H.F. 382 Section 1. NEW SECTION . 257.16C District cost equity 1 supplement program —— appropriations. 2 1. a. A district cost equity supplement program is 3 established to provide additional funding for school districts 4 in which the regular program district cost per pupil is less 5 than the highest regular program district cost per pupil among 6 all school districts in the state for the same budget year. 7 b. For each fiscal year beginning on or after July 1, 2017, 8 there is appropriated from the general fund of the state to 9 the department of management an amount necessary to pay the 10 district cost equity supplements calculated under subsection 2. 11 c. For purposes of this section, “cost equity differential” 12 means the difference between highest regular program district 13 cost per pupil among all school districts in the state and a 14 school district’s regular program district cost per pupil for 15 the same budget year. 16 2. For each school district that meets the requirements 17 of subsection 1, paragraph “a” , the district cost equity 18 supplement amount shall be calculated as follows: 19 a. For the budget year beginning July 1, 2017, for each 20 school district with a cost equity differential of one hundred 21 fifty dollars or more, twenty-five dollars multiplied by the 22 school district’s weighted enrollment. 23 b. For the budget year beginning July 1, 2018: 24 (1) For each school district with a cost equity differential 25 of one hundred fifty dollars or more, fifty dollars multiplied 26 by the school district’s weighted enrollment. 27 (2) For each school district with a cost equity differential 28 of one hundred dollars or more but less than one hundred 29 fifty dollars, twenty-five dollars multiplied by the school 30 district’s weighted enrollment. 31 c. For the budget year beginning July 1, 2019: 32 (1) For each school district with a cost equity differential 33 of one hundred fifty dollars or more, seventy-five dollars 34 multiplied by the school district’s weighted enrollment. 35 -1- LSB 2303YH (3) 87 md/sc 1/ 4

H.F. 382 (2) For each school district with a cost equity differential 1 of one hundred dollars or more but less than one hundred fifty 2 dollars, fifty dollars multiplied by the school district’s 3 weighted enrollment. 4 (3) For each school district with a cost equity differential 5 of fifty dollars or more but less than one hundred dollars, 6 twenty-five dollars multiplied by the school district’s 7 weighted enrollment. 8 d. For the budget year beginning July 1, 2020, and each 9 succeeding budget year: 10 (1) For each school district with a cost equity differential 11 of one hundred fifty dollars or more, seventy-five dollars 12 multiplied by the school district’s weighted enrollment. 13 (2) For each school district with a cost equity differential 14 of one hundred dollars or more but less than one hundred fifty 15 dollars, fifty dollars multiplied by the school district’s 16 weighted enrollment. 17 (3) For each school district with a cost equity differential 18 of fifty dollars or more but less than one hundred dollars, 19 twenty-five dollars multiplied by the school district’s 20 weighted enrollment. 21 (4) For each school district with a cost equity differential 22 of less than fifty dollars, fifty percent of the school 23 district’s cost equity differential multiplied by the school 24 district’s weighted enrollment. 25 3. a. District cost equity supplements shall be paid by 26 the department of management at the same time and in the same 27 manner as foundation aid is paid under section 257.16. 28 b. Amounts received by a school district from a district 29 cost equity supplement shall be deposited in the general fund 30 of the school district. Revenues received by a school district 31 under this section are miscellaneous income and shall not be 32 included in district cost. 33 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 34 immediate importance, takes effect upon enactment. 35 -2- LSB 2303YH (3) 87 md/sc 2/ 4

H.F. 382 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill establishes a district cost equity supplement 4 program to provide additional funding for school districts in 5 which the regular program district cost per pupil is less than 6 the highest regular program district cost per pupil among all 7 school districts in the state for the same budget year. 8 The bill appropriates an amount necessary from the general 9 fund of the state for each fiscal year beginning on or after 10 July 1, 2017, to pay the district cost equity supplements 11 authorized in the bill. 12 For each eligible school district, the district cost equity 13 supplement is phased in over a period of four budget years 14 and calculated using each school district’s “cost equity 15 differential”, which is the difference between highest regular 16 program district cost per pupil among all school districts in 17 the state and a school district’s regular program district cost 18 per pupil for the same budget year. 19 For the budget year beginning July 1, 2017, for each school 20 district with a cost equity differential of $150 or more, the 21 supplement amount is equal to $25 multiplied by the school 22 district’s weighted enrollment. 23 For the budget year beginning July 1, 2018, for each school 24 district with a cost equity differential of $150 or more, the 25 supplement amount is equal to $50 multiplied by the school 26 district’s weighted enrollment. For each school district with 27 a cost equity differential of $100 or more but less than $150, 28 the supplement amount is equal to $25 multiplied by the school 29 district’s weighted enrollment. 30 For the budget year beginning July 1, 2019, for each school 31 district with a cost equity differential of $150 or more, the 32 supplement amount is equal to $75 multiplied by the school 33 district’s weighted enrollment. For each school district with 34 a cost equity differential of $100 or more but less than $150, 35 -3- LSB 2303YH (3) 87 md/sc 3/ 4

H.F. 382 the supplement amount is equal to $50 multiplied by the school 1 district’s weighted enrollment. For each school district with 2 a cost equity differential of $50 or more but less than $100, 3 the supplement amount is equal to $25 multiplied by the school 4 district’s weighted enrollment. 5 For the budget year beginning July 1, 2020, and each 6 succeeding budget year, for each school district with a cost 7 equity differential of $150 or more, the supplement amount 8 is equal to $75 multiplied by the school district’s weighted 9 enrollment. For each school district with a cost equity 10 differential of $100 or more but less than $150, the supplement 11 amount is equal to $50 multiplied by the school district’s 12 weighted enrollment. For each school district with a cost 13 equity differential of $50 or more but less than $100, the 14 supplement amount is equal to $25 multiplied by the school 15 district’s weighted enrollment. For each school district with 16 a cost equity differential of less than $50, the supplement 17 amount is equal to 50 percent of the school district’s cost 18 equity differential multiplied by the school district’s 19 weighted enrollment. 20 The bill requires amounts received from a district cost 21 equity supplement to be deposited in the general fund of the 22 school district. The bill specifies that revenues received by 23 a school district under the bill are miscellaneous income and 24 shall not be included in district cost. 25 The bill takes effect upon enactment. 26 -4- LSB 2303YH (3) 87 md/sc 4/ 4