S.F. _____ Section 1. Section 256C.3, subsection 4, unnumbered 1 paragraph 1, Code 2014, is amended to read as follows: 2 Effective with the budget year beginning July 1, 2015, each 3 school district shall implement an approved local program 4 to provide preschool in accordance with this chapter. The 5 state board shall adopt rules to further define the following 6 requirements of school districts implementing the preschool 7 program: 8 Sec. 2. Section 256C.3, subsection 4, Code 2014, is amended 9 by adding the following new paragraph: 10 NEW PARAGRAPH . e. Development and implementation of a plan 11 for the school district’s preschool program to have sufficient 12 capacity to operate without a waiting list for school budget 13 years beginning on or after July 1, 2017. 14 Sec. 3. Section 256C.4, subsection 2, paragraph b, Code 15 2014, is amended to read as follows: 16 b. The enrollment count of eligible students shall not 17 include a child who is included in the enrollment count 18 determined under section 257.6 or a child who is served by 19 a an existing preschool program already receiving state or 20 federal funds for the purpose of the provision of providing 21 four-year-old preschool programming while the child is being 22 served by the existing program. Such preschool programming 23 However, the enrollment count of eligible students may include 24 a child being served by an existing preschool program if 25 the preschool programming in the existing program has been 26 enhanced as a result of preschool program expansion incentive 27 state aid provided under section 256C.7. For the purposes 28 of this chapter an “existing preschool program” includes but 29 is not limited to shared visions and other child development 30 assistance programs provided under chapter 256A and section 31 279.51 , special education programs provided under section 32 256B.9 , school ready children grant programs and other programs 33 provided under chapter 256I , and federal head start programs 34 and the services funded by Tit. I of the federal Elementary and 35 -1- LSB 5796XC (10) 85 jp/sc 1/ 6

S.F. _____ Secondary Education Act of 1965. 1 Sec. 4. Section 256C.5, subsection 1, unnumbered paragraph 2 1, Code 2014, is amended to read as follows: 3 For the purposes of this section and section 256C.4 chapter, 4 unless the context otherwise requires : 5 Sec. 5. NEW SECTION . 256C.7 Preschool program expansion 6 incentive. 7 1. For the purposes of this section, unless the context 8 otherwise requires: 9 a. “Base incentive enrollment” means the average of the 10 actual enrollments of eligible students in the preschool 11 programming provided by a school district on October 1, 2011, 12 October 1, 2012, and October 1, 2013. 13 b. “Incentive period” means the budget years beginning July 14 1, 2015, July 1, 2016, and July 1, 2017. 15 c. “Incentive enrollment” means the amount by which the 16 actual enrollment of eligible students in the preschool 17 programming provided by a school district on October 1 of 18 the base year exceeds the school district’s base incentive 19 enrollment. 20 d. “Incentive state aid” means the product of twenty percent 21 of the regular program state cost per pupil for the budget year 22 multiplied by the school district’s incentive enrollment in the 23 base year. 24 2. a. A preschool program expansion incentive is 25 established in accordance with this section. In order to be 26 eligible for the incentive, a school district must develop and 27 implement a preschool program expansion plan, approved by the 28 department, to expand enrollment of eligible students in the 29 school district’s preschool programming. In addition, the 30 school district shall work with existing preschool program 31 providers to expand hours and otherwise enhance the preschool 32 programming available to the children participating in the 33 programs. The plan’s goal shall be that by the end of the 34 incentive period the district’s preschool programming will 35 -2- LSB 5796XC (10) 85 jp/sc 2/ 6

S.F. _____ be available without a waiting list to each child wanting to 1 enroll in the programming. 2 b. The elements addressed in the preschool program expansion 3 plan shall include but are not limited to the following: 4 (1) How the school district will work in collaboration with 5 participating families, early care providers, and community 6 partners, as described in section 256C.3, subsection 3, 7 to provide the preschool programming in as convenient and 8 cost-effective a manner as possible for the families of the 9 four-year-old children who are eligible for the programming. 10 (2) A specification of the roles of the early care providers 11 and community partners in support of the expansion plan. 12 (3) A delineation of the specific steps for expanding hours 13 and otherwise enhancing the preschool programming available to 14 the children participating in the existing preschool programs 15 located in the school district. 16 (4) Identification of specific outcomes and progress 17 measures for the expansion plan. 18 (5) Detailed plans for contacting and soliciting enrollment 19 of eligible students, particularly from low-income families, 20 non-English speaking families, and families from ethnic and 21 racial groups underrepresented in the district’s preschool 22 program enrollment. 23 3. The department of education shall specify other 24 requirements and required elements for preschool expansion 25 plans and for approval of plans by the department, including 26 but not limited to submission provisions, annual updates, and 27 documentation of collaboration efforts with and input from 28 participating families, early care providers, and community 29 partners. 30 4. During the incentive period, in addition to the 31 regular preschool foundation aid based on the preschool 32 budget enrollment, the school district implementing a 33 preschool expansion plan approved by the department shall 34 receive incentive state aid based on the district’s incentive 35 -3- LSB 5796XC (10) 85 jp/sc 3/ 6

