Bills › 88th General Assembly
HSB 666
Topics:State budgetK–12 educationSchool funding
Same legislation: HF 2497
Where it is now
- Done: IntroducedFebruary 24, 2020
- Done: SubcommitteeFebruary 11, 2020
- Done: House committeeFebruary 19, 2020
- Stopped: Passes the HouseDied when the General Assembly ended
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2020 session adjourned on June 14, 2020, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
As part of the budget for a school district’s program for at-risk students, secondary students who attend alternative programs and alternative schools, or returning dropouts and dropout prevention, the school board may request to use a modified supplemental amount.5 percent or the school district’s highest ratio for any fiscal year beginning on or after July 1, 2009, but before July 1, 2013, whichever is greater. _____ This bill provides that for school budget years beginning on or after July 1, 2021, if approved by the school budget review committee, the ratio of the amount of the modified supplemental amount established by the department of management compared to the school district’s total regular program district cost may exceed the limitation for the school district under current law, but shall not exceed percent.
House subcommittee
Named February 11, 2020. On February 17, 2020 it recommended amendment and passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill allows school districts to request a higher maximum ratio of state funding for dropout prevention programs. The bill does not have a fiscal impact to the state, but statewide property taxes may increase by $24.7 million in fiscal year 2022, $24.8 million in fiscal year 2023, and $24.9 million in both fiscal year 2024 and fiscal year 2025.2
Read the fiscal note
Description
House File 2497 permits a school district to request a Modified Supplemental Amount (MSA) from the School Budget Review Committee (SBRC) up to a maximum ratio of 5.0% for dropout prevention programs under Iowa Code section 257.41.
Background
School districts may levy property taxes for returning dropout prevention programs, which the SBRC shall grant under Iowa Code section 257.40. Up to 75.0% of the program’s budget may be funded with an MSA, with the remaining 25.0% matched from a school district’s general fund. Effective in FY 2013, 2012 Iowa Acts, chapter 1102 (Returning Dropout Prevention Programs — Funding), froze the MSA ratio that a school district could request from a maximum of 5.0% to the maximum ratio the school district had between FY 2010 and FY 2013. However, a district with a ratio below 2.5% could request an MSA up to a ratio of 2.5%. There are 199 school districts out of 327 that are capped at a maximum ratio below 5.0%. The following chart shows the number of districts by maximum ratios.
The MSA amounts for the program are calculated by the district’s cost per pupil multiplied by its budget enrollment. The product is then multiplied by up to the district’s capped ratio. Any program carryforward funds from the previous year are subtracted from the district’s requested MSA amount before it is approved by the SBRC.
Assumptions
- Districts’ cost per pupil, which ranges from $6,880 to $7,045, is fixed at current law.
- Budget enrollment estimates are agreed upon by the Legislative Services Agency (LSA) and the Department of Management (DOM).
- The 199 school districts previously capped below 5.0% will begin to request MSAs for dropout prevention using the maximum ratio (5.0%) starting in FY 2022, if their carryforward does not exceed the maximum amount for which a district can levy.
- Future program carryforward by district is unknown. For estimation purposes, the fiscal impact assumes districts statewide will have the same FY 2019 carryforward amount of $10.2 million.
Fiscal Impact
House File 2497 does not have a fiscal impact to the State. Under the provisions of this Bill, and at the maximum ratio permitted, statewide property taxes may increase by the following:
- FY 2022: $24.7 million
- FY 2023: $24.8 million
- FY 2024: $24.9 million
- FY 2025: $24.9 million
The median maximum increase by district in FY 2022 is $63,929. The chart below shows the number of school districts by category of estimated highest additional levy amounts for the programs.
Sources
- Department of Education
- Iowa Association of School Boards
- Department of Management
- LSA analysis and calculations
- School Finance, Dropout Prevention · February 26, 2020 · $63,929
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- SF 271 Relating to modified supplemental amounts for at-risk, returning dropout, and dropout prev…89th General Assembly · In committeeNearly identical
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