SF 375 (LSB 2304XS (3) 90)

SENATE FILE 375

BY  QUIRMBACH

A BILL FOR

An Act establishing a low-income enrollment categorical funding supplement for school districts and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.1, subsection 2, paragraph b, Code 2023, is amended to read as follows:
   b.  For the budget year commencing July 1, 1999, and for each succeeding budget year beginning before July 1, 2022, the regular program foundation base per pupil is eighty-seven and five-tenths percent of the regular program state cost per pupil. For the budget year commencing July 1, 2022, and for each succeeding budget year, the regular program foundation base per pupil is eighty-eight and four-tenths percent of the regular program state cost per pupil. For the budget year commencing July 1, 1991, and for each succeeding budget year the special education support services foundation base is seventy-nine percent of the special education support services state cost per pupil. The combined foundation base is the sum of the regular program foundation base, the special education support services foundation base, the total teacher salary supplement district cost, the total professional development supplement district cost, the total early intervention supplement district cost, the total teacher leadership supplement district cost, the total area education agency teacher salary supplement district cost, and the total area education agency professional development supplement district cost, and the total low-income enrollment supplement district cost.
    Sec. 2.  Section 257.1, subsection 3, Code 2023, is amended to read as follows:
   3.  Computations rounded.  In making computations and payments under this chapter, except in the case of computations relating to funding of special education support services, media services, and educational services provided through the area education agencies, and the teacher salary supplement, the professional development supplement, the early intervention supplement, and the teacher leadership supplement, and the low-income enrollment supplement, the department of management shall round amounts to the nearest whole dollar.
    Sec. 3.  Section 257.4, subsection 1, paragraph a, Code 2023, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (11)  The total low-income enrollment supplement district cost.
    Sec. 4.  Section 257.8, subsection 2, as amended by 2023 Iowa Acts, Senate File 192, section 1, is amended to read as follows:
   2.  Categorical state percent of growth.   The categorical state percent of growth for the budget year beginning July 1, 2021, is two and four-tenths percent. The categorical state percent of growth for the budget year beginning July 1, 2022, is two and one-half percent. The categorical state percent of growth for the budget year beginning July 1, 2023, is three percent. The categorical state percent of growth for each budget year shall be established by statute which shall be enacted within thirty days of the transmission of the governor’s budget required by February 1 under section 8.21 during the regular legislative session beginning in the base year. The categorical state percent of growth may include state percents of growth for the teacher salary supplement, the professional development supplement, the early intervention supplement, the teacher leadership supplement, the low-income enrollment supplement, and for budget years beginning on or after July 1, 2020, transportation equity aid payments under section 257.16C.
    Sec. 5.  Section 257.9, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  12.  Low-income enrollment supplement state cost per pupil.  For the budget year beginning July 1, 2024, the low-income enrollment supplement state cost per pupil is five hundred dollars. The low-income enrollment supplement state cost per pupil for the budget year beginning July 1, 2024, and succeeding budget years, shall be the amount of the low-income enrollment supplement state cost per pupil under this subsection for the base year plus a supplemental state aid amount that is equal to the low-income enrollment supplement categorical state percent of growth, pursuant to section 257.8, subsection 2, for the budget year, multiplied by the amount of the low-income enrollment supplement state cost per pupil under this subsection for the base year.
    Sec. 6.  Section 257.10, subsection 8, paragraph a, Code 2023, is amended to read as follows:
   a.  Combined district cost is the sum of the regular program district cost per pupil multiplied by the weighted enrollment, the special education support services district cost, the total teacher salary supplement district cost, the total professional development supplement district cost, the total early intervention supplement district cost, the total low-income enrollment supplement district cost, and the total teacher leadership supplement district cost, plus the sum of the additional district cost allocated to the district to fund media services and educational services provided through the area education agency, the area education agency total teacher salary supplement district cost and the area education agency total professional development supplement district cost.
    Sec. 7.  Section 257.10, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  12A.  Low-income enrollment supplement cost per pupil and district cost.
   a.  For budget years beginning on or after July 1, 2024, the low-income enrollment supplement district cost per pupil is equal to the low-income enrollment supplement state cost per pupil. The low-income enrollment supplement district cost is the low-income enrollment supplement district cost per pupil for a budget year multiplied by the number of pupils in a school district, as reported by the school district on the basic educational data survey for the base year, who are eligible for free and reduced price meals under the federal National School Lunch Act and the federal Child Nutrition Act of 1966, 42 U.S.C. §1751 – 1785.
   b.  The funds calculated under this subsection may be used for any school general fund purpose.
    Sec. 8.  Section 257.16, subsection 4, Code 2023, is amended to read as follows:
   4.  Notwithstanding any provision to the contrary, if the governor orders budget reductions in accordance with section 8.31, the teacher salary supplement district cost, the professional development supplement district cost, the early intervention supplement district cost, the low-income enrollment supplement district cost, and the teacher leadership supplement district cost as calculated under section 257.10, subsections 9, 10, 11, and 12, and the area education agency teacher salary supplement district cost and the area education agency professional development supplement district cost as calculated under section 257.37A, subsections 1 and 2, shall be paid in full as calculated and the reductions in the appropriations provided in accordance with this section shall be reduced from the remaining moneys appropriated pursuant to this section and shall be distributed on a per pupil basis calculated with the weighted enrollment determined in accordance with section 257.6, subsection 5.
    Sec. 9.  APPLICABILITY.  This Act applies July 1, 2024, for school budget years beginning on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill establishes a low-income enrollment supplement for school districts that is added to the state school foundation program for funding school districts under Code chapter 257. For the budget year beginning July 1, 2024, the low-income enrollment supplement state cost per pupil is $500. The low-income enrollment supplement state cost per pupil for the budget year beginning July 1, 2024, and succeeding budget years, is the amount of the low-income enrollment supplement state cost per pupil for the base year plus a supplemental state aid amount that is equal to the low-income enrollment supplement categorical state percent of growth for the budget year multiplied by the amount of the low-income enrollment supplement state cost per pupil for the base year.
   The low-income enrollment supplement district cost per pupil is equal to the low-income enrollment supplement state cost per pupil. The low-income enrollment supplement district cost is the low-income enrollment supplement district cost per pupil for a budget year multiplied by the number of pupils in a school district who are eligible for free and reduced price meals as determined in the base year. The low-income enrollment supplement district cost is added to the combined foundation base, similar to other categorical funding supplements, and is accordingly paid as part of state foundation aid to school districts. The bill allows the low-income enrollment supplement amounts to be used for any school general fund purpose.
   The bill applies July 1, 2024, for school budget years beginning on or after that date.