H.F. 269 Section 1. NEW SECTION . 257.16C Transportation equity 1 program —— fund. 2 1. A transportation equity program is established to 3 provide additional funding for school districts with a 4 transportation density factor that is five pupils per square 5 mile or less. The transportation density factor for each 6 school district shall be calculated by dividing the budget 7 enrollment for the school district, excluding shared-time 8 enrollment, by the total number of square miles of area within 9 the boundaries of the school district. 10 2. a. A transportation equity fund is created as a separate 11 and distinct fund in the state treasury under the control of 12 the department of management. For each fiscal year beginning 13 on or after July 1, 2017, there is appropriated from the 14 general fund of the state to the department of management 15 to be credited to the transportation equity fund the sum of 16 five million dollars to be used for transportation equity aid 17 payments under this section. 18 b. For each budget year beginning on or after July 1, 2017, 19 the department of management shall calculate a transportation 20 equity state cost per pupil by dividing the amount of the 21 appropriation for the budget year under paragraph “a” by 22 an amount equal to the sum of budget enrollments used in 23 subsection 1 for all school districts eligible to receive 24 transportation equity aid under this section. 25 c. Each school district that satisfies the criteria of 26 subsection 1 shall receive transportation equity aid in an 27 amount equal to the school district’s budget enrollment used 28 to calculate the district’s transportation density factor 29 multiplied by the transportation equity state cost per pupil 30 for that budget year. 31 d. Transportation equity aid payments shall be paid by 32 the department of management at the same time and in the same 33 manner as foundation aid is paid under section 257.16, and may 34 be included in the monthly payment of state aid under section 35 -1- LSB 2188HH (2) 87 md/sc 1/ 3

H.F. 269 257.16, subsection 2. 1 3. Transportation equity aid payments received under 2 this section are miscellaneous income and shall be deposited 3 in the general fund of the school district. However, the 4 transportation equity aid amount shall not be included in 5 district cost. Transportation equity aid under this section 6 shall not affect the receipt or amount of a budget adjustment 7 received under section 257.14 or transportation assistance aid 8 under section 257.31, subsection 17. 9 Sec. 2. EMERGENCY RULES. The department of management 10 may adopt emergency rules under section 17A.4, subsection 3, 11 and section 17A.5, subsection 2, paragraph “b”, to implement 12 the provisions of this Act and the rules shall be effective 13 immediately upon filing unless a later date is specified in the 14 rules. Any rules adopted in accordance with this section shall 15 also be published as a notice of intended action as provided 16 in section 17A.4. 17 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 18 immediate importance, takes effect upon enactment. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill establishes the transportation equity program 23 to provide additional funding for school districts with a 24 transportation density factor that is five pupils per square 25 mile or less. The transportation density factor for each 26 school district is calculated by dividing the budget enrollment 27 for the school district, excluding shared-time enrollment, by 28 the total number of square miles of area within the boundaries 29 of the school district. 30 The bill creates a transportation equity fund and for each 31 fiscal year beginning on or after July 1, 2017, appropriates 32 from the general fund of the state to the department of 33 management to be credited to the transportation equity fund 34 the sum of $5 million to be used for transportation equity aid 35 -2- LSB 2188HH (2) 87 md/sc 2/ 3

H.F. 269 payments. The bill requires the department of management to 1 calculate annually a transportation equity state cost per pupil 2 by dividing the amount of the appropriation for the budget 3 year by an amount equal to the sum of the budget enrollments 4 used to calculate transportation density factors for all 5 school districts eligible to receive transportation equity 6 aid. Each eligible school district’s transportation equity 7 aid amount is equal to the school district’s budget enrollment 8 used to calculate the district’s transportation density factor 9 multiplied by the transportation equity state cost per pupil 10 for that budget year. 11 The bill specifies the time and manner by which 12 transportation equity aid payments are to be paid, where such 13 amounts are to be deposited by school districts, and designates 14 such amounts as miscellaneous income. The bill specifies, 15 however, that the transportation equity aid amount shall not 16 be included in district cost. In addition, transportation 17 equity aid does not affect the receipt or amount of a budget 18 adjustment received under Code section 257.14 or transportation 19 assistance aid from the school budget review committee. 20 The bill authorizes the department of management to adopt 21 emergency rules to implement the provisions of the bill, and 22 the rules shall be effective immediately upon filing unless 23 a later date is specified in the rules. Any emergency rules 24 adopted shall also be published as a notice of intended action. 25 The bill being deemed of immediate importance, takes effect 26 upon enactment. 27 -3- LSB 2188HH (2) 87 md/sc 3/ 3