Senate File 269 - Introduced SENATE FILE 269 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SSB 1159) A BILL FOR An Act relating to public school funding by establishing the 1 state percent of growth and the categorical state percent of 2 growth for the budget year beginning July 1, 2021, modifying 3 provisions relating to the regular program state cost per 4 pupil, providing a funding supplement for certain school 5 districts, modifying provisions relating to the property 6 tax replacement payment and the transportation equity 7 payments, making appropriations, and including effective 8 date provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 1501SV (1) 89 md/jh

S.F. 269 Section 1. Section 257.8, subsections 1 and 2, Code 2021, 1 are amended to read as follows: 2 1. State percent of growth. The state percent of growth 3 for the budget year beginning July 1, 2018, is one percent. 4 The state percent of growth for the budget year beginning 5 July 1, 2019, is two and six hundredths percent. The state 6 percent of growth for the budget year beginning July 1, 7 2020, is two and three-tenths percent. The state percent of 8 growth for the budget year beginning July 1, 2021, is two and 9 two-tenths percent. The state percent of growth for each 10 subsequent budget year shall be established by statute which 11 shall be enacted within thirty days of the transmission of the 12 governor’s budget required by February 1 under section 8.21 13 during the regular legislative session beginning in the base 14 year. 15 2. Categorical state percent of growth. The categorical 16 state percent of growth for the budget year beginning July 17 1, 2018, is one percent. The categorical state percent of 18 growth for the budget year beginning July 1, 2019, is two 19 and six hundredths percent. The categorical state percent 20 of growth for the budget year beginning July 1, 2020, is two 21 and three-tenths percent. The categorical state percent of 22 growth for the budget year beginning July 1, 2021, is two and 23 two-tenths percent. The categorical state percent of growth 24 for each budget year shall be established by statute which 25 shall be enacted within thirty days of the transmission of the 26 governor’s budget required by February 1 under section 8.21 27 during the regular legislative session beginning in the base 28 year. The categorical state percent of growth may include 29 state percents of growth for the teacher salary supplement, the 30 professional development supplement, the early intervention 31 supplement, the teacher leadership supplement, and for budget 32 years beginning on or after July 1, 2020, transportation equity 33 aid payments under section 257.16C . 34 Sec. 2. Section 257.9, subsection 2, Code 2021, is amended 35 -1- LSB 1501SV (1) 89 md/jh 1/ 9

S.F. 269 to read as follows: 1 2. Regular program state cost per pupil for 1992-1993 and 2 succeeding years. 3 a. For the budget year beginning July 1, 1992, and 4 succeeding budget years beginning before July 1, 2018, the 5 regular program state cost per pupil for a budget year is the 6 regular program state cost per pupil for the base year plus the 7 regular program supplemental state aid for the budget year. 8 b. For the budget year beginning July 1, 2018, the regular 9 program state cost per pupil is the regular program state 10 cost per pupil for the base year plus the regular program 11 supplemental state aid for the budget year, plus five dollars. 12 c. For the budget year beginning July 1, 2019, the regular 13 program state cost per pupil is the regular program state 14 cost per pupil for the base year plus the regular program 15 supplemental state aid for the budget year, plus five dollars. 16 d. For the budget year beginning July 1, 2020, the regular 17 program state cost per pupil is the regular program state 18 cost per pupil for the base year plus the regular program 19 supplemental state aid for the budget year, plus ten dollars. 20 e. For the budget year beginning July 1, 2021, the regular 21 program state cost per pupil is the regular program state 22 cost per pupil for the base year plus the regular program 23 supplemental state aid for the budget year, plus fifteen 24 dollars. 25 e. f. For the budget year beginning July 1, 2021 2022 , and 26 succeeding budget years, the regular program state cost per 27 pupil for a budget year is the regular program state cost per 28 pupil for the base year plus the regular program supplemental 29 state aid for the budget year. 30 Sec. 3. Section 257.16B, subsections 1 and 2, Code 2021, are 31 amended to read as follows: 32 1. For each fiscal year beginning on or after July 1, 2018 33 2019 , there is appropriated from the general fund of the state 34 to the department of education an amount necessary to make all 35 -2- LSB 1501SV (1) 89 md/jh 2/ 9

