H.F. 140 Section 1. Section 257.11, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6A. Shared operational functions —— 3 increased student opportunities —— budget years beginning in 2014 4 through 2019. 5 a. (1) In order to provide additional funding to increase 6 student opportunities and redirect more resources to student 7 programming for school districts that share operational 8 functions, a supplementary weighting of two hundredths per 9 pupil shall be assigned to pupils enrolled in a district that 10 shares with a political subdivision one or more operational 11 functions of a curriculum director, school administration 12 manager, mental health therapist, school counselor, or school 13 librarian, or one or more operational functions in the areas 14 of superintendent management, business management, human 15 resources, transportation, or operation and maintenance for 16 at least twenty percent of the school year. The additional 17 weighting shall be assigned for each discrete operational 18 function shared. The operational function sharing arrangement 19 does not need to be a newly implemented sharing arrangement 20 to receive supplementary weighting under this subsection. 21 However, to receive supplementary weighting under this 22 subsection for an ongoing operational function sharing 23 arrangement that began before July 1, 2014, the district 24 shall submit information to the department documenting the 25 cost savings directly attributable to the shared operational 26 functions and describe the district’s consideration of 27 additional shared operational functions. 28 (2) For the purposes of this section, “political 29 subdivision” means a city, township, county, school corporation, 30 merged area, area education agency, institution governed by the 31 state board of regents, or any other governmental subdivision. 32 b. School districts that share operational functions with 33 other school districts are not required to be contiguous school 34 districts. If two or more districts sharing operational 35 -1- LSB 1830YH (2) 85 md/sc 1/ 5

H.F. 140 functions are not contiguous to each other, the districts 1 separating those districts are not required to be a party to 2 the operational functions sharing arrangement. 3 c. Supplementary weighting pursuant to this subsection 4 shall be available to a school district for a maximum of 5 five years during the period commencing with the budget year 6 beginning July 1, 2014, through the budget year beginning July 7 1, 2019. The minimum amount of additional weighting for which 8 a school district shall be eligible is an amount equivalent to 9 ten additional pupils, and the maximum amount of additional 10 weighting for which a school district shall be eligible is 11 an amount equivalent to forty additional pupils. Receipt of 12 supplementary weighting by a school district pursuant to this 13 subsection for more than one year shall be contingent upon 14 the annual submission of information by the district to the 15 department documenting cost savings directly attributable to 16 the shared operational functions. Criteria for determining 17 the number of years for which supplementary weighting shall 18 be received pursuant to this subsection, subject to the 19 five-year maximum, and for determining qualification of 20 operational functions for supplementary weighting shall be 21 determined by the department by rule, through consideration of 22 long-term savings by the school district or increased student 23 opportunities. 24 d. Supplementary weighting pursuant to this subsection 25 shall be available to an area education agency for a maximum 26 of five years during the period commencing with the budget 27 year beginning July 1, 2014, through the budget year beginning 28 July 1, 2019. The minimum amount of additional funding for 29 which an area education agency shall be eligible is fifty 30 thousand dollars, and the maximum amount of additional funding 31 for which an area education agency shall be eligible is two 32 hundred thousand dollars. The department of management shall 33 annually set a weighting for each area education agency to 34 generate the approved operational sharing expense using the 35 -2- LSB 1830YH (2) 85 md/sc 2/ 5

H.F. 140 area education agency’s special education cost per pupil amount 1 and foundation level. Receipt of supplementary weighting 2 by an area education agency for more than one year shall be 3 contingent upon the annual submission of information by the 4 district to the department documenting cost savings directly 5 attributable to the shared operational functions. Criteria 6 for determining the number of years for which supplementary 7 weighting shall be received pursuant to this subsection, 8 subject to the five-year maximum, and the amount generated by 9 the supplementary weighting, and for determining qualification 10 of operational functions for supplementary weighting shall be 11 determined by the department by rule, through consideration of 12 long-term savings by the area education agency or increased 13 student opportunities. 14 e. This subsection is repealed effective July 1, 2020. 15 EXPLANATION 16 This bill enacts Code section 257.11, new subsection 6A, to 17 allow supplementary weighting for school districts and area 18 education agencies that share operational functions. The 19 bill is similar to the supplementary weighting provisions for 20 shared operational functions in current Code section 257.11, 21 subsection 6, which is repealed effective July 1, 2014. The 22 bill provides supplementary weighting of two hundredths per 23 pupil enrolled in a district that shares with a political 24 subdivision one or more operational functions. Under the bill, 25 eligible shared operational functions include the operational 26 functions of a curriculum director, school administration 27 manager, mental health therapist, school counselor, or school 28 librarian, or one or more operational functions in the areas 29 of superintendent management, business management, human 30 resources, transportation, or operation and maintenance. To 31 be eligible for the supplementary weighting, the operational 32 function must be shared for at least 20 percent of the school 33 year. 34 Under the bill, the operational functions sharing 35 -3- LSB 1830YH (2) 85 md/sc 3/ 5

H.F. 140 arrangement does not need to be a newly implemented sharing 1 arrangement to receive supplementary weighting. However, to 2 receive supplementary weighting under the bill for an ongoing 3 operational functions sharing arrangement that began before 4 July 1, 2014, the district must submit information to the 5 department of education documenting the cost savings directly 6 attributable to the shared operational functions and describe 7 the district’s consideration of additional shared operational 8 functions. 9 The bill does not require school districts that share 10 operational functions with other school districts to be 11 contiguous school districts. In addition, if two or more 12 districts sharing operational functions are not contiguous to 13 each other, the districts separating those districts are not 14 required to be a party to the operational functions sharing 15 arrangement. 16 The supplementary weighting provided in the bill is 17 available to a school district for a maximum of five years 18 during the period commencing with the budget year beginning 19 July 1, 2014, through the budget year beginning July 1, 20 2019. The bill establishes a minimum amount and a maximum 21 amount of additional weighting for which a school district is 22 eligible. In order to receive the supplementary weighting for 23 more than one year, the school district must annually submit 24 information to the department documenting cost savings directly 25 attributable to the shared operational functions. 26 Under the bill, supplementary weighting is available to 27 an area education agency for a maximum of five years during 28 the period commencing with the budget year beginning July 1, 29 2014, through the budget year beginning July 1, 2019. The 30 bill establishes a minimum amount and a maximum amount of 31 additional weighting for which an area education agency is 32 eligible. In order to receive the supplementary weighting for 33 more than one year, the area education agency must annually 34 submit information to the department documenting cost savings 35 -4- LSB 1830YH (2) 85 md/sc 4/ 5

H.F. 140 directly attributable to the shared operational functions. The 1 bill requires the department of management to annually set 2 a weighting for each area education agency to generate the 3 approved operational sharing expense using the area education 4 agency’s special education cost per pupil amount and foundation 5 level. 6 The bill provides that Code section 257.11, new subsection 7 6A, is repealed effective July 1, 2020. 8 -5- LSB 1830YH (2) 85 md/sc 5/ 5