SF 473 (LSB 1517SZ (1) 86)

SENATE FILE 473

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO SF 246)
(SUCCESSOR TO SSB 1101)

A BILL FOR

An Act relating to the state preschool program for four-year-old children by establishing a preschool expansion incentive, authorizing state aid for the incentive, and addressing program costs.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 256C.3, subsection 3, paragraph h, Code 2015, is amended to read as follows:
   h.  Provision for ensuring that children receiving care from other child care arrangements can participate in the preschool program with minimal disruption due to transportation and movement from one site to another.  The children participating in the preschool program may be transported by the school district to and from activities associated with the program along with other children.
    Sec. 2.  Section 256C.3, subsection 4, Code 2015, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  Development and implementation of a plan for the school district’s preschool program to have sufficient capacity to operate without a waiting list for school budget years beginning on or after July 1, 2018.
    Sec. 3.  Section 256C.4, subsection 1, paragraphs g and h, Code 2015, are amended to read as follows:
   g.  For the fiscal year beginning July 1, 2011 2015, and each succeeding fiscal year, of the amount of preschool foundation aid received by a school district for a fiscal year in accordance with section 257.16, not more than five ten percent may be used by the school district for administering the district’s approved local program. Outreach activities and rent for facilities not owned by the school district are permissive uses of the administrative funds.
   h.  For the fiscal year beginning July 1, 2012 2015, and each succeeding fiscal year, of the amount of preschool foundation aid received by a school district for a fiscal year in accordance with section 257.16, not less than ninety-five ninety percent of the per pupil amount shall be passed through to a community-based provider for each pupil enrolled in the district’s approved local program. For the fiscal year beginning July 1, 2011 2015, and each succeeding fiscal year, not more than five ten percent of the amount of preschool foundation aid passed through to a community-based provider may be used by the community-based provider for administrative costs.  The costs of outreach activities and rent for facilities not owned by the school district are permissive administrative costs. The costs of transportation involving children participating in the preschool program and other children may be prorated.
    Sec. 4.  Section 256C.4, subsection 2, paragraph b, Code 2015, is amended to read as follows:
   b.  The enrollment count of eligible students shall not include a child who is included in the enrollment count determined under section 257.6 or a child who is served by a an existing preschool program already receiving state or federal funds for the purpose of the provision of providing four-year-old preschool programming while the child is being served by the existing program. Such preschool programming However, the enrollment count of eligible students may include a child being served by an existing preschool program if the preschool programming in the existing program has been enhanced as a result of preschool program expansion incentive state aid provided under section 256C.7. For the purposes of this chapter, an “existing preschool program” includes but is not limited to shared visions and other child development assistance programs provided under chapter 256A and section 279.51, special education programs provided under section 256B.9, school ready children grant programs and other programs provided under chapter 256I, and federal head start programs and the services funded by Tit. I of the federal Elementary and Secondary Education Act of 1965.
    Sec. 5.  Section 256C.5, subsection 1, unnumbered paragraph 1, Code 2015, is amended to read as follows:

   For the purposes of this section and section 256C.4 chapter, unless the context otherwise requires:
    Sec. 6.  NEW SECTION.  256C.7  Preschool program expansion incentive.
   1.  For the purposes of this section, unless the context otherwise requires:
   a.  “Base incentive enrollment” means the average of the actual enrollments of eligible students in the preschool programming provided by a school district on October 1, 2012, October 1, 2013, and October 1, 2014.
   b.  “Incentive enrollment” means the amount by which the actual enrollment of eligible students in the preschool programming provided by a school district on October 1 of the base year exceeds the school district’s base incentive enrollment.
   c.  “Incentive period” means the budget years beginning July 1, 2016, July 1, 2017, and July 1, 2018.
   d.  “Incentive state aid” means the product of twenty percent of the regular program state cost per pupil for the budget year multiplied by the school district’s incentive enrollment in the base year.
   2.  a.  A preschool program expansion incentive is established in accordance with this section. In order to be eligible for the incentive, a school district must develop and implement a preschool program expansion plan, approved by the department, to expand enrollment of eligible students in the school district’s preschool programming. In addition, the school district shall work with existing preschool program providers to expand hours and otherwise enhance the preschool programming available to the children participating in the programs. The plan’s goal shall be that by the end of the incentive period the district’s preschool programming will be available without a waiting list to each child wanting to enroll in the programming. After completion of the incentive period, the department shall analyze the growth in access to the preschool program and enhancements made in preschool programming as a result of the incentive, including in the programs provided directly by school districts and in those offered in partnership with community providers. The department shall submit a report to the general assembly that shall include identification of progress made toward the incentive program’s goals and documentation of collaboration efforts made with input from participating families, early care providers, and community partners.
   b.  The elements addressed in the preschool program expansion plan shall include but are not limited to the following:
   (1)  How the school district will work in collaboration with participating families, early care providers, and community partners, as described in section 256C.3, subsection 3, to provide the preschool programming in as convenient and cost-effective a manner as possible for the families of the four-year-old children who are eligible for the programming.
   (2)  A specification of the roles of the early care providers and community partners in support of the expansion plan.
   (3)  A delineation of the specific steps for expanding hours and otherwise enhancing the preschool programming available to the children participating in the existing preschool programs located in the school district.
   (4)  Identification of specific outcomes and progress measures for the expansion plan. 
   (5)  Detailed plans for contacting and soliciting enrollment of eligible students, particularly from low-income families, non-English speaking families, and families from ethnic and racial groups underrepresented in the district’s preschool program enrollment.
   3.  The department of education shall provide required elements and recommend best practices for outreach and program expansion under the incentive, including expansion plan models that school districts may consider in developing their local expansion plans, and including but not limited to submission provisions, annual updates, and documentation of collaboration efforts with and input from participating families, early care providers, and community partners.
   4.  During the incentive period, in addition to the regular preschool foundation aid based on the preschool budget enrollment, the school district implementing a preschool expansion plan approved by the department shall receive incentive state aid based on the district’s incentive enrollment. The incentive state aid shall be paid as part of the state aid payments made to school districts in accordance with section 257.16 and shall be subject to the same requirements applicable to preschool foundation aid under section 256C.4, subsection 1, paragraph “d”.
   5.  A school district shall utilize its incentive state aid to defray increases in costs in connection with the school district’s preschool program expansion plan. Such costs shall include but are not limited to renovation and other facility costs connected with expansion, outreach, one-time expenses, and other costs identified as eligible by the department.
    Sec. 7.  Section 257.16, Code 2015, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  For the fiscal years in which the preschool program expansion incentive applies in accordance with section 256C.7, the appropriation made in subsection 1 shall include the amount necessary to pay incentive state aid in accordance with section 256C.7. This subsection is repealed on July 1, 2019.
    Sec. 8.  STATE MANDATE FUNDING SPECIFIED.  In accordance with section 25B.2, subsection 3, the state cost of requiring compliance with any state mandate included in this Act shall be paid by a school district from state school foundation aid received by the school district under section 257.16. This specification of the payment of the state cost shall be deemed to meet all of the state funding-related requirements of section 25B.2, subsection 3, and no additional state funding shall be necessary for the full implementation of this Act by and enforcement of this Act against all affected school districts.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the statewide preschool program for four-year-old children by establishing a preschool program expansion incentive and authorizing state aid for the incentive. The bill also addresses costs allowed under the program.
   Code section 256C.3, relating to preschool program requirements, is amended to require each school district to implement a plan for the school district’s preschool program to have sufficient capacity to operate without a waiting list for school budget years beginning on or after July 1, 2018. 
   To be eligible for the preschool expansion incentive, a school district must develop and implement a preschool expansion plan, approved by the department, in order to expand enrollment of eligible students in the school district’s preschool programming. Requirements for the plan are provided in the bill, including how the school district will collaborate with participating families, early care providers, and community partners to expand the district’s preschool enrollment. The department of education is to specify other requirements for the plan and for approval of plans by the department. The bill requires the department of education to analyze the enhancements to the preschool program following the incentives period and submit a report to the general assembly.
   Current law in Code section 256C.4 prohibits inclusion in the preschool program of children already included in a school’s enrollment count for purposes of the school aid foundation formula or children who are served by an existing preschool program already receiving state or federal funds for the purpose of providing four-year-old preschool programming while the child is being served by the existing program. The bill allows inclusion of children participating in an existing program if the preschool programming in the existing program has been enhanced as part of the expansion incentive.
   The incentive program will operate for the three school budget years beginning July 1, 2016, July 1, 2017, and July 1, 2018. For those three budget years, a school district is eligible to receive incentive state aid for the increase in the actual enrollment of eligible students in the preschool programming provided by a school district in the immediately preceding school year over the base incentive enrollment. The base incentive enrollment is the average of the actual enrollments of eligible students in the school district’s preschool programming on October 1, 2012, October 1, 2013, and October 1, 2014. The amount of incentive state aid is equal to 20 percent of the regular program state cost per pupil multiplied by the school district’s incentive enrollment in the base year.
   The incentive state aid is required to be used to defray increases in costs in connection with the school district’s preschool expansion plan. Such costs may include renovation and other facility costs connected with expansion, outreach, one-time expenses, and other costs identified as eligible by the department.
   The bill also addresses administration and other costs under the preschool program in amendments to Code sections 256C.3 and 256C.4. Authorization is provided for a school district to transport the children participating in the preschool program to and from activities associated with the program along with other children. The bill authorizes community-based providers to prorate the costs of transporting children participating in the preschool program. The allowable administrative costs for school districts are increased from 5 to 10 percent. Also, the costs of outreach activities and facility rent are permitted as administrative costs.
   The bill may include a state mandate as defined in Code section 25B.3. The bill requires that the state cost of any state mandate included in the bill be paid by a school district from state school foundation aid received by the school district under Code section 257.16. The specification is deemed to constitute state compliance with any state mandate funding-related requirements of Code section 25B.2. The inclusion of this specification is intended to reinstate the requirement of political subdivisions to comply with any state mandates included in the bill.