HSB 157 (LSB 1627YC (4) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON WHEELER)

A BILL FOR

An Act relating to certain amounts of school district funding for programs for at-risk students, secondary students who attend alternative programs or alternative schools, or returning dropouts and dropout prevention.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.41, subsection 3, Code 2025, is amended to read as follows:
   3.  Limitation.
   a.  For Except as provided in paragraph “b”, for the fiscal year beginning July 1, 2013, and each succeeding fiscal year, the ratio of the amount of the modified supplemental amount established by the department of management compared to the school district’s total regular program district cost shall not exceed two and one-half percent. However, if the school district’s highest such ratio so determined for any fiscal year beginning on or after July 1, 2009, but before July 1, 2013, exceeded two and one-half percent, the ratio may exceed two and one-half percent but shall not exceed the highest such ratio established during that period.
   b.  For the fiscal years beginning on or after July 1, 2026, the ratio of the amount of the modified supplemental amount established by the department of management compared to the school district’s total regular program district cost may exceed the limitation otherwise applicable under paragraph “a”, not to exceed five percent, if such limit is approved at an election. If the limit is approved, such ratio shall not increase by more than one-quarter of one percent per fiscal year. The board may on its own motion, and upon the written request of not less than one hundred eligible electors or thirty percent of the number of eligible electors voting at the last regular school election, whichever is greater, shall, direct the county commissioner of elections to submit the question to the registered voters of the district. The authorization shall be for the period of years authorized at election or until such authorization is rescinded at election. The election shall be held on a date specified in section 39.2, subsection 4, paragraph “c”.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   As part of the budget for a school district’s program for at-risk students, secondary students who attend alternative programs and alternative schools, or returning dropouts and dropout prevention, the school board may request to use a modified supplemental amount. However, current law provides that the ratio of the amount of the modified supplemental amount compared to the school district’s total regular program district cost shall not exceed 2.5 percent or the school district’s highest ratio for any fiscal year beginning on or after July 1, 2009, but before July 1, 2013, whichever is greater.
   This bill modifies the maximum modified supplemental amount calculation for fiscal years beginning on or after July 1, 2026, by increasing the 2.5 percent ratio figure to a maximum ratio percentage not to exceed 5 percent for all school districts. The bill specifies the method and requirements for placing the proposition on the ballot and the manner for rescinding the authorization. If the limit is approved at election, such ratio shall not increase by more than one-quarter of one percent per fiscal year.