Bill Text: IA SF2405 | 2023-2024 | 90th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act modifying provisions related to the distribution formula for general state financial aid to community colleges and including applicability provisions. (Formerly SF 2373, SSB 3164.) Effective date: 07/01/2024. Applicability date: 07/01/2025.
Spectrum: Committee Bill
Status: (Passed) 2024-05-08 - Signed by Governor. S.J. 963. [SF2405 Detail]
Download: Iowa-2023-SF2405-Introduced.html
Bill Title: A bill for an act modifying provisions related to the distribution formula for general state financial aid to community colleges and including applicability provisions. (Formerly SF 2373, SSB 3164.) Effective date: 07/01/2024. Applicability date: 07/01/2025.
Spectrum: Committee Bill
Status: (Passed) 2024-05-08 - Signed by Governor. S.J. 963. [SF2405 Detail]
Download: Iowa-2023-SF2405-Introduced.html
Senate
File
2405
-
Introduced
SENATE
FILE
2405
BY
COMMITTEE
ON
APPROPRIATIONS
(SUCCESSOR
TO
SF
2373)
(SUCCESSOR
TO
SSB
3164)
A
BILL
FOR
An
Act
modifying
provisions
related
to
the
distribution
formula
1
for
general
state
financial
aid
to
community
colleges
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5661SZ
(2)
90
jda/jh
S.F.
2405
Section
1.
Section
260C.18C,
Code
2024,
is
amended
to
read
1
as
follows:
2
260C.18C
State
aid
distribution
formula.
3
1.
Purpose.
A
distribution
plan
for
general
state
financial
4
aid
to
Iowa’s
community
colleges
is
established
for
the
fiscal
5
year
commencing
July
1,
2005
2025
,
and
succeeding
fiscal
years.
6
Funds
appropriated
by
the
general
assembly
to
the
department
7
for
general
financial
aid
to
community
colleges
shall
be
8
allocated
to
each
community
college
in
the
manner
provided
9
under
this
section
for
the
community
colleges
to
provide
10
the
highest
quality
educational
opportunities
and
services,
11
as
described
in
section
260C.1,
to
the
greatest
number
of
12
students
.
13
2.
Definitions.
As
used
in
this
section
and
section
14
260C.18D
,
unless
the
context
otherwise
requires:
15
a.
“Base
funding
allocation”
means
the
amount
of
general
16
state
financial
aid
all
community
colleges
received
in
the
base
17
year.
18
b.
“Base
year”
means
the
fiscal
year
immediately
preceding
19
the
budget
year.
20
c.
“Below-average
support
per
FTEE”
for
a
community
college
21
means
the
state-average
combined
support
per
FTEE
minus
the
22
combined
support
per
FTEE
for
the
community
college
if
the
23
community
college’s
combined
support
per
FTEE
is
less
than
the
24
state-average
combined
support
per
FTEE.
25
d.
c.
“Budget
year”
means
the
fiscal
year
for
which
moneys
26
are
appropriated
by
the
general
assembly.
27
e.
d.
“Combined
support”
for
a
community
college
means
28
the
total
amount
of
moneys
the
community
college
received
in
29
general
state
financial
aid
in
the
base
year
plus
the
community
30
college’s
general
fund
property
tax
revenue,
including
utility
31
replacement,
for
the
base
year.
32
f.
“Combined
support
per
FTEE”
for
a
community
college
33
means
the
community
college’s
combined
support
divided
by
its
34
three-year
rolling
average
full-time
equivalent
enrollment
for
35
-1-
LSB
5661SZ
(2)
90
jda/jh
1/
10
S.F.
2405
the
three
years
prior
to
the
base
year.
1
g.
“Contact
hour”
for
a
noncredit
course
equals
fifty
2
minutes
of
contact
between
an
instructor
and
students
in
a
3
scheduled
course
offering
for
which
students
are
registered.
4
h.
“Credit
hour”
,
for
purposes
of
community
college
funding
5
distribution,
shall
be
as
defined
by
the
department
by
rule.
