Senate File 2373 - Introduced
SENATE FILE 2373
BY COMMITTEE ON EDUCATION
(SUCCESSOR TO SSB 3164)
A BILL FOR
1 An Act modifying provisions related to the distribution formula
2 for general state financial aid to community colleges and
3 including applicability provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 Section 1. Section 260C.18C, Code 2024, is amended to read
2 as follows:
3 260C.18C State aid distribution formula.
4 1. Purpose. A distribution plan for general state financial
5 aid to Iowa’s community colleges is established for the fiscal
6 year commencing July 1, 2005, and succeeding fiscal years.
7 Funds appropriated by the general assembly to the department
8 for general financial aid to community colleges shall be
9 allocated to each community college in the manner provided
10 under this section.
11 2. Definitions. As used in this section and section
12 260C.18D, unless the context otherwise requires:
13 a. “Base funding allocation” means the amount of general
14 state financial aid all community colleges received in the base
15 year.
16 b. “Base year” means the fiscal year immediately preceding
17 the budget year.
18 c. “Below-average support per FTEE” for a community college
19 means the state-average combined support per FTEE minus the
20 combined support per FTEE for the community college if the
21 community college’s combined support per FTEE is less than the
22 state-average combined support per FTEE.
23 d. c. “Budget year” means the fiscal year for which moneys
24 are appropriated by the general assembly.
25 e. “Combined support” for a community college means the
26 total amount of moneys the community college received in
27 general state financial aid in the base year plus the community
28 college’s general fund property tax revenue, including utility
29 replacement, for the base year.
30 f. “Combined support per FTEE” for a community college
31 means the community college’s combined support divided by its
32 three-year rolling average full-time equivalent enrollment for
33 the three years prior to the base year.
34 g. “Contact hour” for a noncredit course equals fifty
35 minutes of contact between an instructor and students in a
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1 scheduled course offering for which students are registered.
2 h. “Credit hour”, for purposes of community college funding
3 distribution, shall be as defined by the department by rule.
4 i. “Eligible credit courses” means all credit courses that
5 are eligible for general state financial aid which are part
6 of a department-approved program of study. The department
7 shall review and provide a determination should a question of
8 eligibility occur.
9 j. “Eligible growth support” for a community college is the
10 community college’s below-average support per FTEE multiplied
11 times its three-year rolling average full-time equivalent
12 enrollment.
13 k. “Eligible noncredit courses” means all noncredit courses
14 eligible for general state financial aid which fall under one
15 of the eligible categories for noncredit courses as defined
16 by rule of the department. The department shall review and
17 provide a determination should a question of eligibility occur.
18 l. “Eligible student” means a student enrolled in eligible
19 credit or eligible noncredit courses. The department shall
20 review and provide a determination should a question of
21 eligibility occur.
22 m. d. “Fiscal year” means the period of twelve months
23 beginning on July 1 and ending on June 30.
24 n. One “full-time equivalent enrollment (FTEE)” equals
25 twenty-four credit hours for credit courses or six hundred
26 contact hours for noncredit courses generated by all eligible
27 students enrolled in eligible courses.
28 o. “General fund property tax revenue” means the amount of
29 moneys a community college raised or could have raised from
30 a property tax of twenty and one-fourth cents per thousand
31 dollars of assessed valuation on all taxable property in its
32 merged area collected for the base year.
33 p. e. “General state financial aid” means the amount of
34 general state financial aid the community college received from
35 the general fund.
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1 q. “Inflation adjustment amount” means the inflation rate
2 minus two percentage points multiplied times the base funding
3 allocation. The inflation adjustment amount shall not be less
4 than zero.
5 r. “Inflation rate” means the average of the preceding
6 twelve-month percentage change, which shall be computed on
7 a monthly basis, in the consumer price index for all urban
8 consumers, not seasonally adjusted, published by the United
9 States department of labor, bureau of labor statistics,
10 calculated for the calendar year ending six months after the
11 beginning of the base year.
