H.F. 609 Section 1. Section 257.1, subsection 2, paragraph b, Code 1 2015, is amended to read as follows: 2 b. For the budget year commencing July 1, 1999, and for each 3 succeeding budget year the regular program foundation base per 4 pupil is eighty-seven and five-tenths percent of the regular 5 program state cost per pupil. For the budget year commencing 6 July 1, 1991, and for each succeeding budget year the special 7 education support services foundation base is seventy-nine 8 percent of the special education support services state cost 9 per pupil. The combined foundation base is the sum of the 10 regular program foundation base, the special education support 11 services foundation base, the total teacher salary supplement 12 district cost, the total professional development supplement 13 district cost, the total early intervention supplement district 14 cost, the total teacher leadership supplement district cost, 15 the total STEM supplement district cost, the total area 16 education agency teacher salary supplement district cost, 17 and the total area education agency professional development 18 supplement district cost. 19 Sec. 2. Section 257.1, subsection 3, Code 2015, is amended 20 to read as follows: 21 3. Computations rounded. In making computations and 22 payments under this chapter , except in the case of computations 23 relating to funding of special education support services, 24 media services, and educational services provided through the 25 area education agencies, and the teacher salary supplement, the 26 professional development supplement, the early intervention 27 supplement, and the teacher leadership supplement, and the STEM 28 supplement, the department of management shall round amounts to 29 the nearest whole dollar. 30 Sec. 3. Section 257.4, subsection 1, paragraph a, Code 2015, 31 is amended by adding the following new subparagraph: 32 NEW SUBPARAGRAPH . (10) The total STEM supplement district 33 cost. 34 Sec. 4. Section 257.8, subsection 2, Code 2015, is amended 35 -1- LSB 2516YH (2) 86 md/sc 1/ 5

H.F. 609 to read as follows: 1 2. Categorical state percent of growth. The categorical 2 state percent of growth for the budget year beginning July 3 1, 2012, is two percent. The categorical state percent of 4 growth for the budget year beginning July 1, 2013, is two 5 percent. The categorical state percent of growth for the 6 budget year beginning July 1, 2014, is four percent. The 7 categorical state percent of growth for each budget year shall 8 be established by statute which shall be enacted within thirty 9 days of the submission in the year preceding the base year of 10 the governor’s budget under section 8.21 . The establishment 11 of the categorical state percent of growth for a budget year 12 shall be the only subject matter of the bill which enacts the 13 categorical state percent of growth for a budget year. The 14 categorical state percent of growth may include state percents 15 of growth for the teacher salary supplement, the professional 16 development supplement, the early intervention supplement, and 17 the teacher leadership supplement , and the STEM supplement . 18 Sec. 5. Section 257.9, Code 2015, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 12. STEM supplement state cost per 21 pupil. The STEM supplement state cost per pupil amount for 22 the budget year beginning July 1, 2016, shall be twenty-five 23 dollars. The STEM supplement state cost per pupil for the 24 budget year beginning July 1, 2017, and succeeding budget 25 years, shall be the STEM supplement state cost per pupil for 26 the base year plus a supplemental state aid amount that is 27 equal to the STEM supplement categorical state percent of 28 growth, pursuant to section 257.8, subsection 2, for the budget 29 year, multiplied by the STEM supplement state cost per pupil 30 for the base year. 31 Sec. 6. Section 257.10, subsection 8, paragraph a, Code 32 2015, is amended to read as follows: 33 a. Combined district cost is the sum of the regular 34 program district cost per pupil multiplied by the weighted 35 -2- LSB 2516YH (2) 86 md/sc 2/ 5

