S.F. 2042 Section 1. Section 257.10, subsection 12, paragraph d, Code 1 2018, is amended to read as follows: 2 d. (1) For the budget year beginning July 1, 2014, and 3 succeeding budget years, the use of the funds calculated under 4 this subsection shall comply with the requirements of chapter 5 284 and shall be distributed to teachers pursuant to section 6 284.15 . The funds shall be used only to increase the payment 7 for a teacher assigned to a leadership role pursuant to a 8 framework or comparable system approved pursuant to section 9 284.15 ; to increase the percentages of teachers assigned to 10 leadership roles; to increase the minimum teacher starting 11 salary to thirty-three thousand five hundred dollars; to 12 cover the costs for the time mentor and lead teachers are not 13 providing instruction to students in a classroom; for coverage 14 of a classroom when an initial or career teacher is observing 15 or co-teaching with a teacher assigned to a leadership role; 16 for professional development time to learn best practices 17 associated with the career pathways leadership process; and for 18 other costs associated with a framework or comparable system 19 approved by the department of education under section 284.15 20 with the goals of improving instruction and elevating the 21 quality of teaching and student learning. 22 (2) In addition to the uses specified in subparagraph (1), 23 for the budget year beginning July 1, 2019, and succeeding 24 budget years, the funds calculated under this subsection may 25 also be used for any of the following: 26 (a) Salary and benefits for administrators and clerical and 27 office staff of the district who have duties related to the 28 framework and comparable systems set forth pursuant to sections 29 284.15, 284.16, and 284.17. If the administrators or staff 30 members are shared with other programs or functions within the 31 district, funds calculated under this subsection shall only 32 be expended for the portion of time spent carrying out duties 33 related to the framework and comparable systems set forth 34 pursuant to sections 284.15, 284.16, and 284.17. 35 -1- LSB 5495XS (3) 87 md/jh 1/ 5

S.F. 2042 (b) Professional development expenses of administrators 1 related to the framework and comparable systems set forth 2 pursuant to sections 284.15, 284.16, and 284.17. 3 Sec. 2. Section 257.41, subsection 3, Code 2018, is amended 4 to read as follows: 5 3. Limitation. 6 a. For the fiscal year beginning July 1, 2013, and each 7 succeeding fiscal year beginning before July 1, 2019 , the ratio 8 of the amount of the modified supplemental amount established 9 by the department of management compared to the school 10 district’s total regular program district cost shall not exceed 11 two and one-half percent. However, if the school district’s 12 highest such ratio so determined for any fiscal year beginning 13 on or after July 1, 2009, but before July 1, 2013, exceeded two 14 and one-half percent, the ratio may exceed two and one-half 15 percent but shall not exceed the highest such ratio established 16 during that period. 17 b. For the fiscal year beginning July 1, 2019, and each 18 succeeding fiscal year, the ratio of the amount of the modified 19 supplemental amount established by the department of management 20 compared to the school district’s total regular program 21 district cost shall not exceed five percent. 22 Sec. 3. Section 298.3, subsection 1, paragraph i, Code 2018, 23 is amended to read as follows: 24 i. The purchase of transportation equipment for 25 transporting students , and the repair of such transportation 26 equipment , if the cost of the repair exceeds two thousand five 27 hundred dollars and the operational costs of transporting 28 students . For the purposes of this paragraph, “repair” means 29 restoring an existing item of equipment to its original 30 condition, as near as may be, after gradual obsolescence or 31 physical and functional depreciation due to wear and tear, 32 corrosion and decay, or partial destruction, and includes 33 maintenance of an item of equipment. 34 Sec. 4. Section 423F.3, subsection 6, Code 2018, is amended 35 -2- LSB 5495XS (3) 87 md/jh 2/ 5

S.F. 2042 by adding the following new paragraph: 1 NEW PARAGRAPH . 0d. Additionally, for school budget years 2 beginning on or after July 1, 2019, “school infrastructure” 3 includes the transportation costs of the school district 4 specified in section 298.3, subsection 1, paragraph “i” . 5 Sec. 5. APPLICABILITY. The section of this Act amending 6 section 298.3 applies to school budget years beginning on or 7 after July 1, 2019. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill modifies several provisions relating to school 12 district funding and programs including the teacher leadership 13 supplement, the physical plant and equipment levies, revenues 14 from the secure an advanced vision for education (SAVE) fund, 15 and the at-risk and dropout prevention program. 16 Current Code section 257.10(12) specifies the purposes for 17 which the teacher leadership supplement moneys may be expended 18 by school districts within the requirements of Code chapter 19 284 including increases in payment for a teacher assigned to 20 a leadership role, increases in the percentages of teachers 21 assigned to leadership roles, increases to the minimum teacher 22 starting salary, payment of the costs for the time mentor and 23 lead teachers are not providing instruction to students in a 24 classroom, payment for coverage of a classroom when an initial 25 or career teacher is observing or co-teaching with a teacher 26 assigned to a leadership role, professional development time 27 to learn best practices associated with the career pathways 28 leadership process, and for other costs associated with a 29 framework or comparable system approved by the department of 30 education. The bill provides that in addition to the uses 31 specified under current law, for the budget year beginning July 32 1, 2019, and succeeding budget years, the funds may be used for 33 a proportionate share of salary and benefits for administrators 34 and clerical and office staff who have duties related to the 35 -3- LSB 5495XS (3) 87 md/jh 3/ 5

S.F. 2042 teacher leadership framework and comparable systems set forth 1 pursuant to Code sections 284.15, 284.16, and 284.17 and for 2 professional development expenses of administrators related to 3 the teacher leadership framework and comparable systems. 4 As part of the budget for a school district’s program for 5 at-risk students, secondary students who attend alternative 6 programs and alternative schools, or returning dropouts and 7 dropout prevention, the school board may request to use a 8 modified supplemental amount. However, current law provides 9 that the ratio of the amount of the modified supplemental 10 amount compared to the school district’s total regular program 11 district cost shall not exceed 2.5 percent or the school 12 district’s highest ratio for any fiscal year beginning on or 13 after July 1, 2009, but before July 1, 2013, whichever is 14 greater. The bill provides that for each budget year beginning 15 on or after July 1, 2019, the ratio shall not exceed 5 percent. 16 Code section 298.3 specifies the purposes for which the 17 revenue from the regular and voter-approved physical plant 18 and equipment levies may be expended. Current law authorizes 19 such revenues to be used for the purchase of transportation 20 equipment for transporting students and the repair of such 21 transportation equipment if the cost of the repair exceeds 22 $2,500. The bill strikes the repair cost requirement 23 and authorizes such revenues to also be expended for the 24 operational costs of transporting students. 25 As part of the restrictions on the use of revenues received 26 from the SAVE fund, Code section 423F.3 defines “school 27 infrastructure”. The bill authorizes additional purposes for 28 which a school district may use funds received from the SAVE 29 fund by modifying the definition of “school infrastructure”. 30 For school budget years beginning on or after July 1, 2019, the 31 bill includes the transportation costs of the school district 32 specified in Code section 298.3(1)(i), as amended in the bill, 33 within the definition of school infrastructure. 34 The section of the bill amending Code section 298.3 applies 35 -4- LSB 5495XS (3) 87 md/jh 4/ 5