HF 401 (LSB 1696YH (7) 89)

HOUSE FILE 401

BY  WINCKLER, DONAHUE, HANSEN, STAED, KURTH, STECKMAN, WILLIAMS, WOLFE, BROWN-POWERS, MASCHER, THEDE, WILBURN, McCONKEY, and JACOBY

A BILL FOR

An Act relating to school district funding by modifying provisions relating to the permissible grounds for and amounts of supplemental aid and modified supplemental amounts and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 256C.4, subsection 1, paragraph f, Code 2021, is amended by striking the paragraph.
    Sec. 2.  Section 257.31, subsection 5, paragraph h, Code 2021, is amended to read as follows:
   h.  Unusual need for additional funds for special education or compensatory education programs or an unusual increase in the enrollment of children requiring special education.
    Sec. 3.  Section 257.31, subsection 5, Code 2021, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  o.  Unusual need for additional funds or higher than anticipated enrollment for a preschool program under chapter 256C.
    Sec. 4.  Section 257.41, subsection 3, Code 2021, is amended to read as follows:
   3.  Limitation.  For the fiscal year beginning July 1, 2013 2021, and each succeeding fiscal year, the ratio of the amount of the modified supplemental amount established by the department of management compared to the school district’s total regular program district cost shall not exceed two and one-half five percent. However, if the school district’s highest such ratio so determined for any fiscal year beginning on or after July 1, 2009, but before July 1, 2013, exceeded two and one-half percent, the ratio may exceed two and one-half percent but shall not exceed the highest such ratio established during that period.
    Sec. 5.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 6.  APPLICABILITY.  This Act applies to school budget years beginning on or after July 1, 2021.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to school district funding by modifying provisions related to granting supplemental aid or modified supplemental amounts.
   Under Code section 257.31, if a district has unusual circumstances, creating an unusual need for additional funds, including but not limited to the circumstances enumerated in that section, the committee may either grant supplemental aid to the district from any funds appropriated to the department of education for the use of the school budget review committee or establish a modified supplemental amount for the district. The bill specifies that an unusual increase in the enrollment of children requiring special education is a circumstance for determining unusual need for additional funds. The bill also specifies that an unusual need for additional funds or higher than anticipated enrollment for a preschool program under Code chapter 256C is an unusual circumstance.
   A school district may fund the budget of an adopted program for at-risk students, secondary students who attend alternative programs or alternative schools, or returning dropouts and dropout prevention through a combination of specified supplementary weighting, flexibility account funds, district cost of the school district, and establishment of a modified supplemental amount approved by the school budget review committee.
   Current law provides that the ratio of the amount of the modified supplemental amount compared to the school district’s total regular program district cost shall not exceed 2.5 percent, except for school districts for which such ratio for any fiscal year beginning on or after July 1, 2009, but before July 1, 2013, exceeded 2.5 percent, in which case the school’s ratio may exceed 2.5 percent but shall not exceed the highest such ratio established during that period.
   The bill modifies that limitation to provide that for all school districts the ratio of the amount of the modified supplemental amount compared to the school district’s total regular program district cost shall not exceed 5 percent.
   The bill takes effect upon enactment and applies to school budget years beginning on or after July 1, 2021.