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HSB 138

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 boosts Iowa school funding by $22.6M for 2025-2026, ensuring equitable support for districts based on enrollment, enhancing resources for students and educators.

Committee report approving bill, renumbered as HF 319.
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Bill Summary · HSB 138

Summary of HSB 138 (Renumbered as HF 319)

Purpose and Intent

HSB 138, now known as HF 319, is a proposed legislative bill aimed at reforming public school funding in Iowa. The bill establishes a framework for the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2025. It seeks to modify existing funding mechanisms, including property tax replacement payments and transportation equity payments, to enhance financial support for school districts.

Key Provisions

The bill includes several significant provisions:

  1. State Percent of Growth:

    • Establishes a state percent of growth and a categorical state percent of growth for the fiscal year starting July 1, 2025.

  2. Transportation Equity Payments:

    • Modifies appropriations to ensure that all transportation equity aid payments are fully funded for the fiscal year beginning July 1, 2025.

  3. School District Funding Supplement:

    • Creates a school district funding supplement, appropriating $22,591,274 from the state general fund for the fiscal year 2025-2026.
    • Each school district will receive a funding supplement based on its budget enrollment relative to the statewide total budget enrollment.

  4. Use of Funds:

    • Funds received by school districts can be utilized for any general fund purpose and will be classified as miscellaneous income, not included in district cost calculations.

  5. Effective Date:

    • The provisions of the bill will take effect upon enactment.

Impact

The bill is designed to provide financial relief and support to school districts across Iowa, ensuring that they have the necessary resources to operate effectively. The funding supplement is particularly aimed at addressing disparities in funding and enhancing the overall educational environment.

Affected Parties

  • School Districts: All school districts in Iowa will be impacted, as they will receive additional funding based on their enrollment figures.
  • Students and Educators: The bill aims to improve educational resources, potentially benefiting students and educators by providing more funding for programs and services.

Legislative Timeline

  • Introduced: February 6, 2025
  • Subcommittee Meeting: February 10, 2025
  • Committee Actions:
    • Recommended passage on February 10, 2025
    • Committee vote: 15 in favor, 9 against on February 10, 2025
  • Renumbered: The bill was renumbered as HF 319 following committee approval.

This summary provides an overview of HSB 138 (HF 319), outlining its purpose, key provisions, and potential impact on public school funding in Iowa.

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

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