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Senate File 2201 - IntroducedA Bill ForAn Act 1relating to school funding by establishing the state
2percent of growth and the categorical state percent of
3growth for the budget year beginning July 1, 2026, modifying
4provisions relating to property tax replacement payments,
5the regular program state cost per pupil, funding for school
6district budget adjustments, and school district enrollment,
7and including effective date and applicability provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2STATE AND CATEGORICAL PERCENTS OF GROWTH AND PROPERTY TAX
3REPLACEMENT PAYMENTS
4 Section 1. Section 257.8, subsections 1 and 2, Code 2026,
5are amended to read as follows:
61. State percent of growth. The state percent of growth for
7the budget year beginning July 1, 2023, is three percent. The
8state percent of growth for the budget year beginning July 1,
92024, is two and one-half percent. The state percent of growth
10for the budget year beginning July 1, 2025, is two percent.
11The state percent of growth for the budget year beginning July
121, 2026, is one and seventy-five hundredths percent. The state
13percent of growth for each subsequent budget year shall be
14established by statute which shall be enacted within thirty
15days of the transmission of the governor’s budget required by
16February 1 under section 8.21 during the regular legislative
17session beginning in the base year.
182. Categorical state percent of growth. The categorical
19state percent of growth for the budget year beginning July
201, 2023, is three percent. The categorical state percent of
21growth for the budget year beginning July 1, 2024, is two and
22one-half percent. The categorical state percent of growth for
23the budget year beginning July 1, 2025, is two percent, except
24for calculating the appropriation to the transportation equity
25fund under section 257.16C. The categorical state percent of
26growth for purposes of calculating the appropriation to the
27transportation equity fund under section 257.16C for the budget
28year beginning July 1, 2025, is five percent. The categorical
29state percent of growth for the budget year beginning July
301, 2026, is one and seventy-five hundredths percent. The
31categorical state percent of growth for each budget year shall
32be established by statute which shall be enacted within thirty
33days of the transmission of the governor’s budget required by
34February 1 under section 8.21 during the regular legislative
35session beginning in the base year. The categorical state
-1-1percent of growth may include state percents of growth for
2the teacher salary supplement, the professional development
3supplement, the early intervention supplement, the teacher
4leadership supplement, and for budget years beginning on or
5after July 1, 2020, transportation equity aid payments under
6section 257.16C.
7 Sec. 2. Section 257.16B, subsections 1 and 2, Code 2026, are
8amended to read as follows:
91. For each fiscal year beginning on or after July 1, 2023
10 2024, there is appropriated from the general fund of the state
11to the department of education an amount necessary to make all
12school district property tax replacement payments under this
13section, as calculated in subsection 2.
142. a. (1) For the budget year beginning July 1, 2023,
15the amount of each school district’s property tax replacement
16payment shall be the product of the school district’s weighted
17enrollment for the budget year multiplied by the per pupil
18property tax replacement amount for the budget year calculated
19under subparagraph (2).
20(2) The per pupil property tax replacement amount for the
21budget year beginning July 1, 2023, is equal to the sum of one
22hundred fifty-three dollars plus the difference between the
23following:
24(a) The regular program state cost per pupil for the budget
25year beginning July 1, 2023, multiplied by one hundred percent
26less the regular program foundation base per pupil percentage
27pursuant to section 257.1 for the budget year beginning July
281, 2023.
29(b) The regular program state cost per pupil for the budget
30year beginning July 1, 2021, multiplied by one hundred percent
31less the regular program foundation base per pupil percentage
32pursuant to section 257.1 for the budget year beginning July
331, 2023.
34b. a. (1) For the budget year beginning July 1, 2024,
35the amount of each school district’s property tax replacement
-2-1payment shall be the product of the school district’s weighted
2enrollment for the budget year multiplied by the per pupil
3property tax replacement amount for the budget year calculated
4under subparagraph (2).
5(2) The per pupil property tax replacement amount for the
6budget year beginning July 1, 2024, is equal to the sum of one
7hundred fifty-three dollars plus the difference between the
8following:
9(a) The regular program state cost per pupil for the budget
10year beginning July 1, 2024, multiplied by one hundred percent
11less the regular program foundation base per pupil percentage
12pursuant to section 257.1 for the budget year beginning July
131, 2024.
