Senate File 247 - IntroducedA Bill ForAn Act 1relating to supplemental aid and modified supplemental
2amounts for certain school districts relating to open
3enrollment and including effective date and applicability
4provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 257.31, subsection 5, unnumbered
2paragraph 1, Code 2023, is amended to read as follows:
   3If a district has unusual circumstances, creating an unusual
4need for additional funds, including but not limited to the
5circumstances enumerated in paragraphs “a” through “n” this
6subsection
, the committee may grant supplemental aid to the
7district from any funds appropriated to the department of
8education for the use of the school budget review committee
9for the purposes of this subsection. The school budget
10review committee shall review a school district’s unexpended
11fund balance prior to any decision regarding unusual finance
12circumstances. Such aid shall be miscellaneous income and
13shall not be included in district cost. In addition to or as
14an alternative to granting supplemental aid the committee may
15establish a modified supplemental amount for the district. The
16school budget review committee shall review a school district’s
17unspent balance prior to any decision to establish a modified
18supplemental amount under this subsection.
19   Sec. 2.  Section 257.31, subsection 5, Code 2023, is amended
20by adding the following new paragraph:
21   NEW PARAGRAPH.  o.  (1)  The percentage of students enrolled
22in the school district as the result of open enrollment
23under section 282.18 is equal to or greater than thirty-five
24percent of the total number of students enrolled in the school
25district. The committee shall not approve supplemental aid or
26a modified supplemental amount that exceeds an amount equal to
27fifty percent of the product of the net increase in the school
28district’s enrollment due to open enrollment multiplied by the
29sum of the following amounts:
   30(a)  The difference between the district’s regular program
31district cost per pupil minus the regular program state cost
32per pupil.
   33(b)  The teacher salary supplement district cost per pupil.
   34(c)  The professional development supplement district cost
35per pupil.
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   1(d)  The early intervention supplement district cost per
2pupil.
   3(2)  Prior to filing a request for supplemental aid or a
4modified supplemental amount based on the grounds specified
5in this paragraph, the board of directors shall hold a public
6hearing on the issue and shall publish the notice of the time
7and place of the public hearing. Notice of the time and place
8of the public hearing shall be published not less than ten nor
9more than twenty days before the public hearing in a newspaper
10that is a newspaper of general circulation in the school
11district.
   12(3)  A school district is not eligible for supplemental aid
13or a modified supplemental amount under this paragraph if a
14majority of the students enrolled in the school district as
15the result of open enrollment are students receiving online
16instruction from a private provider under section 256.43,
17subsection 2.
18   Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate
19importance, takes effect upon enactment.
20   Sec. 4.  APPLICABILITY.  This Act applies July 1, 2023, for
21school budget years beginning on or after that date.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
   25Code section 257.31 provides that if a school district has
26unusual circumstances, creating an unusual need for additional
27funds, including but not limited to the circumstances
28enumerated in the Code section, the school budget review
29committee may grant supplemental aid to the district from
30certain funds appropriated to the department of education for
31the use of the school budget review committee or may establish
32a modified supplemental amount for the district, or both.
   33This bill adds an additional circumstance under which a
34school district may request such amounts from the school budget
35review committee.
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   1Under the bill, if the percentage of students enrolled
2in the school district as the result of open enrollment is
3equal to or greater than 35 percent of the total number of
4students enrolled in the school district, such circumstance
5is an unusual circumstance. However, the bill excludes a
6district if a majority of the students enrolled as the result
7of open enrollment are students receiving online instruction
8from a private provider under Code section 256.43(2). Prior
9to filing a request with the school budget review committee,
10the school district must first hold a public hearing on the
11issue. The committee shall not approve supplemental aid or a
12modified supplemental amount that exceeds an amount equal to
1350 percent of the product of the net increase in the school
14district’s enrollment due to open enrollment multiplied by
15the sum of the following amounts: (1) the difference between
16the district’s regular program district cost per pupil minus
17the regular program state cost per pupil; (2) the teacher
18salary supplement district cost per pupil; (3) the professional
19development supplement district cost per pupil; and (4) the
20early intervention supplement district cost per pupil.
   21The bill takes effect upon enactment and applies July 1,
222023, for school budget years beginning on or after that date.
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