Senate
File
2405
-
Enrolled
Senate
File
2405
AN
ACT
MODIFYING
PROVISIONS
RELATED
TO
THE
DISTRIBUTION
FORMULA
FOR
GENERAL
STATE
FINANCIAL
AID
TO
COMMUNITY
COLLEGES
AND
INCLUDING
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
260C.18C,
Code
2024,
is
amended
to
read
as
follows:
260C.18C
State
aid
distribution
formula.
1.
Purpose.
A
distribution
plan
for
general
state
financial
aid
to
Iowa’s
community
colleges
is
established
for
the
fiscal
year
commencing
July
1,
2005
2025
,
and
succeeding
fiscal
years.
Funds
appropriated
by
the
general
assembly
to
the
department
for
general
financial
aid
to
community
colleges
shall
be
allocated
to
each
community
college
in
the
manner
provided
under
this
section
for
the
community
colleges
to
provide
the
highest
quality
educational
opportunities
and
services,
as
described
in
section
260C.1,
to
the
greatest
number
of
students
.
2.
Definitions.
As
used
in
this
section
and
section
260C.18D
,
unless
the
context
otherwise
requires:
Senate
File
2405,
p.
2
a.
“Base
funding
allocation”
means
the
amount
of
general
state
financial
aid
all
community
colleges
received
in
the
base
year.
b.
“Base
year”
means
the
fiscal
year
immediately
preceding
the
budget
year.
c.
“Below-average
support
per
FTEE”
for
a
community
college
means
the
state-average
combined
support
per
FTEE
minus
the
combined
support
per
FTEE
for
the
community
college
if
the
community
college’s
combined
support
per
FTEE
is
less
than
the
state-average
combined
support
per
FTEE.
d.
c.
“Budget
year”
means
the
fiscal
year
for
which
moneys
are
appropriated
by
the
general
assembly.
e.
d.
“Combined
support”
for
a
community
college
means
the
total
amount
of
moneys
the
community
college
received
in
general
state
financial
aid
in
the
base
year
plus
the
community
college’s
general
fund
property
tax
revenue,
including
utility
replacement,
for
the
base
year.
f.
“Combined
support
per
FTEE”
for
a
community
college
means
the
community
college’s
combined
support
divided
by
its
three-year
rolling
average
full-time
equivalent
enrollment
for
the
three
years
prior
to
the
base
year.
g.
“Contact
hour”
for
a
noncredit
course
equals
fifty
minutes
of
contact
between
an
instructor
and
students
in
a
scheduled
course
offering
for
which
students
are
registered.
h.
“Credit
hour”
,
for
purposes
of
community
college
funding
distribution,
shall
be
as
defined
by
the
department
by
rule.
i.
“Eligible
credit
courses”
means
all
credit
courses
that
are
eligible
for
general
state
financial
aid
which
are
part
of
a
department-approved
program
of
study.
The
department
shall
review
and
provide
a
determination
should
a
question
of
eligibility
occur.
j.
“Eligible
growth
support”
for
a
community
college
is
the
community
college’s
below-average
support
per
FTEE
multiplied
times
its
three-year
rolling
average
full-time
equivalent
enrollment.
k.
“Eligible
noncredit
courses”
means
all
noncredit
courses
eligible
for
general
state
financial
aid
which
fall
under
one
of
the
eligible
categories
for
noncredit
courses
as
defined
by
rule
of
the
department.
The
department
shall
review
and
Senate
File
2405,
p.
3
provide
a
determination
should
a
question
of
eligibility
occur.
l.
“Eligible
student”
means
a
student
enrolled
in
eligible
credit
or
eligible
noncredit
courses.
The
department
shall
review
and
provide
a
determination
should
a
question
of
eligibility
occur.
m.
e.
“Fiscal
year”
means
the
period
of
twelve
months
beginning
on
July
1
and
ending
on
June
30.
n.
One
“full-time
equivalent
enrollment
(FTEE)”
equals
twenty-four
credit
hours
for
credit
courses
or
six
hundred
contact
hours
for
noncredit
courses
generated
by
all
eligible
students
enrolled
in
eligible
courses.
o.
f.
“General
fund
property
tax
revenue”
means
the
amount
of
moneys
a
community
college
raised
or
could
have
raised
from
a
property
tax
of
twenty
and
one-fourth
cents
per
thousand
dollars
of
assessed
valuation
on
all
taxable
property
in
its
merged
area
collected
for
the
base
year.
p.
g.
