A bill for an act relating to budget adjustments by school districts affected by a natural disaster.

2025-2026 Regular Session Introduced by Lynn Evans

Senate File 64 allows Iowa school districts hit by natural disasters to receive budget adjustments, ensuring financial stability and continued education for affected students.

Subcommittee: Dawson, Quirmbach, and Rowley.

#budgets #disasters #presidentoftheunitedstates #schoolbudgets #schooldistricts #schoolfinance

Purpose and Intent

Senate File 64 (SF 64) aims to provide budget adjustments for school districts in Iowa that have been affected by natural disasters. The bill seeks to ensure that these districts can maintain financial stability in the aftermath of such events, allowing them to recover and continue providing education without significant financial strain.

Key Provisions

Eligibility for Budget Adjustments: The bill allows school districts to receive an additional year of budget adjustment if they have been impacted by a natural disaster. This is applicable if a major disaster has been declared by the President of the United States or if the Governor has proclaimed a state of disaster emergency.

Adjustment Amount: The budget adjustment for the additional year will be equal to the amount of the school district’s budget adjustment for the base year. This means that districts can receive a financial boost equivalent to what they received in the previous year, helping them to cope with the financial implications of the disaster.

Current Budget Adjustment Mechanism: Under existing law, a school district is eligible for a budget adjustment that equals the difference between the regular program district cost for the budget year and 101% of the regular program district cost for the base year.

Impact

Affected Entities: The bill is expected to impact approximately 243 school districts across 54 counties in Iowa that have been affected by natural disasters since April 2023. These districts may apply for the budget adjustment to help mitigate the financial challenges posed by the disasters.

Fiscal Implications: The fiscal impact of SF 64 is currently unknown, as it depends on how many districts will choose to utilize the budget adjustment and the extent of the impact from the natural disasters. However, estimates suggest that the budget adjustment could increase significantly under the proposed legislation compared to current law:

At a 0.00% State percent of growth (SPG), the budget adjustment could rise from an estimated $51.8 million to $56.2 million.
At a 1.00% SPG, the adjustment could increase from $32.6 million to $38.3 million.
At a 2.00% SPG, it could rise from $18.7 million to $26.8 million.
At a 3.00% SPG, the adjustment could increase from $10.2 million to $20.3 million.

Procedural Timeline

Introduced: January 16, 2025

Subcommittee Meetings: Initial subcommittee meetings were held on January 28, 2025, and February 3, 2025.

Committee Report: The bill was reported out of committee on February 18, 2025, with a recommendation for passage.

Referred to Ways and Means: February 20, 2025

Fiscal Note Issued: February 26, 2025

Subcommittee Review: The bill was reviewed by a subcommittee on March 3, 2025.

Conclusion

Senate File 64 represents a proactive approach to supporting school districts in Iowa that face financial challenges due to natural disasters. By allowing for additional budget adjustments, the bill aims to ensure that affected districts can continue to operate effectively and provide quality education to their students during recovery periods.

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