Senate Study Bill 1260 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON KRAAYENBRINK) A BILL FOR An Act modifying certain area education agency categorical 1 funding supplement calculations and enrollment 2 determinations and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1075XC (6) 89 md/jh

S.F. _____ DIVISION I 1 AREA EDUCATION AGENCY PAYMENTS 2 Section 1. Section 257.35, Code 2021, is amended by striking 3 the section and inserting in lieu thereof the following: 4 257.35 Area education agency payments. 5 1. The department of management shall deduct the amounts 6 calculated for special education support services, media 7 services, area education agency teacher salary supplement 8 district cost, area education agency professional development 9 supplement district cost, and educational services for each 10 school district from the state aid due to the district pursuant 11 to this chapter and shall pay the amounts to the respective 12 area education agencies on a monthly basis from September 15 13 through June 15 during each school year. The department of 14 management shall notify each school district of the amount 15 of state aid deducted for these purposes and the balance of 16 state aid shall be paid to the district. If a district does 17 not qualify for state aid under this chapter in an amount 18 sufficient to cover its amount due to the area education agency 19 as calculated by the department of management, the school 20 district shall pay the deficiency to the area education agency 21 from other moneys received by the district, on a quarterly 22 basis during each school year. 23 2. Notwithstanding subsection 1, the state aid for area 24 education agencies and the portion of the combined district 25 cost calculated for these agencies for the fiscal year 26 beginning July 1, 2021, and each succeeding fiscal year, shall 27 be reduced by the department of management by twenty-two 28 million five hundred thousand dollars. The department shall 29 calculate a reduction such that each area education agency 30 shall receive a reduction proportionate to the amount that the 31 area education agency would otherwise have received under this 32 section if the reduction imposed pursuant to this subsection 33 did not apply. 34 3. Notwithstanding section 257.37, an area education 35 -1- LSB 1075XC (6) 89 md/jh 1/ 21

S.F. _____ agency may use the funds determined to be available under this 1 section in a manner which the area education agency determines 2 is appropriate to best maintain the level of required area 3 education agency special education services. An area education 4 agency may also use unreserved fund balances for media services 5 or education services in a manner which the area education 6 agency determines is appropriate to best maintain the level of 7 required area education agency special education services. 8 Sec. 2. EFFECTIVE DATE. This division of this Act, being 9 deemed of immediate importance, takes effect upon enactment. 10 DIVISION II 11 AREA EDUCATION AGENCY SPECIAL EDUCATION SUPPORT 12 Sec. 3. Section 257.9, subsections 3 and 4, Code 2021, are 13 amended to read as follows: 14 3. Special education support services state cost per pupil 15 for 1991-1992 2020-2021 . For the budget year beginning July 16 1, 1991 2020 , for the special education support services state 17 cost per pupil , the department of management shall divide the 18 total of the approved budgets of the area education agencies 19 for special education support services for that year approved 20 by the state board of education under section 273.3, subsection 21 12 , by the total of the weighted enrollment for special 22 education support services in the state for the budget year is 23 three hundred eight dollars and fifty-six cents . The special 24 education support services state cost per pupil for the budget 25 year is the amount calculated by the department of management 26 under this subsection . 27 4. Special education support services state cost per pupil 28 for 1992-1993 2021-2022 and succeeding years. For the budget 29 year beginning July 1, 1992 2021 , and succeeding budget years, 30 the special education support services state cost per pupil for 31 the budget year is the special education support services state 32 cost per pupil for the base year plus the special education 33 support services supplemental state aid for the budget year. 34 Sec. 4. Section 257.10, subsections 3, 4, and 7, Code 2021, 35 -2- LSB 1075XC (6) 89 md/jh 2/ 21

