House File 401 - IntroducedA Bill ForAn Act 1relating to school district funding by modifying
2provisions relating to the permissible grounds for and
3amounts of supplemental aid and modified supplemental
4amounts and including effective date and applicability
5provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 256C.4, subsection 1, paragraph f, Code
22021, is amended by striking the paragraph.
3   Sec. 2.  Section 257.31, subsection 5, paragraph h, Code
42021, is amended to read as follows:
   5h.  Unusual need for additional funds for special education
6or compensatory education programs or an unusual increase in
7the enrollment of children requiring special education
.
8   Sec. 3.  Section 257.31, subsection 5, Code 2021, is amended
9by adding the following new paragraph:
10   NEW PARAGRAPH.  o.  Unusual need for additional funds or
11higher than anticipated enrollment for a preschool program
12under chapter 256C.
13   Sec. 4.  Section 257.41, subsection 3, Code 2021, is amended
14to read as follows:
   153.  Limitation.  For the fiscal year beginning July 1,
162013 2021, and each succeeding fiscal year, the ratio of the
17amount of the modified supplemental amount established by the
18department of management compared to the school district’s
19total regular program district cost shall not exceed two and
20one-half
 five percent. However, if the school district’s
21highest such ratio so determined for any fiscal year beginning
22on or after July 1, 2009, but before July 1, 2013, exceeded two
23and one-half percent, the ratio may exceed two and one-half
24percent but shall not exceed the highest such ratio established
25during that period.

26   Sec. 5.  EFFECTIVE DATE.  This Act, being deemed of immediate
27importance, takes effect upon enactment.
28   Sec. 6.  APPLICABILITY.  This Act applies to school budget
29years beginning on or after July 1, 2021.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
   33This bill relates to school district funding by modifying
34provisions related to granting supplemental aid or modified
35supplemental amounts.
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   1Under Code section 257.31, if a district has unusual
2circumstances, creating an unusual need for additional funds,
3including but not limited to the circumstances enumerated in
4that section, the committee may either grant supplemental aid
5to the district from any funds appropriated to the department
6of education for the use of the school budget review committee
7or establish a modified supplemental amount for the district.
8The bill specifies that an unusual increase in the enrollment
9of children requiring special education is a circumstance for
10determining unusual need for additional funds. The bill also
11specifies that an unusual need for additional funds or higher
12than anticipated enrollment for a preschool program under Code
13chapter 256C is an unusual circumstance.
   14A school district may fund the budget of an adopted program
15for at-risk students, secondary students who attend alternative
16programs or alternative schools, or returning dropouts
17and dropout prevention through a combination of specified
18supplementary weighting, flexibility account funds, district
19cost of the school district, and establishment of a modified
20supplemental amount approved by the school budget review
21committee.
   22Current law provides that the ratio of the amount of the
23modified supplemental amount compared to the school district’s
24total regular program district cost shall not exceed 2.5
25percent, except for school districts for which such ratio for
26any fiscal year beginning on or after July 1, 2009, but before
27July 1, 2013, exceeded 2.5 percent, in which case the school’s
28ratio may exceed 2.5 percent but shall not exceed the highest
29such ratio established during that period.
   30The bill modifies that limitation to provide that for
31all school districts the ratio of the amount of the modified
32supplemental amount compared to the school district’s total
33regular program district cost shall not exceed 5 percent.
   34The bill takes effect upon enactment and applies to school
35budget years beginning on or after July 1, 2021.
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