House File 2181 - Introduced HOUSE FILE 2181 BY BYRNES A BILL FOR An Act relating to school district funding by designating 1 certain revenues for student instructional expenditures and 2 requiring school districts to establish a supplemental state 3 aid instructional expenditure fund. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5892YH (2) 86 md/sc

H.F. 2181 Section 1. NEW SECTION . 298A.2A Supplemental state aid 1 instructional expenditure fund. 2 1. For the purposes of enhancing student learning 3 by improving the instructional environment, each school 4 corporation shall establish a supplemental state aid 5 instructional expenditure fund. The supplemental state aid 6 instructional expenditure fund is a special revenue fund. 7 2. For each budget year beginning on or after July 1, 2017, 8 for which the state percent of growth established under section 9 257.8, subsection 1, is equal to or exceeds four percent, each 10 school corporation shall transfer from the school corporation’s 11 general fund to the school corporation’s supplemental state aid 12 instructional expenditure fund, an amount of foundation aid 13 received in accordance with section 257.16 equal to the amount 14 calculated under subsection 3, to be used in that budget year 15 for instructional expenditures for students enrolled in grades 16 kindergarten through twelve. 17 3. The amount required to be transferred from the school 18 corporation’s general fund to the supplemental state aid 19 instructional expenditure fund shall equal one percent of 20 the regular program state cost per pupil for the base year 21 multiplied by the budget enrollment of the school corporation 22 for the budget year. 23 4. a. For the purposes of this section, “instructional 24 expenditures” means any of the following: 25 (1) Textbooks, as defined in section 301.1. 26 (2) Library books. 27 (3) Materials for a lending library, consisting of print and 28 nonprint materials. 29 (4) Other instructional materials and equipment used 30 directly by students. 31 b. “Instructional expenditures” do not include the salary, 32 benefits, or other compensation of any school corporation 33 employee. 34 EXPLANATION 35 -1- LSB 5892YH (2) 86 md/sc 1/ 2

H.F. 2181 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill requires each school corporation to establish a 3 supplemental state aid instructional expenditure fund. The 4 bill designates the supplemental state aid instructional 5 expenditure fund as a special revenue fund. 6 Under the bill, for each budget year beginning on or after 7 July 1, 2017, for which the state percent of growth is equal 8 to or exceeds 4 percent, each school corporation is required 9 to transfer from the school corporation’s general fund to the 10 school corporation’s supplemental state aid instructional 11 expenditure fund an amount of state foundation aid received 12 that is equal to an amount specified in the bill, to be 13 used in that budget year for instructional expenditures for 14 students enrolled in grades kindergarten through 12. The 15 amount required to be transferred from the school corporation’s 16 general fund to the supplemental state aid instructional 17 expenditure fund is equal to 1 percent of the regular program 18 state cost per pupil for the base year multiplied by the budget 19 enrollment of the school corporation for the budget year. 20 The bill defines “instructional expenditures” to mean any of 21 the following: (1) print and electronic textbooks; (2) library 22 books; (3) materials for a lending library, consisting of print 23 and nonprint materials; and (4) other instructional materials 24 and equipment used directly by students. The bill excludes 25 the salary, benefits, or other compensation of any school 26 corporation employee from the definition of instructional 27 expenditures. 28 -2- LSB 5892YH (2) 86 md/sc 2/ 2