Senate
Study
Bill
1159

Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
EDUCATION
BILL
BY
CHAIRPERSON
SINCLAIR)
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
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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
threetenths
percent.
The
state
percent
of
8
growth
for
the
budget
year
beginning
July
1,
2021,
is
two
and
9
twotenths
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
threetenths
percent.
The
categorical
state
percent
of
22
growth
for
the
budget
year
beginning
July
1,
2021,
is
two
and
23
twotenths
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
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to
read
as
follows:
1
2.
Regular
program
state
cost
per
pupil
for
19921993
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
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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
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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
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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
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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
20212022
——
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
sixtyfive
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
brickandmortar
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
remotelearning
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
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of
a
public
health
disaster
emergency
issued
by
the
governor
1
pursuant
to
section
29C.6
and
related
to
COVID19.
2
b.
Failed
to
comply
with
the
requirement
of
2021
Iowa
Acts,
3
Senate
File
160,
section
1,
to
provide
an
opportunity
for
4
fulltime
inperson
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
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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
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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
brickandmortar
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
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