Bill Text: IA HF565 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act relating to public school funding by authorizing the establishment of school district flexibility accounts and authorizing the transfer and expenditure of certain unexpended and unobligated funds. (Formerly HF 446.) Effective 7-1-17.
Sponsorship: Committee Bill
Status: (Passed) 2017-05-11 - Signed by Governor. H.J. 1148. [HF565 Detail]
Download: Iowa-2017-HF565-Enrolled.html
House File 565 - Enrolled
HOUSE FILE
BY COMMITTEE ON EDUCATION
(SUCCESSOR TO HF 446)
\5
A BILL FOR
\1
House File 565
AN ACT
RELATING TO PUBLIC SCHOOL FUNDING BY AUTHORIZING THE
ESTABLISHMENT OF SCHOOL DISTRICT FLEXIBILITY ACCOUNTS
AND AUTHORIZING THE TRANSFER AND EXPENDITURE OF CERTAIN
UNEXPENDED AND UNOBLIGATED FUNDS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 256C.4, subsection 1, paragraph e, Code
2017, is amended to read as follows:
e. Preschool foundation aid funding shall not be used for
the costs of constructing a facility in connection with an
approved local program. Preschool foundation aid funding may
be used by approved local programs and community providers
for professional development for preschool teachers, for
instructional equipment, for material and equipment designed
to develop pupils' large and small motor skills, and for other
direct costs. Preschool foundation aid funding may be used
by approved local programs for the costs of transportation
involving children participating in the preschool program.
The costs of transporting other children associated with
the preschool program or transported as provided in section
256C.3, subsection 3, paragraph "h", may be prorated by the
school district. Preschool foundation aid funding received by
an approved local program that remain remains unexpended or
and unobligated at the end of a fiscal year beginning on or
after July 1, 2017, shall be used to build the approved local
program's preschool program capacity in the next succeeding
fiscal year excluding that portion of such unexpended and
unobligated funding that the school district authorizes for
transfer for deposit in the school district's flexibility
account established under section 298A.2, subsection 2, if
the statutory requirements for the use of such funding are
met. For purposes of determining whether a school district
has authority to transfer preschool foundation aid funding
for deposit in the school district's flexibility account
established under section 298A.2, subsection 2, the school
district must have provided preschool programming during
the fiscal year for which funding remains unexpended and
unobligated to all eligible students for whom a timely
application for enrollment was submitted.
Sec. 2. Section 257.10, subsection 10, paragraph d, Code
2017, is amended to read as follows:
d. The use of the funds calculated under this subsection
and any amount designated for professional development purposes
from the school district's flexibility account under section
298A.2, subsection 2, shall comply with the requirements of
chapter 284. If all professional development requirements of
chapter 284 are met and funds received under this subsection
remain unexpended and unobligated at the end of a fiscal year
beginning on or after July 1, 2017, the school district may
transfer all or a portion of such unexpended and unobligated
funds for deposit in the school district's flexibility account
established under section 298A.2, subsection 2.
Sec. 3. Section 257.41, subsection 1, Code 2017, is amended
to read as follows:
1. Budget. The budget of an approved program for at=risk
students, secondary students who attend alternative programs
or alternative schools, or returning dropouts and dropout
prevention for a school district, after subtracting funds
received under section 257.11, subsection 4, paragraphs "a"
through "c", and from other sources for that purpose, including
any previous carryover or amount designated from the school
district's flexibility account under section 298A.2, subsection
2, shall be funded annually on a basis of one=fourth or
more from the district cost of the school district and up to
three=fourths through establishment of a modified supplemental
amount. Annually, the department of management shall establish
a modified supplemental amount for each such school district
equal to the difference between the approved budget for the
program for that district and the sum of the amount funded from
the district cost of the school district plus funds received
under section 257.11, subsection 4, and from other sources
for that purpose, including any previous carryover or amount
designated from the school district's flexibility account under
section 298A.2, subsection 2.
