Senate File 455 H-8010 Amend Senate File 455, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < DIVISION I 5 STATE AND DISTRICT COSTS PER PUPIL 6 Section 1. Section 257.2, subsection 12, Code 2018, is 7 amended to read as follows: 8 12. “Supplemental state aid” means the amount by which state 9 cost per pupil and district cost per pupil will increase from 10 one budget year to the next as the result of the state percent 11 of growth . 12 Sec. 2. Section 257.8, subsection 5, Code 2018, is amended 13 to read as follows: 14 5. Alternate supplemental state aid —— definitions. 15 a. For budget years beginning July 1, 2000, and subsequent 16 budget years, references to the terms “supplemental state aid” , 17 “regular program state cost per pupil” , and “regular program 18 district cost per pupil” shall mean those terms as calculated 19 for those school districts that calculated regular program 20 supplemental state aid for the school budget year beginning 21 July 1, 1999, with the additional thirty-eight dollars 22 specified in section 257.8, subsection 4, Code 2013 . 23 b. For the budget year beginning July 1, 2018, and 24 subsequent budget years, references to “supplemental state 25 aid” and “regular program state cost per pupil” shall mean 26 those terms as calculated including the additional amount for 27 the budget year beginning July 1, 2018, under section 257.9, 28 subsection 2, paragraph “b” , and references to “regular program 29 district cost per pupil” shall mean that term as calculated 30 including any adjustments made under section 257.10, subsection 31 2. 32 Sec. 3. Section 257.9, subsection 2, Code 2018, is amended 33 to read as follows: 34 2. Regular program state cost per pupil for 1992-1993 and 35 -1- SF455.3264 (4) 87 md/jh 1/ 6 #1.

succeeding years. 1 a. For the budget year beginning July 1, 1992, and 2 succeeding budget years beginning before July 1, 2018 , the 3 regular program state cost per pupil for a budget year is the 4 regular program state cost per pupil for the base year plus the 5 regular program supplemental state aid for the budget year. 6 b. For the budget year beginning July 1, 2018, the regular 7 program state cost per pupil is the regular program state 8 cost per pupil for the base year plus the regular program 9 supplemental state aid for the budget year, plus five dollars. 10 c. For the budget year beginning July 1, 2019, and 11 succeeding budget years, the regular program state cost per 12 pupil for a budget year is the regular program state cost per 13 pupil for the base year plus the regular program supplemental 14 state aid for the budget year. 15 Sec. 4. Section 257.10, subsection 2, paragraph b, Code 16 2018, is amended to read as follows: 17 b. If the regular program district cost per pupil of a 18 school district for the budget year under paragraph “a” exceeds 19 one hundred five percent of the regular program state cost 20 per pupil for the budget year and the state percent of growth 21 for the budget year is greater than two percent, the regular 22 program district cost per pupil for the budget year for that 23 district shall be reduced to one hundred five percent of the 24 regular program state cost per pupil for the budget year. 25 However, under such conditions, if the difference between the 26 regular program district cost per pupil for the budget year and 27 the regular program state cost per pupil for the budget year 28 is greater than an amount equal to two percent multiplied by 29 the regular program state cost per pupil for the base year, the 30 regular program district cost per pupil for the budget year 31 shall be reduced by the amount equal to two percent multiplied 32 by the regular program state cost per pupil for the base year. 33 Sec. 5. Section 257.10, subsection 2, Code 2018, is amended 34 by adding the following new paragraph: 35 -2- SF455.3264 (4) 87 md/jh 2/ 6

NEW PARAGRAPH . c. For the budget year beginning July 1, 1 2018, and succeeding budget years, if the regular program 2 district cost per pupil for the budget year calculated under 3 this subsection in any school district is less than the 4 regular program state cost per pupil for the budget year, the 5 department of management shall increase the regular program 6 district cost per pupil of that district to an amount equal to 7 the regular program state cost per pupil for the budget year. 8 Sec. 6. EFFECTIVE UPON ENACTMENT. This division of this 9 Act, being deemed of immediate importance, takes effect upon 10 enactment. 11 DIVISION II 12 SCHOOL DISTRICT TRANSPORTATION COSTS 13 Sec. 7. NEW SECTION . 257.16C Transportation equity program 14 —— fund. 15 1. A transportation equity program is established to 16 provide prioritized additional funding for school districts 17 with a transportation cost per pupil that exceeds the statewide 18 adjusted transportation cost per pupil for the same budget 19 year. 20 2. a. For the budget year beginning July 1, 2018, and 21 each succeeding budget year, the department of management 22 shall annually determine a statewide adjusted transportation 23 cost per pupil that is not lower than the statewide average 24 transportation cost per pupil. The statewide adjusted 25 transportation cost per pupil shall be annually determined, by 26 taking into account amounts appropriated to the transportation 27 equity fund under subsection 3, for the purpose of providing 28 transportation equity aid for those school districts with the 29 highest transportation cost per pupil differential. 30 b. Each school district that satisfies the criteria of 31 subsection 1 shall receive transportation equity aid in an 32 amount equal to the school district’s actual enrollment for 33 the school year, excluding the shared-time enrollment for the 34 school year, multiplied by the school district’s transportation 35 -3- SF455.3264 (4) 87 md/jh 3/ 6

