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House File 446 - IntroducedA Bill ForAn Act 1relating to public school funding by authorizing
2the establishment of school district flexibility funds,
3providing for the transfer of certain unexpended and
4unobligated funds, and including effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 256C.4, subsection 1, paragraph e, Code
22017, is amended to read as follows:
3e. Preschool foundation aid funding shall not be used for
4the costs of constructing a facility in connection with an
5approved local program. Preschool foundation aid funding may
6be used by approved local programs and community providers
7for professional development for preschool teachers, for
8instructional equipment, for material and equipment designed
9to develop pupils’ large and small motor skills, and for other
10direct costs. Preschool foundation aid funding may be used
11by approved local programs for the costs of transportation
12involving children participating in the preschool program.
13The costs of transporting other children associated with the
14preschool program or transported as provided in section 256C.3,
15subsection 3, paragraph “h”, may be prorated by the school
16district. Preschool foundation aid funding received by an
17approved local program that remain unexpended or unobligated
18at the end of a fiscal year shall be used to build the approved
19local program’s preschool program capacity in the next
20succeeding fiscal year transferred for deposit in the school
21district’s flexibility fund established under section 298A.16.
22 Sec. 2. Section 257.10, subsection 10, paragraph d, Code
232017, is amended to read as follows:
24d. The use of the funds calculated under this subsection
25and any amount designated for professional development purposes
26from the school district’s flexibility fund under section
27298A.16 shall comply with the requirements of chapter 284. If
28all professional development requirements of chapter 284 are
29met and funds received under this subsection remain unexpended
30and unobligated at the end of a fiscal year, the school
31district shall transfer all such unexpended and unobligated
32funds for deposit in the school district’s flexibility fund
33established under section 298A.16.
34 Sec. 3. Section 257.41, subsection 1, Code 2017, is amended
35to read as follows:
-1- 11. Budget. The budget of an approved program for at-risk
2students, secondary students who attend alternative programs
3or alternative schools, or returning dropouts and dropout
4prevention for a school district, after subtracting funds
5received under section 257.11, subsection 4, paragraphs “a”
6through “c”, and from other sources for that purpose, including
7any previous carryover amount designated from the school
8district’s flexibility fund under section 298A.16, shall be
9funded annually on a basis of one-fourth or more from the
10district cost of the school district and up to three-fourths
11through establishment of a modified supplemental amount.
12Annually, the department of management shall establish a
13modified supplemental amount for each such school district
14equal to the difference between the approved budget for the
15program for that district and the sum of the amount funded from
16the district cost of the school district plus funds received
17under section 257.11, subsection 4, and from other sources
18for that purpose, including any previous carryover amount
19designated from the school district’s flexibility fund under
20section 298A.16.
21 Sec. 4. Section 257.41, Code 2017, is amended by adding the
22following new subsection:
23 NEW SUBSECTION. 5. Unless otherwise provided by law,
24moneys received by a school district from any source for use in
25at-risk pupils’ programs, alternative programs and alternative
26school programs, and returning dropout and dropout prevention
27programs, that remain unexpended or unobligated at the end of
28a budget year beginning on or after July 1, 2016, shall be
29transferred for deposit in the school district’s flexibility
30fund established under section 298A.16.
31 Sec. 5. Section 257.46, subsection 1, Code 2017, is amended
32to read as follows:
331. The budget of an approved gifted and talented children
34program for a school district, after subtracting funds
35received from other sources for that purpose, including any
-2-1amount designated from the school district’s flexibility fund
2under section 298A.16, shall be funded annually on a basis
3of one-fourth or more from the district cost of the school
4district.
5 Sec. 6. Section 257.46, subsection 3, Code 2017, is amended
6to read as follows:
73. If any portion of the gifted and talented program budget
8remains unexpended at the end of the budget year, unless
9otherwise provided by law, the remainder shall be carried over
10to the subsequent budget year and added to the gifted and
11talented program budget for that year transferred for deposit
12in the school district’s flexibility fund established under
13section 298A.16.