14(b) The regular program state cost per pupil for the budget
15year beginning July 1, 2021, multiplied by one hundred percent
16less the regular program foundation base per pupil percentage
17pursuant to section 257.1 for the budget year beginning July
181, 2024.
19c. b. (1) For each the budget year beginning on or after
20 July 1, 2025, the amount of each school district’s property
21tax replacement payment shall be the product of the school
22district’s weighted enrollment for the budget year multiplied
23by the per pupil property tax replacement amount for the budget
24year calculated under subparagraph (2).
25(2) The per pupil property tax replacement amount for
26the budget years year beginning on or after July 1, 2025, is
27equal to the sum of one hundred fifty-three dollars plus the
28difference between the following:
29(a) The regular program state cost per pupil for the budget
30year beginning July 1, 2025, multiplied by one hundred percent
31less the regular program foundation base per pupil percentage
32pursuant to section 257.1 for the applicable budget year under
33this paragraph beginning July 1, 2025.
34(b) The regular program state cost per pupil for the budget
35year beginning July 1, 2021, multiplied by one hundred percent
-3-1less the regular program foundation base per pupil percentage
2pursuant to section 257.1 for the applicable budget year under
3this paragraph beginning July 1, 2025.
4c. (1) For each budget year beginning on or after July
51, 2026, the amount of each school district’s property
6tax replacement payment shall be the product of the school
7district’s weighted enrollment for the budget year multiplied
8by the per pupil property tax replacement amount for the budget
9year calculated under subparagraph (2).
10(2) The per pupil property tax replacement amount for budget
11years beginning on or after July 1, 2026, is equal to the sum
12of one hundred fifty-three dollars plus the difference between
13the following:
14(a) The regular program state cost per pupil for the budget
15year beginning July 1, 2026, multiplied by one hundred percent
16less the regular program foundation base per pupil percentage
17pursuant to section 257.1 for the applicable budget year under
18this paragraph.
19(b) The regular program state cost per pupil for the budget
20year beginning July 1, 2021, multiplied by one hundred percent
21less the regular program foundation base per pupil percentage
22pursuant to section 257.1 for the applicable budget year under
23this paragraph.
24 Sec. 3. EFFECTIVE DATE. This division of this Act, being
25deemed of immediate importance, takes effect upon enactment.
26DIVISION II
27STATE COST PER PUPIL
28 Sec. 4. Section 257.9, subsection 2, paragraph i, Code 2026,
29is amended to read as follows:
30i. For the budget year beginning July 1, 2026, and
31succeeding budget years, the regular program state cost per
32pupil for a budget year is the regular program state cost per
33pupil for the base year plus the regular program supplemental
34state aid for the budget year, plus five dollars.
35 Sec. 5. Section 257.9, subsection 2, Code 2026, is amended
-4-1by adding the following new paragraph:
2 NEW PARAGRAPH. j. For the budget year beginning July 1,
32027, and succeeding budget years, the regular program state
4cost per pupil for a budget year is the regular program state
5cost per pupil for the base year plus the regular program
6supplemental state aid for the budget year.
7 Sec. 6. EFFECTIVE DATE. This division of this Act, being
8deemed of immediate importance, takes effect upon enactment.
9DIVISION III
10SCHOOL DISTRICT BUDGET ADJUSTMENT — FY 2026-2027
11 Sec. 7. SCHOOL DISTRICT BUDGET ADJUSTMENT — FY 2026-2027.
121. For the school budget year beginning July 1, 2026, the
13department of management shall add the amount of the school
14district’s budget adjustment under section 257.14, if any, to
15the combined foundation base under section 257.1, subsection
162, for the budget year.
172. For the school budget year beginning July 1, 2026,
18a school district’s budget adjustment under section 257.14
19shall be funded by state foundation aid resulting from the
20calculation under subsection 1 and shall not be funded through
21school district property taxes.
22 Sec. 8. EFFECTIVE DATE. This division of this Act, being
23deemed of immediate importance, takes effect upon enactment.