cost per pupil differential for the budget year. 1 c. For purposes of this section: 2 (1) “Statewide average transportation cost per pupil” means 3 the total transportation cost for all school districts in the 4 state used to calculate each school district’s transportation 5 cost per pupil under paragraph “d” divided by the total 6 enrollment for all school districts used to calculate each 7 school district’s transportation cost per pupil under paragraph 8 “d” . 9 (2) “Transportation cost per pupil differential” means an 10 amount equal to a school district’s transportation cost per 11 pupil minus the statewide adjusted transportation cost per 12 pupil for the same budget year. 13 d. A school district’s transportation cost per pupil 14 shall be determined by dividing the school district’s actual 15 transportation cost for all children transported in all school 16 buses for a school year pursuant to section 285.1, subsection 17 12, less the amount received for transporting nonpublic school 18 pupils under section 285.1, by the district’s actual enrollment 19 for the school year, excluding the shared-time enrollment for 20 the school year as defined in section 257.6. 21 3. a. A transportation equity fund is created as a separate 22 and distinct fund in the state treasury under the control of 23 the department of management. Moneys in the fund include 24 revenues credited to the fund, appropriations made to the 25 fund, and other moneys deposited in the fund. For each fiscal 26 year beginning on or after July 1, 2018, there is appropriated 27 all moneys in the fund to the department of management for 28 purposes of making transportation equity aid payments under 29 this section. 30 b. If the balance of the fund exceeds the amount necessary 31 to make all transportation equity aid payments under 32 subsection 2, moneys remaining in the fund shall be used for 33 transportation base funding payments under subsection 4. 34 c. If the balance of the fund exceeds the amount necessary 35 -4- SF455.3264 (4) 87 md/jh 4/ 6

to make all transportation equity aid payments and all 1 transportation base funding payments, moneys remaining in the 2 fund at the end of a fiscal year, notwithstanding section 8.33, 3 shall remain in the fund and shall be available for expenditure 4 for the purposes of this section in subsequent fiscal years. 5 4. For budget years beginning on or after July 1, 2018, if 6 funding is available as provided in subsection 3, paragraph 7 “b” , each school district in the state shall receive a 8 transportation base funding payment in an amount equal to 9 the school district’s enrollment used under subsection 2, 10 paragraph “d” , multiplied by the lesser of the statewide 11 average transportation cost per pupil or the school district’s 12 transportation cost per pupil for the budget year. If an 13 amount appropriated for a budget year is insufficient to pay 14 all transportation base funding payments, the department of 15 management shall prorate such payment amounts. 16 5. a. The sum of the transportation equity aid payment 17 and the transportation base funding payment paid to a school 18 district for a budget year shall not exceed the school 19 district’s actual transportation cost used to calculate 20 the school district’s transportation cost per pupil under 21 subsection 2, paragraph “d” , for the budget year. 22 b. Transportation equity aid payments and transportation 23 base funding payments shall be paid at the same time and in the 24 same manner as foundation aid is paid under section 257.16, 25 and may be included in the monthly payment of state aid under 26 section 257.16, subsection 2. 27 6. Transportation equity aid payments and transportation 28 base funding payments received under this section are 29 miscellaneous income and shall be deposited in the general fund 30 of the school district. However, the transportation equity aid 31 amount and the transportation base funding amount shall not be 32 included in district cost. Transportation equity aid under 33 this section shall not affect the receipt or amount of a budget 34 adjustment received under section 257.14 or transportation 35 -5- SF455.3264 (4) 87 md/jh 5/ 6

assistance aid under section 257.31, subsection 17. 1 Sec. 8. TRANSPORTATION EQUITY FUND —— APPROPRIATION. There 2 is appropriated from the general fund of the state to the 3 department of management for the fiscal year beginning July 4 1, 2018, and ending June 30, 2019, the following amount, or 5 so much thereof as is necessary, to be used for the purposes 6 designated: 7 For deposit in the transportation equity fund created 8 pursuant to section 257.16C, subsection 3: 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,200,000 10 Sec. 9. EFFECTIVE DATE. This division of this Act, being 11 deemed of immediate importance, takes effect upon enactment. > 12 2. Title page, by striking lines 1 through 7 and inserting 13 < An Act relating to school district funding by modifying and 14 establishing provisions relating to state school foundation 15 program and school district transportation costs, making 16 appropriations, and including effective date provisions. > 17 ______________________________ COMMITTEE ON APPROPRIATIONS GRASSLEY of Butler, Chairperson -6- SF455.3264 (4) 87 md/jh 6/ 6 #2.