This bill modifies the provisions for supplemental aid and modified supplemental amounts for certain school districts in Iowa that experience high levels of open enrollment. Specifically, it establishes that if 35 percent or more of a school district's total enrollment comes from open enrollment, the district may qualify for supplemental aid or a modified supplemental amount. However, districts are ineligible if the majority of these open-enrolled students are receiving online instruction from a private provider. Additionally, before requesting such aid, the school district must hold a public hearing and provide notice of the hearing in a local newspaper.

The bill also repeals a previous provision from the 2024 Iowa Acts that limited property tax levies for districts receiving modified supplemental amounts in the 2024 budget year. The new provisions take effect immediately upon enactment but will apply to school budget years starting on or after July 1, 2025. The bill outlines specific calculations for determining the maximum amount of supplemental aid that can be granted, based on various cost factors related to the district's enrollment.

Statutes affected:
Introduced: 257.31, 282.18