14 Sec. 7. Section 284.6, subsection 9, Code 2017, is amended
15to read as follows:
169. Moneys received pursuant to section 257.10, subsection
1710, or section 257.37A, subsection 2, shall be maintained
18as a separate listing within a school district’s or area
19education agency’s budget for funds received and expenditures
20made pursuant to this subsection. A school district shall
21certify to the department of education how the school
22district allocated the funds and that moneys received under
23this subsection were used to supplement, not supplant, the
24professional development opportunities the school district
25would otherwise make available. Moneys received pursuant to
26section 257.10, subsection 10, that remain unexpended and
27unobligated at the end of a fiscal year shall, pursuant to
28section 257.10, subsection 10, paragraph “d”, be transferred
29for deposit in the school district’s flexibility fund
30established under section 298A.16.
31 Sec. 8. NEW SECTION. 298A.16 School district flexibility
32fund.
331. A flexibility fund shall be established in each school
34corporation if the school corporation has unexpended and
35unobligated funds required to be transferred from any of the
-3-1following sources:
2a. The home school assistance program under section 299A.12.
3b. At-risk pupils programs, alternative programs and
4alternative school programs, and returning dropout and dropout
5prevention programs under section 257.40.
6c. Gifted and talented children programs under section
7257.46.
82. In addition to the transfers to the flexibility fund
9required by law, a school district may transfer to the
10flexibility fund any unexpended and unobligated moneys in
11any other school district fund if the program, purpose, or
12requirements for the expenditure of such moneys have been
13repealed or are no longer in effect.
143. Moneys deposited in the flexibility fund may be used
15by the school district during a budget year beginning in
16the calendar year following the calendar year in which the
17moneys were transferred to the flexibility fund for any of the
18following:
19a. An approved local program under the statewide preschool
20program for four-year-old children under chapter 256C.
21b. Professional development requirements under chapter 284.
22c. The home school assistance program under section 299A.12.
23d. At-risk pupils programs, alternative programs and
24alternative school programs, and returning dropout and dropout
25prevention programs under section 257.40.
26e. Gifted and talented children programs under section
27257.46.
284. Expenditures from the flexibility fund shall be
29approved by resolution of the board of directors of the school
30corporation and shall be included in the budget certified in
31accordance with chapter 24. Before the board of directors may
32adopt the resolution approving expenditures from the fund, the
33board shall hold a public hearing on the proposed resolution.
34The proposed resolution must state the original source and
35purpose of the funds, the proposed use of such funds, the
-4-1amount of the proposed expenditure, and the fiscal year from
2which the transfer of such funds to the flexibility fund
3occurred. The board shall publish notice of the time and the
4place of the public hearing in the same manner as required in
5section 24.9. The department of education shall prescribe the
6form for public hearing notices. Within ten days following
7adoption, a copy of the resolution shall be provided to the
8auditor of state for inclusion in any audit performed under
9chapter 11.
105. Expenditures approved from the flexibility fund
11shall not be included in district cost, shall be regarded as
12miscellaneous income, and shall not be considered a part of the
13school district’s unexpended fund balance.
146. When exercising authority to carry out an agency action,
15as defined in section 17A.2, or any applicable activity or
16decision specified in section 17A.2, subsection 11, paragraphs
17“a” through “l”, related to the provisions of this section, the
18department of education shall engage in such agency action,
19activity, or decision in a manner that gives deference to
20decisions of a school district’s board of directors, promotes
21flexibility for school districts, and minimizes intrusions into
22school district operations’ and board of directors’ decision
23making. In addition, in any such agency action activity or
24decision, the burden shall be on the department of education to
25demonstrate that any decision or action of a school district’s
26board of directors is an irrational, illogical, or wholly
27unjustifiable interpretation of a provision of law.
28 Sec. 9. Section 299A.12, subsection 1, Code 2017, is amended
29to read as follows:
301. The board of directors of a school district shall expend
31moneys received pursuant to section 257.6, subsection 1,
32paragraph “a”, subparagraph (5), and amounts designated from
33the school district’s flexibility fund under section 298A.16
34 for purposes of providing a home school assistance program.
