H.F. 2083 Section 1. Section 257.13, subsection 1, Code 2016, is 1 amended to read as follows: 2 1. For the school budget year beginning July 1, 2001, and 3 succeeding budget years, if a district’s actual enrollment 4 for the budget year, determined under section 257.6 , is 5 greater than its budget enrollment for the budget year, the 6 district shall be eligible to receive an on-time funding budget 7 adjustment. The adjustment shall be in an amount equal to the 8 difference between the actual enrollment for the budget year 9 and the budget enrollment for the budget year, multiplied by 10 the district cost per pupil , and then reduced by the amount 11 received by the district under the school district enrollment 12 supplement program under section 257.13A . 13 Sec. 2. NEW SECTION . 257.13A School district enrollment 14 supplement program —— appropriation. 15 1. A school district enrollment supplement program is 16 established to provide additional funding for school districts 17 in which the district’s actual enrollment for the budget year 18 exceeds the budget enrollment for the budget year. For the 19 school budget year beginning July 1, 2017, and succeeding 20 budget years, if a district’s actual enrollment for the budget 21 year is greater than its budget enrollment for the budget year, 22 both as determined under section 257.6, the district may submit 23 a request to the school budget review committee for a school 24 district enrollment supplement. A request for an enrollment 25 supplement pursuant to this section must be received by the 26 school budget review committee by November 1. The school 27 budget review committee shall approve the request for the 28 enrollment supplement in the amount specified in subsection 3 29 if the district meets the requirements of this section. 30 2. a. For each fiscal year beginning on or after July 1, 31 2017, there is appropriated from the general fund of the state 32 to the department of education the sum of ten million dollars 33 to make all school district enrollment supplement payments 34 under this section, as calculated in subsection 3. 35 -1- LSB 5356YH (2) 86 md/sc 1/ 4

H.F. 2083 b. If the amount appropriated under this subsection is 1 insufficient to pay the entirety of all school district 2 enrollment supplement payments calculated under subsection 3, 3 the department of education shall prorate the amount of the 4 school district enrollment supplement payment provided to each 5 district. 6 3. The amount of each eligible school district’s enrollment 7 supplement shall be the difference between the school 8 district’s actual enrollment for the budget year minus the 9 school district’s budget enrollment for the budget year 10 multiplied by the school district’s regular program foundation 11 aid per pupil for the budget year. 12 4. School district enrollment supplement payments shall be 13 paid by the department of education in a single payment at the 14 same time as the first monthly installment is paid on or after 15 January 1 of the budget year under section 257.16, subsection 16 2. 17 5. School district enrollment supplement payments received 18 under this section are miscellaneous income and shall be 19 deposited in the general fund of the school district. However, 20 the school district enrollment supplement amount shall not be 21 included in district cost. An enrollment supplement under this 22 chapter shall not affect the receipt or amount of a budget 23 adjustment received under section 257.14. 24 6. Except for an adjustment to an amount under section 25 257.31, subsection 5, participation in the school district 26 enrollment supplement program under this section shall not 27 affect a school district’s eligibility to receive an amount 28 from the school budget review committee under section 257.31. 29 Sec. 3. Section 257.31, subsection 5, paragraph a, Code 30 2016, is amended to read as follows: 31 a. Any unusual increase or decrease in enrollment. In 32 deciding a school district’s need for additional funds under 33 this paragraph “a” , the school budget review committee shall 34 consider school district enrollment supplement amounts received 35 -2- LSB 5356YH (2) 86 md/sc 2/ 4

H.F. 2083 by the school district under section 257.13A for the same 1 budget year, and may accordingly adjust amounts granted for the 2 purposes of this paragraph. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill establishes a school district enrollment 7 supplement program to provide additional funding for school 8 districts in which the district’s actual enrollment for the 9 budget year exceeds the budget enrollment for the budget 10 year. For the school budget year beginning July 1, 2017, and 11 succeeding budget years, if a district’s actual enrollment 12 for the budget year is greater than its budget enrollment for 13 the budget year, the district may submit a request to the 14 school budget review committee for a school district enrollment 15 supplement. The school budget review committee is required 16 to approve the request for the enrollment supplement if the 17 district meets the requirements of the bill. 18 The amount of each eligible school district’s enrollment 19 supplement is the difference between the school district’s 20 actual enrollment for the budget year minus the school 21 district’s budget enrollment for the budget year multiplied by 22 the school district’s regular program foundation aid per pupil 23 for the budget year. 24 The bill establishes a $10 million annual appropriation for 25 each fiscal year beginning on or after July 1, 2017, for the 26 payment of school district enrollment supplement amounts. If 27 the appropriation is insufficient to make all such payments, 28 the department of education is directed to prorate those 29 payment amounts. The bill specifies that school district 30 enrollment supplement payments are miscellaneous income and 31 must be deposited in the school district’s general fund. 32 However, the enrollment supplement amount is not to be included 33 in district cost. 34 Code section 257.13 provides that if a school district’s 35 -3- LSB 5356YH (2) 86 md/sc 3/ 4

H.F. 2083 actual enrollment for the budget year is greater than its 1 budget enrollment for the budget year, the district shall be 2 eligible to receive an on-time funding budget adjustment. The 3 bill provides that a budget adjustment under Code section 4 257.13 shall be reduced by the amount received by the district 5 under the school district enrollment supplement program. The 6 bill further specifies that an enrollment supplement does not 7 affect the receipt or amount of a budget adjustment received 8 under Code section 257.14, and, except for an adjustment to 9 the amount, does not affect a school district’s eligibility to 10 receive an amount from the school budget review committee under 11 Code section 257.31 based on an increase in enrollment. 12 -4- LSB 5356YH (2) 86 md/sc 4/ 4