S.F. _____ are amended to read as follows: 1 3. Special education support services district cost per pupil 2 for 1991-1992 2020-2021 . For the budget year beginning July 1, 3 1991 2020 , for the special education support services district 4 cost per pupil , the department of management shall divide the 5 approved budget of each area education agency for special 6 education support services for that year approved by the state 7 board of education, under section 273.3, subsection 12 , by 8 the total of the weighted enrollment for special education 9 support services in the area for that is the special education 10 support services district cost per pupil for the base year plus 11 the special education support services supplemental state aid 12 for the budget year. The special education support services 13 district cost per pupil for each school district in an area for 14 the budget year is the amount calculated by the department of 15 management under this subsection . 16 4. Special education support services district cost per pupil 17 for 1992-1993 2021-2022 and succeeding years. 18 a. For the budget year beginning July 1, 1992 2021 , and 19 succeeding budget years, the special education support services 20 district cost per pupil for the budget year is the special 21 education support services district state cost per pupil for 22 the base year plus the special education support services 23 supplemental state aid for the budget year. 24 b. Notwithstanding the special education support services 25 district cost per pupil for the budget year beginning July 1, 26 1991, calculated under subsection 3 paragraph “a” , for area 27 education agencies that , based on the total budget enrollment 28 of the school districts comprising the area education agency, 29 have fewer than three and five-tenths public school ten pupils 30 per square mile for the budget year beginning July 1, 2021 , the 31 special education support services district cost per pupil for 32 the budget year beginning July 1, 1991 2021 , and succeeding 33 budget years, is one hundred forty-seven dollars one hundred 34 three percent of the amount calculated under paragraph “a” . 35 -3- LSB 1075XC (6) 89 md/jh 3/ 21

S.F. _____ 7. Special education support services district cost. Special 1 education support services district cost for a school district 2 for a budget year is equal to the special education support 3 services district cost per pupil for the budget year multiplied 4 by the special education support services weighted enrollment 5 for the district for the budget year. If For the school budget 6 year beginning July 1, 2020, and school budget years beginning 7 on or after July 1, 2022, if the special education support 8 services district cost for a school district for a budget year 9 is less than the special education support services district 10 cost for that district for the base year, the department of 11 management shall adjust the special education support services 12 district cost for that district for the budget year to equal 13 the special education support services district cost for the 14 base year. 15 Sec. 5. EFFECTIVE DATE. This division of this Act, being 16 deemed of immediate importance, takes effect upon enactment. 17 DIVISION III 18 AREA EDUCATION AGENCY MEDIA SERVICES 19 Sec. 6. Section 257.37, subsection 1, Code 2021, is amended 20 to read as follows: 21 1. a. For the budget year beginning July 1, 1991 2020 , 22 and succeeding budget years, the total amount funded in each 23 area for media services shall be computed as provided in this 24 subsection . 25 b. For the budget year beginning July 1, 1991 2020 , the 26 total amount funded in each area for media services in the base 27 year shall be divided by the enrollment served in the base year 28 to provide an area media services cost per pupil in the base 29 year, and the department of management shall compute the state 30 media services cost per pupil in the base year which is equal 31 to the average of the area media services costs per pupil in 32 the base year fifty-seven dollars and fifty-three cents . For 33 the budget year beginning July 1, 1991 2021 , and succeeding 34 budget years, the department of management shall compute the 35 -4- LSB 1075XC (6) 89 md/jh 4/ 21

S.F. _____ supplemental state aid for media services in the budget year by 1 multiplying the state media services cost per pupil in the base 2 year times the state percent of growth for the budget year , and 3 the . For budget years beginning on or after July 1, 2021, the 4 state media services cost per pupil for each budget year is 5 equal to the state media services cost per pupil for the base 6 year plus the supplemental state aid for media services in the 7 budget year. 8 c. For the budget year beginning July 1, 2021, and 9 succeeding budget years, the area media services cost per 10 pupil is equal to the state media services cost per pupil for 11 the budget year. However, for area education agencies that, 12 based on the total budget enrollment of the school districts 13 comprising the area education agency, have fewer than ten 14 pupils per square mile for the budget year beginning July 1, 15 2021, the area media services cost per pupil is equal to one 16 hundred three percent of the state media services cost per 17 pupil for the budget year. 18 d. The total amount funded in each area for media services 19 cost in the budget year equals the area media services cost 20 per pupil in the base budget year plus the supplemental state 21 aid for media services in the budget year times the enrollment 22 served in the budget year. Funds shall be paid to area 23 education agencies as provided in section 257.35 . 24 Sec. 7. EFFECTIVE DATE. This division of this Act, being 25 deemed of immediate importance, takes effect upon enactment. 26 DIVISION IV 27 AREA EDUCATION AGENCY EDUCATIONAL SERVICES 28 Sec. 8. Section 257.37, subsection 3, Code 2021, is amended 29 to read as follows: 30 3. a. For the budget year beginning July 1, 1991 2020 , and 31 succeeding budget years, the total amount funded in each area 32 for educational services shall be computed as provided in this 33 subsection . 34 b. For the budget year beginning July 1, 1991 2020 , the 35 -5- LSB 1075XC (6) 89 md/jh 5/ 21

