1
SF 247 – Open Enrollment, School Budget Review Committee (LSB1343SV)
Staff Contact: Ron Robinson (515.281.6256) ron.robinson@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 247 adds a new circumstance under which a school district may request funding
from the School Budget Review Committee (SBRC) or a modified supplemental amount (MSA)
authorization from the SBRC. Specifically, if the percentage of students enrolled in a school
district as the result of open enrollment is equal to or greater than 35.0% of the total students
enrolled in the school district, then the school district may make such a request.
The SBRC must not approve supplemental aid or an MSA that exceeds an amount equal to
50.0% of the net increase in the school district’s enrollment due to open enrollment multiplied by
the sum of the following amounts:
• The difference between the district’s regular program district cost per pupil minus the regular
program State cost per pupil.
• The teacher salary supplement district cost per pupil.
• The professional development supplement district cost per pupil.
• The early intervention supplement district cost per pupil.
A school district is not eligible for supplemental aid or an MSA if a majority of the open
enrollment students are receiving online instruction from private providers under Iowa Code
section 256.43(2).
This Bill takes effect upon enactment and applies July 1, 2023 (FY 2024), for school budget
years beginning on or after that date.
Background
Iowa Code section 257.31 provides that if a school district has unusual circumstances creating
an unusual need for additional funds, the SBRC may grant supplemental aid to the school
district from certain funds appropriated to the Department of Education (DE) for the use of the
SBRC, or the SBRC may establish an MSA for the school district, or both. The SBRC does not
currently have funds appropriated to the DE for this purpose. The SBRC must review a school
district’s unexpended fund balance prior to any decision regarding these types of funding
requests.
The SBRC’s authorization of an MSA increases the spending authority for a school district. An
authorized MSA does not result in additional State funding. A school district may choose to
utilize the additional spending authority by using resources available for this purpose and might
result in funding from property taxes.
Applications to the SBRC for an MSA related to FY 2024 programming must be submitted after
January 15, 2023, and before March 1, 2023, as specified in Iowa Code section 257.40(2).
Fiscal Note
Fiscal Services Division 2
Assumptions
• Estimates are based on FY 2023 data and October 2022 enrollments.
• All applications for an MSA will be for the maximum allowed.
• Districts will levy the maximum amount.
• Districts will not decrease other levies (management levy or cash reserve levy).
• Certified enrollment and district costs per pupil remain constant.
• School district carryforward amounts, which are required to be deducted from an MSA
award, will be zero.
• There will be no additional cost to the State as a result of the Bill.
• The Department of Education will make modifications to the MSA application as part of the
annual application update at no additional cost.
Fiscal Impact
Senate File 247 may result in MSAs totaling a maximum of $1.4 million for 13 school districts,
beginning with FY 2024. The funding for the MSAs will be paid from resources available to the
school district or from increased property tax collections. If the Bill is enacted after February 28,
2023, the resources would not be available for school districts until FY 2025.
Sources
Department of Education
Iowa Association of School Boards
LSA analysis and calculations
/s/ Jennifer Acton
February 13, 2023
Doc ID 1368733
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov