H.F. 2293 Section 1. NEW SECTION . 257.16C Transportation equity 1 program —— fund. 2 1. A transportation equity program is established to 3 provide additional funding for school districts with a 4 transportation cost per pupil that exceeds the statewide 5 minimum transportation cost per pupil for the same budget year. 6 2. a. For the budget year beginning July 1, 2016, and 7 each succeeding budget year, the department of management 8 shall annually determine a statewide adjusted transportation 9 cost per pupil that is not lower than the statewide minimum 10 transportation cost per pupil. The statewide adjusted 11 transportation cost per pupil shall be annually determined, 12 by taking into account amounts appropriated under subsection 13 3, for the purpose of providing transportation equity aid for 14 those school districts with the highest transportation cost per 15 pupil differential. 16 b. Each school district that satisfies the criteria of 17 subsection 1 shall receive transportation equity aid in an 18 amount equal to the school district’s actual enrollment for 19 the school year, excluding the shared-time enrollment for the 20 school year, multiplied by the difference between the school 21 district’s transportation cost per pupil for the budget year 22 and the statewide adjusted transportation cost per pupil for 23 the budget year. 24 c. For purposes of this section: 25 (1) “Statewide minimum transportation cost per pupil” means 26 the lowest transportation cost per pupil among all school 27 districts in the state. 28 (2) “Transportation cost per pupil differential” means the 29 difference between a school district’s transportation cost per 30 pupil and the statewide minimum transportation cost per pupil 31 for the same budget year. 32 d. A district’s transportation cost per pupil shall be 33 determined by dividing the district’s actual cost for all 34 children transported in all school buses for a school year 35 -1- LSB 5777YH (2) 86 md/sc 1/ 5

H.F. 2293 pursuant to section 285.1, subsection 12, less the amount 1 received for transporting nonpublic school pupils under section 2 285.1, by the district’s actual enrollment for the school year, 3 excluding the shared-time enrollment for the school year as 4 defined in section 257.6. 5 3. a. A transportation equity fund is created as a separate 6 and distinct fund in the state treasury under the control of 7 the department of management. Moneys in the fund include 8 revenues credited to the fund, appropriations made to the 9 fund, and other moneys deposited in the fund. For each fiscal 10 year beginning on or after July 1, 2016, there is appropriated 11 all moneys in the fund to the department of management for 12 purposes of making transportation equity aid payments under 13 this section, as calculated under subsection 2. 14 b. If the balance of the fund exceeds the amount 15 necessary to make all transportation equity aid payments, 16 moneys remaining in the fund at the end of a fiscal year, 17 notwithstanding section 8.33, shall remain in the fund and 18 shall be available for expenditure for the purposes of this 19 section in subsequent fiscal years. 20 4. Transportation equity aid payments shall be paid by 21 the department of education at the same time and in the same 22 manner as foundation aid is paid under section 257.16, and may 23 be included in the monthly payment of state aid under section 24 257.16, subsection 2. 25 5. Transportation equity aid payments received under 26 this section are miscellaneous income and shall be deposited 27 in the general fund of the school district. However, the 28 transportation equity aid amount shall not be included in 29 district cost. Transportation equity aid under this section 30 shall not affect the receipt or amount of a budget adjustment 31 received under section 257.14. 32 Sec. 2. Section 257.31, subsection 17, Code 2016, is amended 33 by striking the subsection. 34 Sec. 3. Section 321.34, subsection 22, paragraph b, Code 35 -2- LSB 5777YH (2) 86 md/sc 2/ 5

H.F. 2293 2016, is amended to read as follows: 1 b. The special school transportation fee for letter-number 2 designated education plates is thirty-five dollars. The fee 3 for personalized education plates is twenty-five dollars, which 4 shall be paid in addition to the special school transportation 5 fee of thirty-five dollars. The annual special school 6 transportation fee is ten dollars for letter-number designated 7 registration plates and is fifteen dollars for personalized 8 registration plates which shall be paid in addition to the 9 regular annual registration fee. The fees collected by the 10 director under this subsection shall be paid monthly to the 11 treasurer of state and deposited in the road use tax fund. The 12 treasurer of state shall transfer monthly from the statutory 13 allocations fund created under section 321.145, subsection 14 2 , to the school budget review committee in accordance with 15 section 257.31, subsection 17 transportation equity fund 16 created in section 257.16C , the amount of the special school 17 transportation fees collected in the previous month for the 18 education plates. 19 Sec. 4. IMPLEMENTATION. Moneys transferred to the school 20 budget review committee for the purposes of section 257.31, 21 subsection 17, Code 2016, that remain unexpended on June 30, 22 2016, shall be transferred to the department of management and 23 deposited in the transportation equity fund created in section 24 257.16C. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill establishes the transportation equity program 29 to provide additional funding for school districts with a 30 transportation cost per pupil that exceeds the statewide 31 minimum transportation cost per pupil for the same budget year. 32 For the budget year beginning July 1, 2016, the department 33 of management is required to determine a statewide adjusted 34 transportation cost per pupil that is not lower than the 35 -3- LSB 5777YH (2) 86 md/sc 3/ 5

H.F. 2293 statewide minimum transportation cost per pupil. The statewide 1 adjusted transportation cost per pupil shall be annually 2 determined, by taking into account amounts appropriated, for 3 the purpose of providing transportation equity aid for those 4 school districts with the highest transportation cost per pupil 5 differential. 6 Each eligible school district shall receive transportation 7 equity aid in an amount equal to the school district’s actual 8 enrollment for the school year, excluding the shared-time 9 enrollment for the school year, multiplied by the difference 10 between the school district’s transportation cost per pupil for 11 the budget year and the statewide adjusted transportation cost 12 per pupil for the budget year. The bill defines “statewide 13 minimum transportation cost per pupil” and “transportation cost 14 per pupil differential”. The bill also establishes the method 15 used to calculate a district’s transportation cost per pupil. 16 The bill establishes a transportation equity fund and 17 annually appropriates all moneys in the fund to the department 18 of management for purposes of making transportation equity 19 aid payments. If the balance of the fund exceeds the amount 20 necessary to make all transportation equity aid payments, 21 moneys remaining in the fund at the end of the fiscal year 22 are required to remain in the fund and are available for 23 expenditure in subsequent fiscal years. The bill also 24 establishes the timing and procedure for making transportation 25 equity aid payments. 26 Transportation equity aid payments are miscellaneous income 27 and shall be deposited in the general fund of the school 28 district. However, the transportation equity aid amount shall 29 not be included in district cost. Transportation equity aid 30 under this Code section shall not affect the receipt or amount 31 of a budget adjustment received under Code section 257.14. 32 The bill strikes that portion of Code section 257.31 that 33 authorized the school budget review committee to provide 34 transportation assistance aid to certain school districts using 35 -4- LSB 5777YH (2) 86 md/sc 4/ 5

H.F. 2293 fees collected for vehicle registration plates containing an 1 education emblem and provides for the transfer of such fees to 2 the transportation equity fund created in the bill, instead of 3 being transferred to the school budget review committee for 4 transportation assistance aid. 5 The bill provides that any moneys transferred to the 6 school budget review committee for the purposes of providing 7 transportation assistance aid that remain unexpended on June 8 30, 2016, shall be transferred to the department of management 9 and deposited in the transportation equity fund created in the 10 bill. 11 -5- LSB 5777YH (2) 86 md/sc 5/ 5