House File 25 - Introduced HOUSE FILE 25 BY KOESTER A BILL FOR An Act relating to the statewide preschool program for 1 four-year-old children by modifying provisions for 2 calculating preschool budget enrollment, providing for 3 adjustments to preschool foundation aid amounts, and 4 including effective date and applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1669YH (2) 87 md/sc

H.F. 25 Section 1. Section 256C.4, subsection 1, paragraph e, Code 1 2017, is amended to read as follows: 2 e. Preschool foundation aid funding shall not be used for 3 the costs of constructing a facility in connection with an 4 approved local program. Preschool foundation aid funding may 5 be used by approved local programs and community providers 6 for professional development for preschool teachers, for 7 instructional equipment, for material and equipment designed 8 to develop pupils’ large and small motor skills, and for other 9 direct costs. Preschool foundation aid funding may be used 10 by approved local programs for the costs of transportation 11 involving children participating in the preschool program. 12 The costs of transporting other children associated with the 13 preschool program or transported as provided in section 256C.3, 14 subsection 3 , paragraph “h” , may be prorated by the school 15 district. Preschool foundation aid funding received by an 16 approved local program that remain unexpended or unobligated at 17 the end of a fiscal year shall be accounted for in accordance 18 with section 256C.5, subsection 1, paragraph “d” , and used to 19 build the approved local program’s preschool program capacity 20 in the next succeeding fiscal year. 21 Sec. 2. Section 256C.5, subsection 1, paragraphs c and d, 22 Code 2017, are amended to read as follows: 23 c. “Preschool budget enrollment” means the figure that is 24 equal to fifty the sum of the following: 25 (1) Fifty percent of the actual enrollment of eligible 26 students in the preschool programming provided by a school 27 district approved to participate in the preschool program on 28 October 1 of the base year, or the first Monday in October if 29 October 1 falls on a Saturday or Sunday. 30 (2) Fifty percent of the actual enrollment of eligible 31 students in the preschool programming provided by a school 32 district approved to participate in the preschool program on 33 October 1 of the base year, or the first Monday in October if 34 October 1 falls on a Saturday or Sunday, whose family income is 35 -1- LSB 1669YH (2) 87 md/sc 1/ 3

H.F. 25 at or below two hundred percent of the federal poverty level as 1 defined by the most recently revised poverty income guidelines 2 published by the United States department of health and human 3 services. 4 d. “Preschool foundation aid” means the product of the 5 regular program state cost per pupil for the budget year 6 multiplied by the school district’s preschool budget enrollment 7 minus the amount of preschool foundation aid received 8 during all previous budget years that remains unexpended and 9 unobligated at the end of the base year . 10 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 11 immediate importance, takes effect upon enactment. 12 Sec. 4. APPLICABILITY. This Act applies to school budget 13 years beginning on or after July 1, 2017. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 Under current law, the preschool budget enrollment used 18 to calculate the amount of preschool foundation aid paid to 19 a school district participating in the statewide preschool 20 program for four-year-old children is equal to 50 percent of 21 the actual enrollment of eligible students in the preschool 22 programming provided by a school district approved to 23 participate in the preschool program on October 1 of the base 24 year. 25 This bill modifies the method of calculating the preschool 26 budget enrollment by adding to the current calculation an 27 amount equal to 50 percent of the actual enrollment of eligible 28 students in the preschool programming provided by a school 29 district approved to participate in the preschool program on 30 October 1 of the base year, whose family income is at or below 31 200 percent of the federal poverty level as defined by the most 32 recently revised poverty income guidelines published by the 33 United States department of health and human services. 34 Under current law, the preschool foundation aid is 35 -2- LSB 1669YH (2) 87 md/sc 2/ 3

H.F. 25 calculated to mean the product of the regular program state 1 cost per pupil for the budget year multiplied by the school 2 district’s preschool budget enrollment. The bill requires that 3 the preschool foundation aid amount payable to school districts 4 be reduced by an amount equal to the amount of preschool 5 foundation aid received during all previous budget years that 6 remains unexpended and unobligated at the end of the base 7 year. The bill also amends provisions relating to the use of 8 preschool foundation aid that remains unexpended or unobligated 9 at the end of a fiscal year. 10 The bill takes effect upon enactment and applies to school 11 budget years beginning on or after July 1, 2017. 12 -3- LSB 1669YH (2) 87 md/sc 3/ 3