House File 534 - Introduced HOUSE FILE BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 114) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to incentives for school district reorganizations 2 and shared operational functions, and making an appropriation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1228HV 82 5 ak/je/5 PAG LIN 1 1 Section 1. Section 257.3, subsection 2, paragraph d, Code 1 2 2007, is amended to read as follows: 1 3 d. For purposes of this section, a reorganized school 1 4 district is one which absorbs at least thirty percent of the 1 5 enrollment of the school district affected by a reorganization 1 6 or dissolved during a dissolution and in which action to bring 1 7 about a reorganization or dissolution is initiated by a vote 1 8 of the board of directors or jointly by the affected boards of 1 9 directors to take effect on or after July 1,20022007, and on 1 10 or before July 1,20062014. Each district which initiated, 1 11 by a vote of the board of directors or jointly by the affected 1 12 boards, action to bring about a reorganization or dissolution 1 13 to take effect on or after July 1,20022007, and on or before 1 14 July 1,20062014, shall certify the date and the nature of 1 15 the action taken to the department of education by January 1 1 16 of the year in which the reorganization or dissolution takes 1 17 effect. For a reorganization or dissolution that took effect 1 18 on or after July 1, 2002, and on or before July 1, 2006, the 1 19 reorganized school district shall continue to receive the 1 20 benefits of paragraphs "a" and "b" of this subsection for the 1 21 time specified in those paragraphs. 1 22 Sec. 2. Section 257.11, subsection 2, paragraph c, Code 1 23 2007, is amended by striking the paragraph and inserting in 1 24 lieu thereof the following: 1 25 c. Pupils attending class for all or a substantial portion 1 26 of a school day pursuant to a whole grade sharing agreement 1 27 executed under sections 282.10 through 282.12 shall be 1 28 eligible for supplementary weighting pursuant to this 1 29 subsection. A school district which executes a whole grade 1 30 sharing agreement and which adopts a resolution jointly with 1 31 other affected boards to study the question of undergoing a 1 32 reorganization or dissolution to take effect on or before July 1 33 1, 2014, shall receive a weighting of one=tenth of the 1 34 percentage of the pupil's school day during which the pupil 1 35 attends classes in another district, attends classes taught by 2 1 a teacher who is jointly employed under section 280.15, or 2 2 attends classes taught by a teacher who is employed by another 2 3 school district. A district shall be eligible for 2 4 supplementary weighting pursuant to this paragraph for a 2 5 maximum of three years. Receipt of supplementary weighting 2 6 for a second and third year shall be conditioned upon 2 7 submission of information resulting from the study to the 2 8 school budget review committee indicating progress toward the 2 9 objective of reorganization on or before July 1, 2014. 2 10 Sec. 3. Section 257.11, subsection 5, paragraph a, Code 2 11 2007, is amended to read as follows: 2 12 a. For the school budget year beginning July 1, 2002,and 2 13 succeeding budget yearsthrough the school budget year 2 14 beginning July 1, 2007, in order to provide additional funds 2 15 for school districts in which a regional academy is located, a 2 16 supplementary weighting plan for determining enrollment is 2 17 adopted. 2 18 Sec. 4. Section 257.11, Code 2007, is amended by adding 2 19 the following new subsection: 2 20 NEW SUBSECTION. 5A. SHARED OPERATIONAL FUNCTIONS == 2 21 INCREASED STUDENT OPPORTUNITIES. 2 22 a. In order to provide additional funding to increase 2 23 student opportunities and redirect more resources to student 2 24 programming for school districts that share operational 2 25 functions, a supplementary weighting of two hundredths per 2 26 pupil shall be assigned to pupils enrolled in a district that 2 27 shares with a political subdivision one or more operational 2 28 functions in the areas of superintendent management, business 2 29 management, human resources, transportation, or operation and 2 30 maintenance for at least twenty percent of the school year. 2 31 The additional weighting shall be assigned for each discrete 2 32 operational function shared. For the purposes of this 2 33 section, "political subdivision" means a city, township, 2 34 county, school corporation, merged area, area education 2 35 agency, institution governed by the state board of regents, or 3 1 any other governmental subdivision. 3 2 b. Supplementary weighting pursuant to this subsection 3 3 shall be available to a school district for a maximum of five 3 4 years during the period commencing with the budget year 3 5 beginning July 1, 2008, through the budget year beginning July 3 6 1, 2013. The minimum amount of additional weighting for which 3 7 a school district shall be eligible is an amount equivalent to 3 8 ten additional pupils, and the maximum amount of additional 3 9 weighting for which a school district shall be eligible is an 3 10 amount equivalent to forty additional pupils. Receipt of 3 11 supplementary weighting by a school district pursuant to this 3 12 subsection for more than one year shall be contingent upon the 3 13 annual submission of information by the district to the 3 14 department documenting cost savings directly attributable to 3 15 the shared operational functions. Criteria for determining 3 16 the number of years for which supplementary weighting shall be 3 17 received pursuant to this subsection, subject to the five=year 3 18 maximum, and for determining qualification of operational 3 19 functions for supplementary weighting shall be determined by 3 20 the department by rule, through consideration of long=term 3 21 savings by the school district or increased student 3 22 opportunities. 