Senate Study Bill 1124 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON SINCLAIR) A BILL FOR An Act relating to school district finance by modifying 1 provisions relating to the calculation of the regular 2 program state cost per pupil and the regular program 3 district cost per pupil, and by establishing a supplementary 4 weighting plan for certain mandatory school district 5 transportation costs and including effective date 6 provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 1478XC (6) 87 md/sc

S.F. _____ DIVISION I 1 STATE AND DISTRICT COSTS PER PUPIL 2 Section 1. Section 257.8, subsection 5, Code 2017, is 3 amended to read as follows: 4 5. Alternate supplemental state aid —— definitions. 5 a. For budget years beginning July 1, 2000, and subsequent 6 budget years, references to the terms “supplemental state aid” , 7 “regular program state cost per pupil” , and “regular program 8 district cost per pupil” shall mean those terms as calculated 9 for those school districts that calculated regular program 10 supplemental state aid for the school budget year beginning 11 July 1, 1999, with the additional thirty-eight dollars 12 specified in section 257.8, subsection 4, Code 2013 . 13 b. For the budget year beginning July 1, 2017, and 14 subsequent budget years, references to “supplemental state 15 aid” and “regular program state cost per pupil” shall mean 16 those terms as calculated including the additional amounts 17 for specified budget years under section 257.9, subsection 18 2, paragraphs “b” and “c” , and references to “regular program 19 district cost per pupil” shall mean that term as calculated 20 including any adjustments made under section 257.10, subsection 21 2. 22 Sec. 2. Section 257.9, subsection 2, Code 2017, is amended 23 to read as follows: 24 2. Regular program state cost per pupil for 1992-1993 and 25 succeeding years. 26 a. For the budget year beginning July 1, 1992, and 27 succeeding budget years beginning before July 1, 2017 , the 28 regular program state cost per pupil for a budget year is the 29 regular program state cost per pupil for the base year plus the 30 regular program supplemental state aid for the budget year. 31 b. For the budget year beginning July 1, 2017, the regular 32 program state cost per pupil is the regular program state 33 cost per pupil for the base year plus the regular program 34 supplemental state aid for the budget year, plus five dollars. 35 -1- LSB 1478XC (6) 87 md/sc 1/ 9

S.F. _____ c. For the budget year beginning July 1, 2018, the regular 1 program state cost per pupil is the regular program state 2 cost per pupil for the base year plus the regular program 3 supplemental state aid for the budget year, plus ten dollars. 4 d. For the budget year beginning July 1, 2019, and 5 succeeding budget years beginning before July 1, 2027, the 6 regular program state cost per pupil for a budget year is the 7 regular program state cost per pupil for the base year plus the 8 regular program supplemental state aid for the budget year, 9 plus twenty dollars. 10 e. For the budget year beginning July 1, 2027, and 11 succeeding budget years, the regular program state cost per 12 pupil for a budget year is the regular program state cost per 13 pupil for the base year plus the regular program supplemental 14 state aid for the budget year. 15 Sec. 3. Section 257.10, subsection 2, paragraph b, Code 16 2017, is amended to read as follows: 17 b. If the regular program district cost per pupil of a 18 school district for the budget year under paragraph “a” exceeds 19 one hundred five percent of the regular program state cost 20 per pupil for the budget year and the state percent of growth 21 for the budget year is greater than two percent, the regular 22 program district cost per pupil for the budget year for that 23 district shall be reduced to one hundred five percent of the 24 regular program state cost per pupil for the budget year. 25 However, under such conditions, if the difference between the 26 regular program district cost per pupil for the budget year and 27 the regular program state cost per pupil for the budget year 28 is greater than an amount equal to two percent multiplied by 29 the regular program state cost per pupil for the base year, the 30 regular program district cost per pupil for the budget year 31 shall be reduced by the amount equal to two percent multiplied 32 by the regular program state cost per pupil for the base year. 33 Sec. 4. Section 257.10, subsection 2, Code 2017, is amended 34 by adding the following new paragraph: 35 -2- LSB 1478XC (6) 87 md/sc 2/ 9

