Appropriations Committee Report – Week 5, 2018

COMMITTEE ACTION:

SF 171 – School Funding: Transportation and Per Pupil Equity

FLOOR ACTION:

HF 307- School Funding: Transportation and Per Pupil Equity

 

 

COMMITTEE ACTION:

SF 171 – School Funding: Transportation and Per Pupil Equity

SF 171 is year two of policy and funding efforts to decrease the transportation and per pupil inequities within Iowa’s school aid formula. First, SF 171 adds an additional $5 per student on top of the state supplemental aid for the upcoming budget year. This equates to an additional $2.3 million for schools. It is estimated that 179 school districts will receive additional funding, 170 of which will see the full $5 per student increase. This is new money for those schools. The rest of the school districts will get a small property tax decrease because $5 of their current district cost per pupil will be paid for by state dollars. These districts won’t see “new” money under this portion of this bill.

Second, this bill addresses the transportation inequity. Schools pay for transportation costs out of their general fund budgets. For larger geographical districts, this results in more money going to transportation costs than other districts. SF 171 provides $7.8 million increase in funding for FY20. This is on top of last year’s $11.2 million appropriation for a total investment of $19 million. Not every school district will receive transportation assistance. If a school district exceeds the statewide adjusted transportation cost per pupil, a portion of $19 million will be distributed to them. Transportation costs are recalculated every year. An estimated 190 districts will receive funding in FY20, which is 57.1 percent of all Iowa school districts.
[2/7: 20-0 (Excused: Lykam)]

 

FLOOR ACTION:

HF 307– School Funding: Transportation and Per Pupil Equity

HF 307 is year two of policy and funding efforts to decrease the transportation and per pupil inequities within Iowa’s school aid formula. First, HF 307 adds an additional $5 per student on top of the state supplemental aid for the upcoming budget year. This equates to an additional $2.3 million for schools. It is estimated that 179 school districts will receive additional funding, 170 of which will see the full $5 per student increase. This is new money for those schools. The rest of the school districts will get a small property tax decrease, because $5 of their current district cost per pupil will be paid for by state dollars. These districts won’t see “new” money under this portion of this bill.

Second, this bill addresses the transportation inequity. Schools pay for transportation costs out of their general fund budgets. For larger geographical districts, this results in more money going to transportation costs than other districts. HF 307 provides $7.8 million increase in funding for FY20. This is on top of last year’s $11.2 million appropriation, for a total investment of $19 million. Not every school district will receive transportation assistance. If a school district exceeds the statewide adjusted transportation cost per pupil, a portion of $19 million will be distributed to them. Transportation costs are recalculated every year. An estimated 190 districts will receive funding in FY20, which is 57.1 percent of all Iowa school districts.

The bill requires a report every five years to the Legislature on the effectiveness of the transportation funding and any appropriate recommendations. HF 307 replaces SF 171. The bill will now go to the Governor.
[2/13: 48-0 (Excused: Jochum, Nunn)]