S.F. 2032 Section 1. Section 257.8, subsection 2, Code 2020, 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 1, 4 2017, is one and eleven hundredths percent. The categorical 5 state percent of growth for the budget year beginning July 1, 6 2018, is one percent. The state percent of growth for the 7 budget year beginning July 1, 2019, is two and six hundredths 8 percent. The categorical state percent of growth for each 9 budget year shall be established by statute which shall 10 be enacted within thirty days of the transmission of the 11 governor’s budget required by February 1 under section 8.21 12 during the regular legislative session beginning in the base 13 year. The categorical state percent of growth may include 14 state percents of growth for the teacher salary supplement, the 15 professional development supplement, the early intervention 16 supplement, and the teacher leadership supplement , and for 17 budget years beginning on or after July 1, 2020, transportation 18 equity aid payments under section 257.16C . 19 Sec. 2. Section 257.11, Code 2020, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 7A. School district transportation costs. 22 a. In order to provide additional funds for school district 23 transportation costs resulting from the transportation of 24 resident pupils required by chapter 285 and paid from sources 25 other than the district’s physical plant and equipment levy 26 fund under section 298A.4 or revenue received from the secure 27 an advanced vision for education fund under section 423F.2, 28 subsection 3, paragraph “a” , a supplementary weighting plan for 29 such pupils is adopted. 30 b. Each school district shall be assigned a supplementary 31 weighting amount as follows: 32 (1) For the budget year beginning July 1, 2020, thirty 33 percent of the combined weighting amount calculated under 34 paragraph “c” , subparagraph (2), for that budget year. 35 -1- LSB 5212XS (4) 88 md/jh 1/ 7

S.F. 2032 (2) For the budget year beginning July 1, 2021, forty 1 percent of the combined weighting amount calculated under 2 paragraph “c” , subparagraph (2), for that budget year. 3 (3) For the budget year beginning July 1, 2022, fifty 4 percent of the combined weighting amount calculated under 5 paragraph “c” , subparagraph (2), for that budget year. 6 (4) For the budget year beginning July 1, 2023, sixty 7 percent of the combined weighting amount calculated under 8 paragraph “c” , subparagraph (2), for that budget year. 9 (5) For the budget year beginning July 1, 2024, seventy 10 percent of the combined weighting amount calculated under 11 paragraph “c” , subparagraph (2), for that budget year. 12 (6) For the budget year beginning July 1, 2025, eighty 13 percent of the combined weighting amount calculated under 14 paragraph “c” , subparagraph (2), for that budget year. 15 (7) For the budget year beginning July 1, 2026, ninety 16 percent of the combined weighting amount calculated under 17 paragraph “c” , subparagraph (2), for that budget year. 18 (8) For the budget year beginning July 1, 2027, and each 19 succeeding budget year, one hundred percent of the combined 20 weighting amount calculated under paragraph “c” , subparagraph 21 (2), for that budget year. 22 c. (1) (a) Transportation cost factor. For each budget 23 year beginning on or after July 1, 2020, the department of 24 management shall calculate for each school district all of the 25 following: 26 (i) The sum of the school district’s total transportation 27 costs incurred for the transportation of pupils required under 28 chapter 285, and paid from sources other than the district’s 29 physical plant and equipment levy fund under section 298A.4 30 or revenue received from the secure an advanced vision for 31 education fund under section 423F.2, subsection 3, paragraph 32 “a” , for the three years immediately preceding the base year. 33 (ii) The sum of the school district’s regular program 34 district cost for the three years immediately preceding the 35 -2- LSB 5212XS (4) 88 md/jh 2/ 7