H.F. 609 enrollment, the special education support services district 1 cost, the total teacher salary supplement district cost, the 2 total professional development supplement district cost, the 3 total early intervention supplement district cost, and the 4 total teacher leadership supplement district cost, and the 5 STEM supplement district cost, plus the sum of the additional 6 district cost allocated to the district to fund media services 7 and educational services provided through the area education 8 agency, the area education agency total teacher salary 9 supplement district cost and the area education agency total 10 professional development supplement district cost. 11 Sec. 7. Section 257.10, Code 2015, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 13. STEM supplement cost per pupil and 14 district cost. 15 a. The STEM supplement district cost per pupil amount for 16 the budget year beginning July 1, 2016, shall be twenty-five 17 dollars. For the budget year beginning July 1, 2017, and 18 succeeding budget years, the STEM supplement district cost per 19 pupil for each school district for a budget year is the STEM 20 supplement program district cost per pupil for the base year 21 plus the STEM supplement supplemental state aid amount for the 22 budget year. 23 b. The STEM supplement district cost is the STEM supplement 24 district cost per pupil for each school district for a budget 25 year multiplied by that portion of the school district’s budget 26 enrollment that is grades nine through twelve. 27 c. Funds calculated under this subsection shall be used 28 by the school district to provide rigorous and innovative 29 classes and instruction in the fields of science, technology, 30 engineering, and mathematics for grades nine through twelve. 31 Sec. 8. Section 257.16, subsection 4, Code 2015, is amended 32 to read as follows: 33 4. Notwithstanding any provision to the contrary, if 34 the governor orders budget reductions in accordance with 35 -3- LSB 2516YH (2) 86 md/sc 3/ 5

H.F. 609 section 8.31 , the teacher salary supplement district cost, 1 the professional development supplement district cost, the 2 early intervention supplement district cost, and the teacher 3 leadership supplement district cost , and the STEM supplement 4 district cost as calculated under section 257.10, subsections 5 9, 10, 11, and 12 , and 13, and the area education agency 6 teacher salary supplement district cost and the area education 7 agency professional development supplement district cost 8 as calculated under section 257.37A, subsections 1 and 2 , 9 shall be paid in full as calculated and the reductions in the 10 appropriations provided in accordance with this section shall 11 be reduced from the remaining moneys appropriated pursuant 12 to this section and shall be distributed on a per pupil 13 basis calculated with the weighted enrollment determined in 14 accordance with section 257.6, subsection 5 . 15 Sec. 9. APPLICABILITY. This Act applies to school budget 16 years beginning on or after July 1, 2016. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill establishes a STEM (science, technology, 21 engineering, mathematics) categorical funding supplement for 22 school districts. The bill establishes a STEM supplement state 23 cost per pupil amount for the budget year beginning July 1, 24 2016, in the amount of $25. The STEM supplement state cost 25 per pupil for the budget year beginning July 1, 2017, and 26 succeeding budget years, is the sum of the STEM supplement 27 state cost per pupil for the base year plus a supplemental 28 state aid amount that is equal to the STEM supplement 29 categorical state percent of growth for the budget year, 30 multiplied by the STEM supplement state cost per pupil for the 31 base year. 32 In addition, the bill establishes a STEM supplement district 33 cost per pupil amount for the budget year beginning July 1, 34 2016, in the amount of $25. For the budget year beginning 35 -4- LSB 2516YH (2) 86 md/sc 4/ 5

H.F. 609 July 1, 2017, and succeeding budget years, the STEM supplement 1 district cost per pupil for each school district for a budget 2 year is the STEM supplement program district cost per pupil 3 for the base year plus the STEM supplement supplemental state 4 aid amount for the budget year. Under the bill, the STEM 5 supplement district cost is the STEM supplement district cost 6 per pupil for each school district for a budget year multiplied 7 by that portion of the school district’s budget enrollment that 8 is grades 9 through 12. 9 The bill requires that funds received by a school district 10 from the STEM supplement be used by the school district to 11 provide rigorous and innovative classes and instruction in the 12 fields of science, technology, engineering, and mathematics for 13 grades 9 through 12. 14 The bill applies to school budget years beginning on or after 15 July 1, 2016. 16 -5- LSB 2516YH (2) 86 md/sc 5/ 5