35 Sec. 10. Section 299A.12, subsection 2, unnumbered
-5-1paragraph 1, Code 2017, is amended to read as follows:
2Purposes for which a school district may expend funds
3received pursuant to section 257.6, subsection 1, paragraph
4“a”, subparagraph (5), or amounts designated from the school
5district’s flexibility fund under section 298A.16 shall include
6but not be limited to the following:
7 Sec. 11. Section 299A.12, subsection 2, paragraphs c and d,
8Code 2017, are amended to read as follows:
9c. Salary and benefits for the supervising teacher of
10the home school assistance program students. If the teacher
11is a part-time home school assistance program teacher and a
12part-time regular classroom teacher, funds received pursuant to
13section 257.6, subsection 1, paragraph “a”, subparagraph (5),
14or amounts designated from the school district’s flexibility
15fund under section 298A.16 may be used only for the portion of
16time in which the teacher is a home school assistance program
17teacher.
18d. Salary and benefits for clerical and office staff of
19the home school assistance program. If the staff members are
20shared with other programs or functions within the district,
21funds received pursuant to section 257.6, subsection 1,
22paragraph “a”, subparagraph (5), or amounts designated from the
23school district’s flexibility fund under section 298A.16 shall
24only be expended for the portion of time spent providing the
25home school assistance program services.
26 Sec. 12. Section 299A.12, subsection 3, unnumbered
27paragraph 1, Code 2017, is amended to read as follows:
28Purposes for which a school district shall not expend funds
29received pursuant to section 257.6, subsection 1, paragraph
30“a”, subparagraph (5), or amounts designated from the school
31district’s flexibility fund under section 298A.16 include but
32are not limited to the following:
33 Sec. 13. Section 299A.12, Code 2017, is amended by adding
34the following new subsection:
35 NEW SUBSECTION. 4. Unless otherwise prohibited by law,
-6-1moneys received by a school district pursuant to section 257.6,
2subsection 1, paragraph “a”, subparagraph (5), that remain
3unexpended or unobligated at the end of a budget year beginning
4on or after July 1, 2016, shall be transferred for deposit
5in the school district’s flexibility fund established under
6section 298A.16.
7 Sec. 14. EFFECTIVE UPON ENACTMENT. This Act, being deemed
8of immediate importance, takes effect upon enactment.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill relates to public school funding by authorizing
13the establishment of school district flexibility funds
14and providing for the transfer of certain unexpended and
15unobligated funds of the school district to the flexibility
16fund.
17The bill requires a flexibility fund to be established
18in each school corporation if the school corporation has
19unexpended or unobligated funds from the school district’s
20preschool program under Code chapter 256C, professional
21development supplement categorical funding, home school
22assistance program, at-risk pupils program, alternative
23programs, returning dropout and dropout prevention programs,
24and gifted and talented children program. The bill provides
25that moneys deposited in the flexibility fund may be used
26by the school district during a budget year beginning in
27the calendar year following the calendar year in which the
28moneys were deposited in the flexibility fund for the school
29district’s preschool program, professional development costs,
30home school assistance program, at-risk pupils program,
31alternative programs, returning dropout and dropout prevention
32programs, and gifted and talented children program.
33The bill provides that in addition to the transfers to
34the flexibility fund required by law, a school district may
35transfer to the flexibility fund any unexpended and unobligated
-7-1moneys in any other school district fund if the program,
2purpose, or requirements for expenditure of such moneys have
3been repealed or are no longer in effect.
4Expenditures from the flexibility fund are required to be
5approved by resolution of the school board following a public
6hearing and must be included in the school district’s certified
7budget. The bill specifies that expenditures approved from the
8flexibility fund are not included in district cost, must be
9regarded as miscellaneous income, and are not considered a part
10of the school district’s unexpended fund balance.
11The bill makes corresponding changes to the provisions
12of law governing preschool programs under Code chapter 256C,
13professional development supplement categorical funding,
14home school assistance programs, at-risk pupils programs,
15alternative programs, returning dropout and dropout prevention
16programs, and gifted and talented children programs to
17require the transfer of unexpended or unobligated funds from
18those programs to the flexibility fund and to authorize the
19expenditure of moneys from the flexibility fund for those
20programs.
