Senate File 375 - IntroducedA Bill ForAn Act 1establishing a low-income enrollment categorical funding
2supplement for school districts and including applicability
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 257.1, subsection 2, paragraph b, Code
22023, is amended to read as follows:
   3b.  For the budget year commencing July 1, 1999, and for
4each succeeding budget year beginning before July 1, 2022,
5the regular program foundation base per pupil is eighty-seven
6and five-tenths percent of the regular program state cost per
7pupil. For the budget year commencing July 1, 2022, and for
8each succeeding budget year, the regular program foundation
9base per pupil is eighty-eight and four-tenths percent of the
10regular program state cost per pupil. For the budget year
11commencing July 1, 1991, and for each succeeding budget year
12the special education support services foundation base is
13seventy-nine percent of the special education support services
14state cost per pupil. The combined foundation base is the sum
15of the regular program foundation base, the special education
16support services foundation base, the total teacher salary
17supplement district cost, the total professional development
18supplement district cost, the total early intervention
19supplement district cost, the total teacher leadership
20supplement district cost, the total area education agency
21teacher salary supplement district cost, and the total area
22education agency professional development supplement district
23cost, and the total low-income enrollment supplement district
24cost
.
25   Sec. 2.  Section 257.1, subsection 3, Code 2023, is amended
26to read as follows:
   273.  Computations rounded.  In making computations and
28payments under this chapter, except in the case of computations
29relating to funding of special education support services,
30media services, and educational services provided through the
31area education agencies, and the teacher salary supplement, the
32professional development supplement, the early intervention
33supplement, and the teacher leadership supplement, and the
34low-income enrollment supplement,
the department of management
35shall round amounts to the nearest whole dollar.
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1   Sec. 3.  Section 257.4, subsection 1, paragraph a, Code 2023,
2is amended by adding the following new subparagraph:
3   NEW SUBPARAGRAPH.  (11)  The total low-income enrollment
4supplement district cost.
5   Sec. 4.  Section 257.8, subsection 2, as amended by 2023
6Iowa Acts, Senate File 192, section 1, is amended to read as
7follows:
   82.  Categorical state percent of growth.   The categorical
9state percent of growth for the budget year beginning July
101, 2021, is two and four-tenths percent. The categorical
11state percent of growth for the budget year beginning July
121, 2022, is two and one-half percent. The categorical state
13percent of growth for the budget year beginning July 1, 2023,
14is three percent. The categorical state percent of growth
15for each budget year shall be established by statute which
16shall be enacted within thirty days of the transmission of the
17governor’s budget required by February 1 under section 8.21
18during the regular legislative session beginning in the base
19year. The categorical state percent of growth may include
20state percents of growth for the teacher salary supplement, the
21professional development supplement, the early intervention
22supplement, the teacher leadership supplement, the low-income
23enrollment supplement,
and for budget years beginning on or
24after July 1, 2020, transportation equity aid payments under
25section 257.16C.
26   Sec. 5.  Section 257.9, Code 2023, is amended by adding the
27following new subsection:
28   NEW SUBSECTION.  12.  Low-income enrollment supplement state
29cost per pupil.
  For the budget year beginning July 1, 2024,
30the low-income enrollment supplement state cost per pupil is
31five hundred dollars. The low-income enrollment supplement
32state cost per pupil for the budget year beginning July 1,
332024, and succeeding budget years, shall be the amount of the
34low-income enrollment supplement state cost per pupil under
35this subsection for the base year plus a supplemental state aid
-2-1amount that is equal to the low-income enrollment supplement
2categorical state percent of growth, pursuant to section 257.8,
3subsection 2, for the budget year, multiplied by the amount of
4the low-income enrollment supplement state cost per pupil under
5this subsection for the base year.
6   Sec. 6.  Section 257.10, subsection 8, paragraph a, Code
72023, is amended to read as follows:
   8a.  Combined district cost is the sum of the regular
9program district cost per pupil multiplied by the weighted
10enrollment, the special education support services district
11cost, the total teacher salary supplement district cost, the
12total professional development supplement district cost, the
13total early intervention supplement district cost, the total
14low-income enrollment supplement district cost,
and the total
15teacher leadership supplement district cost, plus the sum of
16the additional district cost allocated to the district to fund
17media services and educational services provided through the
18area education agency, the area education agency total teacher
19salary supplement district cost and the area education agency
20total professional development supplement district cost.
21   Sec. 7.  Section 257.10, Code 2023, is amended by adding the
22following new subsection:
23   NEW SUBSECTION.  12A.  Low-income enrollment supplement cost
24per pupil and district cost.
   25a.  For budget years beginning on or after July 1, 2024,
26the low-income enrollment supplement district cost per pupil
27is equal to the low-income enrollment supplement state cost
28per pupil. The low-income enrollment supplement district cost
29is the low-income enrollment supplement district cost per
30pupil for a budget year multiplied by the number of pupils
31in a school district, as reported by the school district on
32the basic educational data survey for the base year, who are
33eligible for free and reduced price meals under the federal
34National School Lunch Act and the federal Child Nutrition Act
35of 1966, 42 U.S.C. §1751 – 1785.
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   1b.  The funds calculated under this subsection may be used
2for any school general fund purpose.
3   Sec. 8.  Section 257.16, subsection 4, Code 2023, is amended
4to read as follows:
   54.  Notwithstanding any provision to the contrary, if
6the governor orders budget reductions in accordance with
7section 8.31, the teacher salary supplement district cost,
8the professional development supplement district cost, the
9early intervention supplement district cost, the low-income
10enrollment supplement district cost,
and the teacher leadership
11supplement district cost as calculated under section 257.10,
12subsections 9, 10, 11, and 12, and the area education agency
13teacher salary supplement district cost and the area education
14agency professional development supplement district cost
15as calculated under section 257.37A, subsections 1 and 2,
16shall be paid in full as calculated and the reductions in the
17appropriations provided in accordance with this section shall
18be reduced from the remaining moneys appropriated pursuant
19to this section and shall be distributed on a per pupil
20basis calculated with the weighted enrollment determined in
21accordance with section 257.6, subsection 5.
22   Sec. 9.  APPLICABILITY.  This Act applies July 1, 2024, for
23school budget years beginning on or after that date.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
   27This bill establishes a low-income enrollment supplement for
28school districts that is added to the state school foundation
29program for funding school districts under Code chapter 257.
30For the budget year beginning July 1, 2024, the low-income
31enrollment supplement state cost per pupil is $500. The
32low-income enrollment supplement state cost per pupil for the
33budget year beginning July 1, 2024, and succeeding budget
34years, is the amount of the low-income enrollment supplement
35state cost per pupil for the base year plus a supplemental
-4-1state aid amount that is equal to the low-income enrollment
2supplement categorical state percent of growth for the budget
3year multiplied by the amount of the low-income enrollment
4supplement state cost per pupil for the base year.
   5The low-income enrollment supplement district cost per
6pupil is equal to the low-income enrollment supplement state
7cost per pupil. The low-income enrollment supplement district
8cost is the low-income enrollment supplement district cost
9per pupil for a budget year multiplied by the number of
10pupils in a school district who are eligible for free and
11reduced price meals as determined in the base year. The
12low-income enrollment supplement district cost is added to
13the combined foundation base, similar to other categorical
14funding supplements, and is accordingly paid as part of state
15foundation aid to school districts. The bill allows the
16low-income enrollment supplement amounts to be used for any
17school general fund purpose.
   18The bill applies July 1, 2024, for school budget years
19beginning on or after that date.
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