S.F. 171 Section 1. Section 257.8, subsection 2, Code 2019, is 1 amended to read as follows: 2 2. Categorical state percent of growth. The categorical 3 state percent of growth for the budget year beginning July 4 1, 2016, is two and twenty-five hundredths percent. The 5 categorical state percent of growth for the budget year 6 beginning July 1, 2017, is one and eleven hundredths percent. 7 The categorical state percent of growth for the budget year 8 beginning July 1, 2018, is one percent. The categorical state 9 percent of growth for each budget year shall be established 10 by statute which shall be enacted within thirty days of the 11 transmission of the governor’s budget required by February 12 1 under section 8.21 during the regular legislative session 13 beginning in the base year. The categorical state percent of 14 growth may include state percents of growth for the teacher 15 salary supplement, the professional development supplement, 16 the early intervention supplement, and the teacher leadership 17 supplement , and for budget years beginning on or after July 1, 18 2020, transportation equity aid payments under section 257.16C . 19 Sec. 2. Section 257.8, subsection 5, paragraph b, Code 2019, 20 is amended to read as follows: 21 b. For the budget year beginning July 1, 2018, and 22 subsequent budget years, references to “supplemental state aid” 23 and “regular program state cost per pupil” shall mean those 24 terms as calculated including the additional amount amounts for 25 the specified budget year beginning July 1, 2018, years under 26 section 257.9, subsection 2 , paragraph “b” , and references to 27 “regular program district cost per pupil” shall mean that term as 28 calculated including any adjustments made under section 257.10, 29 subsection 2 . 30 Sec. 3. Section 257.9, subsection 2, Code 2019, is amended 31 to read as follows: 32 2. Regular program state cost per pupil for 1992-1993 and 33 succeeding years. 34 a. For the budget year beginning July 1, 1992, and 35 -1- LSB 2298XS (2) 88 md/jh 1/ 4

S.F. 171 succeeding budget years beginning before July 1, 2018, the 1 regular program state cost per pupil for a budget year is the 2 regular program state cost per pupil for the base year plus the 3 regular program supplemental state aid for the budget year. 4 b. For the budget year beginning July 1, 2018, the regular 5 program state cost per pupil is the regular program state 6 cost per pupil for the base year plus the regular program 7 supplemental state aid for the budget year, plus five dollars. 8 c. For the budget year beginning July 1, 2019, the regular 9 program state cost per pupil is the regular program state 10 cost per pupil for the base year plus the regular program 11 supplemental state aid for the budget year, plus five dollars. 12 c. d. For the budget year beginning July 1, 2019 2020 , and 13 succeeding budget years, the regular program state cost per 14 pupil for a budget year is the regular program state cost per 15 pupil for the base year plus the regular program supplemental 16 state aid for the budget year. 17 Sec. 4. Section 257.16C, subsection 3, Code 2019, is amended 18 by adding the following new paragraph: 19 NEW PARAGRAPH . d. (1) For the fiscal year beginning 20 July 1, 2019, there is appropriated from the general fund of 21 the state to the department of management for deposit in the 22 transportation equity fund the sum of nineteen million dollars, 23 or so much thereof as is necessary, to be used for the purposes 24 of this section. 25 (2) For each fiscal year beginning on or after July 1, 2020, 26 there is appropriated from the general fund of the state to 27 the department of management for deposit in the transportation 28 equity fund the sum of the following, or so much thereof as is 29 necessary, to be used for the purposes of this section: 30 (a) The amount appropriated to the transportation equity 31 fund under this paragraph for the immediately preceding fiscal 32 year. 33 (b) The product of the amount determined under subparagraph 34 division (a) multiplied by the categorical percent of growth 35 -2- LSB 2298XS (2) 88 md/jh 2/ 4

S.F. 171 under section 257.8, subsection 2, for the budget year 1 beginning on the same date of the fiscal year for which the 2 appropriation is made. 3 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 4 importance, takes effect upon enactment. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill relates to public school funding by modifying 9 provisions relating to the regular program state cost per pupil 10 and by making appropriations to the transportation equity fund. 11 Current Code section 257.9 provides that for the budget 12 year beginning July 1, 2019, and succeeding budget years, the 13 regular program state cost per pupil for a budget year is the 14 regular program state cost per pupil for the base year, which 15 includes the $5 addition made for the budget year beginning 16 July 1, 2018, plus the regular program supplemental state aid 17 for the budget year. 18 Under the bill, for the budget year beginning July 1, 2019, 19 the regular program state cost per pupil is the regular program 20 state cost per pupil for the base year plus the regular program 21 supplemental state aid for the budget year, plus $5. Then with 22 the budget year beginning July 1, 2020, and succeeding budget 23 years, the regular program state cost per pupil will again be 24 calculated as the regular program state cost per pupil for the 25 base year plus the regular program supplemental state aid for 26 the budget year. 27 Code section 257.16C establishes a transportation equity 28 program to provide additional funding for school districts with 29 a transportation cost per pupil that exceeds the statewide 30 adjusted transportation cost per pupil, as determined by the 31 department of management. The amount of transportation equity 32 aid for each school district is an amount equal to the school 33 district’s actual enrollment for the school year, excluding the 34 shared-time enrollment for the school year, multiplied by the 35 -3- LSB 2298XS (2) 88 md/jh 3/ 4

S.F. 171 school district’s transportation cost per pupil differential 1 for the budget year. Code section 257.16C establishes a 2 transportation equity fund and appropriates all moneys in the 3 fund to the department of management for purposes of making 4 the transportation equity aid payments. However, if the 5 balance of the fund exceeds the amount necessary to make all 6 transportation equity aid payments, moneys remaining in the 7 fund are required to be used for transportation base funding 8 payments. Transportation base funding payments for each school 9 district in the state are calculated by multiplying the school 10 district’s enrollment used to calculate transportation equity 11 aid by the lesser of the statewide average transportation cost 12 per pupil or the school district’s transportation cost per 13 pupil for the budget year. 14 For the fiscal year beginning July 1, 2019, the bill 15 appropriates $19 million from the general fund of the state 16 for deposit in the transportation equity fund. For each 17 fiscal year beginning on or after July 1, 2020, the bill 18 appropriates from the general fund of the state to the 19 transportation equity fund the sum of the amount appropriated 20 for the immediately preceding fiscal year plus the product of 21 the amount appropriated for the immediately preceding fiscal 22 year multiplied by the categorical percent of growth for the 23 corresponding school budget year. 24 The bill takes effect upon enactment. 25 -4- LSB 2298XS (2) 88 md/jh 4/ 4