Senate Study Bill 1211 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON DAWSON) A BILL FOR An Act modifying supplemental aid and modified supplemental 1 amounts for certain school districts relating to open 2 enrollment, and including effective date and applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2359XC (3) 91 jm/md

S.F. _____ Section 1. Section 257.31, subsection 5, paragraph o, Code 1 2025, is amended by striking the paragraph and inserting in 2 lieu thereof the following: 3 o. (1) The percentage of students enrolled in the school 4 district as the result of open enrollment under section 282.18 5 is equal to or greater than thirty-five percent of the total 6 number of students enrolled in the school district. The 7 committee shall not approve supplemental aid or a modified 8 supplemental amount that exceeds an amount equal to fifty 9 percent of the product of the net increase in the school 10 district’s enrollment due to open enrollment multiplied by the 11 sum of the following amounts: 12 (a) The difference between the district’s regular program 13 district cost per pupil minus the regular program state cost 14 per pupil. 15 (b) The teacher salary supplement district cost per pupil. 16 (c) The professional development supplement district cost 17 per pupil. 18 (d) The early intervention supplement district cost per 19 pupil. 20 (2) Prior to filing a request for supplemental aid or a 21 modified supplemental amount based on the grounds specified 22 in this paragraph, the board of directors shall hold a public 23 hearing on the issue and shall publish the notice of the time 24 and place of the public hearing. Notice of the time and place 25 of the public hearing shall be published not less than ten nor 26 more than twenty days before the public hearing in a newspaper 27 that is a newspaper of general circulation in the school 28 district. 29 (3) A school district is not eligible for supplemental aid 30 or a modified supplemental amount under this paragraph if a 31 majority of the students enrolled in the school district as 32 the result of open enrollment are students receiving online 33 instruction from a private provider under section 256.43, 34 subsection 2. 35 -1- LSB 2359XC (3) 91 jm/md 1/ 3

S.F. _____ Sec. 2. REPEAL. 2024 Iowa Acts, chapter 1152, section 45, 1 is repealed. 2 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 3 importance, takes effect upon enactment. 4 Sec. 4. APPLICABILITY. This Act applies July 1, 2025, for 5 school budget years beginning on or after that date. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 Code section 257.31(5) establishes circumstances under 10 which the school budget review committee (committee) may 11 grant supplemental aid or a modified supplemental amount to a 12 district. This bill strikes the current provisions for school 13 districts with high open enrollment into the district and 14 inserts new provisions to qualify for supplemental aid or a 15 modified supplemental amount. 16 Under the bill, if the percentage of students enrolled 17 in the school district as the result of open enrollment is 18 equal to or greater than 35 percent of the total number of 19 students enrolled in the school district, such circumstance 20 is an unusual circumstance. However, the bill excludes a 21 district if a majority of the students enrolled as the result 22 of open enrollment are students receiving online instruction 23 from a private provider under Code section 256.43(2). Prior 24 to filing a request with the school budget review committee, 25 the school district must first hold a public hearing on the 26 issue. The committee shall not approve supplemental aid or a 27 modified supplemental amount that exceeds an amount equal to 28 50 percent of the product of the net increase in the school 29 district’s enrollment due to open enrollment multiplied by 30 the sum of the following amounts: (1) the difference between 31 the district’s regular program district cost per pupil minus 32 the regular program state cost per pupil; (2) the teacher 33 salary supplement district cost per pupil; (3) the professional 34 development supplement district cost per pupil; and (4) the 35 -2- LSB 2359XC (3) 91 jm/md 2/ 3

S.F. _____ early intervention supplement district cost per pupil. 1 The bill takes effect upon enactment and applies July 1, 2 2025, for school budget years beginning on or after that date. 3 The bill also repeals 2024 Iowa Acts, chapter 1152, section 4 45, which limited school district property tax levies for the 5 budget year beginning July 1, 2025, if the school district 6 received a modified supplemental amount under Code section 7 257.31(5) for the budget year beginning July 1, 2024. 8 -3- LSB 2359XC (3) 91 jm/md 3/ 3