24DIVISION IV
25SCHOOL DISTRICT ENROLLMENT
26 Sec. 9. Section 257.6, subsection 2, Code 2026, is amended
27to read as follows:
282. Basic enrollment. Basic enrollment for a budget year
29is the greater of a district’s actual enrollment for the base
30year and the district’s adjusted enrollment for the base
31year. Basic enrollment for the base year is the greater of
32 a district’s actual enrollment for the year preceding the
33base year and a district’s adjusted enrollment for the year
34preceding the base year.
35 Sec. 10. Section 257.6, Code 2026, is amended by adding the
-5-1following new subsection:
2 NEW SUBSECTION. 7. Adjusted enrollment.
3a. Adjusted enrollment is determined annually on February
41, or the first Monday in February if February 1 falls on
5a Saturday or Sunday, and includes the same categories of
6pupils used to determine actual enrollment under subsection 1,
7paragraph “a”.
8b. A school district shall certify its adjusted enrollment
9to the department of education by February 15 of each year, and
10the department shall promptly forward the information to the
11department of management.
12c. The department of management shall adjust the adjusted
13enrollment and, if necessary, the basic enrollment of the
14school district for the audit year based upon reports filed
15under section 11.6, and shall further adjust the budget of the
16second year succeeding the audit year for the property tax
17and state aid portions of the reported differences in such
18enrollments for the year succeeding the audit year.
19 Sec. 11. APPLICABILITY. This division of this Act applies
20to enrollment determinations occurring on or after July 1,
212026, used for school budget years beginning on or after July
221, 2027.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill relates to various aspects of school funding.
27DIVISION I — STATE AND CATEGORICAL PERCENTS OF GROWTH AND
28PROPERTY TAX REPLACEMENT PAYMENTS. The bill establishes a
29state percent of growth of 1.75 percent for the budget year
30beginning July 1, 2026. The state percent of growth is used
31to calculate the amount of supplemental state aid for a budget
32year as part of the state school foundation program. The
33bill also establishes a categorical state percent of growth
34of 1.75 percent for the budget year beginning July 1, 2026.
35The categorical state percent of growth is generally used to
-6-1calculate the amount of supplemental state aid for each of the
2categorical funding supplements.
3Code section 257.16B provides for school district property
4tax replacement payments. For each budget year beginning on
5or after July 1, 2025, the amount of each school district’s
6property tax replacement payment is the product of the school
7district’s weighted enrollment for the budget year multiplied
8by the per pupil property tax replacement amount for the budget
9year. The per pupil property tax replacement amount for budget
10years beginning on or after July 1, 2025, is equal to the
11sum of $153 plus the difference between the following: (1)
12the regular program state cost per pupil for the budget year
13beginning July 1, 2025, multiplied by 100 percent less the
14regular program foundation base per pupil percentage; and (2)
15the regular program state cost per pupil for the budget year
16beginning July 1, 2021, multiplied by 100 percent less the
17regular program foundation base per pupil percentage.
18The bill modifies the property tax replacement payment
19calculation for budget years beginning on or after July 1,
202026. For budget years beginning on or after July 1, 2026,
21the amount of each school district’s property tax replacement
22payment is the product of the school district’s weighted
23enrollment for the budget year multiplied by the per pupil
24property tax replacement amount for the budget year. The
25per pupil property tax replacement amount for budget years
26beginning on or after July 1, 2026, is equal to the sum of $153
27plus the difference between the following: (1) the regular
28program state cost per pupil for the budget year beginning July
291, 2026, multiplied by 100 percent less the regular program
30foundation base per pupil percentage; and (2) the regular
31program state cost per pupil for the budget year beginning July
321, 2021, multiplied by 100 percent less the regular program
33foundation base per pupil percentage. The regular program
34foundation base per pupil percentage is 88.4 percent.
35The division takes effect upon enactment.
-7- 1DIVISION II — STATE COST PER PUPIL. Under the bill, for
2the budget year beginning July 1, 2026, the regular program
3state cost per pupil is the regular program state cost per
4pupil for the base year plus the regular program supplemental
5state aid for the budget year, plus $5. Then with the budget
6year beginning July 1, 2027, and succeeding budget years, the
7regular program state cost per pupil will again be calculated
8as the regular program state cost per pupil for the base year
9plus the regular program supplemental state aid for the budget
10year.
11The division takes effect upon enactment.
12DIVISION III — SCHOOL DISTRICT BUDGET ADJUSTMENT — FY
132026-2027. Code section 257.14 authorizes school districts to
14receive a budget adjustment equal to the difference between
15the regular program district cost for the budget year and 101
16percent of the regular program district cost for the base year.
17If approved by the school district’s board of directors, such a
18budget adjustment is funded through school district property
19taxes. The bill provides that for the school budget year
20beginning July 1, 2026, the department of management shall add
21the amount of the school district’s budget adjustment under
22Code section 257.14, if any, to the combined foundation base
23under Code section 257.1(2). Code section 257.1 provides
24foundation aid from the state in an amount per pupil equal
25to the difference between the amount per pupil of foundation
26property tax in the district and the combined foundation base
27per pupil or the combined district cost per pupil, whichever
28is less. Accordingly, following the addition to the combined
29foundation base, the budget adjustment amount shall be funded
30by foundation aid from the state instead of property taxes.
31The division takes effect upon enactment.
32DIVISION IV — SCHOOL DISTRICT ENROLLMENT. Under current
33law, a school district’s basic enrollment for a budget year is
34the district’s actual enrollment for the base year. Under the
35bill, a school district’s basic enrollment for a budget year
-8-1is the greater of the actual enrollment for the base year and
2adjusted enrollment for the base year.
3Under the bill, adjusted enrollment is to be determined
4annually on February 1, or the first Monday in February if
5February 1 falls on a weekend, of the base year, based on the
6same categories of students used to determine actual enrollment
7under Code section 257.6(1)(a). School districts are required
8to certify adjusted enrollment to the department of education
9by February 15 of the base year, and the department is required
10to promptly forward the information to the department of
11management for use in determining and adjusting tax and funding
12amounts.
13The division applies to enrollment determinations occurring
14on or after July 1, 2026, used for school budget years
15beginning on or after July 1, 2027.
-9-mb/md
2percent of growth and the categorical state percent of
3growth for the budget year beginning July 1, 2026, modifying
4provisions relating to property tax replacement payments,
5the regular program state cost per pupil, funding for school
6district budget adjustments, and school district enrollment,
7and including effective date and applicability provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2STATE AND CATEGORICAL PERCENTS OF GROWTH AND PROPERTY TAX
3REPLACEMENT PAYMENTS
4 Section 1. Section 257.8, subsections 1 and 2, Code 2026,
5are amended to read as follows:
61. State percent of growth. The state percent of growth for
7the budget year beginning July 1, 2023, is three percent. The
8state percent of growth for the budget year beginning July 1,
92024, is two and one-half percent. The state percent of growth
10for the budget year beginning July 1, 2025, is two percent.
11The state percent of growth for the budget year beginning July
121, 2026, is one and seventy-five hundredths percent. The state
13percent of growth for each subsequent budget year shall be
14established by statute which shall be enacted within thirty
15days of the transmission of the governor’s budget required by
16February 1 under section 8.21 during the regular legislative
17session beginning in the base year.
182. Categorical state percent of growth. The categorical
19state percent of growth for the budget year beginning July
201, 2023, is three percent. The categorical state percent of
21growth for the budget year beginning July 1, 2024, is two and
22one-half percent. The categorical state percent of growth for
23the budget year beginning July 1, 2025, is two percent, except
24for calculating the appropriation to the transportation equity
25fund under section 257.16C. The categorical state percent of
26growth for purposes of calculating the appropriation to the
27transportation equity fund under section 257.16C for the budget
28year beginning July 1, 2025, is five percent. The categorical
29state percent of growth for the budget year beginning July
301, 2026, is one and seventy-five hundredths percent. The
31categorical state percent of growth for each budget year shall
32be established by statute which shall be enacted within thirty
33days of the transmission of the governor’s budget required by
34February 1 under section 8.21 during the regular legislative
35session beginning in the base year. The categorical state
-1-1percent of growth may include state percents of growth for
2the teacher salary supplement, the professional development
3supplement, the early intervention supplement, the teacher
4leadership supplement, and for budget years beginning on or
5after July 1, 2020, transportation equity aid payments under
6section 257.16C.
