Bill Summary – FastDemocracy

Fiscal Note
                                       Fiscal Services Division
SF 2383 – Preschool Funding (LSB5223SV)
Staff Contact: Ron Robinson (515.281.6256) ron.robinson@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 2383 relates to Statewide Voluntary Preschool Program (SVPP) pupils whose
household income is below a certain amount, minimum hours required to be offered, and
funding calculations.
The Bill allows each school district to choose at the beginning of each school year between the
currently required minimum of 10 hours of instruction per week for an enrolled pupil, or a
heightened required number of hours for enrolled pupils whose household family income is
below 185.0% of the federal poverty level (FPL) and a required 10 hours per week of instruction
for all other pupils. For FY 2025, the increased requirement is a minimum of 15 hours per week
of instruction, and for FY 2026 and each succeeding school year, the increased requirement is a
minimum of 20 hours per week of instruction.
The Bill requires school districts to allow families of pupils whose household income is below
185.0% of the FPL applicable to the family’s size to choose between 10 hours of instruction per
week or the minimum hours of instruction established for pupils of families with income below
185.0% of the FPL applicable to the family’s size for the pupil.
The Bill changes the calculation for preschool budget enrollment for school districts that choose
to follow the heightened hours of instruction requirement for pupils whose household income is
below 185.0% of the FPL to the sum of the following number of eligible pupils:
• For the school year beginning July 1, 2024 (FY 2025), 75.0% of eligible pupils who receive
    15 hours per week of instruction and whose household income is less than 185.0% of the
    FPL plus 50.0% of all other eligible pupils; and
• For school years beginning on or after July 1, 2025 (FY 2026), the actual number of eligible
    pupils who receive 20 hours per week of instruction and whose household income is less
    than 185.0% of the FPL plus 50.0% of all other eligible pupils. Calculations for preschool
    budget enrollment for school districts that continue to follow currently required minimum
    hours of instruction remain unchanged.
Background
A school district with an approved SVPP is funded in part by preschool foundation aid
payments. The preschool foundation aid payment is calculated by multiplying the regular
program State cost per pupil (SCPP) by the school district’s preschool budget enrollment.
Currently, the preschool budget enrollment for a given year is calculated by multiplying the
number of eligible students enrolled in the preschool program by 50.0%.
According to the U.S. Census Bureau, approximately 22.2% of Iowa families have a household
income below 185.0% of the FPL.
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Assumptions
• The number of school districts that would choose to participate in the expanded SVPP in
   FY 2025 and FY 2026 cannot be determined because future school district decisions cannot
   be estimated.
• The number of families that would choose to participate in the expanded SVPP in FY 2025
   and FY 2026 cannot be determined because future family decisions cannot be estimated.
• In Iowa, 22.2% of the population has a household income below 185.0% of the FPL, and
   this will be the same for all pupils eligible for the SVPP.
• There will be 29,415 pupils participating in the SVPP, and 6,530 pupils will qualify for
   additional funding.
• The SCPP will remain at $7,635.
• The FY 2024 SCPP is $7,635, and the SVPP is funded at 50.0% ($3,818). An increase to
   75.0% would increase the payments to $5,726 per eligible pupil in FY 2025, an increase of
   $1,909 compared to FY 2024 per pupil. An increase to 100.0% would increase the
   payments to $7,635 per eligible pupil in FY 2026, an increase of $1,909 compared to
   estimated FY 2025.
Fiscal Impact
Senate File 2383 will have an unknown fiscal impact since the future decisions of school
districts and families cannot be known. However, if 22.2% (6,530) of SVPP pupils qualify for
additional funding, the maximum fiscal impact on the General Fund for FY 2025 would be an
estimated increase of $12.5 million (6,530 × $1,909) compared to estimated FY 2024, and the
impact for FY 2026 would be an increase of $12.5 million (6,530 × $1,909) compared to
estimated FY 2025.
Sources
U.S. Census Bureau, Current Population Survey, 2023 Annual Social and Economic
Supplement (CPS ASEC)
Iowa Department of Education, Bureau of Information and Analysis Services, Student Reporting
in Iowa 2023-2024 fall enrollment file
LSA analysis and calculations
                                                                               /s/ Jennifer Acton
                                                                                 March 4, 2024
Doc ID 1446650
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
                                                 www.legis.iowa.gov
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Statutes affected: 
Introduced: 256C.3, 256C.5