6
i.
“Eligible
credit
courses”
means
all
credit
courses
that
7
are
eligible
for
general
state
financial
aid
which
are
part
8
of
a
department-approved
program
of
study.
The
department
9
shall
review
and
provide
a
determination
should
a
question
of
10
eligibility
occur.
11
j.
“Eligible
growth
support”
for
a
community
college
is
the
12
community
college’s
below-average
support
per
FTEE
multiplied
13
times
its
three-year
rolling
average
full-time
equivalent
14
enrollment.
15
k.
“Eligible
noncredit
courses”
means
all
noncredit
courses
16
eligible
for
general
state
financial
aid
which
fall
under
one
17
of
the
eligible
categories
for
noncredit
courses
as
defined
18
by
rule
of
the
department.
The
department
shall
review
and
19
provide
a
determination
should
a
question
of
eligibility
occur.
20
l.
“Eligible
student”
means
a
student
enrolled
in
eligible
21
credit
or
eligible
noncredit
courses.
The
department
shall
22
review
and
provide
a
determination
should
a
question
of
23
eligibility
occur.
24
m.
e.
“Fiscal
year”
means
the
period
of
twelve
months
25
beginning
on
July
1
and
ending
on
June
30.
26
n.
One
“full-time
equivalent
enrollment
(FTEE)”
equals
27
twenty-four
credit
hours
for
credit
courses
or
six
hundred
28
contact
hours
for
noncredit
courses
generated
by
all
eligible
29
students
enrolled
in
eligible
courses.
30
o.
f.
“General
fund
property
tax
revenue”
means
the
amount
31
of
moneys
a
community
college
raised
or
could
have
raised
from
32
a
property
tax
of
twenty
and
one-fourth
cents
per
thousand
33
dollars
of
assessed
valuation
on
all
taxable
property
in
its
34
merged
area
collected
for
the
base
year.
35
-2-
LSB
5661SZ
(2)
90
jda/jh
2/
10
S.F.
2405
p.
g.
“General
state
financial
aid”
means
the
amount
of
1
general
state
financial
aid
the
community
college
received
from
2
the
general
fund.
3
q.
“Inflation
adjustment
amount”
means
the
inflation
rate
4
minus
two
percentage
points
multiplied
times
the
base
funding
5
allocation.
The
inflation
adjustment
amount
shall
not
be
less
6
than
zero.
7
r.
“Inflation
rate”
means
the
average
of
the
preceding
8
twelve-month
percentage
change,
which
shall
be
computed
on
9
a
monthly
basis,
in
the
consumer
price
index
for
all
urban
10
consumers,
not
seasonally
adjusted,
published
by
the
United
11
States
department
of
labor,
bureau
of
labor
statistics,
12
calculated
for
the
calendar
year
ending
six
months
after
the
13
beginning
of
the
base
year.
14
s.
“State-average
combined
support
per
FTEE”
means
the
15
average
of
the
combined
support
per
FTEE
for
all
community
16
colleges
in
the
state
in
the
base
year.
17
t.
“Three-year
rolling
average
full-time
equivalent
18
enrollment”
means
the
average
of
the
audited
full-time
19
equivalent
enrollment
for
a
community
college
over
the
three
20
fiscal
years
prior
to
the
base
year
as
determined
by
the
21
department.
22
u.
“Total
growth
support
amount”
means
the
sum
of
the
23
eligible
growth
support
for
all
the
community
colleges.
24
3.
Distribution
formula.
Moneys
appropriated
by
the
general
25
assembly
from
the
general
fund
to
the
department
for
community
26
college
purposes
for
general
state
financial
aid
for
a
budget
27
year
shall
be
allocated
to
each
community
college
by
the
28
department
as
follows:
29
a.
If
the
inflation
rate
is
equal
to
two
percent
or
less:
30
(1)
Base
funding
allocation.
The
moneys
shall
first
31
be
allocated
in
the
amount
of
general
state
financial
aid
32
each
community
college
received
in
the
base
year.