7 Sec. 2. Section 257.16B, subsections 1 and 2, Code 2026, are
8amended to read as follows:
91. For each fiscal year beginning on or after July 1, 2023
10 2024, there is appropriated from the general fund of the state
11to the department of education an amount necessary to make all
12school district property tax replacement payments under this
13section, as calculated in subsection 2.
142. a. (1) For the budget year beginning July 1, 2023,
15the amount of each school district’s property tax replacement
16payment shall be the product of the school district’s weighted
17enrollment for the budget year multiplied by the per pupil
18property tax replacement amount for the budget year calculated
19under subparagraph (2).
20(2) The per pupil property tax replacement amount for the
21budget year beginning July 1, 2023, is equal to the sum of one
22hundred fifty-three dollars plus the difference between the
23following:
24(a) The regular program state cost per pupil for the budget
25year beginning July 1, 2023, multiplied by one hundred percent
26less the regular program foundation base per pupil percentage
27pursuant to section 257.1 for the budget year beginning July
281, 2023.
29(b) The regular program state cost per pupil for the budget
30year beginning July 1, 2021, multiplied by one hundred percent
31less the regular program foundation base per pupil percentage
32pursuant to section 257.1 for the budget year beginning July
331, 2023.
34b. a. (1) For the budget year beginning July 1, 2024,
35the amount of each school district’s property tax replacement
-2-1payment shall be the product of the school district’s weighted
2enrollment for the budget year multiplied by the per pupil
3property tax replacement amount for the budget year calculated
4under subparagraph (2).
5(2) The per pupil property tax replacement amount for the
6budget year beginning July 1, 2024, is equal to the sum of one
7hundred fifty-three dollars plus the difference between the
8following:
9(a) The regular program state cost per pupil for the budget
10year beginning July 1, 2024, multiplied by one hundred percent
11less the regular program foundation base per pupil percentage
12pursuant to section 257.1 for the budget year beginning July
131, 2024.
14(b) The regular program state cost per pupil for the budget
15year beginning July 1, 2021, multiplied by one hundred percent
16less the regular program foundation base per pupil percentage
17pursuant to section 257.1 for the budget year beginning July
181, 2024.
19c. b. (1) For each the budget year beginning on or after
20 July 1, 2025, the amount of each school district’s property
21tax replacement payment shall be the product of the school
22district’s weighted enrollment for the budget year multiplied
23by the per pupil property tax replacement amount for the budget
24year calculated under subparagraph (2).
25(2) The per pupil property tax replacement amount for
26the budget years year beginning on or after July 1, 2025, is
27equal to the sum of one hundred fifty-three dollars plus the
28difference between the following:
29(a) The regular program state cost per pupil for the budget
30year beginning July 1, 2025, multiplied by one hundred percent
31less the regular program foundation base per pupil percentage
32pursuant to section 257.1 for the applicable budget year under
33this paragraph beginning July 1, 2025.
34(b) The regular program state cost per pupil for the budget
35year beginning July 1, 2021, multiplied by one hundred percent
-3-1less the regular program foundation base per pupil percentage
2pursuant to section 257.1 for the applicable budget year under
3this paragraph beginning July 1, 2025.
4c. (1) For each budget year beginning on or after July
51, 2026, the amount of each school district’s property
6tax replacement payment shall be the product of the school
7district’s weighted enrollment for the budget year multiplied
8by the per pupil property tax replacement amount for the budget
9year calculated under subparagraph (2).
10(2) The per pupil property tax replacement amount for budget
11years beginning on or after July 1, 2026, is equal to the sum
12of one hundred fifty-three dollars plus the difference between
13the following:
14(a) The regular program state cost per pupil for the budget
15year beginning July 1, 2026, multiplied by one hundred percent
16less the regular program foundation base per pupil percentage
17pursuant to section 257.1 for the applicable budget year under
18this paragraph.
