Bills › 90th General Assembly
Relating to supplemental aid and modified supplemental amounts for certain school districts relating to open enrollment and including effective date and applicability provisions
Sponsored by the Senate Education Committee
Topics:State budgetK–12 education
Same legislation: SF 9
Where it is now
- Done: IntroducedJanuary 9, 2023
- Done: SubcommitteeJanuary 11, 2023
- Done: Senate committeeFebruary 8, 2023
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2024 session adjourned on April 19, 2024, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary School districts can now ask for extra money if a large number of their students come from open enrollment. To get this help, the district must first hold a public hearing about the situation. This rule does not apply if most of those open-enrolled students are learning online through a private provider.1
Read the official explanation
31 provides that if a school district has unusual circumstances, creating an unusual need for additional funds, including but not limited to the circumstances enumerated in the Code section, the school budget review committee may grant supplemental aid to the district from certain funds appropriated to the department of education for the use of the school budget review committee or may establish a modified supplemental amount for the district, or both. This bill adds an additional circumstance under which a school district may request such amounts from the school budget review committee. Under the bill, if the percentage of students enrolled in the school district as the result of open enrollment is equal to or greater than percent of the total number of students enrolled in the school district, such circumstance is an unusual circumstance.43(2). Prior to filing a request with the school budget review committee, the school district must first hold a public hearing on the issue. The committee shall not approve supplemental aid or a modified supplemental amount that exceeds an amount equal to percent of the product of the net increase in the school district’s enrollment due to open enrollment multiplied by the sum of the following amounts: (1) the difference between the district’s regular program district cost per pupil minus the regular program state cost per pupil; (2) the teacher salary supplement district cost per pupil; (3) the professional development supplement district cost per pupil; and (4) the early intervention supplement district cost per pupil. The bill takes effect upon enactment and applies July 1, 2023, for school budget years beginning on or after that date.
Senate subcommittee
Named February 15, 2023. On March 22, 2023 it recommended 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 with high open enrollment rates to request additional spending authority from the School Budget Review Committee. This may result in modified supplemental amount authorizations totaling a maximum of $1.4 million for 13 school districts beginning in fiscal year 2024. These funds would be paid using a school district's own resources or through increased property tax collections, resulting in no additional cost to the state.3
Read the fiscal note
Description
Senate File 247 adds a new circumstance under which a school district may request funding from the School Budget Review Committee (SBRC) or a modified supplemental amount (MSA) authorization from the SBRC. Specifically, if the percentage of students enrolled in a school district as the result of open enrollment is equal to or greater than 35.0% of the total students enrolled in the school district, then the school district may make such a request. The SBRC must not approve supplemental aid or an MSA that exceeds an amount equal to 50.0% of the net increase in the school district’s enrollment due to open enrollment multiplied by the sum of the following amounts:
- The difference between the district’s regular program district cost per pupil minus the regular program State cost per pupil.
- The teacher salary supplement district cost per pupil.
- The professional development supplement district cost per pupil.
- The early intervention supplement district cost per pupil.
A school district is not eligible for supplemental aid or an MSA if a majority of the open enrollment students are receiving online instruction from private providers under Iowa Code section 256.43(2).
This Bill takes effect upon enactment and applies July 1, 2023 (FY 2024), for school budget years beginning on or after that date.
Background
Iowa Code section 257.31 provides that if a school district has unusual circumstances creating an unusual need for additional funds, the SBRC may grant supplemental aid to the school district from certain funds appropriated to the Department of Education (DE) for the use of the SBRC, or the SBRC may establish an MSA for the school district, or both. The SBRC does not currently have funds appropriated to the DE for this purpose. The SBRC must review a school district’s unexpended fund balance prior to any decision regarding these types of funding requests.
The SBRC’s authorization of an MSA increases the spending authority for a school district. An authorized MSA does not result in additional State funding. A school district may choose to utilize the additional spending authority by using resources available for this purpose and might result in funding from property taxes.
Applications to the SBRC for an MSA related to FY 2024 programming must be submitted after January 15, 2023, and before March 1, 2023, as specified in Iowa Code section 257.40(2).
Assumptions
- Estimates are based on FY 2023 data and October 2022 enrollments.
- All applications for an MSA will be for the maximum allowed.
- Districts will levy the maximum amount.
- Districts will not decrease other levies (management levy or cash reserve levy).
- Certified enrollment and district costs per pupil remain constant.
- School district carryforward amounts, which are required to be deducted from an MSA award, will be zero.
- There will be no additional cost to the State as a result of the Bill.
- The Department of Education will make modifications to the MSA application as part of the annual application update at no additional cost.
Fiscal Impact
Senate File 247 may result in MSAs totaling a maximum of $1.4 million for 13 school districts, beginning with FY 2024. The funding for the MSAs will be paid from resources available to the school district or from increased property tax collections. If the Bill is enacted after February 28, 2023, the resources would not be available for school districts until FY 2025.
Sources
- Department of Education
- Iowa Association of School Boards
- LSA analysis and calculations
- Open Enrollment, School Budget Review Committee · February 13, 2023
Family tree
Tried before
90th General Assembly
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- SF 2348 Relating to supplemental aid and modified supplemental amounts for certain school district…89th General Assembly · Approved by committee · same titleCleared committee
Similar bills this General Assembly
- HF 2076 Relating to supplemental aid and modified supplemental amounts for certain school district…90th General Assembly · In committeeNearly identical
Matched by wording or an identical title.