S.F. _____ total amount funded in each area for educational services 1 in the base year shall be divided by the enrollment served 2 in the area in the base year to provide an area educational 3 services cost per pupil in the base year, and the department 4 of management shall compute the state educational services 5 cost per pupil in the base year, which is equal to the average 6 of the area educational services costs per pupil in the base 7 year sixty-three dollars and forty-eight cents . For the budget 8 year beginning July 1, 1991 2021 , and succeeding budget years, 9 the department of management shall compute the supplemental 10 state aid for educational services by multiplying the state 11 educational services cost per pupil in the base year times the 12 state percent of growth for the budget year , and the . For 13 budget years beginning on or after July 1, 2021, the state 14 educational services cost per pupil for each budget year is 15 equal to the state educational services cost per pupil for 16 the base year plus the supplemental state aid for educational 17 services in the budget year. 18 c. For the budget year beginning July 1, 2021, and 19 succeeding budget years, the area educational services cost per 20 pupil is equal to the state educational services cost per pupil 21 for the budget year. However, for area education agencies 22 that, based on the total budget enrollment of the school 23 districts comprising the area education agency, have fewer than 24 ten pupils per square mile for the budget year beginning July 25 1, 2021, the area educational services cost per pupil is equal 26 to one hundred three percent of the state educational services 27 cost per pupil for the budget year. 28 d. The total amount funded in each area for educational 29 services for the budget year equals the area educational 30 services cost per pupil for the base budget year plus the 31 supplemental state aid for educational services in the budget 32 year times the enrollment served in the area in the budget 33 year. Funds shall be paid to area education agencies as 34 provided in section 257.35 . 35 -6- LSB 1075XC (6) 89 md/jh 6/ 21

S.F. _____ Sec. 9. EFFECTIVE DATE. This division of this Act, being 1 deemed of immediate importance, takes effect upon enactment. 2 DIVISION V 3 AREA EDUCATION AGENCY ENROLLMENT SERVED 4 Sec. 10. Section 257.37, subsection 4, Code 2021, is amended 5 to read as follows: 6 4. a. “Enrollment served” means the sum of the basic 7 enrollment plus the area preschool budget enrollment for the 8 budget year, plus the number of nonpublic school pupils served 9 with media services or educational services, as applicable, 10 except that if a nonpublic school pupil or a pupil attending 11 another district under a whole grade sharing agreement or open 12 enrollment receives services through an area other than the 13 area of the pupil’s residence, the pupil shall be deemed to 14 be served by the area of the pupil’s residence, which shall 15 by contractual arrangement reimburse the area through which 16 the pupil actually receives services. Each school district 17 shall include in the enrollment report submitted pursuant to 18 section 257.6, subsection 1 , the number of nonpublic school 19 pupils within each school district for media and educational 20 services served by the area. However, the school district 21 shall not include in the enrollment report nonpublic school 22 pupils receiving classes or services funded entirely by federal 23 grants or allocations. 24 b. For purposes of this subsection, “area preschool budget 25 enrollment” means: 26 (1) For the budget year beginning July 1, 2021, twenty 27 percent of the total preschool budget enrollment as determined 28 under section 256C.5 for all school districts within the area. 29 (2) For the budget year beginning July 1, 2022, forty 30 percent of the total preschool budget enrollment as determined 31 under section 256C.5 for all school districts within the area. 32 (3) For the budget year beginning July 1, 2023, sixty 33 percent of the total preschool budget enrollment as determined 34 under section 256C.5 for all school districts within the area. 35 -7- LSB 1075XC (6) 89 md/jh 7/ 21

