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 starting 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. Notably, the bill introduces a school district funding supplement for the fiscal year 2025-2026, which will provide additional financial support to school districts. The calculation of property tax replacement payments will now be based on the school district's weighted enrollment and a per pupil property tax replacement amount, which will include an additional $153 for budget years beginning on or after July 1, 2025.

Key changes also include an increase in the maximum supplementary weighting for school districts from 21 to 25 pupils for budget years starting on or after July 1, 2025. The regular program state cost per pupil for the budget year beginning July 1, 2025, will be calculated as the base year cost plus supplemental state aid and an additional $10, reverting to the base year cost plus supplemental state aid in subsequent years. Additionally, the bill ensures that total appropriated transportation equity aid payments will be covered for fiscal years starting July 1, 2025, and allocates $22,591,274 from the general fund for the school district funding supplement, which can be used for general fund purposes without affecting district cost calculations. The bill is considered of immediate importance and takes effect upon enactment.

Statutes affected:
Introduced: 257.8, 257.11, 257.16C