H.F. 2255 Section 1. Section 257.11, subsection 4, Code 2014, is 1 amended to read as follows: 2 4. At-risk programs and alternative schools. 3 a. In order to provide additional funding to school 4 districts for programs serving at-risk pupils and alternative 5 school pupils in secondary schools, a supplementary weighting 6 plan for at-risk pupils is adopted. A supplementary weighting 7 of forty-eight six hundred forty-two ten-thousandths per pupil 8 shall be assigned to the percentage of pupils in a school 9 district enrolled in grades one through six, as reported by 10 the school district on the basic educational data survey for 11 the base year, who are eligible for free and reduced price 12 meals under the federal National School Lunch Act and the 13 federal Child Nutrition Act of 1966, 42 U.S.C. § 1751-1785, 14 multiplied by the budget enrollment in the school district; 15 and a supplementary weighting of one hundred fifty-six 16 one-hundred-thousandths two hundred four ten-thousandths 17 per pupil shall be assigned to pupils included in the budget 18 enrollment of the school district. Amounts received as 19 supplementary weighting for at-risk pupils shall be utilized 20 by a school district to develop or maintain at-risk pupils’ 21 programs, which may include alternative school programs , and to 22 establish or maintain approved programs for returning dropouts 23 and dropout prevention under sections 257.38 through 257.41 . 24 b. Notwithstanding paragraph “a” , a school district which 25 received supplementary weighting for an alternative high school 26 program for the school budget year beginning July 1, 1999, 27 shall receive an amount of supplementary weighting for the next 28 three school budget years as follows: 29 (1) For the budget year beginning July 1, 2000, the greater 30 of the amount of supplementary weighting determined pursuant to 31 paragraph “a” , or sixty-five percent of the amount received for 32 the budget year beginning July 1, 1999. 33 (2) For the budget year beginning July 1, 2001, the greater 34 of the amount of supplementary weighting determined pursuant to 35 -1- LSB 5539YH (9) 85 md/sc 1/ 6

H.F. 2255 paragraph “a” , or forty percent of the amount received for the 1 budget year beginning July 1, 1999. 2 (3) For the budget year beginning July 1, 2002, and 3 succeeding budget years, the amount of supplementary weighting 4 determined pursuant to paragraph “a” . 5 c. If a school district receives an amount pursuant to 6 paragraph “b” which exceeds the amount the district would 7 otherwise have received pursuant to paragraph “a” , the 8 department of management shall annually determine the amount 9 of the excess that would have been state aid and the amount 10 that would have been property tax if the school district had 11 generated that amount pursuant to paragraph “a” , and shall 12 include the amounts in the state aid payments and property tax 13 levies of school districts. The department of management shall 14 recalculate the supplementary weighting amount received each 15 year to reflect the amount of the reduction in funding from one 16 budget year to the next pursuant to paragraph “b” , subparagraphs 17 (1) through (3). It is the intent of the general assembly that 18 when weights are recalculated under this subsection , the total 19 amounts generated by each weight shall be approximately equal. 20 Sec. 2. Section 257.38, subsection 1, unnumbered paragraph 21 1, Code 2014, is amended to read as follows: 22 Boards of school districts , individually or jointly with 23 boards of other school districts, requesting to use a modified 24 supplemental amount amounts received as supplementary weighting 25 for at-risk pupils under section 257.11, subsection 4, for 26 programs for returning dropouts and dropout prevention, shall 27 submit , individually or jointly with boards of other school 28 districts, comprehensive program plans for the programs 29 and budget costs, including annual requests for a modified 30 supplemental amount for funding the programs, to the department 31 of education as a component of the comprehensive school 32 improvement plan submitted to the department pursuant to 33 section 256.7, subsection 21 . The program plans shall include: 34 Sec. 3. Section 257.40, Code 2014, is amended to read as 35 -2- LSB 5539YH (9) 85 md/sc 2/ 6

H.F. 2255 follows: 1 257.40 Approval of programs for returning dropouts and 2 dropout prevention —— annual report. 3 1. a. The board of directors of a school district 4 requesting to use a modified supplemental amount amounts 5 received as supplementary weighting for at-risk pupils under 6 section 257.11, subsection 4, for programs for returning 7 dropouts and dropout prevention shall submit requests , 8 including requests for a modified at-risk supplemental amount, 9 including budget costs, if applicable, to the department not 10 later than December 15 of the year preceding the budget year 11 during which the program will be offered. The department shall 12 review the request and shall prior to January 15 either grant 13 approval for the request or return the request for approval 14 with comments of the department included. An unapproved 15 request for a program may be resubmitted with modifications 16 to the department not later than February 1. Not later than 17 February 15, the department shall notify the department of 18 management and the school budget review committee of the names 19 of the school districts for which programs using a modified 20 supplemental amount amounts received as supplementary weighting 21 for at-risk pupils under section 257.11, subsection 4, for 22 funding have been approved and the approved budget of each 23 program listed separately for each school district having 24 an approved request. The department shall also notify the 25 department of management of the names of the school districts 26 for which programs using a modified supplemental amount have 27 been approved pursuant to paragraph “b” . 28 b. (1) For budget years beginning on or after July 1, 2015, 29 the department shall not approve a modified supplemental amount 30 for a school district for programs for returning dropouts and 31 dropout prevention unless subparagraph (2) is applicable to the 32 school district. 33 (2) Each school district for which the remainder of the 34 amount received as supplementary weighting under section 35 -3- LSB 5539YH (9) 85 md/sc 3/ 6

