Iowa House Bill HSB335

Iowa 2025-2026 Regular Session

• Introduced: 4/29/25
• Refer: 4/29/25

Caption

A bill for an act relating to state finances, including by making, modifying, limiting, or reducing appropriations, distributions, or transfers, authorizing expenditure of unappropriated moneys in special funds, providing for properly related matters including prohibiting state membership in the Iowa individual health benefit reinsurance association, making corrections, and including effective date and retroactive applicability provisions.

Impact

In terms of its impact, HSB335 includes provisions that will limit or reduce existing appropriations for nonpublic school pupil transportation and state aid for area education agencies. The adjustments aim to manage state expenditures more effectively while instituting salary adjustments funded by unappropriated moneys from special funds. The bill also makes clear that the appropriated funds for education support personnel will not contribute to any calculations regarding school district costs, thus ensuring that this funding acts as a straightforward supplement rather than a part of the general funding formula.

Summary

House Study Bill 335 (HSB335) is a legislative proposal focused on state finances, specifically addressing multiple aspects such as appropriations, distributions, and the handling of unappropriated funds within the general fund. The bill proposes an appropriation of $14 million towards the Department of Education to supplement the compensation for education support personnel for the fiscal years 2025-2026 and 2026-2027. This funding aims to provide financial aids to bolster non-salaried staff who are essential for supporting educational operations across the state.

Contention

There has been some contention surrounding the bill, especially given its component related to state membership in the Iowa individual health benefit reinsurance association. By prohibiting the state's participation in this association, the bill reverses a previous commitment to state enrollment, which may raise concerns over health coverage for individuals affected by this change. Furthermore, with the reduction of specific standing appropriations, there may be debate among stakeholders regarding the sufficiency and allocation of educational resources amid potential budget constraints.