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, 2002 2007, and on
  1 10 or before July 1, 2006 2014.  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, 2002 2007, and on or before
  1 14 July 1, 2006 2014, 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 years through 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, 2002 2007,
  4 21 and on or before July 1, 2006 2014, 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, 2002 2007, and on or before July 1, 2006 2014.
  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, 2002 2007, and on or before July 1, 2006 2014,
  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 11    3.  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 21    4.  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