This bill aims to enhance public school funding in Iowa by establishing a state percent of growth and a categorical state percent of growth of 2.25 percent for the budget year beginning July 1, 2025. It modifies existing provisions related to property tax replacement payments and transportation equity payments, as well as the regular program state cost per pupil. Key modifications include the calculation of property tax replacement payments based on the school district's weighted enrollment and a per pupil property tax replacement amount that incorporates the regular program state cost per pupil. Additionally, the bill increases the maximum additional weighting for supplementary funding from twenty-one to twenty-five pupils for budget years beginning on or after July 1, 2025, thereby providing a more robust funding framework for Iowa's public schools.

The bill also outlines changes to school funding mechanisms effective upon enactment, establishing the regular program state cost per pupil for the budget year beginning July 1, 2025, as the sum of the base year cost, supplemental state aid, and an additional $10. For subsequent years, the calculation will revert to the base year cost plus supplemental state aid. Furthermore, it modifies transportation equity payments to ensure that the total appropriated amount will cover all transportation equity aid payments for the fiscal year beginning July 1, 2025. The introduction of a school district funding supplement, with an appropriation of $22,591,274 from the general fund to the Department of Education, will allow districts to use the funds for any general fund purpose while classifying these payments as miscellaneous income for accounting purposes.

Statutes affected:
Introduced: 257.8, 257.11, 257.16C