12 f. “Presidents council” means a council that is convened
13 by the Iowa association of community college trustees that is
14 made up of the presidents of the community colleges and the
15 chancellors of the community colleges who serve as the chief
16 executive officers of such community colleges.
17 s. “State-average combined support per FTEE” means the
18 average of the combined support per FTEE for all community
19 colleges in the state in the base year.
20 t. “Three-year rolling average full-time equivalent
21 enrollment” means the average of the audited full-time
22 equivalent enrollment for a community college over the three
23 fiscal years prior to the base year as determined by the
24 department.
25 u. “Total growth support amount” means the sum of the
26 eligible growth support for all the community colleges.
27 3. Distribution formula. Moneys appropriated by the general
28 assembly from the general fund to the department for community
29 college purposes for general state financial aid for a budget
30 year shall be allocated to each community college by the
31 department as follows:
32 a. If the inflation rate is equal to two percent or less:
33 (1) Base funding allocation. The moneys shall first
34 be allocated in the amount of general state financial aid
35 each community college received in the base year. If the
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1 appropriation is less than the total of the amount of general
2 state financial aid each community college received in the base
3 year, the moneys shall be allocated in the same proportion as
4 the allocation of general state financial aid each community
5 college received in the base year.
6 (2) Marginal cost adjustment. After the base funding has
7 been allocated, each community college shall be allocated up to
8 an additional two percent of its base funding allocation. The
9 community college’s allocation shall be in the same proportion
10 as the allocation of general state financial aid each community
11 college received in the base year.
12 (3) Three-year rolling average of full-time equivalent
13 enrollment. If the increase in the total state general aid
14 exceeds two percent over the base funding allocation, an amount
15 up to an additional one percent of the base funding allocation
16 shall be distributed based upon each community college’s
17 proportional share of the three-year rolling average full-time
18 equivalent enrollments for all community colleges.
19 (4) Extraordinary growth adjustment. If the increase in
20 total state general aid exceeds three percent over the base
21 funding allocation, an amount up to an additional one percent
22 of the base funding allocation shall be distributed as follows:
23 (a) Forty percent of the moneys shall be allocated based
24 upon each community college’s proportional share of the
25 three-year rolling average full-time equivalent enrollments for
26 all community colleges.
27 (b) Sixty percent of the moneys shall be allocated to
28 community colleges that have eligible growth support. The
29 allocation shall be based upon the proportional share that each
30 community college’s eligible growth support bears to the total
31 growth support amount. Once the moneys allocated under this
32 subparagraph division equal the total growth support amount,
33 the remaining moneys allocated under this subparagraph shall be
34 allocated as provided in subparagraph division (a).
35 (5) Additional three-year rolling average FTEE
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1 allocation. If the increase in total state general aid
2 exceeds four percent over the base funding allocation,
3 all remaining moneys shall be distributed based upon each
4 college’s proportional share of the three-year rolling average
5 full-time equivalent enrollments for all community colleges
6 The presidents council shall annually, on or before October 31
7 of each year, establish the distribution formula for general
8 state aid to the community colleges for the succeeding budget
9 year. When determining the distribution formula pursuant to
10 this paragraph, the goal of the presidents council shall be
11 to provide the highest quality educational opportunities and
12 services, as described in section 260C.1, to the greatest
13 number of students. The distribution formula requires the
14 approval of at least ten members of the presidents council.
15 The department shall implement the distribution formula
16 approved by the presidents council.
17 b. If the inflation rate is greater than two percent but
18 less than 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
35 exceeds two percent over the base funding allocation, an amount
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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) Extraordinary growth adjustment. If the increase in
6 total state general aid exceeds three percent over the base
7 funding allocation, an amount up to an additional one percent
8 of the base funding allocation shall be based as follows:
9 (a) Forty percent of the moneys shall be allocated based
10 upon each community college’s proportional share of the
11 three-year rolling average full-time equivalent enrollments for
12 all community colleges.
