SF 2043 (LSB 5900XS (2) 91)

SENATE FILE 2043

BY  EVANS

A BILL FOR

An Act relating to school district general fund flexibility accounts by expanding eligible funding sources and modifying expenditure approval requirements.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.10, subsection 9, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  If all requirements for the school district for the use of funds calculated under this subsection are met and funds received under this subsection remain unexpended and unobligated at the end of a fiscal year beginning on or after July 1, 2026, the school district may transfer all or a portion of such unexpended and unobligated funds for deposit in the school district’s flexibility account established under section 298A.2, subsection 2.
    Sec. 2.  Section 298A.2, subsection 2, paragraph a, Code 2026, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (5)  Teacher salary supplement funds received under section 257.10, subsection 9.
    Sec. 3.  Section 298A.2, subsection 2, paragraph d, Code 2026, is amended to read as follows:
   d.  Expenditures from the flexibility account shall be approved by resolution of the board of directors of the school corporation and shall be included in the budget certified in accordance with chapter 24. Before the board of directors may adopt the resolution approving expenditures from the flexibility account, the board shall hold a public hearing on the proposed resolution. The proposed resolution must state the original source and purpose of the funds, the proposed use of such funds, the amount of the proposed expenditure, and the fiscal year from which the transfer of such funds to the flexibility account occurred. The proposed resolution must also include a certification that the statutory requirements for each original source of the money proposed to be used have been met, have been repealed, or are no longer in effect. The board shall publish notice of the time and the place of the public hearing in the same manner as required in section 24.9. The department of education shall prescribe the form for public hearing notices. A copy of the resolution shall be provided by the board to the department of education and shall be made available by the board for any audit performed under chapter 11. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to school district general fund flexibility accounts.
   The bill expands the list of eligible funding sources that may be transferred into a school district’s general fund flexibility account to include teacher salary supplement funds calculated under Code section 257.10(9). The bill authorizes school districts to transfer any unexpended and unobligated teacher salary supplement funds at the end of a fiscal year beginning on or after July 1, 2026, into the school district’s flexibility account, provided all requirements for the use of those funds are met.
   The bill also removes the requirement that a school district hold a public hearing and publish a notice before approving expenditures from a general fund flexibility account. The bill retains board resolution and reporting requirements.