Bill Summary – FastDemocracy

Fiscal Note
                                       Fiscal Services Division
HF 605 – English Learners Funding (LSB2077HV.1)
Staff Contact: Michael Guanci (515.725.1286) michael.guanci@legis.iowa.gov
Fiscal Note Version – Final Action
Description
House File 605 divides students who are identified as limited-English proficient (LEP) into two
categories and assigns a supplementary weighting to each level:
• Intensive student — 0.26 weighting (an increase of 0.04 compared to current law)
• Intermediate student — 0.21 weighting (a decrease of 0.01 compared to current law)
The Bill takes effect upon enactment and would begin for the weightings reported in October
2021 during the FY 2023 school budget year
Background
Under current law, the Department of Education describes an LEP student as a student who is
in the process of acquiring English proficiency and speaks a first language other than English.
Under current law, a student identified as being LEP may draw an additional weighting of 0.22 in
the School Aid and Levy formula for no more than five years. In FY 2021, approximately 21,334
students were identified as being LEP and received supplementary weighting.
LEP students are assessed annually using the English Language Proficiency Assessment for
the 21st Century (ELPA21). The definitions for LEP students established under the provisions
of the Bill align with assessment levels under the test of “emerging student” for “intensive
student” and “progressing student” for “intermediate student.”
School districts may petition the School Budget Review Committee (SBRC) for a modified
supplemental amount (MSA) for the costs of providing services to LEP students in addition to
the supplemental amount. Requests to the SBRC for excess costs from FY 2020 totaled
$17.6 million (130 school districts). Any MSA awarded is funded with local property taxes.
Assumptions
• Changing the weighting for LEP pupils will increase the State aid appropriation from the
   General Fund and local property taxes.
• The fiscal estimate uses growth rates agreed on by the Legislative Services Agency (LSA)
   and the Department of Management (DOM) for LEP pupils for FY 2022 through FY 2026.
• The LEP weightings have already been established for FY 2022, and the increase in
   additional weightings will not apply until the October 2021 student count for FY 2023.
• Based on the 2019 ELPA21 testing, 21.0% of LEP students will qualify for the intensive
   student weighting and 79.0% of LEP students will qualify for the intermediate student
   weighting.
• Under current law, the State cost per pupil is set at $7,227 for FY 2023 through FY 2026.
• Beginning in FY 2023, approximately 18,400 students identified as intermediate will
   generate $72 less funding per pupil, and approximately 4,900 students identified as
   intensive will generate $289 more funding per pupil.
• Individual district cost per pupil may be higher and may increase additional levy for property
   taxes beyond the fiscal impact calculated.
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Fiscal Impact
Estimated State Aid and Property Taxes for HF 605 — FY 2022 - FY 2026
                       Current Law                      HF 605                             Differences
Fiscal Year      State Aid       Prop. Tax      State Aid        Prop. Tax    State Aid     Prop. Tax          Total
FY 2022       $ 30,400,000      $ 3,520,000   $ 30,400,000   $ 3,520,000      $        0   $         0    $       0
FY 2023          33,211,000      3,846,000     33,286,000        3,854,000        75,000          9,000       84,000
FY 2024          34,871,000      4,038,000     34,950,000        4,047,000        79,000          9,000       88,000
FY 2025          36,614,000      4,240,000     36,698,000        4,249,000        83,000         10,000       93,000
FY 2026          38,445,000      4,452,000     38,533,000        4,462,000        87,000         10,000       97,000
Totals may not add due to rounding.
The Bill may increase requests to the SBRC for MSAs for costs of providing services to
intermediate LEP students that exceed supplemental amounts received, and may reduce
requests for MSAs for costs of providing services to intensive LEP students that exceed the
supplemental amounts received. The extent of the fiscal impact is unknown.
Sources
Department of Education
LSA calculations
                                                                             s/ Holly M. Lyons
                                                                                  June 7, 2021
Doc ID 1219449
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
                                                www.legis.iowa.gov
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Statutes affected: 
Introduced: 280.4
Enrolled: 280.4