S.F. _____ NEW PARAGRAPH . c. For the budget year beginning July 1, 1 2017, and succeeding budget years, if the regular program 2 district cost per pupil for the budget year calculated under 3 this subsection in any school district is less than the 4 regular program state cost per pupil for the budget year, the 5 department of management shall increase the regular program 6 district cost per pupil of that district to an amount equal to 7 the regular program state cost per pupil for the budget year. 8 Sec. 5. EFFECTIVE UPON ENACTMENT. This division of this 9 Act, being deemed of immediate importance, takes effect upon 10 enactment. 11 DIVISION II 12 SCHOOL DISTRICT SUPPLEMENTARY WEIGHTING 13 Sec. 6. Section 257.11, Code 2017, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 7A. School district transportation costs. 16 a. In order to provide additional funds for school district 17 transportation costs resulting from the transportation of 18 resident pupils required by chapter 285 and paid from sources 19 other than the district’s physical plant and equipment levy 20 fund under section 298A.4 or revenue received from the secure 21 an advanced vision for education fund under section 423F.2, a 22 supplementary weighting plan for such pupils is adopted. 23 b. Each school district shall be assigned a supplementary 24 weighting amount as follows: 25 (1) For the budget year beginning July 1, 2017, ten percent 26 of the combined weighting amount calculated under paragraph 27 “c” , subparagraph (2), for that budget year. 28 (2) For the budget year beginning July 1, 2018, twenty 29 percent of the combined weighting amount calculated under 30 paragraph “c” , subparagraph (2), for that budget year. 31 (3) For the budget year beginning July 1, 2019, thirty 32 percent of the combined weighting amount calculated under 33 paragraph “c” , subparagraph (2), for that budget year. 34 (4) For the budget year beginning July 1, 2020, forty 35 -3- LSB 1478XC (6) 87 md/sc 3/ 9

S.F. _____ percent of the combined weighting amount calculated under 1 paragraph “c” , subparagraph (2), for that budget year. 2 (5) For the budget year beginning July 1, 2021, fifty 3 percent of the combined weighting amount calculated under 4 paragraph “c” , subparagraph (2), for that budget year. 5 (6) For the budget year beginning July 1, 2022, sixty 6 percent of the combined weighting amount calculated under 7 paragraph “c” , subparagraph (2), for that budget year. 8 (7) For the budget year beginning July 1, 2023, seventy 9 percent of the combined weighting amount calculated under 10 paragraph “c” , subparagraph (2), for that budget year. 11 (8) For the budget year beginning July 1, 2024, eighty 12 percent of the combined weighting amount calculated under 13 paragraph “c” , subparagraph (2), for that budget year. 14 (9) For the budget year beginning July 1, 2025, ninety 15 percent of the combined weighting amount calculated under 16 paragraph “c” , subparagraph (2), for that budget year. 17 (10) For the budget year beginning July 1, 2026, and each 18 succeeding budget year, one hundred percent of the combined 19 weighting amount calculated under paragraph “c” , subparagraph 20 (2), for that budget year. 21 c. (1) (a) Transportation cost factor. For each budget 22 year beginning on or after July 1, 2017, the department of 23 management shall calculate for each school district all of the 24 following: 25 (i) The sum of the school district’s total transportation 26 costs incurred for the transportation of pupils required under 27 chapter 285, and paid from sources other than the district’s 28 physical plant and equipment levy fund under section 298A.4 29 or revenue received from the secure an advanced vision for 30 education fund under section 423F.2, for the three years 31 immediately preceding the base year. 32 (ii) The sum of the school district’s regular program 33 district cost for the three years immediately preceding the 34 base year, excluding amounts attributable to budget adjustments 35 -4- LSB 1478XC (6) 87 md/sc 4/ 9