“General
state
financial
aid”
means
the
amount
of
general
state
financial
aid
the
community
college
received
from
the
general
fund.
q.
“Inflation
adjustment
amount”
means
the
inflation
rate
minus
two
percentage
points
multiplied
times
the
base
funding
allocation.
The
inflation
adjustment
amount
shall
not
be
less
than
zero.
r.
“Inflation
rate”
means
the
average
of
the
preceding
twelve-month
percentage
change,
which
shall
be
computed
on
a
monthly
basis,
in
the
consumer
price
index
for
all
urban
consumers,
not
seasonally
adjusted,
published
by
the
United
States
department
of
labor,
bureau
of
labor
statistics,
calculated
for
the
calendar
year
ending
six
months
after
the
beginning
of
the
base
year.
s.
“State-average
combined
support
per
FTEE”
means
the
average
of
the
combined
support
per
FTEE
for
all
community
colleges
in
the
state
in
the
base
year.
t.
“Three-year
rolling
average
full-time
equivalent
enrollment”
means
the
average
of
the
audited
full-time
equivalent
enrollment
for
a
community
college
over
the
three
fiscal
years
prior
to
the
base
year
as
determined
by
the
department.
u.
“Total
growth
support
amount”
means
the
sum
of
the
Senate
File
2405,
p.
4
eligible
growth
support
for
all
the
community
colleges.
3.
Distribution
formula.
Moneys
appropriated
by
the
general
assembly
from
the
general
fund
to
the
department
for
community
college
purposes
for
general
state
financial
aid
for
a
budget
year
shall
be
allocated
to
each
community
college
by
the
department
as
follows:
a.
If
the
inflation
rate
is
equal
to
two
percent
or
less:
(1)
Base
funding
allocation.
The
moneys
shall
first
be
allocated
in
the
amount
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
If
the
appropriation
is
less
than
the
total
of
the
amount
of
general
state
financial
aid
each
community
college
received
in
the
base
year,
the
moneys
shall
be
allocated
in
the
same
proportion
as
the
allocation
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
(2)
Marginal
cost
adjustment.
After
the
base
funding
has
been
allocated,
each
community
college
shall
be
allocated
up
to
an
additional
two
percent
of
its
base
funding
allocation.
The
community
college’s
allocation
shall
be
in
the
same
proportion
as
the
allocation
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
(3)
Three-year
rolling
average
of
full-time
equivalent
enrollment.
If
the
increase
in
the
total
state
general
aid
exceeds
two
percent
over
the
base
funding
allocation,
an
amount
up
to
an
additional
one
percent
of
the
base
funding
allocation
shall
be
distributed
based
upon
each
community
college’s
proportional
share
of
the
three-year
rolling
average
full-time
equivalent
enrollments
for
all
community
colleges.
(4)
Extraordinary
growth
adjustment.
If
the
increase
in
total
state
general
aid
exceeds
three
percent
over
the
base
funding
allocation,
an
amount
up
to
an
additional
one
percent
of
the
base
funding
allocation
shall
be
distributed
as
follows:
(a)
Forty
percent
of
the
moneys
shall
be
allocated
based
upon
each
community
college’s
proportional
share
of
the
three-year
rolling
average
full-time
equivalent
enrollments
for
all
community
colleges.
(b)
Sixty
percent
of
the
moneys
shall
be
allocated
to
community
colleges
that
have
eligible
growth
support.
The
allocation
shall
be
based
upon
the
proportional
share
that
each
Senate
File
2405,
p.
5
community
college’s
eligible
growth
support
bears
to
the
total
growth
support
amount.
Once
the
moneys
allocated
under
this
subparagraph
division
equal
the
total
growth
support
amount,
the
remaining
moneys
allocated
under
this
subparagraph
shall
be
allocated
as
provided
in
subparagraph
division
(a).
(5)
Additional
three-year
rolling
average
FTEE
allocation.
If
the
increase
in
total
state
general
aid
exceeds
four
percent
over
the
base
funding
allocation,
all
remaining
moneys
shall
be
distributed
based
upon
each
college’s
proportional
share
of
the
three-year
rolling
average
full-time
equivalent
enrollments
for
all
community
colleges
Annually,
on
or
before
October
31
of
each
year,
the
presidents
of
the
community
colleges
and
the
chancellors
of
the
community
colleges
who
serve
as
the
chief
executive
officers
of
such
community
colleges
shall
establish
a
distribution
formula
for
general
state
aid
to
the
community
colleges
for
the
succeeding
budget
year
.
