1
SF 64 – School Districts, Budget Adjustment (LSB1678XS)
Staff Contact: Ron Robinson (515.281.6256) ron.robinson@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 64 relates to budget adjustments (budget guarantee) by school districts affected by
a natural disaster.
The Bill provides for an additional year of budget adjustment if, during the base year or the
budget year preceding the base year, a natural disaster impacts the school district for which a
major disaster has been declared to exist by the President of the United States or for which the
Governor has proclaimed a state of disaster emergency. The amount of such additional year of
budget adjustment must be equal to the amount of the school district’s budget adjustment for
the base year.
Background
Currently, a school district is eligible for a budget adjustment equal to the difference between
the regular program district cost for the budget year and 101.0% of the regular program district
cost for the base year. Since April 2023, four major disasters have potentially impacted 243
school districts across 54 counties. The budget adjustment is funded 100.0% by property taxes.
The State supplemental aid (SSA) that is determined by the enactment of a State percent of
growth (SPG) will have an impact on which school districts will qualify for a budget adjustment.
Assumptions
• All 243 qualifying school districts may pass a resolution requesting a budget adjustment.
• It is not known how school districts will define being impacted by a qualifying natural
disaster.
• It is not known how many of the school district facilities or operations were directly impacted
by a qualifying natural disaster.
• All districts within these qualifying natural disaster areas will choose the option providing the
greater budget adjustment amount.
Fiscal Impact
The fiscal impact of SF 64 is unknown since it is not possible to know how which school districts
were directly impacted by a qualifying natural disaster and which school districts will choose to
use the budget adjustment.
The following examples demonstrate that a higher SPG will increase the fiscal impact of the
proposed legislation.
Under current law (0.00% SPG), the budget adjustment in FY 2026 for the potentially impacted
243 school districts is estimated to be as high as $51.8 million. Under the proposed legislation,
the FY 2026 budget adjustment for the impacted districts at 0.00% SPG may be up to
$56.2 million, an increase of $4.4 million compared to current law. An estimated 53 districts
may have a higher FY 2025 regular program district cost than the estimated FY 2026 budget
adjustment.
Fiscal Note
Fiscal Services Division 2
If the SPG for FY 2026 is 1.00% under current law, the budget adjustment in FY 2026 for the
potentially impacted 243 school districts is estimated to be $32.6 million. Under the proposed
legislation, the FY 2026 budget adjustment for the impacted districts at 1.00% SPG would be an
estimated $38.3 million, an increase of $5.7 million compared to the FY 2026 budget adjustment
under current law with a 1.00% SPG. An estimated 62 districts may have a higher FY 2025
budget adjustment than the estimated FY 2026 budget adjustment.
If the SPG for FY 2026 is 2.00% under current law, the budget adjustment in FY 2026 for the
potentially impacted 243 school districts is estimated to be $18.7 million. Under the proposed
legislation, the FY 2026 budget adjustment for the impacted districts at 2.00% SPG would be an
estimated $26.8 million, an increase of $8.1 million compared to the FY 2026 budget adjustment
under current law with a 2.00% SPG. An estimated 76 districts may have a higher FY 2025
budget adjustment than the estimated FY 2026 budget adjustment.
If the SPG for FY 2026 is 3.00% under current law, the budget adjustment in FY 2026 for the
potentially impacted 243 school districts is estimated to be $10.2 million. Under the proposed
legislation, the FY 2026 budget adjustment for the impacted districts at 3.00% SPG would be an
estimated $20.3 million, an increase of $10.1 million compared to the FY 2026 budget
adjustment under current law with a 3.00% SPG. An estimated 82 districts may have a higher
FY 2025 budget adjustment than the estimated FY 2026 budget adjustment.
Sources
Department of Education, Certified Enrollment and Enrollment Projections File
Department of Management, school aid file, and valuation files
Federal Emergency Management Agency (FEMA)
LSA analysis and calculations
/s/ Jennifer Acton
February 26, 2025
Doc ID 1522580
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