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SSB 1027

A bill for an act authorizing school districts to use revenues from the district management levy for teacher recruitment and retention incentives.

2025-2026 Regular Session

Allows districts to use district management levy funds to pay teacher recruitment and retention incentives (up to 10% of starting salary, max 5 years), with sequencing rules.

Committee report approving bill, renumbered as SF 206.
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Bill Summary · SSB 1027

Summary of SSB 1027 (renumbered SF 206)

Overview

SSB 1027 proposes to authorize Iowa-style district management levy revenues to be used for teacher recruitment and retention incentives, in addition to existing early retirement benefits. The bill modifies Code section 279.46 to create a framework for pilot programs aimed at attracting new teachers and retaining current ones, while imposing specific governance, timing, and funding safeguards.

Purpose and Intent

  • Expand the use of district management levy revenues to support teacher recruitment and retention incentives.
  • Allow boards of directors to adopt targeted programs in addition to existing early retirement benefits, with appropriate oversight and limits.
  • Promote stable teacher staffing through financial incentives funded by levy dollars, while preventing overlap and excessive expenditure.

Key Provisions

  • Programs authorized (279.46): Boards may adopt:

    • An early retirement benefits program to encourage retirement before normal date.
    • A teacher recruitment incentives program to recruit new teachers.
    • A teacher retention incentives program to retain current teachers.

  • Public process and discussion: Boards must discuss the adoption of any program (early retirement, recruitment, or retention) at a regular or special meeting and provide for public comment.

  • Incentive limits:

    • No recruitment or retention incentive may exceed 10% of the starting salary of a teacher (as defined by Code 284.15).
    • Incentives may not be paid for more than five school budget years total.

  • Concurrency and sequencing restrictions:

    • The board may not adopt the early retirement program concurrently with recruitment or retention incentives.
    • The board may not adopt either program within five years after adopting the other program.

  • Funding source: The district management levy may be used to pay the costs of either the early retirement program or the recruitment/retention incentives.

Who is Affected

  • School districts and their boards of directors, which would determine eligibility, design, and funding for the programs.
  • Teachers and prospective teachers who may benefit from recruitment or retention incentives.
  • District budgets and finances due to the potential reallocation or use of district management levy revenues.

Financial and Operational Implications

  • Creates a defined funding mechanism for recruitment/retention incentives via the district management levy.
  • Establishes a cap (10% of starting salary per teacher) to limit incentive amounts.
  • Imposes a five-year limit on incentive payouts and a five-year sequencing gap between adoption of withdrawal/retirement programs and recruitment/retention programs.
  • Requires public discussion and comment, enhancing transparency and community engagement.

Timeline and Status

  • Introduced: January 21, 2025 (Education committee referral).
  • Subcommittee: January 21–29, 2025 (Evans, Campbell, Winckler).
  • Subcommittee action: January 29, 2025 (recommended passage).
  • Committee action: February 4, 2025 (committee report approving bill, renumbered as SF 206).

Practical Considerations

  • If enacted, districts will need to carefully design incentives within the cap and duration limits.
  • Districts must balance recruitment/retention needs with the five-year limitation and sequencing rules relative to any existing or planned early retirement programs.
  • Public discussions will be integral to adoption, potentially affecting timelines and community buy-in.

Compiled from official sources — confirm details with the bill’s official record.

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