House Study Bill 157 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON WHEELER) A BILL FOR An Act relating to certain amounts of school district funding 1 for programs for at-risk students, secondary students who 2 attend alternative programs or alternative schools, or 3 returning dropouts and dropout prevention. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1627YC (4) 91 jm/md

H.F. _____ Section 1. Section 257.41, subsection 3, Code 2025, is 1 amended to read as follows: 2 3. Limitation. 3 a. For Except as provided in paragraph “b” , for the fiscal 4 year beginning July 1, 2013, and each succeeding fiscal year, 5 the ratio of the amount of the modified supplemental amount 6 established by the department of management compared to the 7 school district’s total regular program district cost shall 8 not exceed two and one-half percent. However, if the school 9 district’s highest such ratio so determined for any fiscal year 10 beginning on or after July 1, 2009, but before July 1, 2013, 11 exceeded two and one-half percent, the ratio may exceed two and 12 one-half percent but shall not exceed the highest such ratio 13 established during that period. 14 b. For the fiscal years beginning on or after July 1, 15 2026, the ratio of the amount of the modified supplemental 16 amount established by the department of management compared 17 to the school district’s total regular program district cost 18 may exceed the limitation otherwise applicable under paragraph 19 “a” , not to exceed five percent, if such limit is approved 20 at an election. If the limit is approved, such ratio shall 21 not increase by more than one-quarter of one percent per 22 fiscal year. The board may on its own motion, and upon the 23 written request of not less than one hundred eligible electors 24 or thirty percent of the number of eligible electors voting 25 at the last regular school election, whichever is greater, 26 shall, direct the county commissioner of elections to submit 27 the question to the registered voters of the district. The 28 authorization shall be for the period of years authorized at 29 election or until such authorization is rescinded at election. 30 The election shall be held on a date specified in section 39.2, 31 subsection 4, paragraph “c” . 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -1- LSB 1627YC (4) 91 jm/md 1/ 2

H.F. _____ As part of the budget for a school district’s program for 1 at-risk students, secondary students who attend alternative 2 programs and alternative schools, or returning dropouts and 3 dropout prevention, the school board may request to use a 4 modified supplemental amount. However, current law provides 5 that the ratio of the amount of the modified supplemental 6 amount compared to the school district’s total regular program 7 district cost shall not exceed 2.5 percent or the school 8 district’s highest ratio for any fiscal year beginning on or 9 after July 1, 2009, but before July 1, 2013, whichever is 10 greater. 11 This bill modifies the maximum modified supplemental amount 12 calculation for fiscal years beginning on or after July 1, 13 2026, by increasing the 2.5 percent ratio figure to a maximum 14 ratio percentage not to exceed 5 percent for all school 15 districts. The bill specifies the method and requirements 16 for placing the proposition on the ballot and the manner 17 for rescinding the authorization. If the limit is approved 18 at election, such ratio shall not increase by more than 19 one-quarter of one percent per fiscal year. 20 -2- LSB 1627YC (4) 91 jm/md 2/ 2