H.F. 2255 257.11, subsection 4, for the budget year minus the amount 1 that would have been received as supplementary weighting by 2 the school district for the budget year under section 257.11, 3 subsection 4, Code 2014, is less than the modified supplemental 4 amount received by the school district for the budget year 5 beginning July 1, 2014, the department of management shall 6 establish a modified supplemental amount for the budget year 7 equal to the difference in the remainder and the modified 8 supplemental amount received by the school district for the 9 budget year beginning July 1, 2014. 10 2. Beginning January 15, 2007 2015 , the department shall 11 submit an annual report to the chairpersons and ranking members 12 of the senate and house education committees that includes the 13 ways school districts in the previous school year used modified 14 supplemental amounts received as supplementary weighting for 15 at-risk pupils and amounts received as the result of a modified 16 supplemental amount approved under subsection 1 ; identifies, 17 by grade level, age, and district size, the students in 18 the dropout and dropout prevention programs for which the 19 department approves a request; describes school district 20 progress toward increasing student achievement and attendance 21 for the students in the programs; and describes how the school 22 districts are using the revenues from the modified supplemental 23 amounts and amounts received as supplementary weighting for 24 at-risk pupils to improve student achievement among minority 25 subgroups. 26 Sec. 4. Section 257.41, subsection 1, Code 2014, is amended 27 to read as follows: 28 1. Budget. The budget of an approved program for returning 29 dropouts and dropout prevention for a school district, 30 after subtracting funds received from other sources for that 31 purpose, shall be funded annually on a basis of one-fourth 32 or more from the district cost of the school district and 33 up to three-fourths by an increase in supplemental state 34 aid as defined in section 257.8 using amounts received as 35 -4- LSB 5539YH (9) 85 md/sc 4/ 6

H.F. 2255 supplementary weighting for at-risk pupils under section 1 257.11, subsection 4, and amounts received as modified 2 supplemental amounts pursuant to section 257.40 . Annually, 3 the department of management shall establish a modified 4 supplemental amount for each such school district equal to the 5 difference between the approved budget for the program for 6 returning dropouts and dropout prevention for that district 7 and the sum of the amount funded from the district cost of the 8 school district plus funds received from other sources. 9 Sec. 5. Section 257.41, subsection 2, paragraph d, Code 10 2014, is amended to read as follows: 11 d. Up to five percent of the total budgeted amount 12 received pursuant to subsection 1 that is amounts received 13 as supplementary weighting for at-risk pupils under section 14 257.11, subsection 4, or that is received as modified 15 supplemental amounts pursuant to section 257.40, may be used 16 for purposes of providing district-wide or building-wide 17 returning dropout and dropout prevention programming targeted 18 to students who are not deemed at risk of dropping out. 19 Sec. 6. Section 257.41, subsection 3, Code 2014, is amended 20 by striking the subsection. 21 Sec. 7. APPLICABILITY. This Act applies to school budget 22 years beginning on or after July 1, 2015. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 Current Code section 257.11(4) provides additional funding 27 for school districts to develop or maintain programs for 28 at-risk pupils, including alternative schools, through 29 supplemental weighting. This bill establishes a supplementary 30 weighting of 0.0642 per pupil for pupils in grades one through 31 six who are eligible for free and reduced price meals and 32 establishes a supplementary weighting of 0.0204 for all 33 pupils in the budget enrollment of the school district. The 34 bill provides that amounts received as the result of the 35 -5- LSB 5539YH (9) 85 md/sc 5/ 6

H.F. 2255 supplementary weighting for at-risk pupils shall, in addition 1 to developing and maintaining at-risk programs, be utilized by 2 a school district to establish or maintain approved programs 3 for returning dropouts and dropout prevention. 4 Under current law, dropout prevention programs may be 5 funded, in part, using a modified supplemental amount 6 (previously referred to as modified allowable growth). Current 7 Code section 257.41 provides that the budget of an approved 8 dropout prevention program, after subtracting funds received 9 from other sources for that purpose, shall be funded annually 10 on a basis of one-fourth or more from the district cost of 11 the school district and up to three-fourths by an increase in 12 supplemental state aid. 13 Except for school districts meeting specified budget 14 criteria relating to dropout prevention programs, the bill 15 removes modified supplemental amounts as a funding source 16 for dropout prevention programs and makes corresponding 17 changes to other provisions of law relating to the approval 18 and administration of dropout prevention programs to reflect 19 a school district’s authority to use amounts received as the 20 result of the supplementary weighting for at-risk pupils for 21 dropout prevention programs, as established in the bill. 22 The bill provides that for budget years beginning on or 23 after July 1, 2015, the department of education shall not 24 approve a modified supplemental amount for a school district 25 for programs for returning dropouts and dropout prevention 26 unless certain conditions are met relating to a decrease in 27 funding as compared to funding received by the school district 28 as a modified supplemental amount for programs for returning 29 dropouts and dropout prevention for the budget year beginning 30 July 1, 2014. 31 The bill applies to school budget years beginning on or after 32 July 1, 2015. 33 -6- LSB 5539YH (9) 85 md/sc 6/ 6