S.F. 2032 base year, excluding amounts attributable to budget adjustments 1 received under section 257.14. 2 (iii) The school district’s budget enrollment multiplied by 3 the quotient of the school district’s amount under subparagraph 4 subdivision (i) divided by the school district’s amount under 5 subparagraph subdivision (ii). 6 (iv) The school district’s amount under subparagraph 7 subdivision (iii) divided by the sum of the amounts calculated 8 under subparagraph subdivision (iii) for all school districts. 9 (v) The amount calculated under subparagraph subdivision 10 (iv) multiplied by ninety percent of the sum of all school 11 districts’ transportation costs incurred for the transportation 12 of pupils required under chapter 285 for the year preceding 13 the base year and paid from sources other than the districts’ 14 physical plant and equipment levy fund under section 298A.4 15 or revenue received from the secure an advanced vision for 16 education fund under section 423F.2, subsection 3, paragraph 17 “a” . 18 (vi) The quotient of the amount calculated under 19 subparagraph subdivision (v) divided by the regular program 20 state cost per pupil for the budget year. 21 (b) Budget enrollment factor. For each budget year 22 beginning on or after July 1, 2020, the department of 23 management shall calculate for each school district all of the 24 following: 25 (i) The quotient of the school district’s budget enrollment 26 divided by the statewide total budget enrollment multiplied by 27 five percent of the sum of all school districts’ transportation 28 costs incurred for the transportation of pupils required under 29 chapter 285 for the year preceding the base year and paid from 30 sources other than the district’s physical plant and equipment 31 levy fund under section 298A.4 or revenue received from the 32 secure an advanced vision for education fund under section 33 423F.2, subsection 3, paragraph “a” . 34 (ii) The amount calculated under subparagraph subdivision 35 -3- LSB 5212XS (4) 88 md/jh 3/ 7

S.F. 2032 (i) divided by the regular program state cost per pupil for the 1 budget year. 2 (c) Route miles factor. For each budget year beginning 3 on or after July 1, 2020, the department of management shall 4 calculate for each school district all of the following: 5 (i) The quotient of the school district’s total route 6 miles traveled for the transportation of pupils required under 7 chapter 285 for the year preceding the base year divided by the 8 school district’s budget enrollment. 9 (ii) The school district’s amount under subparagraph 10 subdivision (i) divided by the sum of the amounts calculated 11 under subparagraph subdivision (i) for all school districts. 12 (iii) The amount calculated under subparagraph subdivision 13 (ii) multiplied by five percent of the sum of all school 14 districts’ transportation costs incurred for the transportation 15 of pupils required under chapter 285 for the year preceding 16 the base year and paid from sources other than the districts’ 17 physical plant and equipment levy fund under section 298A.4 18 or revenue received from the secure an advanced vision for 19 education fund under section 423F.2, subsection 3, paragraph 20 “a” . 21 (iv) The amount calculated under subparagraph subdivision 22 (iii) divided by the regular program state cost per pupil for 23 the budget year. 24 (2) The combined weighting amount for each school district 25 is the sum of the following: 26 (a) The amount calculated under subparagraph (1), 27 subparagraph division (a), subparagraph subdivision (vi). 28 (b) The amount calculated under subparagraph (1), 29 subparagraph division (b), subparagraph subdivision (ii). 30 (c) The amount calculated under subparagraph (1), 31 subparagraph division (c), subparagraph subdivision (iv). 32 d. Funding received by a school district as the result of 33 supplementary weighting under this subsection shall not affect 34 a school district’s eligibility for transportation assistance 35 -4- LSB 5212XS (4) 88 md/jh 4/ 7

S.F. 2032 under section 257.31, subsection 17. 1 e. Amounts received by a school district as the result 2 of supplementary weighting under this subsection shall be 3 deposited in the school district’s general fund and may be used 4 for any general fund purpose. 5 f. If a school district established as the result of a 6 reorganization under chapter 275 does not have sufficient 7 transportation cost data, regular program district cost per 8 pupil data, or enrollment data for the calculation of amounts 9 required under this subsection, the department of management 10 shall use estimated transportation cost data, regular program 11 district cost per pupil data, and enrollment data derived from 12 data for prior budget years from each district involved in 13 the reorganization until such amounts can be calculated using 14 actual data for the reorganized school district. 15 g. For the budget years beginning July 1, 2020, July 1, 16 2021, and July 1, 2022, and if necessary, any subsequent budget 17 years, if insufficient or incomplete transportation cost data 18 makes the implementation of this subsection impractical, the 19 department of management shall, in consultation with the 20 department of education and the legislative services agency, 21 establish procedures and modified methodologies for calculating 22 supplementary weighting and funding amounts under this 23 subsection. 24 Sec. 3. Section 257.11, subsection 8, Code 2020, is amended 25 to read as follows: 26 8. Pupils ineligible. A Except for transportation weighting 27 under subsection 7A, a pupil eligible for the weighting plan 28 provided in section 256B.9 is not eligible for supplementary 29 weighting pursuant to this section unless it is determined 30 that the course generating the supplemental weighting has no 31 relationship to the pupil’s disability. A pupil attending an 32 alternative program or an at-risk pupils’ program, including 33 alternative high school programs, is not eligible for 34 supplementary weighting under subsection 2 . 35 -5- LSB 5212XS (4) 88 md/jh 5/ 7

