House File 2076 - Introduced HOUSE FILE 2076 BY RINKER A BILL FOR An Act relating to supplemental aid and modified supplemental 1 amounts for certain school districts relating to open 2 enrollment and including effective date and applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5264YH (2) 90 dg/jh

H.F. 2076 Section 1. Section 257.31, subsection 5, unnumbered 1 paragraph 1, Code 2024, is amended to read as follows: 2 If a district has unusual circumstances, creating an unusual 3 need for additional funds, including but not limited to the 4 circumstances enumerated in paragraphs “a” through “n” this 5 subsection , the committee may grant supplemental aid to the 6 district from any funds appropriated to the department of 7 education for the use of the school budget review committee 8 for the purposes of this subsection . The school budget 9 review committee shall review a school district’s unexpended 10 fund balance prior to any decision regarding unusual finance 11 circumstances. Such aid shall be miscellaneous income and 12 shall not be included in district cost. In addition to or as 13 an alternative to granting supplemental aid the committee may 14 establish a modified supplemental amount for the district. The 15 school budget review committee shall review a school district’s 16 unspent balance prior to any decision to establish a modified 17 supplemental amount under this subsection . 18 Sec. 2. Section 257.31, subsection 5, Code 2024, is amended 19 by adding the following new paragraph: 20 NEW PARAGRAPH . o. (1) The percentage of students enrolled 21 in the school district as the result of open enrollment 22 under section 282.18 is equal to or greater than thirty-five 23 percent of the total number of students enrolled in the school 24 district. The committee shall not approve supplemental aid or 25 a modified supplemental amount that exceeds an amount equal to 26 fifty percent of the product of the net increase in the school 27 district’s enrollment due to open enrollment multiplied by the 28 sum of the following amounts: 29 (a) The difference between the district’s regular program 30 district cost per pupil minus the regular program state cost 31 per pupil. 32 (b) The teacher salary supplement district cost per pupil. 33 (c) The professional development supplement district cost 34 per pupil. 35 -1- LSB 5264YH (2) 90 dg/jh 1/ 3

H.F. 2076 (d) The early intervention supplement district cost per 1 pupil. 2 (2) Prior to filing a request for supplemental aid or a 3 modified supplemental amount based on the grounds specified 4 in this paragraph, the board of directors shall hold a public 5 hearing on the issue and shall publish the notice of the time 6 and place of the public hearing. Notice of the time and place 7 of the public hearing shall be published not less than ten nor 8 more than twenty days before the public hearing in a newspaper 9 that is a newspaper of general circulation in the school 10 district. 11 (3) A school district is not eligible for supplemental aid 12 or a modified supplemental amount under this paragraph if a 13 majority of the students enrolled in the school district as 14 the result of open enrollment are students receiving online 15 instruction from a private provider under section 256.43, 16 subsection 2. 17 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 18 importance, takes effect upon enactment. 19 Sec. 4. APPLICABILITY. This Act applies July 1, 2024, for 20 school budget years beginning on or after that date. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 Code section 257.31 provides that if a school district has 25 unusual circumstances, creating an unusual need for additional 26 funds, including but not limited to the circumstances 27 enumerated in the Code section, the school budget review 28 committee may grant supplemental aid to the district from 29 certain funds appropriated to the department of education for 30 the use of the school budget review committee or may establish 31 a modified supplemental amount for the district, or both. 32 This bill adds an additional circumstance under which a 33 school district may request such amounts from the school budget 34 review committee. 35 -2- LSB 5264YH (2) 90 dg/jh 2/ 3

H.F. 2076 Under the bill, if the percentage of students enrolled 1 in the school district as the result of open enrollment is 2 equal to or greater than 35 percent of the total number of 3 students enrolled in the school district, such circumstance 4 is an unusual circumstance. However, the bill excludes a 5 district if a majority of the students enrolled as the result 6 of open enrollment are students receiving online instruction 7 from a private provider under Code section 256.43(2). Prior 8 to filing a request with the school budget review committee, 9 the school district must first hold a public hearing on the 10 issue. The committee shall not approve supplemental aid or a 11 modified supplemental amount that exceeds an amount equal to 12 50 percent of the product of the net increase in the school 13 district’s enrollment due to open enrollment multiplied by 14 the sum of the following amounts: (1) the difference between 15 the district’s regular program district cost per pupil minus 16 the regular program state cost per pupil; (2) the teacher 17 salary supplement district cost per pupil; (3) the professional 18 development supplement district cost per pupil; and (4) the 19 early intervention supplement district cost per pupil. 20 The bill takes effect upon enactment and applies July 1, 21 2024, for school budget years beginning on or after that date. 22 -3- LSB 5264YH (2) 90 dg/jh 3/ 3