S.F. _____ received under section 257.14. 1 (iii) The school district’s budget enrollment multiplied by 2 the quotient of the school district’s amount under subparagraph 3 subdivision (i) divided by the school district’s amount under 4 subparagraph subdivision (ii). 5 (iv) The school district’s amount under subparagraph 6 subdivision (iii) divided by the sum of the amounts calculated 7 under subparagraph subdivision (iii) for all school districts. 8 (v) The amount calculated under subparagraph subdivision 9 (iv) multiplied by ninety percent of the sum of all school 10 districts’ transportation costs incurred for the transportation 11 of pupils required under chapter 285 for the year preceding 12 the base year and paid from sources other than the district’s 13 physical plant and equipment levy fund under section 298A.4 14 or revenue received from the secure an advanced vision for 15 education fund under section 423F.2. 16 (vi) The quotient of the amount calculated under 17 subparagraph subdivision (v) divided by the regular program 18 state cost per pupil for the base year. 19 (b) Budget enrollment factor. For each budget year 20 beginning on or after July 1, 2017, the department of 21 management shall calculate for each school district all of the 22 following: 23 (i) The quotient of the school district’s budget enrollment 24 divided by the statewide total budget enrollment multiplied by 25 five percent of the sum of all school districts’ transportation 26 costs incurred for the transportation of pupils required under 27 chapter 285 for the year preceding the base year and paid from 28 sources other than the district’s physical plant and equipment 29 levy fund under section 298A.4 or revenue received from the 30 secure an advanced vision for education fund under section 31 423F.2. 32 (ii) The amount calculated under subparagraph subdivision 33 (i) divided by the regular program state cost per pupil for the 34 base year. 35 -5- LSB 1478XC (6) 87 md/sc 5/ 9

S.F. _____ (c) Route miles factor. For each budget year beginning 1 on or after July 1, 2017, the department of management shall 2 calculate for each school district all of the following: 3 (i) The quotient of the school district’s total route 4 miles traveled for the transportation of pupils required under 5 chapter 285 for the year preceding the base year divided by the 6 school district’s budget enrollment. 7 (ii) The school district’s amount under subparagraph 8 subdivision (i) divided by the sum of the amounts calculated 9 under subparagraph subdivision (i) for all school districts. 10 (iii) The amount calculated under subparagraph subdivision 11 (ii) multiplied by five percent of the sum of all school 12 districts’ transportation costs incurred for the transportation 13 of pupils required under chapter 285 for the year preceding 14 the base year and paid from sources other than the district’s 15 physical plant and equipment levy fund under section 298A.4 16 or revenue received from the secure an advanced vision for 17 education fund under section 423F.2. 18 (iv) The amount calculated under subparagraph subdivision 19 (iii) divided by the regular program state cost per pupil for 20 the base year. 21 (2) The combined weighting amount for each school district 22 is the sum of the following: 23 (a) The amount calculated under subparagraph (1), 24 subparagraph division (a), subparagraph subdivision (vi). 25 (b) The amount calculated under subparagraph (1), 26 subparagraph division (b), subparagraph subdivision (ii). 27 (c) The amount calculated under subparagraph (1), 28 subparagraph division (c), subparagraph subdivision (iv). 29 d. Funding received by a school district as the result of 30 supplementary weighting under this subsection shall not affect 31 a school district’s eligibility for transportation assistance 32 under section 257.31, subsection 17. 33 e. Funding received by a school district as the result 34 of supplementary weighting under this subsection shall be 35 -6- LSB 1478XC (6) 87 md/sc 6/ 9