S.F. 2032 Sec. 4. Section 257.31, subsection 17, paragraphs a and d, 1 Code 2020, are amended to read as follows: 2 a. If a district’s average transportation costs per 3 pupil exceed the state average transportation costs per 4 pupil determined under paragraph “c” by one hundred fifty 5 percent, the committee may grant transportation assistance aid 6 to the district using exclusively the funds transferred to 7 the committee in accordance with section 321.34, subsection 8 22 . Such aid shall be miscellaneous income and shall not be 9 included in district cost. 10 d. Funds transferred to the committee in accordance with 11 section 321.34, subsection 22 , are appropriated to and may be 12 expended for the purposes of the committee, as described in 13 this section subsection . However, highest priority shall be 14 given to districts that meet the conditions described in this 15 subsection . Notwithstanding any other provision of the Code, 16 unencumbered or unobligated funds transferred to the committee 17 pursuant to section 321.34, subsection 22 , remaining on June 18 30 of the fiscal year for which the funds were transferred, 19 shall not revert but shall be available for expenditure for the 20 purposes of this subsection in subsequent fiscal years. 21 Sec. 5. REPEAL. Section 257.16C, Code 2020, is repealed. 22 Sec. 6. APPLICABILITY. This Act applies to school budget 23 years beginning on or after July 1, 2020. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill establishes a supplementary weighting plan 28 for school district transportation costs resulting from the 29 transportation of pupils as required under Code chapter 285. 30 The bill establishes a methodology for calculating the 31 amount of supplementary weighting assigned to each school 32 district. The calculation is made using school district 33 transportation cost data, school district enrollment data, 34 and school district transportation route mile data. The 35 -6- LSB 5212XS (4) 88 md/jh 6/ 7

S.F. 2032 amount of the supplementary weighting is phased in over a 1 period of eight school budget years beginning with the budget 2 year beginning July 1, 2020. Under the bill, if a school 3 district established as the result of a reorganization does not 4 have sufficient data for the calculation of amounts required 5 under the bill, the department of management is required to 6 use estimated data derived from data for prior budget years 7 from each district involved in the reorganization until such 8 amounts can be calculated using actual data for the reorganized 9 school district. In addition, for specified budget years, 10 if insufficient or incomplete transportation cost data makes 11 the implementation of the bill impractical, the department 12 of management is required to, in consultation with the 13 department of education and the legislative services agency, 14 establish procedures and modified methodologies for calculating 15 supplementary weighting and funding amounts under the bill. 16 The bill specifies that funding received by a school 17 district as the result of supplementary weighting in the 18 bill does not affect a school district’s eligibility for 19 transportation funding under Code section 257.16C or assistance 20 granted by the school budget review committee and specifies 21 that transportation assistance granted by the school budget 22 review committee may only be granted using funds transferred to 23 the committee in accordance with Code section 321.34(22). The 24 bill also provides that funding received by a school district 25 as the result of the supplementary weighting must be deposited 26 in the school district’s general fund and may be used for any 27 general fund purpose. 28 The bill repeals the transportation equity program and fund 29 under Code section 257.16C. 30 The bill applies to school budget years beginning on or after 31 July 1, 2020. 32 -7- LSB 5212XS (4) 88 md/jh 7/ 7