S.F. 269 school district property tax replacement payments under this 1 section , as calculated in subsection 2 . 2 2. a. For the budget year beginning July 1, 2018, the 3 department of management shall calculate for each school 4 district all of the following: 5 (1) The regular program state cost per pupil for the budget 6 year beginning July 1, 2012, multiplied by one hundred percent 7 less the regular program foundation base per pupil percentage 8 pursuant to section 257.1 . 9 (2) The regular program state cost per pupil for the budget 10 year beginning July 1, 2018, multiplied by one hundred percent 11 less the regular program foundation base per pupil percentage 12 pursuant to section 257.1 . 13 (3) The amount of each school district’s property tax 14 replacement payment. Each school district’s property tax 15 replacement payment equals the school district’s weighted 16 enrollment for the budget year beginning July 1, 2018, 17 multiplied by the remainder of the amount calculated for 18 the school district under subparagraph (2) minus the amount 19 calculated for the school district under subparagraph (1). 20 b. a. For the budget year beginning July 1, 2019, the 21 department of management shall calculate for each school 22 district all of the following: 23 (1) The regular program state cost per pupil for the budget 24 year beginning July 1, 2012, multiplied by one hundred percent 25 less the regular program foundation base per pupil percentage 26 pursuant to section 257.1 . 27 (2) The regular program state cost per pupil for the budget 28 year beginning July 1, 2019, multiplied by one hundred percent 29 less the regular program foundation base per pupil percentage 30 pursuant to section 257.1 . 31 (3) The amount of each school district’s property tax 32 replacement payment. Each school district’s property tax 33 replacement payment equals the school district’s weighted 34 enrollment for the budget year beginning July 1, 2019, 35 -3- LSB 1501SV (1) 89 md/jh 3/ 9

S.F. 269 multiplied by the remainder of the amount calculated for 1 the school district under subparagraph (2) minus the amount 2 calculated for the school district under subparagraph (1). 3 c. b. For each the budget year beginning on or after July 4 1, 2020, the department of management shall calculate for each 5 school district all of the following: 6 (1) The regular program state cost per pupil for the budget 7 year beginning July 1, 2012, multiplied by one hundred percent 8 less the regular program foundation base per pupil percentage 9 pursuant to section 257.1 . 10 (2) The regular program state cost per pupil for the budget 11 year beginning July 1, 2020, multiplied by one hundred percent 12 less the regular program foundation base per pupil percentage 13 pursuant to section 257.1 . 14 (3) The amount of each school district’s property tax 15 replacement payment. Each school district’s property tax 16 replacement payment equals the school district’s weighted 17 enrollment for the budget year beginning July 1, 2020, 18 multiplied by the remainder of the amount calculated for 19 the school district under subparagraph (2) minus the amount 20 calculated for the school district under subparagraph (1). 21 c. For each budget year beginning on or after July 1, 2021, 22 the department of management shall calculate for each school 23 district all of the following: 24 (1) The regular program state cost per pupil for the budget 25 year beginning July 1, 2012, multiplied by one hundred percent 26 less the regular program foundation base per pupil percentage 27 pursuant to section 257.1. 28 (2) The regular program state cost per pupil for the budget 29 year beginning July 1, 2021, multiplied by one hundred percent 30 less the regular program foundation base per pupil percentage 31 pursuant to section 257.1. 32 (3) The amount of each school district’s property tax 33 replacement payment. Each school district’s property tax 34 replacement payment equals the school district’s weighted 35 -4- LSB 1501SV (1) 89 md/jh 4/ 9

