The bill amends various sections of Iowa's school funding laws, primarily focusing on the state percent of growth and property tax replacement payments for the upcoming budget years. For the budget year beginning July 1, 2026, the state percent of growth is set at 1.75%, and the categorical state percent of growth is also established at 1.75%. The bill modifies the calculation of property tax replacement payments, ensuring that these payments are based on the weighted enrollment of school districts and the per pupil property tax replacement amount, which is defined for each budget year. Notably, the bill introduces new provisions for determining adjusted enrollment, which will be certified annually and used for future budget calculations.

Additionally, the bill includes provisions for school district budget adjustments for the fiscal year 2026-2027, stating that these adjustments will be funded by state foundation aid rather than through property taxes. It also establishes a new method for calculating basic enrollment, which will now be based on the average of actual and adjusted enrollment figures from the base year. The effective date for these changes is immediate upon enactment, with specific applicability provisions for enrollment determinations starting from July 1, 2026, for budget years beginning on or after July 1, 2027.

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