When
determining
the
distribution
formula
pursuant
to
this
paragraph,
the
presidents
and
chancellors
shall
consider
the
enrollment
and
combined
support
for
each
community
college,
along
with
any
other
factor
deemed
relevant
by
the
presidents
and
chancellors.
The
distribution
formula
shall
not
allocate
funding
to
a
community
college
that
is
below
the
general
state
financial
aid
the
community
college
received
in
any
previous
budget
year,
unless
there
is
a
reduction
in
the
base
funding
allocation.
The
distribution
formula
requires
the
approval
of
at
least
ten
of
the
presidents
and
chancellors.
If
the
presidents
and
chancellors
approve
a
distribution
formula
pursuant
to
this
paragraph,
the
presidents
and
chancellors
shall
transmit
the
distribution
formula
to
the
department,
and
the
department
shall
implement
the
distribution
formula.
b.
If
the
inflation
rate
is
greater
than
two
percent
but
less
than
four
percent:
(1)
Base
funding
allocation.
The
moneys
shall
first
be
allocated
in
the
amount
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
If
the
appropriation
is
less
than
the
total
of
the
amount
of
general
state
financial
aid
each
community
college
received
in
the
base
year,
the
moneys
shall
be
allocated
in
the
same
proportion
as
the
allocation
of
general
state
financial
aid
each
community
Senate
File
2405,
p.
6
college
received
in
the
base
year.
(2)
Marginal
cost
adjustment.
After
the
base
funding
has
been
allocated,
each
community
college
shall
be
allocated
up
to
an
additional
two
percent
of
its
base
funding
allocation.
The
community
college’s
allocation
shall
be
in
the
same
proportion
as
the
allocation
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
(3)
Three-year
rolling
average
of
full-time
equivalent
enrollment.
If
the
increase
in
the
total
state
general
aid
exceeds
two
percent
over
the
base
funding
allocation,
an
amount
up
to
an
additional
one
percent
of
the
base
funding
allocation
shall
be
distributed
based
upon
each
community
college’s
proportional
share
of
the
three-year
rolling
average
full-time
equivalent
enrollments
for
all
community
colleges.
(4)
Extraordinary
growth
adjustment.
If
the
increase
in
total
state
general
aid
exceeds
three
percent
over
the
base
funding
allocation,
an
amount
up
to
an
additional
one
percent
of
the
base
funding
allocation
shall
be
based
as
follows:
(a)
Forty
percent
of
the
moneys
shall
be
allocated
based
upon
each
community
college’s
proportional
share
of
the
three-year
rolling
average
full-time
equivalent
enrollments
for
all
community
colleges.
(b)
Sixty
percent
of
the
moneys
shall
be
allocated
to
community
colleges
that
have
eligible
growth
support.
The
allocation
shall
be
based
upon
the
proportional
share
that
each
community
college’s
eligible
growth
support
bears
to
the
total
growth
support
amount.
Once
the
moneys
allocated
under
this
subparagraph
division
equal
the
total
growth
support
amount,
the
remaining
moneys
allocated
under
this
subparagraph
shall
be
allocated
as
provided
in
subparagraph
division
(a).
(5)
Inflation
adjustment.
If
the
increase
in
total
state
general
aid
exceeds
four
percent
over
the
base
funding
allocation,
an
amount
up
to
the
inflation
adjustment
amount
shall
be
distributed
to
each
community
college
in
the
same
proportion
as
the
allocation
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
(6)
Additional
three-year
rolling
average
FTEE
allocation.
If
there
are
remaining
moneys
to
be
distributed
under
this
paragraph
after
distributing
moneys
under
Senate
File
2405,
p.
7
subparagraph
(5),
all
remaining
moneys
shall
be
distributed
based
upon
each
community
college’s
proportional
share
of
the
three-year
rolling
average
full-time
equivalent
enrollments
for
all
community
colleges
If
the
presidents
of
the
community
colleges
and
the
chancellors
of
the
community
colleges
who
serve
as
the
chief
executive
officers
of
such
community
colleges
fail
to
approve
a
distribution
formula
on
or
before
October
31
pursuant
to
paragraph
“a”
,
the
department
shall
establish
the
distribution
formula
for
general
state
aid
to
the
community
colleges
for
the
succeeding
budget
year
.
