This bill amends existing Iowa law to allow small school districts, specifically those with a budget enrollment of 200 students or less for the past three school budget years, to utilize unencumbered and unobligated funds from the physical plant and equipment levy fund (PPEL) and the public education and recreation levy fund (PERL) for general fund purposes, excluding salaries and benefits, for a period of up to five years. The use of these funds requires the approval of the school district's board of directors, who must adopt a resolution to submit the question to registered voters. A minimum of 60 percent voter approval is necessary for the funds to be allocated as proposed.

Additionally, the bill allows these small school districts to adopt a new revenue purpose statement that includes the expenditure of unobligated revenues received from the secure an advanced vision for education fund (SAVE) for the same five-year period and under the same conditions. This provision aims to provide greater financial flexibility for small school districts, enabling them to address various needs while ensuring that the use of funds is subject to voter approval.

Statutes affected:
Introduced: 298.3, 39.2, 300.2