Bill > SSB3100

Introduced Session

This bill relates to various aspects of school funding. DIVISION I —— STATE AND CATEGORICAL PERCENTS OF GROWTH AND PROPERTY TAX REPLACEMENT PAYMENTS. The bill establishes a state percent of growth of 1.75 percent for the budget year beginning July 1, 2026. The state percent of growth is used to calculate the amount of supplemental state aid for a budget year as part of the state school foundation program. The bill also establishes a categorical state percent of growth of 1.75 percent for the budget year beginning July 1, 2026. The categorical state percent of growth is generally used to S.F. _____ calculate the amount of supplemental state aid for each of the categorical funding supplements. Code section 257.16B provides for school district property tax replacement payments. For each budget year beginning on or after July 1, 2025, the amount of each school district’s property tax replacement payment is the product of the school district’s weighted enrollment for the budget year multiplied by the per pupil property tax replacement amount for the budget year. The per pupil property tax replacement amount for budget years beginning on or after July 1, 2025, is equal to the sum of $153 plus the difference between the following: (1) the regular program state cost per pupil for the budget year beginning July 1, 2025, multiplied by 100 percent less the regular program foundation base per pupil percentage; and (2) the regular program state cost per pupil for the budget year beginning July 1, 2021, multiplied by 100 percent less the regular program foundation base per pupil percentage. The bill modifies the property tax replacement payment calculation for budget years beginning on or after July 1, 2026. For budget years beginning on or after July 1, 2026, the amount of each school district’s property tax replacement payment is the product of the school district’s weighted enrollment for the budget year multiplied by the per pupil property tax replacement amount for the budget year. The per pupil property tax replacement amount for budget years beginning on or after July 1, 2026, is equal to the sum of $153 plus the difference between the following: (1) the regular program state cost per pupil for the budget year beginning July 1, 2026, multiplied by 100 percent less the regular program foundation base per pupil percentage; and (2) the regular program state cost per pupil for the budget year beginning July 1, 2021, multiplied by 100 percent less the regular program foundation base per pupil percentage. The regular program foundation base per pupil percentage is 88.4 percent. The division takes effect upon enactment. S.F. _____ DIVISION II —— STATE COST PER PUPIL. Under the bill, for the budget year beginning July 1, 2026, the regular program state cost per pupil is the regular program state cost per pupil for the base year plus the regular program supplemental state aid for the budget year, plus $5. Then with the budget year beginning July 1, 2027, and succeeding budget years, the regular program state cost per pupil will again be calculated as the regular program state cost per pupil for the base year plus the regular program supplemental state aid for the budget year. The division takes effect upon enactment. DIVISION III —— SCHOOL DISTRICT BUDGET ADJUSTMENT —— FY 2026-2027. Code section 257.14 authorizes school districts to receive a budget adjustment equal to the difference between the regular program district cost for the budget year and 101 percent of the regular program district cost for the base year. If approved by the school district’s board of directors, such a budget adjustment is funded through school district property taxes. The bill provides that for the school budget year beginning July 1, 2026, the department of management shall add the amount of the school district’s budget adjustment under Code section 257.14, if any, to the combined foundation base under Code section 257.1(2). Code section 257.1 provides foundation aid from the state in an amount per pupil equal to the difference between the amount per pupil of foundation property tax in the district and the combined foundation base per pupil or the combined district cost per pupil, whichever is less. Accordingly, following the addition to the combined foundation base, the budget adjustment amount shall be funded by foundation aid from the state instead of property taxes. The division takes effect upon enactment. DIVISION IV —— SCHOOL DISTRICT ENROLLMENT. Under current law, a school district’s basic enrollment for a budget year is the district’s actual enrollment for the base year. Under the bill, a school district’s basic enrollment for a budget year S.F. _____ is the greater of the actual enrollment for the base year and adjusted enrollment for the base year. Under the bill, adjusted enrollment is to be determined annually on February 1, or the first Monday in February if February 1 falls on a weekend, of the base year, based on the same categories of students used to determine actual enrollment under Code section 257.6(1)(a). School districts are required to certify adjusted enrollment to the department of education by February 15 of the base year, and the department is required to promptly forward the information to the department of management for use in determining and adjusting tax and funding amounts. The division applies to enrollment determinations occurring on or after July 1, 2026, used for school budget years beginning on or after July 1, 2027.

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Other Sponsors (1)

Committee report approving bill, renumbered as SF 2201. (on 02/04/2026)

Official Document