Senate File 2003 - Introduced SENATE FILE 2003 BY COURNOYER A BILL FOR An Act relating to certain amounts of school district funding 1 for programs for at-risk students, secondary students who 2 attend alternative programs or alternative schools, or 3 returning dropouts and dropout prevention, and including 4 effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5061XS (2) 89 md/jh

S.F. 2003 Section 1. Section 257.41, subsection 3, Code 2022, is 1 amended to read as follows: 2 3. Limitation. 3 a. For the fiscal year beginning July 1, 2013, and each 4 succeeding fiscal year beginning before July 1, 2022 , the ratio 5 of the amount of the modified supplemental amount established 6 by the department of management compared to the school 7 district’s total regular program district cost shall not exceed 8 two and one-half percent. However, if the school district’s 9 highest such ratio so determined for any fiscal year beginning 10 on or after July 1, 2009, but before July 1, 2013, exceeded two 11 and one-half percent, the ratio may exceed two and one-half 12 percent but shall not exceed the highest such ratio established 13 during that period. 14 b. For the fiscal year beginning July 1, 2022, the ratio of 15 the amount of the modified supplemental amount established by 16 the department of management compared to the school district’s 17 total regular program district cost shall not exceed three 18 percent. However, if the school district’s highest such ratio 19 so determined for any fiscal year beginning on or after July 20 1, 2009, but before July 1, 2013, exceeded three percent, the 21 ratio may exceed three percent but shall not exceed the highest 22 such ratio established during that period. 23 c. For the fiscal year beginning July 1, 2023, the ratio of 24 the amount of the modified supplemental amount established by 25 the department of management compared to the school district’s 26 total regular program district cost shall not exceed three and 27 one-half percent. However, if the school district’s highest 28 such ratio so determined for any fiscal year beginning on or 29 after July 1, 2009, but before July 1, 2013, exceeded three 30 and one-half percent, the ratio may exceed three and one-half 31 percent but shall not exceed the highest such ratio established 32 during that period. 33 d. For the fiscal year beginning July 1, 2024, the ratio of 34 the amount of the modified supplemental amount established by 35 -1- LSB 5061XS (2) 89 md/jh 1/ 3

S.F. 2003 the department of management compared to the school district’s 1 total regular program district cost shall not exceed four 2 percent. However, if the school district’s highest such ratio 3 so determined for any fiscal year beginning on or after July 1, 4 2009, but before July 1, 2013, exceeded four percent, the ratio 5 may exceed four percent but shall not exceed the highest such 6 ratio established during that period. 7 e. For the fiscal year beginning July 1, 2025, the ratio of 8 the amount of the modified supplemental amount established by 9 the department of management compared to the school district’s 10 total regular program district cost shall not exceed four and 11 one-half percent. However, if the school district’s highest 12 such ratio so determined for any fiscal year beginning on or 13 after July 1, 2009, but before July 1, 2013, exceeded four 14 and one-half percent, the ratio may exceed four and one-half 15 percent but shall not exceed the highest such ratio established 16 during that period. 17 f. For the fiscal year beginning July 1, 2026, 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. 2. EFFECTIVE DATE. This Act, being deemed of immediate 23 importance, takes effect upon enactment. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 As part of the budget for a school district’s program for 28 at-risk students, secondary students who attend alternative 29 programs and alternative schools, or returning dropouts and 30 dropout prevention, the school board may request to use a 31 modified supplemental amount. However, current law provides 32 that the ratio of the amount of the modified supplemental 33 amount compared to the school district’s total regular program 34 district cost shall not exceed 2.5 percent or the school 35 -2- LSB 5061XS (2) 89 md/jh 2/ 3

S.F. 2003 district’s highest ratio for any fiscal year beginning on or 1 after July 1, 2009, but before July 1, 2013, whichever is 2 greater. 3 This bill modifies the maximum modified supplemental amount 4 calculation for fiscal years beginning on or after July 1, 5 2022, but before July 1, 2026, by increasing the 2.5 percent 6 ratio figure by .5 percent each fiscal year until the fiscal 7 year beginning July 1, 2026, and each fiscal year thereafter, 8 when the maximum ratio percentage is set at 5 percent for all 9 school districts. 10 The bill takes effect upon enactment. 11 -3- LSB 5061XS (2) 89 md/jh 3/ 3