Modifying provisions related to the distribution formula for general state financial aid to community colleges and including applicability provisions

This bill modifies provisions related to the distribution formula for general state financial aid to community colleges.18C establishes a distribution formula for the allocation of state moneys appropriated annually by the general assembly to the department of education for distribution to each community college. The distribution formula includes a base funding allocation, a marginal cost adjustment, a three-year rolling average of full-time equivalent enrollment, an extraordinary growth adjustment, and other allocations. The bill defines “presidents council” as a council that is convened by the Iowa association of community college trustees that is made up of the presidents of the community colleges and the chancellors of the community colleges who serve as the chief executive officers of such community colleges.18C to provide that moneys appropriated by the general assembly from the general fund of the state to the department for community college purposes for general state financial aid for a budget year shall be allocated to each community college by the department pursuant to the terms of a distribution formula approved by the presidents council. The bill requires the presidents council to annually, on or before October 31 of each year, establish such distribution formula for the succeeding budget year. The bill establishes goals the presidents council is to consider when determining the distribution formula. The bill provides that the distribution formula requires the approval of at least 10 members of the presidents council. If the presidents council fails to approve a distribution formula, the bill requires the department to establish the distribution formula for general state aid to the community colleges for the succeeding budget year. Current law provides that adjustments to community college state general aid allocations are required to be made based on the outcomes of audits of student enrollment. The bill strikes this provision. The bill applies to budget years beginning on or after July 1, 2025.