The bill amends Section 257.41 of the Iowa Code to adjust the limitations on the modified supplemental amount for school district funding, specifically targeting programs for at-risk students, secondary students in alternative programs, and dropout prevention. The existing limitation of two and one-half percent for the ratio of the modified supplemental amount to the total regular program district cost remains in place for fiscal years beginning July 1, 2013, through June 30, 2026. However, if a school district's highest ratio from fiscal years between July 1, 2009, and June 30, 2013, exceeded this limit, the district may maintain that higher ratio.

Starting from the fiscal year beginning July 1, 2026, the bill allows for an increase in the ratio to a maximum of five percent, contingent upon approval from voters in an election. If approved, the ratio can increase by no more than one-half of one percent per fiscal year. The bill also outlines the process for initiating such an election, which can be prompted by the school board or by a written request from eligible electors. The authorization for the increased ratio will remain in effect for the duration specified in the election or until rescinded by a subsequent election.

Statutes affected:
Introduced: 257.41
Reprinted: 257.41