S.F. _____ (4) For the budget year beginning July 1, 2024, eighty 1 percent of the total preschool budget enrollment as determined 2 under section 256C.5 for all school districts within the area. 3 (5) For each budget year beginning on or after July 1, 4 2025, the total preschool budget enrollment as determined under 5 section 256C.5 for all school districts within the area. 6 Sec. 11. EFFECTIVE DATE. This division of this Act, being 7 deemed of immediate importance, takes effect upon enactment. 8 DIVISION VI 9 AREA EDUCATION AGENCY WEIGHTED ENROLLMENT 10 Sec. 12. Section 257.6, subsection 5, paragraph b, Code 11 2021, is amended to read as follows: 12 b. (1) Weighted enrollment for special Special education 13 support services costs weighted enrollment is equal to the 14 weighted enrollment minus the additional pupils added due 15 to the application of the supplementary weighting budget 16 enrollment plus the preschool budget enrollment under 17 subparagraph (2), plus the nonpublic school enrollment under 18 subparagraph (3), plus the sum of the number of students in the 19 area education agency being served under either part B or part 20 C of the federal Individuals with Disabilities Education Act . 21 (2) For purposes of this paragraph, “preschool budget 22 enrollment” means: 23 (a) For the budget year beginning July 1, 2021, twenty 24 percent of the school district’s preschool budget enrollment as 25 determined under section 256C.5. 26 (b) For the budget year beginning July 1, 2022, forty 27 percent of the school district’s preschool budget enrollment as 28 determined under section 256C.5. 29 (c) For the budget year beginning July 1, 2023, sixty 30 percent of the school district’s preschool budget enrollment as 31 determined under section 256C.5. 32 (d) For the budget year beginning July 1, 2024, eighty 33 percent of the school district’s preschool budget enrollment as 34 determined under section 256C.5. 35 -8- LSB 1075XC (6) 89 md/jh 8/ 21

S.F. _____ (e) For each budget year beginning on or after July 1, 2025, 1 the school district’s preschool budget enrollment as determined 2 under section 256C.5. 3 (3) For purposes of this paragraph, “nonpublic school 4 enrollment” means: 5 (a) For the budget year beginning July 1, 2021, twenty 6 percent of the resident pupils attending an accredited 7 nonpublic school. 8 (b) For the budget year beginning July 1, 2022, forty 9 percent of the resident pupils attending an accredited 10 nonpublic school. 11 (c) For the budget year beginning July 1, 2023, sixty 12 percent of the resident pupils attending an accredited 13 nonpublic school. 14 (d) For the budget year beginning July 1, 2024, eighty 15 percent of the resident pupils attending an accredited 16 nonpublic school. 17 (e) For each budget year beginning on or after July 1, 2025, 18 the number of resident pupils attending an accredited nonpublic 19 school. 20 Sec. 13. Section 273.23, subsection 8, Code 2021, is amended 21 to read as follows: 22 8. For the school year beginning on the effective date 23 of an area education agency reorganization as provided in 24 this subchapter , the special education support services 25 cost per pupil shall be based upon the combined base year 26 budgets for special education support services of the area 27 education agencies that reorganized to form the newly formed 28 area education agency, divided by the total of the weighted 29 enrollment for special education support services in the 30 reorganized area education agency for the base year equal 31 to the highest special education support services cost per 32 pupil for the base year among all area education agencies that 33 reorganized plus the supplemental state aid amount per pupil 34 for special education support services for the budget year as 35 -9- LSB 1075XC (6) 89 md/jh 9/ 21

S.F. _____ calculated in section 257.8 . 1 Sec. 14. EFFECTIVE DATE. This division of this Act, being 2 deemed of immediate importance, takes effect upon enactment. 3 DIVISION VII 4 AREA EDUCATION AGENCY TEACHER SALARY SUPPLEMENT 5 Sec. 15. Section 257.9, subsection 9, Code 2021, is amended 6 to read as follows: 7 9. Area education agency teacher salary supplement state cost 8 per pupil. 9 a. For the budget year beginning July 1, 2009, for the 10 area education agency teacher salary supplement state cost per 11 pupil, the department of management shall add together the 12 teacher compensation allocation made to each area education 13 agency for the fiscal year beginning July 1, 2008, pursuant to 14 section 284.13, subsection 1 , paragraph “i” , Code 2009, and 15 the phase II allocation made to each area education agency for 16 the fiscal year beginning July 1, 2008, pursuant to section 17 294A.9 , Code 2009, and divide that sum by the statewide special 18 education support services weighted enrollment for the fiscal 19 year beginning July 1, 2009. 20 b. The area education agency teacher salary supplement state 21 cost per pupil for the budget year beginning July 1, 2010, and 22 succeeding budget years beginning before July 1, 2025 , shall 23 be the amount calculated by the department of management under 24 this subsection for the base year plus a supplemental state 25 aid amount that is equal to the teacher salary supplement 26 categorical state percent of growth, pursuant to section 27 257.8, subsection 2 , for the budget year, multiplied by the 28 amount calculated by the department of management under this 29 subsection for the base year. 30 c. The area education agency teacher salary supplement 31 state cost per pupil for the budget year beginning July 1, 32 2025, shall be an amount equal to the sum of the highest area 33 education agency teacher salary supplement district cost per 34 pupil for the base year among all area education agencies in 35 -10- LSB 1075XC (6) 89 md/jh 10/ 21