21The bill takes effect upon enactment.
-8-md/sc
2the establishment of school district flexibility funds,
3providing for the transfer of certain unexpended and
4unobligated funds, and including effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 256C.4, subsection 1, paragraph e, Code
22017, is amended to read as follows:
3e. Preschool foundation aid funding shall not be used for
4the costs of constructing a facility in connection with an
5approved local program. Preschool foundation aid funding may
6be used by approved local programs and community providers
7for professional development for preschool teachers, for
8instructional equipment, for material and equipment designed
9to develop pupils’ large and small motor skills, and for other
10direct costs. Preschool foundation aid funding may be used
11by approved local programs for the costs of transportation
12involving children participating in the preschool program.
13The costs of transporting other children associated with the
14preschool program or transported as provided in section 256C.3,
15subsection 3, paragraph “h”, may be prorated by the school
16district. Preschool foundation aid funding received by an
17approved local program that remain unexpended or unobligated
18at the end of a fiscal year shall be used to build the approved
19local program’s preschool program capacity in the next
20succeeding fiscal year transferred for deposit in the school
21district’s flexibility fund established under section 298A.16.
22 Sec. 2. Section 257.10, subsection 10, paragraph d, Code
232017, is amended to read as follows:
24d. The use of the funds calculated under this subsection
25and any amount designated for professional development purposes
26from the school district’s flexibility fund under section
27298A.16 shall comply with the requirements of chapter 284. If
28all professional development requirements of chapter 284 are
29met and funds received under this subsection remain unexpended
30and unobligated at the end of a fiscal year, the school
31district shall transfer all such unexpended and unobligated
32funds for deposit in the school district’s flexibility fund
33established under section 298A.16.
34 Sec. 3. Section 257.41, subsection 1, Code 2017, is amended
35to read as follows:
-1- 11. Budget. The budget of an approved program for at-risk
2students, secondary students who attend alternative programs
3or alternative schools, or returning dropouts and dropout
4prevention for a school district, after subtracting funds
5received under section 257.11, subsection 4, paragraphs “a”
6through “c”, and from other sources for that purpose, including
7any previous carryover amount designated from the school
8district’s flexibility fund under section 298A.16, shall be
9funded annually on a basis of one-fourth or more from the
10district cost of the school district and up to three-fourths
11through establishment of a modified supplemental amount.
12Annually, the department of management shall establish a
13modified supplemental amount for each such school district
14equal to the difference between the approved budget for the
15program for that district and the sum of the amount funded from
16the district cost of the school district plus funds received
17under section 257.11, subsection 4, and from other sources
18for that purpose, including any previous carryover amount
19designated from the school district’s flexibility fund under
20section 298A.16.
21 Sec. 4. Section 257.41, Code 2017, is amended by adding the
22following new subsection:
23 NEW SUBSECTION. 5. Unless otherwise provided by law,
24moneys received by a school district from any source for use in
25at-risk pupils’ programs, alternative programs and alternative
26school programs, and returning dropout and dropout prevention
27programs, that remain unexpended or unobligated at the end of
28a budget year beginning on or after July 1, 2016, shall be
29transferred for deposit in the school district’s flexibility
30fund established under section 298A.16.
31 Sec. 5. Section 257.46, subsection 1, Code 2017, is amended
32to read as follows:
331. The budget of an approved gifted and talented children
34program for a school district, after subtracting funds
35received from other sources for that purpose, including any
-2-1amount designated from the school district’s flexibility fund
2under section 298A.16, shall be funded annually on a basis
3of one-fourth or more from the district cost of the school
4district.
5 Sec. 6. Section 257.46, subsection 3, Code 2017, is amended
6to read as follows:
73. If any portion of the gifted and talented program budget
8remains unexpended at the end of the budget year, unless
9otherwise provided by law, the remainder shall be carried over
10to the subsequent budget year and added to the gifted and
11talented program budget for that year transferred for deposit
12in the school district’s flexibility fund established under
13section 298A.16.