S.F. _____ used only for transportation costs incurred in providing 1 transportation to pupils required by chapter 285. 2 Sec. 7. Section 257.11, subsection 8, Code 2017, is amended 3 to read as follows: 4 8. Pupils ineligible. A Except for transportation weighting 5 under subsection 7A, a pupil eligible for the weighting plan 6 provided in section 256B.9 is not eligible for supplementary 7 weighting pursuant to this section unless it is determined 8 that the course generating the supplemental weighting has no 9 relationship to the pupil’s disability. A pupil attending an 10 alternative program or an at-risk pupils’ program, including 11 alternative high school programs, is not eligible for 12 supplementary weighting under subsection 2 . 13 Sec. 8. EFFECTIVE UPON ENACTMENT. This division of this 14 Act, being deemed of immediate importance, takes effect upon 15 enactment. 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 relates to school district finance by modifying 20 provisions relating to the calculation of the regular program 21 state cost per pupil and the regular program district cost 22 per pupil and establishing a supplementary weighting plan for 23 certain mandatory school district transportation costs. 24 Division I of the bill relates to the determination of the 25 regular program state cost per pupil and the determination of 26 regular program district cost per pupil for school districts. 27 Those amounts are used to determine supplemental state aid 28 amounts for each school budget year, determining the budget 29 authority for each school district, and determining amounts 30 of preschool foundation aid for schools participating in the 31 statewide preschool program for four-year-old children under 32 Code chapter 256C. 33 Current Code section 257.9 provides that for the budget 34 year beginning July 1, 1992, and succeeding budget years, the 35 -7- LSB 1478XC (6) 87 md/sc 7/ 9

S.F. _____ regular program state cost per pupil for a budget year is the 1 regular program state cost per pupil for the base year plus the 2 regular program supplemental state aid for the budget year. 3 Under the bill, for the budget year beginning July 1, 2017, 4 the regular program state cost per pupil is the regular program 5 state cost per pupil for the base year plus the regular program 6 supplemental state aid for the budget year, plus $5. For 7 the budget year beginning July 1, 2018, the regular program 8 state cost per pupil is the regular program state cost per 9 pupil for the base year plus the regular program supplemental 10 state aid for the budget year, plus $10. For the budget year 11 beginning July 1, 2019, and succeeding budget years beginning 12 before July 1, 2027, the regular program state cost per pupil 13 is the regular program state cost per pupil for the base 14 year plus the regular program supplemental state aid for the 15 budget year, plus $20. Then with the budget year beginning 16 July 1, 2027, and succeeding budget years, the regular program 17 state cost per pupil will again be calculated as the regular 18 program state cost per pupil for the base year plus the regular 19 program supplemental state aid for the budget year without any 20 additional amount added. 21 The bill amends Code section 257.10 to provide that if 22 the regular program district cost per pupil for the budget 23 year calculated in any school district is less than the 24 regular program state cost per pupil for the budget year, the 25 department of management shall increase the regular program 26 district cost per pupil of that district to an amount equal to 27 the regular program state cost per pupil for the budget year. 28 Division I of the bill takes effect upon enactment. 29 Division II of the bill establishes a supplementary 30 weighting plan for school district transportation costs 31 resulting from the transportation of pupils as required under 32 Code chapter 285. 33 The bill establishes a methodology for calculating the 34 amount of supplementary weighting assigned to each school 35 -8- LSB 1478XC (6) 87 md/sc 8/ 9

S.F. _____ district. The calculation is made using school district 1 transportation cost data, school district enrollment data, and 2 school district transportation route mile data. The amount of 3 the supplementary weighting is phased in over a period of 10 4 school budget years beginning with the budget year beginning 5 July 1, 2017. 6 The bill specifies that funding received by a school 7 district as the result of supplementary weighting in the 8 bill does not affect a school district’s eligibility for 9 transportation assistance granted by the school budget review 10 committee and requires that funding received by a school 11 district as the result of the supplementary weighting be 12 used only for transportation costs incurred in providing 13 transportation to those pupils specified in the bill. 14 Division II of the bill takes effect upon enactment. 15 -9- LSB 1478XC (6) 87 md/sc 9/ 9