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SF 2201

A bill for an act relating to school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2026, modifying provisions relating to property tax replacement payments, transportation equity aid funding, funding for school district budget adjustments, and school district enrollment, establishing an education support personnel salary supplement, making appropriations, and including effective date and applicability provisions.

2025-2026 Regular Session

Sets a 2027 state growth for per-pupil funding, adds a teacher/education support personnel salary supplement, and changes enrollment counts for aid calculations.

Fiscal note.
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Bill Summary · SF 2201

Overview

Senate File 2201 (SF 2201) from the 2025-2026 Iowa Legislature relates to public school funding. It establishes a State percent of growth (and categorical State percent of growth) for FY 2027 (budget year starting July 1, 2026) modifies several property tax and transportation funding provisions, adjusts enrollment and budgeting rules, and creates a targeted salary supplement for education support personnel. The bill includes appropriations, effective dates, and applicability provisions.

Main purpose and intent

  • To set a uniform State growth rate that increases State aid per pupil for the next fiscal year (FY 2027), and to increase State categorical supplements that fund specific district/AEA programs.
  • To modify how enrollment is counted for aid calculations, budget adjustments, and related property tax implications.
  • To create and fund an Education Support Personnel Salary Supplement.
  • To adjust the Transportation Equity program and the budget adjustment guarantee funding source.

Key provisions and changes

  • Division I — State and Categorical Growth and PTRP

    • Establishes a State percent of growth (SPOG) of 1.75% (original version) or 2.0% (amended versions) for FY 2027 to the Regular Program State Cost Per Pupil (SCPP) and to State categorical cost per pupil amounts.
    • Adds an SSA (State Supplemental Aid) per pupil, plus a separate $5 per pupil increment (or higher per amended version), increasing overall SCPP funding for FY 2027.
    • Property Tax Replacement Payment (PTRP) contributions are increased accordingly, with a freeze of the additional levy portion of the SCPP at a specified per-pupil amount ($685 or $685–$685 depending on version) for FY 2027.
    • Transportation Equity payments are adjusted to align with growth (1.75% or 2.0% depending on version).

  • Division III — Budget Adjustment

    • In FY 2027, the budget adjustment guarantee is fully funded from the General Fund (rather than solely from property taxes).

  • Division IV — Enrollment

    • Modifies enrollment determination for aid: shifts from a single October count to a two-count approach (larger of October/February averages in some versions; second count uses average/base and adjusted enrollment).
    • The second enrollment count influences state aid and property tax calculations and applies for FY 2028 budget years onward.

  • Division V — Enrollment and Budgeting (amended)

    • Shifts local education agency payments from monthly to quarterly.
    • Requires timely sharing of enrollment data between the Department of Education and the Department of Management, and provides dispute/discrepancy resolution mechanisms.

  • Division IV (amended) — Education Support Personnel Salary Supplement

    • Appropriates $7.0 million to supplement education support personnel compensation.
    • Establishes data submission requirements and payment calculations for districts AEAs receiving the supplement.

Who/what is affected

  • School districts and Area Education Agencies (AEAs): changes to SCPP, SSA, PTRP, Transportation Equity, and enrollment calculations directly affect funding levels and tax relief.
  • Local property taxpayers: overall property tax relief and levy implications are adjusted via the PTRP and related contributions.
  • Education Support Personnel: districts AEAs receiving the dedicated salary supplement receive a new funding stream.
  • Department of Education and Department of Management: new data, timing, and processing requirements for enrollment and payments.

Procedural and timeline considerations

  • Effective upon enactment for most divisions (I–II, III, and V/amended versions), with Division IV and V enrollment changes applying to FY 2028 budget years.
  • Enrollment methodology changes involve annual adjustments certified by January 15 (or the third Monday if Jan 15 is on a weekend), with updates to DOM by February 15.
  • Budget adjustments and PTRP changes influence the FY 2027 state aid and the transportation funding envelope, with ongoing implications in subsequent years.

Note: The bill as amended has multiple versions (regular, as amended by S-5018, and final amendments) yielding slightly different SPOG percentages and per-pupil amounts. Fiscal notes project impacts on state aid, PTRP, and local levies.

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

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