14 Sec. 7. Section 284.6, subsection 9, Code 2017, is amended
15to read as follows:
169. Moneys received pursuant to section 257.10, subsection
1710, or section 257.37A, subsection 2, shall be maintained
18as a separate listing within a school district’s or area
19education agency’s budget for funds received and expenditures
20made pursuant to this subsection. A school district shall
21certify to the department of education how the school
22district allocated the funds and that moneys received under
23this subsection were used to supplement, not supplant, the
24professional development opportunities the school district
25would otherwise make available. Moneys received pursuant to
26section 257.10, subsection 10, that remain unexpended and
27unobligated at the end of a fiscal year shall, pursuant to
28section 257.10, subsection 10, paragraph “d”, be transferred
29for deposit in the school district’s flexibility fund
30established under section 298A.16.
31 Sec. 8. NEW SECTION. 298A.16 School district flexibility
32fund.
331. A flexibility fund shall be established in each school
34corporation if the school corporation has unexpended and
35unobligated funds required to be transferred from any of the
-3-1following sources:
2a. The home school assistance program under section 299A.12.
3b. At-risk pupils programs, alternative programs and
4alternative school programs, and returning dropout and dropout
5prevention programs under section 257.40.
6c. Gifted and talented children programs under section
7257.46.
82. In addition to the transfers to the flexibility fund
9required by law, a school district may transfer to the
10flexibility fund any unexpended and unobligated moneys in
11any other school district fund if the program, purpose, or
12requirements for the expenditure of such moneys have been
13repealed or are no longer in effect.
143. Moneys deposited in the flexibility fund may be used
15by the school district during a budget year beginning in
16the calendar year following the calendar year in which the
17moneys were transferred to the flexibility fund for any of the
18following:
19a. An approved local program under the statewide preschool
20program for four-year-old children under chapter 256C.
21b. Professional development requirements under chapter 284.
22c. The home school assistance program under section 299A.12.
23d. At-risk pupils programs, alternative programs and
24alternative school programs, and returning dropout and dropout
25prevention programs under section 257.40.
26e. Gifted and talented children programs under section
27257.46.
284. Expenditures from the flexibility fund shall be
29approved by resolution of the board of directors of the school
30corporation and shall be included in the budget certified in
31accordance with chapter 24. Before the board of directors may
32adopt the resolution approving expenditures from the fund, the
33board shall hold a public hearing on the proposed resolution.
34The proposed resolution must state the original source and
35purpose of the funds, the proposed use of such funds, the
-4-1amount of the proposed expenditure, and the fiscal year from
2which the transfer of such funds to the flexibility fund
3occurred. The board shall publish notice of the time and the
4place of the public hearing in the same manner as required in
5section 24.9. The department of education shall prescribe the
6form for public hearing notices. Within ten days following
7adoption, a copy of the resolution shall be provided to the
8auditor of state for inclusion in any audit performed under
9chapter 11.
105. Expenditures approved from the flexibility fund
11shall not be included in district cost, shall be regarded as
12miscellaneous income, and shall not be considered a part of the
13school district’s unexpended fund balance.
146. When exercising authority to carry out an agency action,
15as defined in section 17A.2, or any applicable activity or
16decision specified in section 17A.2, subsection 11, paragraphs
17“a” through “l”, related to the provisions of this section, the
18department of education shall engage in such agency action,
19activity, or decision in a manner that gives deference to
20decisions of a school district’s board of directors, promotes
21flexibility for school districts, and minimizes intrusions into
22school district operations’ and board of directors’ decision
23making. In addition, in any such agency action activity or
24decision, the burden shall be on the department of education to
25demonstrate that any decision or action of a school district’s
26board of directors is an irrational, illogical, or wholly
27unjustifiable interpretation of a provision of law.
28 Sec. 9. Section 299A.12, subsection 1, Code 2017, is amended
29to read as follows:
301. The board of directors of a school district shall expend
31moneys received pursuant to section 257.6, subsection 1,
32paragraph “a”, subparagraph (5), and amounts designated from
33the school district’s flexibility fund under section 298A.16
34 for purposes of providing a home school assistance program.