19(b) The regular program state cost per pupil for the budget
20year beginning July 1, 2021, multiplied by one hundred percent
21less the regular program foundation base per pupil percentage
22pursuant to section 257.1 for the applicable budget year under
23this paragraph.
24 Sec. 3. EFFECTIVE DATE. This division of this Act, being
25deemed of immediate importance, takes effect upon enactment.
26DIVISION II
27STATE COST PER PUPIL
28 Sec. 4. Section 257.9, subsection 2, paragraph i, Code 2026,
29is amended to read as follows:
30i. For the budget year beginning July 1, 2026, and
31succeeding budget years, the regular program state cost per
32pupil for a budget year is the regular program state cost per
33pupil for the base year plus the regular program supplemental
34state aid for the budget year, plus five dollars.
35 Sec. 5. Section 257.9, subsection 2, Code 2026, is amended
-4-1by adding the following new paragraph:
2 NEW PARAGRAPH. j. For the budget year beginning July 1,
32027, and succeeding budget years, the regular program state
4cost per pupil for a budget year is the regular program state
5cost per pupil for the base year plus the regular program
6supplemental state aid for the budget year.
7 Sec. 6. EFFECTIVE DATE. This division of this Act, being
8deemed of immediate importance, takes effect upon enactment.
9DIVISION III
10SCHOOL DISTRICT BUDGET ADJUSTMENT — FY 2026-2027
11 Sec. 7. SCHOOL DISTRICT BUDGET ADJUSTMENT — FY 2026-2027.
121. For the school budget year beginning July 1, 2026, the
13department of management shall add the amount of the school
14district’s budget adjustment under section 257.14, if any, to
15the combined foundation base under section 257.1, subsection
162, for the budget year.
172. For the school budget year beginning July 1, 2026,
18a school district’s budget adjustment under section 257.14
19shall be funded by state foundation aid resulting from the
20calculation under subsection 1 and shall not be funded through
21school district property taxes.
22 Sec. 8. EFFECTIVE DATE. This division of this Act, being
23deemed of immediate importance, takes effect upon enactment.
24DIVISION IV
25SCHOOL DISTRICT ENROLLMENT
26 Sec. 9. Section 257.6, subsection 2, Code 2026, is amended
27to read as follows:
282. Basic enrollment. Basic enrollment for a budget year
29is the greater of a district’s actual enrollment for the base
30year and the district’s adjusted enrollment for the base
31year. Basic enrollment for the base year is the greater of
32 a district’s actual enrollment for the year preceding the
33base year and a district’s adjusted enrollment for the year
34preceding the base year.
35 Sec. 10. Section 257.6, Code 2026, is amended by adding the
-5-1following new subsection:
2 NEW SUBSECTION. 7. Adjusted enrollment.
3a. Adjusted enrollment is determined annually on February
41, or the first Monday in February if February 1 falls on
5a Saturday or Sunday, and includes the same categories of
6pupils used to determine actual enrollment under subsection 1,
7paragraph “a”.
8b. A school district shall certify its adjusted enrollment
9to the department of education by February 15 of each year, and
10the department shall promptly forward the information to the
11department of management.
12c. The department of management shall adjust the adjusted
13enrollment and, if necessary, the basic enrollment of the
14school district for the audit year based upon reports filed
15under section 11.6, and shall further adjust the budget of the
16second year succeeding the audit year for the property tax
17and state aid portions of the reported differences in such
18enrollments for the year succeeding the audit year.
19 Sec. 11. APPLICABILITY. This division of this Act applies
20to enrollment determinations occurring on or after July 1,
212026, used for school budget years beginning on or after July
221, 2027.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill relates to various aspects of school funding.
27DIVISION I — STATE AND CATEGORICAL PERCENTS OF GROWTH AND
28PROPERTY TAX REPLACEMENT PAYMENTS. The bill establishes a
29state percent of growth of 1.75 percent for the budget year
30beginning July 1, 2026. The state percent of growth is used
31to calculate the amount of supplemental state aid for a budget
32year as part of the state school foundation program. The
33bill also establishes a categorical state percent of growth
34of 1.75 percent for the budget year beginning July 1, 2026.
