H.F. 96 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 1391YH (2) 85 md/sc 1/ 5

H.F. 96 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 1391YH (2) 85 md/sc 2/ 5

H.F. 96 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. The amount of any supplementary weighting originally 15 received under this subsection shall be reduced by an 16 additional twenty percent from the original amount for each 17 subsequent budget year that supplementary weighting may be 18 received. 19 f. This subsection is repealed effective July 1, 2020. 20 EXPLANATION 21 This bill enacts Code section 257.11, new subsection 6A, to 22 allow supplementary weighting for school districts and area 23 education agencies that share operational functions. The 24 bill is similar to the supplementary weighting provisions for 25 shared operational functions in current Code section 257.11, 26 subsection 6, which is repealed effective July 1, 2014. The 27 bill provides supplementary weighting of two hundredths per 28 pupil enrolled in a district that shares with a political 29 subdivision one or more operational functions. Under the bill, 30 eligible shared operational functions include the operational 31 functions of a curriculum director, school administration 32 manager, mental health therapist, school counselor, or school 33 librarian, or one or more operational functions in the areas 34 of superintendent management, business management, human 35 -3- LSB 1391YH (2) 85 md/sc 3/ 5

H.F. 96 resources, transportation, or operation and maintenance. To 1 be eligible for the supplementary weighting, the operational 2 function must be shared for at least 20 percent of the school 3 year. 4 Under the bill, the operational functions sharing 5 arrangement does not need to be a newly implemented sharing 6 arrangement to receive supplementary weighting. However, to 7 receive supplementary weighting under the bill for an ongoing 8 operational functions sharing arrangement that began before 9 July 1, 2014, the district must submit information to the 10 department of education documenting the cost savings directly 11 attributable to the shared operational functions and describe 12 the district’s consideration of additional shared operational 13 functions. 14 The bill does not require school districts that share 15 operational functions with other school districts to be 16 contiguous school districts. In addition, if two or more 17 districts sharing operational functions are not contiguous to 18 each other, the districts separating those districts are not 19 required to be a party to the operational functions sharing 20 arrangement. 21 The supplementary weighting provided in the bill is 22 available to a school district for a maximum of five years 23 during the period commencing with the budget year beginning 24 July 1, 2014, through the budget year beginning July 1, 25 2019. The bill establishes a minimum amount and a maximum 26 amount of additional weighting for which a school district is 27 eligible. In order to receive the supplementary weighting for 28 more than one year, the school district must annually submit 29 information to the department documenting cost savings directly 30 attributable to the shared operational functions. 31 Under the bill, supplementary weighting is available to 32 an area education agency for a maximum of five years during 33 the period commencing with the budget year beginning July 1, 34 2014, through the budget year beginning July 1, 2019. The 35 -4- LSB 1391YH (2) 85 md/sc 4/ 5

H.F. 96 bill establishes a minimum amount and a maximum amount of 1 additional weighting for which an area education agency is 2 eligible. In order to receive the supplementary weighting for 3 more than one year, the area education agency must annually 4 submit information to the department documenting cost savings 5 directly attributable to the shared operational functions. The 6 bill requires the department of management to annually set 7 a weighting for each area education agency to generate the 8 approved operational sharing expense using the area education 9 agency’s special education cost per pupil amount and foundation 10 level. 11 The bill provides that supplementary weighting funding 12 received under Code section 257.11, new subsection 6A, for 13 shared operational functions shall be reduced by an additional 14 20 percent from the original amount each subsequent budget year 15 that the funding is received. 16 The bill provides that Code section 257.11, new subsection 17 6A, is repealed effective July 1, 2020. 18 -5- LSB 1391YH (2) 85 md/sc 5/ 5