Senate File 2199 - Introduced SENATE FILE 2199 BY TRONE GARRIOTT A BILL FOR An Act relating to funding sources for preschool programs and 1 including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5900XS (3) 89 md/jh

S.F. 2199 Section 1. Section 256C.4, subsection 1, paragraphs b, d, 1 and f, Code 2022, are amended to read as follows: 2 b. (1) A school district approved to participate in the 3 preschool program may authorize expenditures for the district’s 4 preschool programming from any of the revenue sources available 5 to the district from the sources listed in chapter 298A , 6 provided the expenditures are within the uses permitted for the 7 revenue source , including from the school district’s general 8 fund as provided in subparagraph (2), or from the school 9 district’s flexibility account under section 298A.2, subsection 10 2 . In addition, the use of the revenue source for preschool 11 or prekindergarten programming must have been approved prior 12 to any expenditure from the revenue source for the district’s 13 approved local program. 14 (2) For the school budget year beginning July 1, 2023, 15 and succeeding budget years, if fifty percent of a district’s 16 actual enrollment of eligible students in the preschool 17 programming for the budget year, determined under section 18 256C.5, subsection 1, paragraph “c” , is greater than the 19 school district’s preschool budget enrollment for the budget 20 year, the district shall be eligible to receive a preschool 21 on-time funding budget adjustment for the budget year to be 22 funded using revenues from the school district’s general 23 fund. The adjustment shall not exceed an amount equal to the 24 difference between fifty percent of the actual enrollment for 25 the budget year as determined under section 256C.5, subsection 26 1, paragraph “c” , and the preschool budget enrollment for the 27 budget year, multiplied by the regular program state cost 28 per pupil. The board of directors of a school district that 29 wishes to receive a budget adjustment shall adopt a resolution 30 approving the use of funds from the district’s general fund 31 and notify the department of education and the department of 32 management annually, but not earlier than November 1. 33 d. Preschool foundation aid funding shall not be commingled 34 with the other state aid payments made under section 257.16 35 -1- LSB 5900XS (3) 89 md/jh 1/ 3

S.F. 2199 to a school district and shall be accounted for by the local 1 school district separately from the other state aid payments. 2 Preschool foundation aid payments made to school districts are 3 miscellaneous income for purposes of chapter 257 . A school 4 district shall maintain a separate listing within its budget 5 for preschool foundation aid payments received and expenditures 6 made. A school district shall certify to the department of 7 education that preschool foundation aid funding received by 8 the school district was used to supplement, not supplant, 9 moneys otherwise received and used by the school district for 10 preschool programming. 11 f. The receipt of funding by a school district for the 12 purposes of this chapter , the need for additional funding 13 for the purposes of this chapter , or the enrollment count of 14 eligible students under this chapter shall not be considered 15 to be unusual circumstances, create an unusual need for 16 additional funds, or qualify under any other circumstances 17 that may be used by the school budget review committee to 18 grant supplemental aid to or establish a modified supplemental 19 amount for a school district under section 257.31 . However, 20 a school district may approve the use of funds from the 21 school district’s general fund as provided in paragraph “a” , 22 subparagraph (2), if additional funding under this chapter 23 is needed as the result of the enrollment count of eligible 24 students in the district’s program. 25 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 26 importance, takes effect upon enactment. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill provides that for the school budget year beginning 31 July 1, 2023, and succeeding budget years, if 50 percent of 32 a school district’s actual enrollment of eligible students 33 in the preschool programming for the budget year is greater 34 than the school district’s preschool budget enrollment for 35 -2- LSB 5900XS (3) 89 md/jh 2/ 3

S.F. 2199 the budget year (50 percent of the actual enrollment for the 1 base year), the district is eligible to receive a preschool 2 on-time funding budget adjustment for the budget year to be 3 funded using revenues from the school district’s general fund. 4 The adjustment amount shall not exceed an amount equal to the 5 difference between 50 percent of the actual enrollment for the 6 budget year and the preschool budget enrollment for the budget 7 year, multiplied by the regular program state cost per pupil. 8 The board of directors of a school district that wishes to 9 receive a budget adjustment under the bill is required to adopt 10 a resolution approving the use of funds from the district’s 11 general fund. The bill also modifies provisions of Code 12 chapter 256C relating to commingling preschool funds. 13 The bill takes effect upon enactment. 14 -3- LSB 5900XS (3) 89 md/jh 3/ 3