This bill establishes new provisions for school funding in Iowa, specifically setting the state percent of growth and categorical state percent of growth at 1.75% for the budget year beginning July 1, 2026. It modifies existing laws regarding property tax replacement payments, the regular program state cost per pupil, and school district budget adjustments. The bill also introduces changes to how school district enrollment is calculated, allowing for a more flexible approach by considering both actual and adjusted enrollment figures.

Key amendments include the calculation of 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. Additionally, the bill mandates that budget adjustments for the school year starting July 1, 2026, will be funded through state foundation aid rather than property taxes. The bill takes effect immediately upon enactment, with specific provisions applying to enrollment determinations starting July 1, 2026, for budget years beginning on or after July 1, 2027.

Statutes affected:
Introduced: 257.8, 257.9, 257.14, 257.6