H.F. _____ Section 1. NEW SECTION . 257.16C Transportation equity 1 program —— fund. 2 1. A transportation equity program is established to 3 provide prioritized additional funding for school districts 4 with a transportation cost per pupil that exceeds the statewide 5 adjusted transportation cost per pupil for the same budget 6 year. 7 2. a. For the budget year beginning July 1, 2019, and 8 each succeeding budget year, the department of management 9 shall annually determine a statewide adjusted transportation 10 cost per pupil that is not lower than the statewide average 11 transportation cost per pupil. The statewide adjusted 12 transportation cost per pupil shall be annually determined, by 13 taking into account amounts appropriated to the transportation 14 equity fund under subsection 3, for the purpose of providing 15 transportation equity aid for those school districts with the 16 highest transportation cost per pupil differential. 17 b. Each school district that satisfies the criteria of 18 subsection 1 shall receive transportation equity aid in an 19 amount equal to the school district’s actual enrollment for 20 the school year, excluding the shared-time enrollment for the 21 school year, multiplied by the school district’s transportation 22 cost per pupil differential for the budget year. 23 c. For purposes of this section: 24 (1) “Statewide average transportation cost per pupil” means 25 the total transportation cost for all school districts in the 26 state used to calculate each school district’s transportation 27 cost per pupil under paragraph “d” divided by the total 28 enrollment for school districts used to calculate each school 29 district’s transportation cost per pupil under paragraph “d” . 30 (2) “Transportation cost per pupil differential” means the 31 difference between a school district’s transportation cost per 32 pupil and the statewide adjusted transportation cost per pupil 33 for the same budget year. 34 d. A district’s transportation cost per pupil shall be 35 -1- LSB 6137YC (2) 87 md/jh 1/ 4

H.F. _____ determined by dividing the district’s actual cost for all 1 children transported in all school buses for a school year 2 pursuant to section 285.1, subsection 12, less the amount 3 received for transporting nonpublic school pupils under section 4 285.1, by the district’s actual enrollment for the school year, 5 excluding the shared-time enrollment for the school year as 6 defined in section 257.6. 7 3. a. A transportation equity fund is created as a separate 8 and distinct fund in the state treasury under the control of 9 the department of management. Moneys in the fund include 10 revenues credited to the fund, appropriations made to the 11 fund, and other moneys deposited in the fund. For each fiscal 12 year beginning on or after July 1, 2019, there is appropriated 13 all moneys in the fund to the department of management for 14 purposes of making transportation equity aid payments under 15 this section. 16 b. If the balance of the fund exceeds the amount necessary 17 to make all transportation equity aid payments under 18 subsection 2, moneys remaining in the fund shall be used for 19 transportation base funding payments under subsection 4. 20 c. If the balance of the fund exceeds the amount necessary 21 to make all transportation equity aid payments and all 22 transportation base funding payments, moneys remaining in the 23 fund at the end of a fiscal year, notwithstanding section 8.33, 24 shall remain in the fund and shall be available for expenditure 25 for the purposes of this section in subsequent fiscal years. 26 4. For budget years beginning on or after July 1, 2019, if 27 funding is available as provided in subsection 3, paragraph 28 “b” , each school district in the state shall receive a 29 transportation base funding payment in an amount equal to the 30 school district’s enrollment used under subsection 2, paragraph 31 “d” , multiplied by the statewide average transportation cost 32 per pupil for the budget year. If an amount appropriated for 33 a budget year is insufficient to pay all transportation base 34 funding payments, the department of management shall prorate 35 -2- LSB 6137YC (2) 87 md/jh 2/ 4

H.F. _____ such payment amounts. 1 5. Transportation equity aid payments and transportation 2 base funding payments shall be paid by the department of 3 education at the same time and in the same manner as foundation 4 aid is paid under section 257.16, and may be included in the 5 monthly payment of state aid under section 257.16, subsection 6 2. 7 6. Transportation equity aid payments and transportation 8 base funding payments received under this section are 9 miscellaneous income and shall be deposited in the general fund 10 of the school district. However, the transportation equity aid 11 amount and the transportation base funding amount shall not be 12 included in district cost. Transportation equity aid under 13 this section shall not affect the receipt or amount of a budget 14 adjustment received under section 257.14 or transportation 15 assistance aid under section 257.31, subsection 17. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill establishes the transportation equity program to 20 provide prioritized additional funding for school districts 21 with a transportation cost per pupil that exceeds the 22 statewide adjusted transportation cost per pupil for the 23 same budget year. For the budget year beginning July 1, 24 2019, the department of management is required to determine 25 a statewide adjusted transportation cost per pupil that is 26 not lower than the statewide average transportation cost per 27 pupil. The statewide adjusted transportation cost per pupil 28 shall be annually determined, by taking into account amounts 29 appropriated by the general assembly, for the purpose of 30 providing transportation equity aid for those school districts 31 with the highest transportation cost per pupil differential. 32 Each eligible school district shall receive transportation 33 equity aid in an amount equal to the school district’s actual 34 enrollment for the school year, excluding the shared-time 35 -3- LSB 6137YC (2) 87 md/jh 3/ 4

H.F. _____ enrollment for the school year, multiplied by the school 1 district’s transportation cost per pupil differential 2 for the budget year. The bill defines “statewide average 3 transportation cost per pupil” and “transportation cost per 4 pupil differential”. The bill also establishes the method used 5 to calculate a school district’s transportation cost per pupil. 6 The bill establishes a transportation equity fund and 7 annually appropriates all moneys in the fund to the department 8 of management for purposes of making transportation equity aid 9 payments and transportation base funding payments. 10 For budget years beginning on or after July 1, 2019, 11 if sufficient funding is available in the transportation 12 equity fund, each school district in the state receives a 13 transportation base funding payment in an amount equal to 14 the school district’s specified enrollment multiplied by 15 the statewide average transportation cost per pupil. If an 16 amount appropriated for a budget year is insufficient to pay 17 all transportation base funding payments, the department of 18 management is required to prorate such payment amounts. 19 If the balance of the fund exceeds the amount necessary to 20 make all payments provided in the bill, moneys remaining in the 21 fund at the end of the fiscal year are required to remain in 22 the fund and are available for expenditure in subsequent fiscal 23 years. The bill also establishes the timing and procedure for 24 making such payments. 25 Transportation equity aid payments and transportation 26 base funding payments are miscellaneous income and shall be 27 deposited in the general fund of the school district. However, 28 such amounts shall not be included in district cost and 29 shall not affect the receipt or amount of a budget adjustment 30 received under Code section 257.14 or transportation assistance 31 aid under Code section 257.31(17). 32 -4- LSB 6137YC (2) 87 md/jh 4/ 4