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% 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 changes include a new calculation method for property tax replacement payments based on weighted enrollment and a per pupil property tax replacement amount that incorporates the regular program state cost per pupil. The bill also increases the maximum additional weighting for school districts from twenty-one to twenty-five pupils for budget years starting on or after July 1, 2025.

Additionally, the bill introduces a school district funding supplement for the fiscal year 2025-2026, with an appropriation of $22,591,274 from the general fund, which can be used for any general fund purpose without affecting district cost calculations. It specifies that the regular program state cost per pupil for the budget year beginning July 1, 2025, will include an additional $10, while subsequent years will revert to the base year cost plus supplemental state aid. The bill also ensures that total appropriated transportation equity payments will cover all aid payments for the fiscal year beginning July 1, 2025, emphasizing the immediate importance of these funding changes upon enactment.

Statutes affected:
Introduced: 257.8, 257.11, 257.16C