If
the
33
appropriation
is
less
than
the
total
of
the
amount
of
general
34
state
financial
aid
each
community
college
received
in
the
base
35
-3-
LSB
5661SZ
(2)
90
jda/jh
3/
10
S.F.
2405
year,
the
moneys
shall
be
allocated
in
the
same
proportion
as
1
the
allocation
of
general
state
financial
aid
each
community
2
college
received
in
the
base
year.
3
(2)
Marginal
cost
adjustment.
After
the
base
funding
has
4
been
allocated,
each
community
college
shall
be
allocated
up
to
5
an
additional
two
percent
of
its
base
funding
allocation.
The
6
community
college’s
allocation
shall
be
in
the
same
proportion
7
as
the
allocation
of
general
state
financial
aid
each
community
8
college
received
in
the
base
year.
9
(3)
Three-year
rolling
average
of
full-time
equivalent
10
enrollment.
If
the
increase
in
the
total
state
general
aid
11
exceeds
two
percent
over
the
base
funding
allocation,
an
amount
12
up
to
an
additional
one
percent
of
the
base
funding
allocation
13
shall
be
distributed
based
upon
each
community
college’s
14
proportional
share
of
the
three-year
rolling
average
full-time
15
equivalent
enrollments
for
all
community
colleges.
16
(4)
Extraordinary
growth
adjustment.
If
the
increase
in
17
total
state
general
aid
exceeds
three
percent
over
the
base
18
funding
allocation,
an
amount
up
to
an
additional
one
percent
19
of
the
base
funding
allocation
shall
be
distributed
as
follows:
20
(a)
Forty
percent
of
the
moneys
shall
be
allocated
based
21
upon
each
community
college’s
proportional
share
of
the
22
three-year
rolling
average
full-time
equivalent
enrollments
for
23
all
community
colleges.
24
(b)
Sixty
percent
of
the
moneys
shall
be
allocated
to
25
community
colleges
that
have
eligible
growth
support.
The
26
allocation
shall
be
based
upon
the
proportional
share
that
each
27
community
college’s
eligible
growth
support
bears
to
the
total
28
growth
support
amount.
Once
the
moneys
allocated
under
this
29
subparagraph
division
equal
the
total
growth
support
amount,
30
the
remaining
moneys
allocated
under
this
subparagraph
shall
be
31
allocated
as
provided
in
subparagraph
division
(a).
32
(5)
Additional
three-year
rolling
average
FTEE
33
allocation.
If
the
increase
in
total
state
general
aid
34
exceeds
four
percent
over
the
base
funding
allocation,
all
35
-4-
LSB
5661SZ
(2)
90
jda/jh
4/
10
S.F.
2405
remaining
moneys
shall
be
distributed
based
upon
each
college’s
1
proportional
share
of
the
three-year
rolling
average
full-time
2
equivalent
enrollments
for
all
community
colleges
Annually,
3
on
or
before
October
31
of
each
year,
the
presidents
of
4
the
community
colleges
and
the
chancellors
of
the
community
5
colleges
who
serve
as
the
chief
executive
officers
of
such
6
community
colleges
shall
establish
a
distribution
formula
for
7
general
state
aid
to
the
community
colleges
for
the
succeeding
8
budget
year
.
When
determining
the
distribution
formula
9
pursuant
to
this
paragraph,
the
presidents
and
chancellors
10
shall
consider
the
enrollment
and
combined
support
for
each
11
community
college,
along
with
any
other
factor
deemed
relevant
12
by
the
presidents
and
chancellors.
The
distribution
formula
13
shall
not
allocate
funding
to
a
community
college
that
is
below
14
the
general
state
financial
aid
the
community
college
received
15
in
any
previous
budget
year,
unless
there
is
a
reduction
in
the
16
base
funding
allocation.
The
distribution
formula
requires
the
17
approval
of
at
least
ten
of
the
presidents
and
chancellors.
If
18
the
presidents
and
chancellors
approve
a
distribution
formula
19
pursuant
to
this
paragraph,
the
presidents
and
chancellors
20
shall
transmit
the
distribution
formula
to
the
department,
and
21
the
department
shall
implement
the
distribution
formula.
