Senate File 2043 - Introduced SENATE FILE 2043 BY EVANS A BILL FOR An Act relating to school district general fund flexibility 1 accounts by expanding eligible funding sources and modifying 2 expenditure approval requirements. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5900XS (2) 91 mb/md
S.F. 2043 Section 1. Section 257.10, subsection 9, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . e. If all requirements for the school 3 district for the use of funds calculated under this subsection 4 are met and funds received under this subsection remain 5 unexpended and unobligated at the end of a fiscal year 6 beginning on or after July 1, 2026, the school district may 7 transfer all or a portion of such unexpended and unobligated 8 funds for deposit in the school district’s flexibility account 9 established under section 298A.2, subsection 2. 10 Sec. 2. Section 298A.2, subsection 2, paragraph a, Code 11 2026, is amended by adding the following new subparagraph: 12 NEW SUBPARAGRAPH . (5) Teacher salary supplement funds 13 received under section 257.10, subsection 9. 14 Sec. 3. Section 298A.2, subsection 2, paragraph d, Code 15 2026, is amended to read as follows: 16 d. Expenditures from the flexibility account shall be 17 approved by resolution of the board of directors of the school 18 corporation and shall be included in the budget certified in 19 accordance with chapter 24 . Before the board of directors 20 may adopt the resolution approving expenditures from the 21 flexibility account, the board shall hold a public hearing on 22 the proposed resolution. The proposed resolution must state 23 the original source and purpose of the funds, the proposed use 24 of such funds, the amount of the proposed expenditure, and 25 the fiscal year from which the transfer of such funds to the 26 flexibility account occurred. The proposed resolution must 27 also include a certification that the statutory requirements 28 for each original source of the money proposed to be used have 29 been met, have been repealed, or are no longer in effect. The 30 board shall publish notice of the time and the place of the 31 public hearing in the same manner as required in section 24.9 . 32 The department of education shall prescribe the form for public 33 hearing notices. A copy of the resolution shall be provided 34 by the board to the department of education and shall be made 35 -1- LSB 5900XS (2) 91 mb/md 1/ 2
S.F. 2043 available by the board for any audit performed under chapter 1 11 . 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill relates to school district general fund 6 flexibility accounts. 7 The bill expands the list of eligible funding sources that 8 may be transferred into a school district’s general fund 9 flexibility account to include teacher salary supplement funds 10 calculated under Code section 257.10(9). The bill authorizes 11 school districts to transfer any unexpended and unobligated 12 teacher salary supplement funds at the end of a fiscal year 13 beginning on or after July 1, 2026, into the school district’s 14 flexibility account, provided all requirements for the use of 15 those funds are met. 16 The bill also removes the requirement that a school district 17 hold a public hearing and publish a notice before approving 18 expenditures from a general fund flexibility account. The bill 19 retains board resolution and reporting requirements. 20 -2- LSB 5900XS (2) 91 mb/md 2/ 2