H.F. 24 Section 1. Section 257.13, subsection 1, Code 2017, is 1 amended to read as follows: 2 1. For the school budget year beginning July 1, 2001, and 3 succeeding budget years, if a district’s actual enrollment 4 for the budget year, determined under section 257.6 , is 5 greater than its budget enrollment for the budget year, the 6 district shall be eligible to receive an on-time funding budget 7 adjustment. The adjustment shall be in an amount equal to the 8 difference between the actual enrollment for the budget year 9 and the budget enrollment for the budget year, multiplied by 10 the district cost per pupil , and then reduced by the amount 11 received by the district under the school district enrollment 12 supplement program under section 257.13A . 13 Sec. 2. NEW SECTION . 257.13A School district enrollment 14 supplement program —— appropriation. 15 1. A school district enrollment supplement program is 16 established to provide additional funding for school districts 17 in which the district’s actual enrollment for the budget year 18 exceeds the budget enrollment for the budget year. For the 19 school budget year beginning July 1, 2018, and succeeding 20 budget years, if a district’s actual enrollment for the budget 21 year is greater than its budget enrollment for the budget year, 22 both as determined under section 257.6, the district may submit 23 a request to the school budget review committee for a school 24 district enrollment supplement. A request for an enrollment 25 supplement pursuant to this section must be received by the 26 school budget review committee by November 1. The school 27 budget review committee shall approve the request for the 28 enrollment supplement in the amount specified in subsection 3 29 if the district meets the requirements of this section. 30 2. a. For each fiscal year beginning on or after July 31 1, 2018, there is appropriated from the general fund of the 32 state to the department of education the sum of ten million 33 dollars, or so much thereof as is necessary, to make all school 34 district enrollment supplement payments under this section, as 35 -1- LSB 1442YH (7) 87 md/sc 1/ 4

H.F. 24 calculated in subsection 3. 1 b. If the amount appropriated under this subsection is 2 insufficient to pay the entirety of all school district 3 enrollment supplement payments calculated under subsection 3, 4 the department of education shall prorate the amount of the 5 school district enrollment supplement payment provided to each 6 district. 7 3. The amount of each eligible school district’s enrollment 8 supplement shall be the difference between the school 9 district’s actual enrollment for the budget year minus the 10 school district’s budget enrollment for the budget year 11 multiplied by the school district’s regular program foundation 12 aid per pupil for the budget year. 13 4. School district enrollment supplement payments shall be 14 paid by the department of education in a single payment at the 15 same time as the first monthly installment is paid on or after 16 January 1 of the budget year under section 257.16, subsection 17 2. 18 5. School district enrollment supplement payments received 19 under this section are miscellaneous income and shall be 20 deposited in the general fund of the school district. However, 21 the school district enrollment supplement amount shall not be 22 included in district cost. An enrollment supplement under this 23 chapter shall not affect the receipt or amount of a budget 24 adjustment received under section 257.14. 25 6. Except for an adjustment to an amount under section 26 257.31, subsection 5, participation in the school district 27 enrollment supplement program under this section shall not 28 affect a school district’s eligibility to receive an amount 29 from the school budget review committee under section 257.31. 30 Sec. 3. Section 257.31, subsection 5, paragraph a, Code 31 2017, is amended to read as follows: 32 a. Any unusual increase or decrease in enrollment. In 33 deciding a school district’s need for additional funds under 34 this paragraph “a” , the school budget review committee shall 35 -2- LSB 1442YH (7) 87 md/sc 2/ 4

H.F. 24 consider school district enrollment supplement amounts received 1 by the school district under section 257.13A for the same 2 budget year, and may accordingly adjust amounts granted for the 3 purposes of this paragraph. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill establishes a school district enrollment 8 supplement program to provide additional funding for school 9 districts in which the district’s actual enrollment for the 10 budget year exceeds the budget enrollment for the budget 11 year. For the school budget year beginning July 1, 2018, and 12 succeeding budget years, if a district’s actual enrollment 13 for the budget year is greater than its budget enrollment for 14 the budget year, the district may submit a request to the 15 school budget review committee for a school district enrollment 16 supplement. The school budget review committee is required 17 to approve the request for the enrollment supplement if the 18 district meets the requirements of the bill. 19 The amount of each eligible school district’s enrollment 20 supplement is the difference between the school district’s 21 actual enrollment for the budget year minus the school 22 district’s budget enrollment for the budget year multiplied by 23 the school district’s regular program foundation aid per pupil 24 for the budget year. 25 The bill establishes a $10 million annual appropriation, 26 or so much thereof as is necessary, for each fiscal year 27 beginning on or after July 1, 2018, for the payment of school 28 district enrollment supplement amounts. If the appropriation 29 is insufficient to make all such payments, the department of 30 education is directed to prorate those payment amounts. The 31 bill specifies that school district enrollment supplement 32 payments are miscellaneous income and must be deposited in 33 the school district’s general fund. However, the enrollment 34 supplement amount is not to be included in district cost. 35 -3- LSB 1442YH (7) 87 md/sc 3/ 4

H.F. 24 Code section 257.13 provides that if a school district’s 1 actual enrollment for the budget year is greater than its 2 budget enrollment for the budget year, the district shall be 3 eligible to receive an on-time funding budget adjustment. The 4 bill provides that a budget adjustment under Code section 5 257.13 shall be reduced by the amount received by the district 6 under the school district enrollment supplement program. The 7 bill further specifies that an enrollment supplement does not 8 affect the receipt or amount of a budget adjustment received 9 under Code section 257.14, and, except for an adjustment to 10 the amount, does not affect a school district’s eligibility to 11 receive an amount from the school budget review committee under 12 Code section 257.31 based on an increase in enrollment. 13 -4- LSB 1442YH (7) 87 md/sc 4/ 4