S.F. _____ the state plus a supplemental state aid amount that is equal 1 to the categorical state percent of growth for the budget 2 year, multiplied by the area education agency teacher salary 3 supplement state cost per pupil for the base year. 4 d. The area education agency teacher salary supplement 5 state cost per pupil for the budget year beginning July 1, 6 2026, and succeeding budget years, shall be the area education 7 agency teacher salary supplement state cost per pupil for the 8 base year plus a supplemental state aid amount that is equal 9 to the categorical state percent of growth for the budget 10 year, multiplied by the area education agency teacher salary 11 supplement state cost per pupil for the base year. 12 Sec. 16. Section 257.37A, subsection 1, paragraphs a and d, 13 Code 2021, are amended to read as follows: 14 a. (1) For the budget year beginning July 1, 2009, the 15 department of management shall add together the teacher 16 compensation allocation made to each area education agency for 17 the fiscal year beginning July 1, 2008, pursuant to section 18 284.13, subsection 1 , paragraph “i” , Code 2009, and the phase II 19 allocation made to each area education agency for the fiscal 20 year beginning July 1, 2008, pursuant to section 294A.9, Code 21 2009 , and divide that sum by the special education support 22 services weighted enrollment in the fiscal year beginning July 23 1, 2009, to determine the area education agency teacher salary 24 supplement cost per pupil. For the budget year beginning July 25 1, 2010, and succeeding budget years beginning before July 26 1, 2026 , the area education agency teacher salary supplement 27 district cost per pupil for each area education agency for a 28 budget year is equal to the sum of the following: 29 (a) The area education agency teacher salary supplement 30 district cost per pupil for the base year plus the . 31 (b) The area education agency teacher salary supplement 32 supplemental state aid amount for the budget year. 33 (c) The area education agency’s teacher salary supplement 34 differential for the budget year. 35 -11- LSB 1075XC (6) 89 md/jh 11/ 21

S.F. _____ (2) For budget years beginning on or after July 1, 1 2021, but before July 1, 2026, each area education agency’s 2 teacher salary supplement differential shall be the following 3 percentages of the difference between the area education 4 agency’s teacher salary supplement district cost per pupil for 5 the budget year beginning July 1, 2020, and the highest area 6 education agency teacher salary supplement district cost per 7 pupil among all area education agencies in the state for the 8 budget year beginning July 1, 2020: 9 (a) For the budget year beginning July 1, 2021, twenty 10 percent. 11 (b) For the budget year beginning July 1, 2022, forty 12 percent. 13 (c) For the budget year beginning July 1, 2023, sixty 14 percent. 15 (d) For the budget year beginning July 1, 2024, eighty 16 percent. 17 (e) For the budget year beginning July 1, 2025, one hundred 18 percent. 19 (3) For the budget year beginning July 1, 2026, and 20 succeeding budget years, the area education agency teacher 21 salary supplement district cost per pupil for each area 22 education agency for a budget year is the area education agency 23 teacher salary supplement state cost per pupil for the budget 24 year. 25 d. For the budget year beginning July 1, 2009, the use 26 of the funds calculated under this subsection shall comply 27 with requirements of chapter 284 and shall be distributed to 28 teachers pursuant to section 284.3A . For the budget year 29 beginning July 1, 2010, and succeeding budget years, the use of 30 the funds calculated under this subsection shall comply with 31 the requirements of chapter 284 and shall be distributed to 32 teachers pursuant to section 284.3A . 33 Sec. 17. EFFECTIVE DATE. This division of this Act, being 34 deemed of immediate importance, takes effect upon enactment. 35 -12- LSB 1075XC (6) 89 md/jh 12/ 21