35The categorical state percent of growth is generally used to
-6-1calculate the amount of supplemental state aid for each of the
2categorical funding supplements.
3Code section 257.16B provides for school district property
4tax replacement payments. For each budget year beginning on
5or after July 1, 2025, the amount of each school district’s
6property tax replacement payment is the product of the school
7district’s weighted enrollment for the budget year multiplied
8by the per pupil property tax replacement amount for the budget
9year. The per pupil property tax replacement amount for budget
10years beginning on or after July 1, 2025, is equal to the
11sum of $153 plus the difference between the following: (1)
12the regular program state cost per pupil for the budget year
13beginning July 1, 2025, multiplied by 100 percent less the
14regular program foundation base per pupil percentage; and (2)
15the regular program state cost per pupil for the budget year
16beginning July 1, 2021, multiplied by 100 percent less the
17regular program foundation base per pupil percentage.
18The bill modifies the property tax replacement payment
19calculation for budget years beginning on or after July 1,
202026. For budget years beginning on or after July 1, 2026,
21the amount of each school district’s property tax replacement
22payment is the product of the school district’s weighted
23enrollment for the budget year multiplied by the per pupil
24property tax replacement amount for the budget year. The
25per pupil property tax replacement amount for budget years
26beginning on or after July 1, 2026, is equal to the sum of $153
27plus the difference between the following: (1) the regular
28program state cost per pupil for the budget year beginning July
291, 2026, multiplied by 100 percent less the regular program
30foundation base per pupil percentage; and (2) the regular
31program state cost per pupil for the budget year beginning July
321, 2021, multiplied by 100 percent less the regular program
33foundation base per pupil percentage. The regular program
34foundation base per pupil percentage is 88.4 percent.
35The division takes effect upon enactment.
-7- 1DIVISION II — STATE COST PER PUPIL. Under the bill, for
2the budget year beginning July 1, 2026, the regular program
3state cost per pupil is the regular program state cost per
4pupil for the base year plus the regular program supplemental
5state aid for the budget year, plus $5. Then with the budget
6year beginning July 1, 2027, and succeeding budget years, the
7regular program state cost per pupil will again be calculated
8as the regular program state cost per pupil for the base year
9plus the regular program supplemental state aid for the budget
10year.
11The division takes effect upon enactment.
12DIVISION III — SCHOOL DISTRICT BUDGET ADJUSTMENT — FY
132026-2027. Code section 257.14 authorizes school districts to
14receive a budget adjustment equal to the difference between
15the regular program district cost for the budget year and 101
16percent of the regular program district cost for the base year.
17If approved by the school district’s board of directors, such a
18budget adjustment is funded through school district property
19taxes. The bill provides that for the school budget year
20beginning July 1, 2026, the department of management shall add
21the amount of the school district’s budget adjustment under
22Code section 257.14, if any, to the combined foundation base
23under Code section 257.1(2). Code section 257.1 provides
24foundation aid from the state in an amount per pupil equal
25to the difference between the amount per pupil of foundation
26property tax in the district and the combined foundation base
27per pupil or the combined district cost per pupil, whichever
28is less. Accordingly, following the addition to the combined
29foundation base, the budget adjustment amount shall be funded
30by foundation aid from the state instead of property taxes.
31The division takes effect upon enactment.
32DIVISION IV — SCHOOL DISTRICT ENROLLMENT. Under current
33law, a school district’s basic enrollment for a budget year is
34the district’s actual enrollment for the base year. Under the
35bill, a school district’s basic enrollment for a budget year
-8-1is the greater of the actual enrollment for the base year and
2adjusted enrollment for the base year.
3Under the bill, adjusted enrollment is to be determined
4annually on February 1, or the first Monday in February if
5February 1 falls on a weekend, of the base year, based on the
6same categories of students used to determine actual enrollment
7under Code section 257.6(1)(a). School districts are required
8to certify adjusted enrollment to the department of education
9by February 15 of the base year, and the department is required
10to promptly forward the information to the department of
11management for use in determining and adjusting tax and funding
12amounts.
13The division applies to enrollment determinations occurring
14on or after July 1, 2026, used for school budget years
15beginning on or after July 1, 2027.
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