Sec. 4. Section 257.46, subsection 1, Code 2017, is amended
to read as follows:
1. The budget of an approved gifted and talented children
program for a school district, after subtracting funds received
from other sources for that purpose, including any amount
designated from the school district's flexibility account
under section 298A.2, subsection 2, shall be funded annually
on a basis of one=fourth or more from the district cost of the
school district.
Sec. 5. Section 284.6, subsection 9, Code 2017, is amended
to read as follows:
9. Moneys received pursuant to section 257.10, subsection
10, or section 257.37A, subsection 2, shall be maintained
as a separate listing within a school district's or area
education agency's budget for funds received and expenditures
made pursuant to this subsection. A school district shall
certify to the department of education how the school
district allocated the funds and that moneys received under
this subsection were used to supplement, not supplant, the
professional development opportunities the school district
would otherwise make available. For budget years beginning
on or after July 1, 2017, all or a portion of the moneys
received pursuant to section 257.10, subsection 10, that remain
unexpended and unobligated at the end of a fiscal year may,
pursuant to section 257.10, subsection 10, paragraph "d", be
transferred for deposit in the school district's flexibility
account established under section 298A.2, subsection 2.
Sec. 6. Section 298A.2, Code 2017, is amended to read as
follows:
298A.2 General fund ==== flexibility account.
1. All moneys received by a school corporation from taxes
and other sources must be accounted for in the general fund,
except moneys required by law to be accounted for in another
fund.
2. a. A flexibility account shall be established in
the general fund of each school corporation if the school
corporation has authorized the transfer of all or a portion
of the unexpended and unobligated funds from any of the
following sources following a determination that the statutory
requirements for such funds are met:
(1) An approved local program under the statewide preschool
program for four=year=old children under chapter 256C.
(2) Professional development funds received under section
257.10, subsection 10.
(3) The home school assistance program under section
299A.12.
b. In addition to the transfers to the flexibility account
authorized by law, a school district may transfer to the
flexibility account all or a portion of any unexpended and
unobligated moneys in any other school district fund or school
district general fund account if the program, purpose, or
requirements for the expenditure of such moneys have been
repealed or are no longer in effect.
c. Moneys deposited in the flexibility account may be used
by the school district during a budget year beginning in or
after the calendar year in which the moneys were transferred to
the flexibility account for any of the following:
(1) Start=up costs for an approved local program under the
statewide preschool program for four=year=old children under
chapter 256C.
(2) Professional development requirements under chapter
284.
(3) The home school assistance program under section
299A.12.
(4) At=risk pupils programs, alternative programs and
alternative school programs, and returning dropout and dropout
prevention programs under section 257.40.
(5) Gifted and talented children programs under section
257.46.
(6) Any school district general fund purpose.
d. Expenditures from the flexibility account shall be
approved by resolution of the board of directors of the school
corporation and shall be included in the budget certified in
accordance with chapter 24. Before the board of directors
may adopt the resolution approving expenditures from the
flexibility account, the board shall hold a public hearing on
the proposed resolution. The proposed resolution must state
the original source and purpose of the funds, the proposed use
of such funds, the amount of the proposed expenditure, and
the fiscal year from which the transfer of such funds to the
flexibility account occurred. The proposed resolution must
also include a certification that the statutory requirements
for each original source of the money proposed to be used have
been met, have been repealed, or are no longer in effect. The
board shall publish notice of the time and the place of the
public hearing in the same manner as required in section 24.9.
The department of education shall prescribe the form for public
hearing notices. A copy of the resolution shall be provided
by the board to the department of education and shall be made
available by the board for any audit performed under chapter
11.
e. (1) When exercising authority to carry out an agency
action, as defined in section 17A.2, or to perform an activity
or make a decision specified in section 17A.2, subsection
11, paragraphs "a" through "l", if applicable, related to the
provisions of this subsection, the department of education, the
director of the department of education, and the state board
of education shall carry out, perform, or make such agency
action, activity, or decision in a manner that gives deference
to decisions of school districts' boards of directors, promotes
flexibility for school districts, and minimizes intrusions into
school district operations and decision making by boards of
directors.