S.F. _____ DIVISION VIII 1 AREA EDUCATION AGENCY PROFESSIONAL DEVELOPMENT SUPPLEMENT 2 Sec. 18. Section 257.9, subsection 10, Code 2021, is amended 3 to read as follows: 4 10. Area education agency professional development supplement 5 state cost per pupil. 6 a. For the budget year beginning July 1, 2009, for the area 7 education agency professional development supplement state cost 8 per pupil, the department of management shall add together the 9 professional development allocation made to each area education 10 agency for the fiscal year beginning July 1, 2008, pursuant to 11 section 284.13, subsection 1 , paragraph “d” , Code 2009, and 12 divide that sum by the statewide special education support 13 services weighted enrollment for the fiscal year beginning July 14 1, 2009. 15 b. The area education agency professional development 16 supplement state cost per pupil for the budget year beginning 17 July 1, 2010, and succeeding budget years beginning before 18 July 1, 2025 , shall be the amount calculated by the department 19 of management under this subsection for the base year plus a 20 supplemental state aid amount that is equal to the professional 21 development supplement categorical state percent of growth, 22 pursuant to section 257.8, subsection 2 , for the budget year, 23 multiplied by the amount calculated by the department of 24 management under this subsection for the base year. 25 c. The area education agency professional development 26 supplement state cost per pupil for the budget year beginning 27 July 1, 2025, shall be an amount equal to the sum of the highest 28 area education agency professional development supplement 29 district cost per pupil for the base year among all area 30 education agencies in the state plus a supplemental state aid 31 amount that is equal to the categorical state percent of growth 32 for the budget year, multiplied by the area education agency 33 professional development supplement state cost per pupil for 34 the base year. 35 -13- LSB 1075XC (6) 89 md/jh 13/ 21

S.F. _____ d. The area education agency professional development 1 supplement state cost per pupil for the budget year beginning 2 July 1, 2026, and succeeding budget years, shall be the area 3 education agency professional development supplement state 4 cost per pupil for the base year plus a supplemental state aid 5 amount that is equal to the categorical state percent of growth 6 for the budget year, multiplied by the area education agency 7 professional development supplement state cost per pupil for 8 the base year. 9 Sec. 19. Section 257.37A, subsection 2, paragraph a, Code 10 2021, is amended to read as follows: 11 a. (1) For the budget year beginning July 1, 2009, the 12 department of management shall divide the area education agency 13 professional development supplement made to each area education 14 agency for the fiscal year beginning July 1, 2008, pursuant 15 to section 284.13, subsection 1 , paragraph “d” , Code 2009, by 16 the special education support services weighted enrollment 17 in the fiscal year beginning July 1, 2009, to determine the 18 professional development supplement cost per pupil. For the 19 budget year beginning July 1, 2010, and succeeding budget 20 years beginning before July 1, 2026 , the area education agency 21 professional development supplement district cost per pupil for 22 each area education agency for a budget year is the equal to 23 the sum of the following: 24 (a) The area education agency professional development 25 supplement district cost per pupil for the base year plus the . 26 (b) The area education agency professional development 27 supplement supplemental state aid amount for the budget year. 28 (c) The area education agency’s professional development 29 supplement differential for the budget year. 30 (2) For budget years beginning on or after July 1, 2021, but 31 before July 1, 2026, each area education agency’s professional 32 development supplement differential shall be the following 33 percentages of the difference between the area education 34 agency’s professional development supplement district cost 35 -14- LSB 1075XC (6) 89 md/jh 14/ 21

