement payments are miscellaneous 32 income and must be deposited in the school district’s general 33 fund. However, the enrollment supplement amount is not to be 34 included in district cost. The bill further specifies that an 35 -3- LSB 2460XS (2) 86 md/sc 3/ 4

S.F. 351 enrollment supplement does not affect the receipt or amount 1 of a budget adjustment received under Code section 257.14, 2 and, except for an adjustment to the amount, does not affect 3 a school district’s eligibility to receive an amount from the 4 school budget review committee under Code section 257.31 based 5 on an increase in enrollment. 6 -4- LSB 2460XS (2) 86 md/sc 4/ 4