35 Sec. 10. Section 299A.12, subsection 2, unnumbered
-5-1paragraph 1, Code 2017, is amended to read as follows:
2Purposes for which a school district may expend funds
3received pursuant to section 257.6, subsection 1, paragraph
4“a”, subparagraph (5), or amounts designated from the school
5district’s flexibility fund under section 298A.16 shall include
6but not be limited to the following:
7 Sec. 11. Section 299A.12, subsection 2, paragraphs c and d,
8Code 2017, are amended to read as follows:
9c. Salary and benefits for the supervising teacher of
10the home school assistance program students. If the teacher
11is a part-time home school assistance program teacher and a
12part-time regular classroom teacher, funds received pursuant to
13section 257.6, subsection 1, paragraph “a”, subparagraph (5),
14or amounts designated from the school district’s flexibility
15fund under section 298A.16 may be used only for the portion of
16time in which the teacher is a home school assistance program
17teacher.
18d. Salary and benefits for clerical and office staff of
19the home school assistance program. If the staff members are
20shared with other programs or functions within the district,
21funds received pursuant to section 257.6, subsection 1,
22paragraph “a”, subparagraph (5), or amounts designated from the
23school district’s flexibility fund under section 298A.16 shall
24only be expended for the portion of time spent providing the
25home school assistance program services.
26 Sec. 12. Section 299A.12, subsection 3, unnumbered
27paragraph 1, Code 2017, is amended to read as follows:
28Purposes for which a school district shall not expend funds
29received pursuant to section 257.6, subsection 1, paragraph
30“a”, subparagraph (5), or amounts designated from the school
31district’s flexibility fund under section 298A.16 include but
32are not limited to the following:
33 Sec. 13. Section 299A.12, Code 2017, is amended by adding
34the following new subsection:
35 NEW SUBSECTION. 4. Unless otherwise prohibited by law,
-6-1moneys received by a school district pursuant to section 257.6,
2subsection 1, paragraph “a”, subparagraph (5), that remain
3unexpended or unobligated at the end of a budget year beginning
4on or after July 1, 2016, shall be transferred for deposit
5in the school district’s flexibility fund established under
6section 298A.16.
7 Sec. 14. EFFECTIVE UPON ENACTMENT. This Act, being deemed
8of immediate importance, takes effect upon enactment.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill relates to public school funding by authorizing
13the establishment of school district flexibility funds
14and providing for the transfer of certain unexpended and
15unobligated funds of the school district to the flexibility
16fund.
17The bill requires a flexibility fund to be established
18in each school corporation if the school corporation has
19unexpended or unobligated funds from the school district’s
20preschool program under Code chapter 256C, professional
21development supplement categorical funding, home school
22assistance program, at-risk pupils program, alternative
23programs, returning dropout and dropout prevention programs,
24and gifted and talented children program. The bill provides
25that moneys deposited in the flexibility fund may be used
26by the school district during a budget year beginning in
27the calendar year following the calendar year in which the
28moneys were deposited in the flexibility fund for the school
29district’s preschool program, professional development costs,
30home school assistance program, at-risk pupils program,
31alternative programs, returning dropout and dropout prevention
32programs, and gifted and talented children program.
33The bill provides that in addition to the transfers to
34the flexibility fund required by law, a school district may
35transfer to the flexibility fund any unexpended and unobligated
-7-1moneys in any other school district fund if the program,
2purpose, or requirements for expenditure of such moneys have
3been repealed or are no longer in effect.
4Expenditures from the flexibility fund are required to be
5approved by resolution of the school board following a public
6hearing and must be included in the school district’s certified
7budget. The bill specifies that expenditures approved from the
8flexibility fund are not included in district cost, must be
9regarded as miscellaneous income, and are not considered a part
10of the school district’s unexpended fund balance.
11The bill makes corresponding changes to the provisions
12of law governing preschool programs under Code chapter 256C,
13professional development supplement categorical funding,
14home school assistance programs, at-risk pupils programs,
15alternative programs, returning dropout and dropout prevention
16programs, and gifted and talented children programs to
17require the transfer of unexpended or unobligated funds from
18those programs to the flexibility fund and to authorize the
19expenditure of moneys from the flexibility fund for those
20programs.
21The bill takes effect upon enactment.
-8-md/sc