(2) (a) In addition to subparagraph (1), the department of
education, the director of the department of education, and the
state board of education shall not issue guidance related to
the provisions of this subsection, that is inconsistent with
any statute, rule, or other legal authority or that imposes
any legally binding obligations or duties upon any person
unless such legally binding obligations or duties are required
or reasonably implied by any statute, rule, or other legal
authority. Guidance issued in violation of this subparagraph
(2) shall not be deemed to be legally binding.
(b) For the purposes of this subparagraph (2), "guidance"
means a document or statement issued by the department of
education, the director of the department of education, or the
state board of education that purports to interpret a law,
a rule, or other legal authority and is designed to provide
advice or direction to a person regarding the implementation
of or compliance with the law, the rule, or the other legal
authority being interpreted. "Guidance" does not include any
action, activity, or decision governed by subparagraph (1), a
document or statement required by federal law or a court, or
a document or statement issued in the course of a contested
case proceeding, an administrative proceeding, or a judicial
proceeding to which the department, the state board, or the
director is a party.
Sec. 7. Section 299A.12, subsection 1, Code 2017, is amended
to read as follows:
1. The board of directors of a school district shall
expend moneys received pursuant to section 257.6, subsection
1, paragraph "a", subparagraph (5), and amounts designated
from the school district's flexibility account under section
298A.2, subsection 2, for purposes of providing a home school
assistance program.
Sec. 8. Section 299A.12, subsection 2, unnumbered paragraph
1, Code 2017, is amended to read as follows:
Purposes for which a school district may expend funds
received pursuant to section 257.6, subsection 1, paragraph
"a", subparagraph (5), or amounts designated from the school
district's flexibility account under section 298A.2, subsection
2, shall include but not be limited to the following:
Sec. 9. Section 299A.12, subsection 2, paragraphs c and d,
Code 2017, are amended to read as follows:
c. Salary and benefits for the supervising teacher of
the home school assistance program students. If the teacher
is a part=time home school assistance program teacher and a
part=time regular classroom teacher, funds received pursuant to
section 257.6, subsection 1, paragraph "a", subparagraph (5),
or amounts designated from the school district's flexibility
account under section 298A.2, subsection 2, may be used only
for the portion of time in which the teacher is a home school
assistance program teacher.
d. Salary and benefits for clerical and office staff of
the home school assistance program. If the staff members are
shared with other programs or functions within the district,
funds received pursuant to section 257.6, subsection 1,
paragraph "a", subparagraph (5), or amounts designated from the
school district's flexibility account under section 298A.2,
subsection 2, shall only be expended for the portion of time
spent providing the home school assistance program services.
Sec. 10. Section 299A.12, subsection 3, unnumbered
paragraph 1, Code 2017, is amended to read as follows:
Purposes for which a school district shall not expend funds
received pursuant to section 257.6, subsection 1, paragraph
"a", subparagraph (5), or amounts designated from the school
district's flexibility account under section 298A.2, subsection
2, include but are not limited to the following:
Sec. 11. Section 299A.12, Code 2017, is amended by adding
the following new subsection:
NEW SUBSECTION. 4. Unless otherwise prohibited by law, and
if the statutory requirements for use of home school assistance
program funding have been met, including funding all purposes
listed in subsection 2 and funding all requests for services
and materials from parents or guardians of students eligible
to access the program, all or a portion of the moneys received
by a school district pursuant to section 257.6, subsection
1, paragraph "a", subparagraph (5), that remain unexpended
and unobligated at the end of a budget year beginning on or
after July 1, 2017, may be transferred for deposit in the
school district's flexibility account established under section
298A.2, subsection 2.
LINDA UPMEYER
JACK WHITVER
CARMINE BOAL
TERRY E. BRANSTA
-1-