S.F. _____ enrollment. The incentive state aid shall be paid as part of 1 the state aid payments made to school districts in accordance 2 with section 257.16. 3 5. A school district shall utilize its incentive state aid 4 to defray increases in costs in connection with the school 5 district’s preschool program expansion plan. Such costs shall 6 include but are not limited to renovation and other facility 7 costs connected with expansion, outreach, one-time expenses, 8 and other costs identified as eligible by the department. 9 Sec. 6. Section 257.16, Code 2014, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 1A. For the fiscal years in which the 12 preschool program expansion incentive applies in accordance 13 with section 256C.7, the appropriation made in subsection 1 14 shall include the amount necessary to pay incentive state aid 15 in accordance with section 256C.7. This subsection is repealed 16 on July 1, 2018. 17 Sec. 7. STATE MANDATE FUNDING SPECIFIED. In accordance 18 with section 25B.2, subsection 3, the state cost of requiring 19 compliance with any state mandate included in this Act shall 20 be paid by a school district from state school foundation aid 21 received by the school district under section 257.16. This 22 specification of the payment of the state cost shall be deemed 23 to meet all of the state funding-related requirements of 24 section 25B.2, subsection 3, and no additional state funding 25 shall be necessary for the full implementation of this Act 26 by and enforcement of this Act against all affected school 27 districts. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to the statewide preschool program for 32 four-year-old children by establishing a preschool program 33 expansion incentive, including authorizing state aid for the 34 incentive. 35 -4- LSB 5796XC (10) 85 jp/sc 4/ 6

S.F. _____ Code section 256C.3, relating to preschool program 1 requirements, is amended to require each school district to 2 provide a preschool program approved by the department of 3 education, effective with the school budget year beginning July 4 1, 2015, and to implement a plan for the school district’s 5 preschool program to have sufficient capacity to operate 6 without a waiting list for school budget years beginning on or 7 after July 1, 2017. 8 To be eligible for the preschool expansion incentive, 9 a school district must develop and implement a preschool 10 expansion plan, approved by the department, in order to expand 11 enrollment of eligible students in the school district’s 12 preschool programming. Requirements for the plan are 13 provided in the bill, including how the school district will 14 collaborate with participating families, early care providers, 15 and community partners to expand the district’s preschool 16 enrollment. The department of education is to specify other 17 requirements for the plan and for approval of plans by the 18 department. 19 Current law in Code section 256C.4 prohibits inclusion 20 in the preschool program of children already included in a 21 school’s enrollment count for purposes of the school aid 22 foundation formula or children who are served by an existing 23 preschool program already receiving state or federal funds for 24 the purpose of providing four-year-old preschool programming 25 while the child is being served by the existing program. The 26 bill allows inclusion of children participating in an existing 27 program if the preschool programming in the existing program 28 has been enhanced as part of the expansion incentive. 29 The incentive program will operate for the three school 30 budget years beginning July 1, 2015, July 1, 2016, and July 31 1, 2017. For those three budget years, a school district is 32 eligible to receive incentive state aid for the increase in 33 the actual enrollment of eligible students in the preschool 34 programming provided by a school district in the immediately 35 -5- LSB 5796XC (10) 85 jp/sc 5/ 6

S.F. _____ preceding school year over the base incentive enrollment. 1 The base incentive enrollment is the average of the actual 2 enrollments of eligible students in the school district’s 3 preschool programming on October 1, 2011, October 1, 2012, 4 and October 1, 2013. The amount of incentive state aid is 5 equal to 20 percent of the regular program state cost per pupil 6 multiplied by the enrollment increase. 7 The incentive state aid is required to be used to defray 8 increases in costs in connection with the school district’s 9 preschool expansion plan. Such costs may include renovation 10 and other facility costs connected with expansion, outreach, 11 one-time expenses, and other costs identified as eligible by 12 the department. 13 The bill may include a state mandate as defined in Code 14 section 25B.3. The bill requires that the state cost of 15 any state mandate included in the bill be paid by a school 16 district from state school foundation aid received by the 17 school district under section 257.16. The specification is 18 deemed to constitute state compliance with any state mandate 19 funding-related requirements of Code section 25B.2. The 20 inclusion of this specification is intended to reinstate the 21 requirement of political subdivisions to comply with any state 22 mandates included in the bill. 23 -6- LSB 5796XC (10) 85 jp/sc 6/ 6