22
b.
If
the
inflation
rate
is
greater
than
two
percent
but
23
less
than
four
percent:
24
(1)
Base
funding
allocation.
The
moneys
shall
first
25
be
allocated
in
the
amount
of
general
state
financial
aid
26
each
community
college
received
in
the
base
year.
If
the
27
appropriation
is
less
than
the
total
of
the
amount
of
general
28
state
financial
aid
each
community
college
received
in
the
base
29
year,
the
moneys
shall
be
allocated
in
the
same
proportion
as
30
the
allocation
of
general
state
financial
aid
each
community
31
college
received
in
the
base
year.
32
(2)
Marginal
cost
adjustment.
After
the
base
funding
has
33
been
allocated,
each
community
college
shall
be
allocated
up
to
34
an
additional
two
percent
of
its
base
funding
allocation.
The
35
-5-
LSB
5661SZ
(2)
90
jda/jh
5/
10
S.F.
2405
community
college’s
allocation
shall
be
in
the
same
proportion
1
as
the
allocation
of
general
state
financial
aid
each
community
2
college
received
in
the
base
year.
3
(3)
Three-year
rolling
average
of
full-time
equivalent
4
enrollment.
If
the
increase
in
the
total
state
general
aid
5
exceeds
two
percent
over
the
base
funding
allocation,
an
amount
6
up
to
an
additional
one
percent
of
the
base
funding
allocation
7
shall
be
distributed
based
upon
each
community
college’s
8
proportional
share
of
the
three-year
rolling
average
full-time
9
equivalent
enrollments
for
all
community
colleges.
10
(4)
Extraordinary
growth
adjustment.
If
the
increase
in
11
total
state
general
aid
exceeds
three
percent
over
the
base
12
funding
allocation,
an
amount
up
to
an
additional
one
percent
13
of
the
base
funding
allocation
shall
be
based
as
follows:
14
(a)
Forty
percent
of
the
moneys
shall
be
allocated
based
15
upon
each
community
college’s
proportional
share
of
the
16
three-year
rolling
average
full-time
equivalent
enrollments
for
17
all
community
colleges.
18
(b)
Sixty
percent
of
the
moneys
shall
be
allocated
to
19
community
colleges
that
have
eligible
growth
support.
The
20
allocation
shall
be
based
upon
the
proportional
share
that
each
21
community
college’s
eligible
growth
support
bears
to
the
total
22
growth
support
amount.
Once
the
moneys
allocated
under
this
23
subparagraph
division
equal
the
total
growth
support
amount,
24
the
remaining
moneys
allocated
under
this
subparagraph
shall
be
25
allocated
as
provided
in
subparagraph
division
(a).
26
(5)
Inflation
adjustment.
If
the
increase
in
total
27
state
general
aid
exceeds
four
percent
over
the
base
funding
28
allocation,
an
amount
up
to
the
inflation
adjustment
amount
29
shall
be
distributed
to
each
community
college
in
the
same
30
proportion
as
the
allocation
of
general
state
financial
aid
31
each
community
college
received
in
the
base
year.
32
(6)
Additional
three-year
rolling
average
FTEE
33
allocation.
If
there
are
remaining
moneys
to
be
distributed
34
under
this
paragraph
after
distributing
moneys
under
35
-6-
LSB
5661SZ
(2)
90
jda/jh
6/
10
S.F.
2405
subparagraph
(5),
all
remaining
moneys
shall
be
distributed
1
based
upon
each
community
college’s
proportional
share
of
the
2
three-year
rolling
average
full-time
equivalent
enrollments
3
for
all
community
colleges
If
the
presidents
of
the
community
4
colleges
and
the
chancellors
of
the
community
colleges
who
5
serve
as
the
chief
executive
officers
of
such
community
6
colleges
fail
to
approve
a
distribution
formula
on
or
before
7
October
31
pursuant
to
paragraph
“a”
,
the
department
shall
8
establish
the
distribution
formula
for
general
state
aid
9
to
the
community
colleges
for
the
succeeding
budget
year
.