3 23 c. Supplementary weighting pursuant to this subsection 3 24 shall be available to an area education agency for a maximum 3 25 of five years during the period commencing with the budget 3 26 year beginning July 1, 2008. The minimum amount of additional 3 27 funding for which an area education agency shall be eligible 3 28 is fifty thousand dollars, and the maximum amount of 3 29 additional funding for which an area education agency shall be 3 30 eligible is two hundred thousand dollars. The department of 3 31 management shall annually set a weighting for each area 3 32 education agency to generate the approved operational sharing 3 33 expense using the area education agency's special education 3 34 cost per pupil amount and foundation level. Receipt of 3 35 supplementary weighting by an area education agency for more 4 1 than one year shall be contingent upon the annual submission 4 2 of information by the district to the department documenting 4 3 cost savings directly attributable to the shared operational 4 4 functions. Criteria for determining the number of years for 4 5 which supplementary weighting shall be received pursuant to 4 6 this subsection, subject to the five=year maximum, and the 4 7 amount generated by the supplementary weighting, and for 4 8 determining qualification of operational functions for 4 9 supplementary weighting shall be determined by the department 4 10 by rule, through consideration of long=term savings by the 4 11 area educational agency or increased student opportunities. 4 12 d. This subsection is repealed effective July 1, 2014. 4 13 Sec. 5. Section 257.11A, Code 2007, is amended to read as 4 14 follows: 4 15 257.11A SUPPLEMENTARY WEIGHTING AND SCHOOL REORGANIZATION. 4 16 1. In determining weighted enrollment under section 257.6, 4 17 if the board of directors of a school district has approved a 4 18 contract for sharing pursuant to section 257.11 and the school 4 19 district has approved an action to bring about a 4 20 reorganization to take effect on and after July 1,20022007, 4 21 and on or before July 1,20062014, the reorganized school 4 22 district shall include, for a period of three years following 4 23 the effective date of the reorganization, additional pupils 4 24 added by the application of the supplementary weighting plan, 4 25 equal to the pupils added by the application of the 4 26 supplementary weighting plan in the year preceding the 4 27 reorganization. For the purposes of this subsection, the 4 28 weighted enrollment for the period of three years following 4 29 the effective date of reorganization shall include the 4 30 supplementary weighting in the base year used for determining 4 31 the combined district cost for the first year of the 4 32 reorganization. However, the weighting shall be reduced by 4 33 the supplementary weighting added for a pupil whose residency 4 34 is not within the reorganized district. 4 35 2. For purposes of this section, a reorganized district is 5 1 one in which the reorganization was approved in an election 5 2 pursuant to sections 275.18 and 275.20 and takes effect on or 5 3 after July 1,20022007, and on or before July 1,20062014. 5 4 Each district which initiates, by a vote of the board of 5 5 directors or jointly by the affected boards, action to bring 5 6 about a reorganization or dissolution to take effect on or 5 7 after July 1,20022007, and on or before July 1,20062014, 5 8 shall certify the date and the nature of the action taken to 5 9 the department of education by January 1 of the year in which 5 10 the reorganization or dissolution takes effect. 5 113. Notwithstanding subsection 1, a school district which 5 12 was participating in a whole grade sharing arrangement during 5 13 the budget year beginning July 1, 2001, and which received a 5 14 maximum of two years of supplementary weighting pursuant to 5 15 section 257.11, subsection 2, paragraph "c", shall include 5 16 additional pupils added by the application of the 5 17 supplementary weighting plan, equal to the pupils added by the 5 18 application of the supplementary weighting plan in the year 5 19 preceding the reorganization, for a period of four years 5 20 following the effective date of the reorganization.5 214.3. A school district shall be eligible for a combined 5 22 maximum total of six years of supplementary weighting under 5 23 the provisions of this section and section 257.11, subsection 5 24 2, paragraph "c". A school district participating in a whole 5 25 grade sharing arrangement during the budget year beginning 5 26 July 1, 2001, that adopted a resolution jointly with other 5 27 affected boards to study the question of undergoing a 5 28 reorganization or dissolution to take effect on or after July 5 29 1, 2002, and on or before July 1, 2006, shall continue to 5 30 receive the supplementary weighting to which it was entitled 5 31 pursuant to the provisions of this section and section 257.11, 5 32 subsection 2, paragraph "c". 