Senate File 60 - Introduced SENATE FILE 60 BY ROWLEY A BILL FOR An Act relating to the state school foundation program and 1 the calculation of minimum state foundation aid for school 2 districts and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1977XS (2) 91 jm/md
S.F. 60 Section 1. Section 257.1, subsection 2, paragraph a, Code 1 2025, is amended to read as follows: 2 a. For a budget year, each school district in the state 3 is entitled to receive foundation aid , in an amount per 4 pupil equal to the difference between the amount per pupil of 5 foundation property tax in the district , otherwise determined 6 under section 257.3 and the combined foundation base per pupil 7 or the combined district cost per pupil, whichever is less for 8 the district . However, if the amount of foundation aid to 9 be received by a school district under this chapter is less 10 than three hundred dollars per pupil the state foundation aid 11 minimum for the district , the district is entitled to receive 12 three hundred dollars per pupil unless the receipt of three 13 hundred dollars per pupil plus the per pupil amount raised by 14 the foundation property tax exceeds the combined district cost 15 per pupil of the district for the budget year state foundation 16 aid in an amount equal to the state foundation aid minimum . 17 In that case, the district is entitled to receive an amount 18 per pupil equal to the difference between the per pupil amount 19 raised by the foundation property tax for the budget year and 20 the combined district cost per pupil for the budget year. If 21 the sum of the amount of foundation aid received by a school 22 district plus the amount of foundation property tax in the 23 district otherwise determined under section 257.3 exceeds the 24 combined foundation base, the department of management shall 25 reduce the districts foundation property tax to be collected 26 under section 257.3, subsection 1, paragraph a , or under 27 section 257.3, subsection 2, as applicable, by the amount by 28 which such sum exceeds the combined foundation base and adjust 29 the districts foundation property tax rate accordingly. For 30 purposes of this paragraph, state foundation aid minimum means 31 the sum of the total teacher salary supplement district cost, 32 the total professional development supplement district cost, 33 the total early intervention supplement district cost, and the 34 total teacher leadership supplement district cost. 35 -1- LSB 1977XS (2) 91 jm/md 1/ 3
S.F. 60 Sec. 2. Section 257.2, subsection 4, Code 2025, is amended 1 by striking the subsection. 2 Sec. 3. Section 257.10, subsection 5, Code 2025, is amended 3 by striking the subsection. 4 Sec. 4. APPLICABILITY. This Act applies to school budget 5 years beginning on or after July 1, 2026. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanations substance by the members of the general assembly. 9 Code section 257.1 provides that for a budget year, each 10 school district in the state is entitled to receive foundation 11 aid in an amount per pupil equal to the difference between the 12 amount per pupil of foundation property tax in the district 13 and the combined foundation base per pupil or the combined 14 district cost per pupil, whichever is less, and subject to a 15 $300 per pupil minimum unless the receipt of $300 per pupil 16 plus the per pupil amount raised by the foundation property tax 17 exceeds the combined district cost per pupil of the district 18 for the budget year, in which case the district gets an amount 19 per pupil equal to the difference. The combined foundation 20 base is defined as the sum of the regular program foundation 21 base, the special education support services foundation 22 base, the total teacher salary supplement district cost, the 23 total professional development supplement district cost, the 24 total early intervention supplement district cost, the total 25 teacher leadership supplement district cost, and the total area 26 education agency teacher salary supplement district cost. 27 This bill modifies the calculation of foundation aid to 28 be an amount equal to the difference between the amount of 29 foundation property tax in the district and the combined 30 foundation base for the district. However, if the amount of 31 foundation aid to be received by a school district is less than 32 the state foundation aid minimum for the district, the district 33 is entitled to receive state foundation aid in an amount equal 34 to the state foundation aid minimum. State foundation aid 35 -2- LSB 1977XS (2) 91 jm/md 2/ 3
S.F. 60 minimum means the sum of the total teacher salary supplement 1 district cost, the total professional development supplement 2 district cost, the total early intervention supplement district 3 cost, and the total teacher leadership supplement district 4 cost. Additionally, if the sum of the amount of foundation aid 5 received by a school district plus the amount of foundation 6 property tax in the district otherwise determined under 7 Code section 257.3 exceeds the combined foundation base, the 8 department of management is required to reduce the districts 9 foundation property tax to be collected by the amount by which 10 such sum exceeds the combined foundation base and adjust the 11 districts foundation property tax rate accordingly. 12 The bill also strikes definitions made obsolete by the bill. 13 The bill applies to school budget years beginning on or after 14 July 1, 2026. 15 -3- LSB 1977XS (2) 91 jm/md 3/ 3