Senate File 2104 - Introduced SENATE FILE 2104 BY SINCLAIR , SCHULTZ , SEGEBART , COSTELLO , JOHNSON , BEHN , KRAAYENBRINK , SHIPLEY , DIX , GUTH , KAPUCIAN , BREITBACH , ROZENBOOM , SMITH , ZUMBACH , GARRETT , ANDERSON , and CHELGREN A BILL FOR An Act relating to school district finance by modifying 1 provisions relating to the calculation of the regular 2 program state cost per pupil and the regular program 3 district cost per pupil, and by establishing a supplementary 4 weighting plan for certain mandatory school district 5 transportation costs. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5459XS (6) 86 md/sc

S.F. 2104 DIVISION I 1 STATE COST PER PUPIL 2 Section 1. Section 257.8, subsection 5, Code 2016, is 3 amended to read as follows: 4 5. Alternate supplemental state aid —— definitions. 5 a. For budget years beginning July 1, 2000, and subsequent 6 budget years, references to the terms “supplemental state aid” , 7 “regular program state cost per pupil” , and “regular program 8 district cost per pupil” shall mean those terms as calculated 9 for those school districts that calculated regular program 10 supplemental state aid for the school budget year beginning 11 July 1, 1999, with the additional thirty-eight dollars 12 specified in section 257.8, subsection 4, Code 2013 . 13 b. For budget years beginning July 1, 2017, and subsequent 14 budget years, references to “supplemental state aid” and 15 “regular program state cost per pupil” shall mean those terms 16 as calculated including the additional amounts for specified 17 budget years under section 257.9, subsection 2, paragraphs “b” 18 and “c” , and references to “regular program district cost per 19 pupil” shall mean that term including any adjustments made under 20 section 257.10, subsection 2. 21 Sec. 2. Section 257.9, subsection 2, Code 2016, is amended 22 to read as follows: 23 2. Regular program state cost per pupil for 1992-1993 and 24 succeeding years. 25 a. For the budget year beginning July 1, 1992, and 26 succeeding budget years beginning before July 1, 2017 , the 27 regular program state cost per pupil for a budget year is the 28 regular program state cost per pupil for the base year plus the 29 regular program supplemental state aid for the budget year. 30 b. For the budget year beginning July 1, 2017, the regular 31 program state cost per pupil is the regular program state 32 cost per pupil for the base year plus the regular program 33 supplemental state aid for the budget year, plus five dollars. 34 c. For the budget year beginning July 1, 2018, the regular 35 -1- LSB 5459XS (6) 86 md/sc 1/ 8

S.F. 2104 program state cost per pupil is the regular program state 1 cost per pupil for the base year plus the regular program 2 supplemental state aid for the budget year, plus ten dollars. 3 d. For the budget year beginning July 1, 2019, and 4 succeeding budget years beginning before July 1, 2027, the 5 regular program state cost per pupil for a budget year is the 6 regular program state cost per pupil for the base year plus the 7 regular program supplemental state aid for the budget year, 8 plus twenty dollars. 9 e. For the budget year beginning July 1, 2027, and 10 succeeding budget years, the regular program state cost per 11 pupil for a budget year is the regular program state cost per 12 pupil for the base year plus the regular program supplemental 13 state aid for the budget year. 14 Sec. 3. Section 257.10, subsection 2, Code 2016, is amended 15 by adding the following new paragraph: 16 NEW PARAGRAPH . c. For the budget year beginning July 1, 17 2017, and succeeding budget years, if the regular program 18 district cost per pupil for the budget year calculated under 19 this subsection in any school district is less than the 20 regular program state cost per pupil for the budget year, the 21 department of management shall increase the regular program 22 district cost per pupil of that district to an amount equal to 23 the regular program state cost per pupil for the budget year. 24 DIVISION II 25 SCHOOL DISTRICT SUPPLEMENTARY WEIGHTING 26 Sec. 4. Section 257.11, Code 2016, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 7A. School district transportation costs. 29 a. In order to provide additional funds for school district 30 transportation costs resulting from the transportation of 31 resident pupils required by chapter 285, a supplementary 32 weighting plan for such pupils is adopted. 33 b. Each school district shall be assigned a supplementary 34 weighting amount as follows: 35 -2- LSB 5459XS (6) 86 md/sc 2/ 8

S.F. 2104 (1) For the budget year beginning July 1, 2017, ten percent 1 of the combined weighting amount calculated under paragraph 2 “c” , subparagraph (2), for that budget year. 3 (2) For the budget year beginning July 1, 2018, twenty 4 percent of the combined weighting amount calculated under 5 paragraph “c” , subparagraph (2), for that budget year. 6 (3) For the budget year beginning July 1, 2019, thirty 7 percent of the combined weighting amount calculated under 8 paragraph “c” , subparagraph (2), for that budget year. 9 (4) For the budget year beginning July 1, 2020, forty 10 percent of the combined weighting amount calculated under 11 paragraph “c” , subparagraph (2), for that budget year. 12 (5) For the budget year beginning July 1, 2021, fifty 13 percent of the combined weighting amount calculated under 14 paragraph “c” , subparagraph (2), for that budget year. 15 (6) For the budget year beginning July 1, 2022, sixty 16 percent of the combined weighting amount calculated under 17 paragraph “c” , subparagraph (2), for that budget year. 18 (7) For the budget year beginning July 1, 2023, seventy 19 percent of the combined weighting amount calculated under 20 paragraph “c” , subparagraph (2), for that budget year. 21 (8) For the budget year beginning July 1, 2024, eighty 22 percent of the combined weighting amount calculated under 23 paragraph “c” , subparagraph (2), for that budget year. 24 (9) For the budget year beginning July 1, 2025, ninety 25 percent of the combined weighting amount calculated under 26 paragraph “c” , subparagraph (2), for that budget year. 27 (10) For the budget year beginning July 1, 2026, and each 28 succeeding budget year, one hundred percent of the combined 29 weighting amount calculated under paragraph “c” , subparagraph 30 (2), for that budget year. 31 c. (1) (a) Transportation cost factor. For each budget 32 year beginning on or after July 1, 2017, the department of 33 management shall calculate for each school district all of the 34 following: 35 -3- LSB 5459XS (6) 86 md/sc 3/ 8

S.F. 2104 (i) The sum of the school district’s total transportation 1 costs incurred for the transportation of pupils required under 2 chapter 285 for the three years immediately preceding the base 3 year. 4 (ii) The sum of the school district’s regular program 5 district cost for the three years immediately preceding the 6 base year, excluding amounts attributable to budget adjustments 7 received under section 257.14. 8 (iii) The school district’s budget enrollment multiplied by 9 the quotient of the school district’s amount under subparagraph 10 subdivision (i) divided by the school district’s amount under 11 subparagraph subdivision (ii). 12 (iv) The school district’s amount under subparagraph 13 subdivision (iii) divided by the sum of the amounts calculated 14 under subparagraph subdivision (iii) for all school districts. 15 (v) The amount calculated under subparagraph subdivision 16 (iv) multiplied by fifty percent of the sum of all school 17 districts’ transportation costs incurred for the transportation 18 of pupils required under chapter 285 for the year preceding the 19 base year. 20 (vi) The quotient of the amount calculated under 21 subparagraph subdivision (v) divided by the regular program 22 state cost per pupil for the base year. 23 (b) Budget enrollment factor. For each budget year 24 beginning on or after July 1, 2017, the department of 25 management shall calculate for each school district all of the 26 following: 27 (i) The quotient of the school district’s budget enrollment 28 divided by the statewide total budget enrollment multiplied by 29 five percent of the sum of all school districts’ transportation 30 costs incurred for the transportation of pupils required under 31 chapter 285 for the year preceding the base year. 32 (ii) The amount calculated under subparagraph subdivision 33 (i) divided by the regular program state cost per pupil for the 34 base year. 35 -4- LSB 5459XS (6) 86 md/sc 4/ 8

S.F. 2104 (c) Route miles factor. For each budget year beginning 1 on or after July 1, 2017, the department of management shall 2 calculate for each school district all of the following: 3 (i) The quotient of the school district’s total route 4 miles traveled for the transportation of pupils required under 5 chapter 285 for the year preceding the base year divided by the 6 school district’s budget enrollment. 7 (ii) The school district’s amount under subparagraph 8 subdivision (i) divided by the sum of the amounts calculated 9 under subparagraph subdivision (i) for all school districts. 10 (iii) The amount calculated under subparagraph subdivision 11 (ii) multiplied by forty-five percent of the sum of all school 12 districts’ transportation costs incurred for the transportation 13 of pupils required under chapter 285 for the year preceding the 14 base year. 15 (iv) The amount calculated under subparagraph subdivision 16 (iii) divided by the regular program state cost per pupil for 17 the base year. 18 (2) The combined weighting amount for each school district 19 is the sum of the following: 20 (a) The amount calculated under subparagraph (1), 21 subparagraph division (a), subparagraph subdivision (vi). 22 (b) The amount calculated under subparagraph (1), 23 subparagraph division (b), subparagraph subdivision (ii). 24 (c) The amount calculated under subparagraph (1), 25 subparagraph division (c), subparagraph subdivision (iv). 26 d. Funding received by a school district as the result of 27 supplementary weighting under this subsection shall not affect 28 a school district’s eligibility for transportation assistance 29 under section 257.31, subsection 17. 30 e. Funding received by a school district as the result 31 of supplementary weighting under this subsection shall be 32 used only for transportation costs incurred in providing 33 transportation to pupils required by chapter 285. 34 f. On or before December 1, 2022, and on or before December 35 -5- LSB 5459XS (6) 86 md/sc 5/ 8