S.F. 269 enrollment for the budget year multiplied by the remainder 1 of the amount calculated for the school district under 2 subparagraph (2) minus the amount calculated for the school 3 district under subparagraph (1). 4 Sec. 4. Section 257.16C, subsection 3, paragraph d, 5 subparagraph (3), Code 2021, is amended to read as follows: 6 (3) For each the fiscal year beginning on or after July 7 1, 2021, there is appropriated from the general fund of the 8 state to the department of management for deposit in the 9 transportation equity fund the sum of the following, or so 10 much thereof as is necessary an amount necessary to make all 11 transportation equity aid payments under subsection 2 , to be 12 used for the purposes of this section : . 13 (a) The amount appropriated to the transportation equity 14 fund under this paragraph for the immediately preceding fiscal 15 year. 16 (b) The product of the amount determined under subparagraph 17 division (a) multiplied by the categorical percent of growth 18 under section 257.8, subsection 2 , for the budget year 19 beginning on the same date of the fiscal year for which the 20 appropriation is made. 21 Sec. 5. Section 257.16C, subsection 3, paragraph d, Code 22 2021, is amended by adding the following new subparagraph: 23 NEW SUBPARAGRAPH . (4) For each fiscal year beginning on 24 or after July 1, 2022, there is appropriated from the general 25 fund of the state to the department of management for deposit 26 in the transportation equity fund the sum of the following, or 27 so much thereof as is necessary, to be used for the purposes of 28 this section: 29 (a) The amount appropriated to the transportation equity 30 fund under this paragraph for the immediately preceding fiscal 31 year. 32 (b) The product of the amount determined under subparagraph 33 division (a) multiplied by the categorical percent of growth 34 under section 257.8, subsection 2, for the budget year 35 -5- LSB 1501SV (1) 89 md/jh 5/ 9

S.F. 269 beginning on the same date of the fiscal year for which the 1 appropriation is made. 2 Sec. 6. QUALIFIED INSTRUCTION FUNDING SUPPLEMENT FOR FY 3 2021-2022 —— APPROPRIATION. 4 1. For the school budget year beginning July 1, 2021, and 5 ending June 30, 2022, each qualified school district shall 6 receive a qualified instruction funding supplement. The 7 supplement shall be in an amount equal to the product of 8 sixty-five dollars multiplied by the budget enrollment for the 9 qualified school district for the budget year beginning July 10 1, 2021. 11 2. The qualified instruction funding supplement shall be 12 miscellaneous income, shall be deposited in the general fund of 13 the school district, may be used for any school general fund 14 purpose, and shall not be included in district cost. 15 3. The qualified instruction funding supplement shall be 16 paid at the same time and in the same manner as foundation 17 aid is paid under section 257.16, and may be included in the 18 monthly payment of state aid under section 257.16, subsection 19 2. 20 4. There is appropriated from the general fund of the state 21 to the department of management for the fiscal year beginning 22 July 1, 2021, and ending June 30, 2022, an amount necessary to 23 make all qualified instruction funding supplement payments for 24 the fiscal year. 25 5. For purposes of this section, “qualified school 26 district” means a brick-and-mortar public school district other 27 than a school district that for the school year beginning July 28 1, 2020, and ending June 30, 2021, did either of the following: 29 a. Provided instruction primarily through remote-learning 30 opportunities without an approved waiver from the department of 31 education for such method of instruction in accordance with the 32 requirements of 2020 Iowa Acts, ch. 1107; section 279.10; the 33 governor’s proclamation of a public health disaster emergency 34 issued July 17, 2020; and subsequent applicable proclamations 35 -6- LSB 1501SV (1) 89 md/jh 6/ 9

S.F. 269 of a public health disaster emergency issued by the governor 1 pursuant to section 29C.6 and related to COVID-19. 2 b. Failed to comply with the requirement of 2021 Iowa Acts, 3 Senate File 160, section 1, to provide an opportunity for 4 full-time in-person instruction without an approved waiver from 5 the governor authorized under 2021 Iowa Acts, Senate File 160, 6 section 2. 7 Sec. 7. EFFECTIVE DATE. This Act, being deemed of immediate 8 importance, takes effect upon enactment. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to public school funding by establishing 13 the state percent of growth and the categorical state percent 14 of growth for the budget year beginning July 1, 2021, modifying 15 provisions relating to the regular program state cost per 16 pupil, providing a funding supplement for certain schools, 17 modifying provisions and references relating to the property 18 tax replacement payment, and modifying appropriations for 19 transportation funding. 20 The bill establishes a state percent of growth of 2.2 percent 21 for the budget year beginning July 1, 2021. The state percent 22 of growth is used to calculate the amount of supplemental state 23 aid for a budget year as part of the state school foundation 24 program. The bill also establishes a categorical state percent 25 of growth of 2.2 percent for the budget year beginning July 26 1, 2021. The categorical state percent of growth is used to 27 calculate the amount of supplemental state aid for each of the 28 categorical funding supplements. 29 Current Code section 257.9 provides that for the budget 30 year beginning July 1, 2021, and succeeding budget years, the 31 regular program state cost per pupil for a budget year is the 32 regular program state cost per pupil for the base year, which 33 includes the $10 addition made for the budget year beginning 34 July 1, 2020, plus the regular program supplemental state aid 35 -7- LSB 1501SV (1) 89 md/jh 7/ 9

