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HF 319

A bill for an act relating to public school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2025, modifying provisions relating to the property tax replacement payments and transportation equity payments, modifying provisions relating to the regular program state cost per pupil and funding for shared operational functions, establishing a school district funding supplement, making appropriations, and including effective date provisions.

2025-2026 Regular Session

HF 319 aims to boost Iowa school funding by increasing per pupil funding by $176, enhancing transportation equity, and supporting shared operational functions.

Withdrawn.
#fiscalyear #propertytaxes #schooldistricts #schoolfinance #schools #stateaid #students
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Bill Summary · HF 319

Summary of House File 319 (HF 319)

Purpose and Intent

House File 319 (HF 319) was introduced to address public school funding in Iowa by establishing a state percent of growth and a categorical state percent of growth for the budget year beginning July 1, 2025. The bill aimed to modify existing provisions related to property tax replacement payments, transportation equity payments, and the state cost per pupil funding formula. Additionally, it sought to create a school district funding supplement and included appropriations for these changes.

Key Provisions

HF 319 included several significant provisions organized into divisions:

Division I: State and Categorical Percent of Growth

  • State Percent of Growth: Establishes a 2.25% growth rate for the state cost per pupil (SCPP) for FY 2026, resulting in an increase of $176 per pupil.
  • Categorical State Percent of Growth: Applies the same 2.25% growth rate to various categorical cost per pupil amounts.
  • Property Tax Replacement Payments: Provides additional property tax replacement funding based on the per pupil increase while freezing the additional levy portion of the SCPP at $685 per pupil.

Division II: State Cost Per Pupil

  • Increase in SCPP: An additional increase of $10 to the regular program SCPP and special education SCPP for FY 2026.

Division III: Supplementary Weighting for Shared Operational Functions

  • Increased Weighting: Raises the maximum additional weighting for school districts sharing operational functions from 21.0 to 25.0 additional pupils starting in FY 2026.

Division IV: Transportation Equity Payments

  • Funding Appropriation: Establishes a standing unlimited appropriation from the General Fund for transportation equity aid payments to ensure that the statewide adjusted transportation cost per pupil meets the statewide average.

Division V: School Funding Supplement

  • General Fund Appropriation: Allocates $22.6 million from the General Fund to the Department of Education for school district funding supplements, proportionate to each district's budget enrollment.

Impact

The provisions of HF 319 were designed to enhance funding for school districts, improve equity in transportation funding, and support shared operational functions. The bill aimed to provide a more stable and predictable funding environment for schools, which could positively impact educational resources and student outcomes.

Procedural Aspects

  • Introduced: February 10, 2025
  • Amendments: Amendment H-1009 was adopted on February 13, 2025.
  • Status: The bill was withdrawn on February 13, 2025, after being substituted with Senate File 167.

Conclusion

While HF 319 proposed significant changes to Iowa's public school funding structure, it ultimately did not advance due to its withdrawal. The intent behind the bill reflects ongoing discussions about the adequacy and equity of school funding in the state.

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

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