S.F. 2104 1 every five years thereafter, the director of the department 1 of education shall compile and review the data collected as 2 a result of the supplementary weighting provided under this 3 subsection and shall prepare a report to the general assembly 4 containing analysis of the supplementary weighting plan’s 5 efficacy and recommendations for changes. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to school district finance by modifying 10 provisions relating to the calculation of the regular program 11 state cost per pupil and the regular program district cost 12 per pupil and establishing a supplementary weighting plan for 13 certain mandatory school district transportation costs. 14 Division I of the bill relates to the determination of the 15 regular program state cost per pupil and the determination of 16 regular program state cost per pupil for school districts. 17 Those amounts are used to determine supplemental state aid 18 amounts for each school budget year, determining the budget 19 authority for each school district, and determining amounts 20 of preschool foundation aid for schools participating in the 21 statewide preschool program for four-year-old children under 22 Code chapter 256C. 23 Current Code section 257.9 provides that for the budget 24 year beginning July 1, 1992, and succeeding budget years, the 25 regular program state cost per pupil for a budget year is the 26 regular program state cost per pupil for the base year plus the 27 regular program supplemental state aid for the budget year. 28 Under the bill, for the budget year beginning July 1, 2017, 29 the regular program state cost per pupil is the regular program 30 state cost per pupil for the base year plus the regular program 31 supplemental state aid for the budget year, plus $5. For 32 the budget year beginning July 1, 2018, the regular program 33 state cost per pupil is the regular program state cost per 34 pupil for the base year plus the regular program supplemental 35 -6- LSB 5459XS (6) 86 md/sc 6/ 8

S.F. 2104 state aid for the budget year, plus $10. For the budget year 1 beginning July 1, 2019, and succeeding budget years beginning 2 before July 1, 2027, the regular program state cost per pupil 3 is the regular program state cost per pupil for the base 4 year plus the regular program supplemental state aid for the 5 budget year, plus $20. Then with the budget year beginning 6 July 1, 2027, and succeeding budget years, the regular program 7 state cost per pupil will again be calculated as the regular 8 program state cost per pupil for the base year plus the regular 9 program supplemental state aid for the budget year without any 10 additional amount added. 11 The bill amends Code section 257.10 to provide that if 12 the regular program district cost per pupil for the budget 13 year calculated in any school district is less than the 14 regular program state cost per pupil for the budget year, the 15 department of management shall increase the regular program 16 district cost per pupil of that district to an amount equal to 17 the regular program state cost per pupil for the budget year. 18 Division II of the bill establishes a supplementary 19 weighting plan for school district transportation costs 20 resulting from the transportation of pupils as required under 21 Code chapter 285. 22 The bill establishes a methodology for calculating the 23 amount of supplementary weighting assigned to each school 24 district. The calculation is made using school district 25 transportation cost data, school district enrollment data, and 26 school district transportation route mile data. The amount of 27 the supplementary weighting is phased in over a period of 10 28 school budget years beginning with the budget year beginning 29 July 1, 2017. 30 The bill specifies that funding received by a school 31 district as the result of supplementary weighting in the 32 bill does not affect a school district’s eligibility for 33 transportation assistance granted by the school budget review 34 committee and requires that funding received by a school 35 -7- LSB 5459XS (6) 86 md/sc 7/ 8

S.F. 2104 district as the result of the supplementary weighting be 1 used only for transportation costs incurred in providing 2 transportation to those pupils specified in the bill. 3 The bill requires the director of the department of 4 education to, on or before December 1, 2022, and on or before 5 December 1 every five years thereafter, compile and review 6 the data collected as a result of the supplementary weighting 7 provided in the bill and to prepare a report to the general 8 assembly containing analysis of the supplementary weighting 9 plan’s efficacy and recommendations for changes. 10 -8- LSB 5459XS (6) 86 md/sc 8/ 8