10
When
determining
the
distribution
formula
pursuant
to
this
11
paragraph,
the
department
shall
consider
the
enrollment
12
and
combined
support
for
each
community
college,
along
with
13
any
other
factor
deemed
relevant
by
the
department.
The
14
distribution
formula
shall
not
allocate
funding
to
a
community
15
college
that
is
below
the
general
state
financial
aid
the
16
community
college
received
in
any
previous
budget
year,
unless
17
there
is
a
reduction
in
the
base
funding
allocation.
18
c.
If
the
inflation
rate
equals
or
exceeds
four
percent:
19
(1)
Base
funding
allocation.
The
moneys
shall
first
20
be
allocated
in
the
amount
of
general
state
financial
aid
21
each
community
college
received
in
the
base
year.
If
the
22
appropriation
is
less
than
the
total
of
the
amount
of
general
23
state
financial
aid
each
community
college
received
in
the
base
24
year,
the
moneys
shall
be
allocated
in
the
same
proportion
as
25
the
allocation
of
general
state
financial
aid
each
community
26
college
received
in
the
base
year.
27
(2)
Marginal
cost
adjustment.
After
the
base
funding
has
28
been
allocated,
each
community
college
shall
be
allocated
up
to
29
an
additional
two
percent
of
its
base
funding
allocation.
The
30
community
college’s
allocation
shall
be
in
the
same
proportion
31
as
the
allocation
of
general
state
financial
aid
each
community
32
college
received
in
the
base
year.
33
(3)
Three-year
rolling
average
of
full-time
equivalent
34
enrollment.
If
the
increase
in
the
total
state
general
aid
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exceeds
two
percent
over
the
base
funding
allocation,
an
amount
1
up
to
an
additional
one
percent
of
the
base
funding
allocation
2
shall
be
distributed
based
upon
each
community
college’s
3
proportional
share
of
the
three-year
rolling
average
full-time
4
equivalent
enrollments
for
all
community
colleges.
5
(4)
Inflation
adjustment.
If
the
increase
in
total
state
6
general
aid
exceeds
three
percent
over
the
base
funding
7
allocation,
an
amount
up
to
the
inflation
adjustment
amount
8
shall
be
distributed
to
each
community
college
in
the
same
9
proportion
as
the
allocation
of
general
state
financial
aid
10
each
community
college
received
in
the
base
year.
11
(5)
Extraordinary
growth
adjustment.
If
there
are
12
remaining
moneys
to
be
distributed
under
this
paragraph
after
13
distributing
moneys
under
subparagraph
(4),
an
amount
up
to
an
14
additional
one
percent
of
the
base
funding
allocation
shall
be
15
based
as
follows:
16
(a)
Forty
percent
of
the
moneys
shall
be
allocated
based
17
upon
each
community
college’s
proportional
share
of
the
18
three-year
rolling
average
full-time
equivalent
enrollments
for
19
all
community
colleges.
20
(b)
Sixty
percent
of
the
moneys
shall
be
allocated
to
21
community
colleges
that
have
eligible
growth
support.
The
22
allocation
shall
be
based
upon
the
proportional
share
that
each
23
community
college’s
eligible
growth
support
bears
to
the
total
24
growth
support
amount.
Once
the
moneys
allocated
under
this
25
subparagraph
division
equal
the
total
growth
support
amount,
26
the
remaining
moneys
allocated
under
this
subparagraph
shall
be
27
allocated
as
provided
in
subparagraph
division
(a).
28
(6)
Additional
three-year
rolling
average
FTEE
29
allocation.
If
there
are
remaining
moneys
to
be
distributed
30
under
this
paragraph
after
distributing
moneys
under
31
subparagraph
(5),
all
remaining
moneys
shall
be
distributed
32
based
upon
each
community
college’s
proportional
share
of
the
33
three-year
rolling
average
full-time
equivalent
enrollments
for
34
all
community
colleges.