S.F. 269 for the budget year. 1 Under the bill, for the budget year beginning July 1, 2021, 2 the regular program state cost per pupil is the regular program 3 state cost per pupil for the base year plus the regular program 4 supplemental state aid for the budget year, plus $15. Then 5 with the budget year beginning July 1, 2022, and succeeding 6 budget years, the regular program state cost per pupil will 7 again be calculated as the regular program state cost per pupil 8 for the base year plus the regular program supplemental state 9 aid for the budget year. 10 Code section 257.16B provides for school district property 11 tax replacement payments. Under current law, for each budget 12 year beginning on or after July 1, 2020, each school district’s 13 property tax replacement payment amount is equal to the school 14 district’s weighted enrollment for the budget year multiplied 15 by the difference of the following: (1) the regular program 16 state cost per pupil for the budget year beginning July 1, 17 2020, multiplied by 100 percent less the regular program 18 foundation base per pupil percentage; and (2) the regular 19 program state cost per pupil for the budget year beginning July 20 1, 2012, multiplied by 100 percent less the regular program 21 foundation base per pupil percentage. The regular program 22 foundation base per pupil percentage is 87.5 percent. 23 The bill modifies the property tax replacement payment 24 calculation for budget years beginning on or after July 1, 25 2021. For budget years beginning on or after July 1, 2021, 26 each school district’s property tax replacement payment amount 27 is equal to the school district’s weighted enrollment for the 28 applicable budget year multiplied by the difference of the 29 following: (1) the regular program state cost per pupil for 30 the budget year beginning July 1, 2021, multiplied by 100 31 percent less the regular program foundation base per pupil 32 percentage; and (2) the regular program state cost per pupil 33 for the budget year beginning July 1, 2012, multiplied by 100 34 percent less the regular program foundation base per pupil 35 -8- LSB 1501SV (1) 89 md/jh 8/ 9

S.F. 269 percentage. 1 For each fiscal year beginning on or after July 1, 2021, 2 Code section 257.16C appropriates from the general fund of the 3 state to the transportation equity fund the sum of the amount 4 appropriated for the immediately preceding fiscal year plus 5 the product of the amount appropriated for the immediately 6 preceding fiscal year multiplied by the categorical percent 7 of growth for the corresponding school budget year. The bill 8 modifies the appropriation for the fiscal year beginning 9 July 1, 2021, such that the total appropriated is equal to 10 the amount necessary to make all transportation equity aid 11 payments. 12 The bill establishes a qualified instruction funding 13 supplement for the school budget year beginning July 1, 2021, 14 and ending June 30, 2022. Each qualified school district shall 15 receive a qualified instruction funding supplement in an amount 16 equal to the product of $65 multiplied by the budget enrollment 17 for the qualified school district for the budget year beginning 18 July 1, 2021. The bill defines “qualified school district” 19 to mean a brick-and-mortar public school district other than 20 a school district that for the school year beginning July 1, 21 2020, and ending June 30, 2021, failed to comply with specified 22 student instruction requirements without a waiver. 23 The qualified instruction funding supplement is 24 miscellaneous income, shall be deposited in the general fund of 25 the school district, may be used for any school general fund 26 purpose, and shall not be included in district cost. 27 The bill appropriates from the general fund of the state to 28 the department of management an amount necessary to make all 29 qualified instruction funding supplement payments under the 30 bill. 31 The bill takes effect upon enactment. 32 -9- LSB 1501SV (1) 89 md/jh 9/ 9