5 33 Sec. 6. SCHOOL SHARING AND EFFICIENCIES IN OPERATION 5 34 PROCESS == APPROPRIATION. For the fiscal year beginning July 5 35 1, 2007, and ending June 30, 2008, there is appropriated from 6 1 the general fund of the state to the department of education 6 2 the following amount, or so much thereof as is necessary, to 6 3 be used for the purposes designated in this section: 6 4 .................................................. $ 400,000 6 5 The amount appropriated pursuant to this section shall be 6 6 utilized by the department to assist school districts in 6 7 implementing shared operational functions. 6 8 EXPLANATION 6 9 This bill makes changes related to incentives for school 6 10 district reorganization and dissolution and shared operational 6 11 functions between school districts and political subdivisions. 6 12 The bill leaves intact the reduced uniform levy for schools 6 13 that reorganized prior to July 1, 2006, allowing school 6 14 districts to utilize the incentive if they reorganize until on 6 15 or before July 1, 2014. 6 16 The bill strikes the current whole grade sharing 6 17 arrangement, and replaces it with a modified and simplified 6 18 version. The new provision allows school districts that 6 19 execute a whole grade sharing agreement and adopt a resolution 6 20 to study the effect of undergoing a reorganization or 6 21 dissolution to take effect on or before July 1, 2014, to 6 22 weight one=tenth of a percentage of a student's school day 6 23 during which the student attends classes in another district, 6 24 is taught by a teacher jointly employed, or attends classes 6 25 taught by a teacher employed by another district. This 6 26 supplementary weighting is available for a total of three 6 27 years. However, the second and third year of supplementary 6 28 weighting funding is dependent upon the school district's 6 29 progress toward reorganization. 6 30 The bill provides an additional funding for regional 6 31 academies through the school budget year beginning July 1, 6 32 2007. 6 33 The bill offers financial and operational support to help 6 34 school districts reorganize, consolidate, or dissolve 6 35 efficiently without allowing fiscal barriers to get in the 7 1 way. A supplementary weighting of two hundredths per pupil 7 2 will be given to a district that shares with a political 7 3 subdivision one or more of its administrative management, 7 4 business management, human resources, transportation, or 7 5 operational and maintenance functions for at least 20 percent 7 6 of the year. A political subdivision means a city, township, 7 7 county, school corporation, merged area, area education 7 8 agency, board of regents institution, or any other government 7 9 subdivision. This supplementary weighting is available for 7 10 five years, with a minimum equivalent weighting of 10 pupils 7 11 and a maximum equivalent weighting of 40 pupils. After the 7 12 first year of supplementary weighting, the school district 7 13 must submit evidence of cost savings attributable to the 7 14 shared operational functions. This section will be repealed 7 15 on July 1, 2014. 7 16 The bill provides that area education agencies (AEAs) shall 7 17 have supplementary weighting for shared operational functions 7 18 available for a maximum of five years beginning July 1, 2008. 7 19 The minimum amount of additional funding that an AEA shall be 7 20 eligible for is $50,000 and the maximum amount of funding that 7 21 an AEA shall be eligible for is $200,000. 7 22 The bill directs the department of management to annually 7 23 set a weighting for each AEA to generate the approved 7 24 operational sharing expense using the AEA's special education 7 25 cost per pupil amount and foundation level. To receive 7 26 supplementary weighting for more than one year depends on 7 27 annual reports by the district to the department on the cost 7 28 savings attributable to the shared operational functions. 7 29 Criteria for determining the number of years that 7 30 supplementary weighting shall be received, subject to the 7 31 five=year maximum, and the amount generated by the 7 32 supplementary weighting, and for determining qualification of 7 33 operational functions for supplementary weighting shall be 7 34 decided by department rule through consideration of long=term 7 35 savings by the AEA or increased student opportunities. 8 1 The bill also provides for supplementary weighting funding 8 2 for three years for a reorganized school district that is 8 3 equal to the funding that was received in the year preceding 8 4 the reorganization. The bill amends the definition of 8 5 reorganized school district for purposes of receiving this 8 6 supplementary weighting to include those districts where the 8 7 reorganization takes effect on or before July 1, 2014. 8 8 An appropriation of $400,000 from the general fund is 8 9 provided to assist schools in implementing shared operational 8 10 functions. 8 11 LSB 1228HV 82 8 12 ak:sc/je/5