S.F. _____ per pupil for the budget year beginning July 1, 2020, and the 1 highest area education agency professional supplement district 2 cost per pupil among all area education agencies in the state 3 for the budget year beginning July 1, 2020: 4 (a) For the budget year beginning July 1, 2021, twenty 5 percent. 6 (b) For the budget year beginning July 1, 2022, forty 7 percent. 8 (c) For the budget year beginning July 1, 2023, sixty 9 percent. 10 (d) For the budget year beginning July 1, 2024, eighty 11 percent. 12 (e) For the budget year beginning July 1, 2025, one hundred 13 percent. 14 (3) For the budget year beginning July 1, 2026, and 15 succeeding budget years, the area education agency professional 16 development supplement district cost per pupil for each area 17 education agency for a budget year is the area education agency 18 professional development supplement state cost per pupil for 19 the budget year. 20 Sec. 20. EFFECTIVE DATE. This division of this Act, being 21 deemed of immediate importance, takes effect upon enactment. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to area education agencies by modifying 26 certain categorical funding supplement calculations and 27 enrollment determinations. 28 Division I of the bill strikes and replaces Code section 29 257.35 relating to the deduction of amounts calculated for 30 special education support services, media services, area 31 education agency teacher salary supplement district cost, 32 area education agency professional development supplement 33 district cost, and educational services from the state aid due 34 to each school district and the payment of such amounts to the 35 -15- LSB 1075XC (6) 89 md/jh 15/ 21

S.F. _____ respective area education agencies. The bill provides that the 1 state aid for area education agencies and the portion of the 2 combined district cost calculated for these agencies for the 3 fiscal year beginning July 1, 2021, and each succeeding fiscal 4 year, is reduced by the department of management by $22.5 5 million. The department of management is required to calculate 6 a reduction such that each area education agency receives a 7 reduction proportionate to the amount that it would otherwise 8 have received if the reduction did not apply. 9 Division I of the bill takes effect upon enactment. 10 Division II of the bill modifies the calculation of the 11 special education support services state cost per pupil by 12 providing that for the budget year beginning July 1, 2020, the 13 special education support services state cost per pupil is 14 $308.56. Then, for the budget year beginning July 1, 2021, and 15 succeeding budget years, the special education support services 16 state cost per pupil for the budget year is the special 17 education support services state cost per pupil for the base 18 year plus the special education support services supplemental 19 state aid for the budget year. 20 Division II of the bill also provides that the special 21 education support services district cost per pupil for the 22 budget year beginning July 1, 2021, and succeeding budget 23 years, is the special education support services state cost 24 per pupil for the base year plus the special education support 25 services supplemental state aid for the budget year. However, 26 for area education agencies that, based on school district 27 budget enrollments, have fewer than 10 pupils per square 28 mile for the budget year beginning July 1, 2021, the special 29 education support services district cost per pupil for the 30 budget year beginning July 1, 2021, and succeeding budget 31 years, is 103 percent of the amount otherwise calculated 32 under the bill. The bill also makes inapplicable the special 33 education support services district cost adjustment provision 34 in Code section 257.10(7) for the budget year beginning July 35 -16- LSB 1075XC (6) 89 md/jh 16/ 21

S.F. _____ 1, 2021. 1 Division II of the bill takes effect upon enactment. 2 Division III of the bill modifies the calculation of the 3 state media services cost per pupil and specifies that the 4 state media services cost per pupil for the budget year 5 beginning July 1, 2020, is equal to $57.53. For budget years 6 beginning on or after July 1, 2021, the state media services 7 cost per pupil for each budget year is then equal to the state 8 media services cost per pupil for the base year plus the 9 supplemental state aid for media services in the budget year. 10 Division III of the bill also provides that for the budget 11 year beginning July 1, 2021, and succeeding budget years, the 12 area media services cost per pupil is equal to the state media 13 services cost per pupil for the budget year. However, for 14 area education agencies that, based on school district budget 15 enrollments, have fewer than 10 pupils per square mile for the 16 budget year beginning July 1, 2021, the area media services 17 cost per pupil is equal to 103 percent of the state media 18 services cost per pupil for the budget year. 19 Division III of the bill takes effect upon enactment. 20 Division IV of the bill modifies the calculation of the state 21 educational services cost per pupil and specifies that for 22 the budget year beginning July 1, 2020, the state educational 23 services cost per pupil is equal to $63.48. For budget years 24 beginning on or after July 1, 2021, the state educational 25 services cost per pupil for each budget year is equal to the 26 state educational services cost per pupil for the base year 27 plus the supplemental state aid for educational services in the 28 budget year. 29 Division IV of the bill also provides that for the budget 30 year beginning July 1, 2021, and succeeding budget years, 31 the area educational services cost per pupil is equal to the 32 state educational services cost per pupil for the budget 33 year. However, for area education agencies that, based on 34 school district budget enrollments, have fewer than 10 pupils 35 -17- LSB 1075XC (6) 89 md/jh 17/ 21