House File 810 - Introduced HOUSE FILE 810 BY RINKER A BILL FOR An Act relating to granting supplemental aid or a modified 1 supplemental amount for school districts with high open 2 enrollments, and including effective date and applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2174YH (6) 91 jm/md

H.F. 810 Section 1. Section 257.31, subsection 5, paragraph o, Code 1 2025, is amended to read as follows: 2 o. (1) The percentage of students enrolled in the school 3 district as the result of open enrollment under section 4 282.18 is equal to or greater than forty-five percent of the 5 total number of students enrolled in the school district. 6 The committee shall not approve supplemental aid or a 7 modified supplemental amount that exceeds an amount equal 8 to fifty percent of the product of the net change in the 9 school district’s expected enrollment due to open enrollment 10 multiplied by the sum of the following amounts: 11 (a) The difference between the district’s regular program 12 district cost per pupil minus the regular program state cost 13 per pupil. 14 (b) The teacher salary supplement district cost per pupil. 15 (c) (b) The professional development supplement district 16 cost per pupil. 17 (d) (c) The early intervention supplement district cost per 18 pupil. 19 (2) Prior to filing a request for supplemental aid or a 20 modified supplemental amount based on the grounds specified 21 in this paragraph, the board of directors shall hold a public 22 hearing on the issue and shall publish the notice of the time 23 and place of the public hearing. Notice of the time and place 24 of the public hearing shall be published not less than ten nor 25 more than twenty days before the public hearing in a newspaper 26 that is a newspaper of general circulation in the school 27 district. 28 (3) A school district is not eligible for supplemental aid 29 or a modified supplemental amount under this paragraph if a 30 majority of the students enrolled in the school district as 31 the result of open enrollment are students receiving online 32 instruction from a private provider under section 256.43, 33 subsection 2 . 34 (4) A school district is only eligible for supplemental 35 -1- LSB 2174YH (6) 91 jm/md 1/ 3

H.F. 810 aid or a modified supplemental amount under this paragraph for 1 the budget year beginning July 1, 2024 If a school district is 2 granted a modified supplemental amount under this paragraph for 3 a budget year beginning on or after July 1, 2025, the school 4 district’s combined property tax rate per one thousand dollars 5 for all school district levies for the succeeding budget year 6 shall not exceed the combined property tax rate for all such 7 levies for the budget year for which the modified supplemental 8 amount was granted . 9 Sec. 2. REPEAL. 2024 Iowa Acts, chapter 1152, section 45, 10 is repealed. 11 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 12 importance, takes effect upon enactment. 13 Sec. 4. APPLICABILITY. This Act applies to school budget 14 years beginning on or after July 1, 2025. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 Code section 257.31(5) establishes circumstances under 19 which the school budget review committee (committee) may 20 grant supplemental aid or a modified supplemental amount to a 21 district. This bill modifies the calculations for supplemental 22 aid or a modified supplemental amount for such school districts 23 under circumstances of high open enrollment into the district 24 by striking the teacher salary supplement district cost per 25 pupil from the amount. 26 The bill strikes the limitation that specified a school 27 district is only eligible for supplemental aid or a modified 28 supplemental amount related to increasing open enrollment for 29 the budget year beginning July 1, 2024. 30 The bill also strikes a provision in 2024 Iowa Acts, chapter 31 1152, section 45, and moves the provision to Code section 32 257.31(5)(o) with modifications. The provision specifies 33 that if a school district with high open enrollment into the 34 district is granted a modified supplemental amount for a budget 35 -2- LSB 2174YH (6) 91 jm/md 2/ 3

H.F. 810 year beginning on or after July 1, 2025, the school district’s 1 combined property tax rate for all school district levies 2 for the succeeding budget year shall not exceed the combined 3 property tax rate for all such levies for the budget year for 4 which the modified supplemental amount was granted. 5 The bill takes effect upon enactment and applies to school 6 budget years beginning on or after July 1, 2025. 7 -3- LSB 2174YH (6) 91 jm/md 3/ 3