When
determining
the
distribution
formula
pursuant
to
this
paragraph,
the
department
shall
consider
the
enrollment
and
combined
support
for
each
community
college,
along
with
any
other
factor
deemed
relevant
by
the
department.
The
distribution
formula
shall
not
allocate
funding
to
a
community
college
that
is
below
the
general
state
financial
aid
the
community
college
received
in
any
previous
budget
year,
unless
there
is
a
reduction
in
the
base
funding
allocation.
c.
If
the
inflation
rate
equals
or
exceeds
four
percent:
(1)
Base
funding
allocation.
The
moneys
shall
first
be
allocated
in
the
amount
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
If
the
appropriation
is
less
than
the
total
of
the
amount
of
general
state
financial
aid
each
community
college
received
in
the
base
year,
the
moneys
shall
be
allocated
in
the
same
proportion
as
the
allocation
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
(2)
Marginal
cost
adjustment.
After
the
base
funding
has
been
allocated,
each
community
college
shall
be
allocated
up
to
an
additional
two
percent
of
its
base
funding
allocation.
The
community
college’s
allocation
shall
be
in
the
same
proportion
as
the
allocation
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
(3)
Three-year
rolling
average
of
full-time
equivalent
enrollment.
If
the
increase
in
the
total
state
general
aid
exceeds
two
percent
over
the
base
funding
allocation,
an
amount
up
to
an
additional
one
percent
of
the
base
funding
allocation
shall
be
distributed
based
upon
each
community
college’s
proportional
share
of
the
three-year
rolling
average
full-time
Senate
File
2405,
p.
8
equivalent
enrollments
for
all
community
colleges.
(4)
Inflation
adjustment.
If
the
increase
in
total
state
general
aid
exceeds
three
percent
over
the
base
funding
allocation,
an
amount
up
to
the
inflation
adjustment
amount
shall
be
distributed
to
each
community
college
in
the
same
proportion
as
the
allocation
of
general
state
financial
aid
each
community
college
received
in
the
base
year.
(5)
Extraordinary
growth
adjustment.
If
there
are
remaining
moneys
to
be
distributed
under
this
paragraph
after
distributing
moneys
under
subparagraph
(4),
an
amount
up
to
an
additional
one
percent
of
the
base
funding
allocation
shall
be
based
as
follows:
(a)
Forty
percent
of
the
moneys
shall
be
allocated
based
upon
each
community
college’s
proportional
share
of
the
three-year
rolling
average
full-time
equivalent
enrollments
for
all
community
colleges.
(b)
Sixty
percent
of
the
moneys
shall
be
allocated
to
community
colleges
that
have
eligible
growth
support.
The
allocation
shall
be
based
upon
the
proportional
share
that
each
community
college’s
eligible
growth
support
bears
to
the
total
growth
support
amount.
Once
the
moneys
allocated
under
this
subparagraph
division
equal
the
total
growth
support
amount,
the
remaining
moneys
allocated
under
this
subparagraph
shall
be
allocated
as
provided
in
subparagraph
division
(a).
(6)
Additional
three-year
rolling
average
FTEE
allocation.
If
there
are
remaining
moneys
to
be
distributed
under
this
paragraph
after
distributing
moneys
under
subparagraph
(5),
all
remaining
moneys
shall
be
distributed
based
upon
each
community
college’s
proportional
share
of
the
three-year
rolling
average
full-time
equivalent
enrollments
for
all
community
colleges.
4.
Information
supplied
by
colleges
and
adoption
of
rules.
a.
Each
community
college
shall
provide
information
in
the
manner
and
form
as
determined
by
the
department.
If
a
community
college
fails
to
provide
the
information
as
requested,
the
department
shall
estimate
the
full-time
equivalent
enrollment
of
that
college.
b.
Each
community
college
shall
complete
and
submit
an
annual
student
enrollment
audit
to
the
department.
Adjustments
Senate
File
2405,
p.
9
to
community
college
state
general
aid
allocations
shall
be
made
based
on
student
enrollment
audit
outcomes.
c.
The
department
shall
adopt
rules
under
chapter
17A
as
necessary
for
the
allocation
of
general
state
financial
aid.
Sec.
2.
APPLICABILITY.
This
Act
applies
to
budget
years
beginning
on
or
after
July
1,
2025.
______________________________
AMY
SINCLAIR
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
2405,
Ninetieth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2024
______________________________
KIM
REYNOLDS
Governor