13 (b) Sixty percent of the moneys shall be allocated to
14 community colleges that have eligible growth support. The
15 allocation shall be based upon the proportional share that each
16 community college’s eligible growth support bears to the total
17 growth support amount. Once the moneys allocated under this
18 subparagraph division equal the total growth support amount,
19 the remaining moneys allocated under this subparagraph shall be
20 allocated as provided in subparagraph division (a).
21 (5) Inflation adjustment. If the increase in total
22 state general aid exceeds four percent over the base funding
23 allocation, an amount up to the inflation adjustment amount
24 shall be distributed to each community college in the same
25 proportion as the allocation of general state financial aid
26 each community college received in the base year.
27 (6) Additional three-year rolling average FTEE
28 allocation. If there are remaining moneys to be distributed
29 under this paragraph after distributing moneys under
30 subparagraph (5), all remaining moneys shall be distributed
31 based upon each community college’s proportional share of the
32 three-year rolling average full-time equivalent enrollments
33 for all community colleges If the presidents council fails
34 to approve a distribution formula on or before October 31
35 pursuant to paragraph “a”, the department shall establish the
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1 distribution formula for general state aid to the community
2 colleges for the succeeding budget year. When determining
3 the distribution formula pursuant to this paragraph, the goal
4 of the department shall be to provide the highest quality
5 educational opportunities and services, as described in section
6 260C.1, to the greatest number of students.
7 c. If the inflation rate equals or exceeds four percent:
8 (1) Base funding allocation. The moneys shall first
9 be allocated in the amount of general state financial aid
10 each community college received in the base year. If the
11 appropriation is less than the total of the amount of general
12 state financial aid each community college received in the base
13 year, the moneys shall be allocated in the same proportion as
14 the allocation of general state financial aid each community
15 college received in the base year.
16 (2) Marginal cost adjustment. After the base funding has
17 been allocated, each community college shall be allocated up to
18 an additional two percent of its base funding allocation. The
19 community college’s allocation shall be in the same proportion
20 as the allocation of general state financial aid each community
21 college received in the base year.
22 (3) Three-year rolling average of full-time equivalent
23 enrollment. If the increase in the total state general aid
24 exceeds two percent over the base funding allocation, an amount
25 up to an additional one percent of the base funding allocation
26 shall be distributed based upon each community college’s
27 proportional share of the three-year rolling average full-time
28 equivalent enrollments for all community colleges.
29 (4) Inflation adjustment. If the increase in total state
30 general aid exceeds three percent over the base funding
31 allocation, an amount up to the inflation adjustment amount
32 shall be distributed to each community college in the same
33 proportion as the allocation of general state financial aid
34 each community college received in the base year.
35 (5) Extraordinary growth adjustment. If there are
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1 remaining moneys to be distributed under this paragraph after
2 distributing moneys under subparagraph (4), an amount up to an
3 additional one percent of the base funding allocation shall be
4 based as follows:
5 (a) Forty percent of the moneys shall be allocated based
6 upon each community college’s proportional share of the
7 three-year rolling average full-time equivalent enrollments for
8 all community colleges.
9 (b) Sixty percent of the moneys shall be allocated to
10 community colleges that have eligible growth support. The
11 allocation shall be based upon the proportional share that each
12 community college’s eligible growth support bears to the total
13 growth support amount. Once the moneys allocated under this
14 subparagraph division equal the total growth support amount,
15 the remaining moneys allocated under this subparagraph shall be
16 allocated as provided in subparagraph division (a).
17 (6) Additional three-year rolling average FTEE
18 allocation. If there are remaining moneys to be distributed
19 under this paragraph after distributing moneys under
20 subparagraph (5), all remaining moneys shall be distributed
21 based upon each community college’s proportional share of the
22 three-year rolling average full-time equivalent enrollments for
23 all community colleges.
24 4. Information supplied by colleges and adoption of rules.
25 a. Each community