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4.
Information
supplied
by
colleges
and
adoption
of
rules.
1
a.
Each
community
college
shall
provide
information
in
2
the
manner
and
form
as
determined
by
the
department.
If
3
a
community
college
fails
to
provide
the
information
as
4
requested,
the
department
shall
estimate
the
full-time
5
equivalent
enrollment
of
that
college.
6
b.
Each
community
college
shall
complete
and
submit
an
7
annual
student
enrollment
audit
to
the
department.
Adjustments
8
to
community
college
state
general
aid
allocations
shall
be
9
made
based
on
student
enrollment
audit
outcomes.
10
c.
The
department
shall
adopt
rules
under
chapter
17A
as
11
necessary
for
the
allocation
of
general
state
financial
aid.
12
Sec.
2.
APPLICABILITY.
This
Act
applies
to
budget
years
13
beginning
on
or
after
July
1,
2025.
14
EXPLANATION
15
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16
the
explanation’s
substance
by
the
members
of
the
general
assembly.
17
This
bill
modifies
provisions
related
to
the
distribution
18
formula
for
general
state
financial
aid
to
community
colleges.
19
Current
Code
section
260C.18C
establishes
a
distribution
20
formula
for
the
allocation
of
state
moneys
appropriated
21
annually
by
the
general
assembly
to
the
department
of
education
22
for
distribution
to
each
community
college.
The
distribution
23
formula
includes
a
base
funding
allocation,
a
marginal
24
cost
adjustment,
a
three-year
rolling
average
of
full-time
25
equivalent
enrollment,
an
extraordinary
growth
adjustment,
and
26
other
allocations.
27
The
bill
provides
that
funds
appropriated
by
the
general
28
assembly
to
the
department
of
education
for
general
financial
29
aid
to
community
colleges
shall
be
allocated
to
each
community
30
college
for
the
community
colleges
to
provide
the
highest
31
quality
educational
opportunities
and
services
to
the
greatest
32
number
of
students.
33
The
bill
modifies
Code
section
260C.18C
to
provide
that
the
34
moneys
that
the
general
assembly
appropriates
from
the
general
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fund
of
the
state
to
the
department
of
education
for
community
1
college
purposes
for
general
state
financial
aid
shall
be
2
allocated
to
each
community
college
by
the
department
pursuant
3
to
the
terms
of
a
distribution
formula
that
is
approved
by
at
4
least
10
of
the
presidents
and
chancellors
of
the
community
5
colleges.
The
presidents
and
chancellors
must,
on
or
before
6
October
31
of
each
year,
establish
such
distribution
formula
7
for
the
succeeding
budget
year.
However,
the
distribution
8
formula
shall
not
allocate
funding
to
a
community
college
9
that
is
below
the
general
state
financial
aid
the
community
10
college
received
in
any
previous
budget
year,
unless
there
is
a
11
reduction
in
the
base
funding
allocation.
12
If
the
presidents
and
chancellors
of
the
community
colleges
13
fail
to
approve
a
distribution
formula,
the
bill
requires
14
the
department
of
education
to
establish
the
distribution
15
formula
for
general
state
aid
to
the
community
colleges
for
16
the
succeeding
budget
year.
When
determining
the
distribution
17
formula,
the
department
of
education
is
required
to
consider
18
the
enrollment
and
combined
support
for
each
community
college.
19
Additionally,
the
bill
provides
that
the
distribution
formula
20
established
by
the
department
of
education
shall
not
allocate
21
funding
to
a
community
college
that
is
below
the
general
state
22
financial
aid
the
community
college
received
in
any
previous
23
budget
year,
unless
there
is
a
reduction
in
the
base
funding
24
allocation.
25
Current
law
provides
that
adjustments
to
community
college
26
state
general
aid
allocations
are
required
to
be
made
based
on
27
the
outcomes
of
audits
of
student
enrollment.
The
bill
strikes
28
this
provision.
29
The
bill
applies
to
budget
years
beginning
on
or
after
July
30
1,
2025.
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