A bill for an act relating to incentives for whole grade sharing and school district reorganization or dissolution.

Senate Study Bill 3146 extends Iowa school districts' eligibility for financial incentives related to reorganization (merging with another district) or dissolution (closing) from July 1, 2024, to July 1, 2031. It allows districts with whole grade sharing agreements - where students attend part of their school day in another district - to receive supplemental state funding equal to one-tenth of the percentage of the school day spent in that district, for up to three years. Districts that reorganize before July 1, 2031, can continue receiving this supplemental funding for up to three years after the merger, at the same level as the year prior to the merger. Districts must report reorganization or dissolution plans to the state education department by January 1 of the effective year.