This bill lowers the statewide school district foundation property tax rate from $5.44 to $4.44 per $1,000 of assessed property value, effective July 1, 2026. It also repeals Iowa’s education savings account program, which allowed families to use public funds for private school tuition. The tax rate change directly affects all Iowa school districts and adjusts tax credit calculations for agricultural landowners under existing family farm tax credit programs. The bill’s provisions apply to school budgets beginning July 1, 2026, with phased increases for reorganized school districts.
HF 2393 allows Iowa school districts to use specific categorical funds - generated from students enrolled in the state's education savings account program - for any general school budget purpose, rather than restricted uses. This change applies only to funds tied to students participating in the education savings account program under Section 257.11B. Previously, these funds had to cover teacher salary supplements, professional development, or leadership program costs, but the bill removes those restrictions starting July 1, 2026. The policy directly affects school districts receiving these funds and provides greater budget flexibility for general operations.
HF 359 requires Iowa property tax statements to include three specific disclosures for each taxpayer: (1) how much less funding their school district received this year compared to last year due to students using education savings accounts (ESAs), (2) how much of their state income taxes funded the ESA program, and (3) a standardized statement showing the exact amount of reduced school funding linked to ESA payments. These disclosures directly affect property owners and taxpayers by making visible the connection between their payments and school funding changes caused by the ESA program. The bill mandates the Department of Management to calculate the funding reduction data and collaborate with the Department of Revenue to determine the tax contribution figures, then transmit both to the treasurer for inclusion on tax statements. This is a transparency measure focused on informing taxpayers about ESA program impacts, not altering the program itself.
HF 221 limits school districts' bond issuances for capital projects approved after July 1, 2025, to 80% of the project's total cost. This means districts must cover the remaining 20% of project expenses through non-bond funding sources, such as existing reserves or other revenue streams. The bill directly affects school districts planning new construction or major improvements, requiring them to secure alternative funding for a portion of project costs rather than relying solely on bond sales. It applies specifically to projects where voter approval occurs after the specified date.
SF 453 changes transportation reimbursement rules for students at nonpublic schools: school districts no longer must pay for transportation if parents use education savings accounts (section 257.11B) to cover school costs. It also adjusts funding for area education agencies based on enrollment of nonpublic school students who do not use these accounts, requiring agencies to provide comparable services or face potential budget reductions. The bill affects public school districts, nonpublic schools, and area education agencies by altering reimbursement eligibility and funding calculations. These changes apply to school budget years beginning July 1, 2025.
HF 579 adjusts funding limits for school districts providing programs for at-risk students, alternative school attendees, or returning dropouts. It sets a 2.5% cap on supplemental funding relative to a district's total regular program costs for fiscal years starting July 1, 2013, and later, with a historical adjustment for districts exceeding this cap before 2013. Starting in 2026, districts could exceed the 2.5% limit to 5% if approved by local voters through an election. The bill directly affects school districts receiving these specific supplemental funds, requiring voter approval for higher funding levels beyond 2025.
House File 1055 is a state finance bill that makes various adjustments to appropriations and transfers for the fiscal year beginning July 1, 2025. It limits funding for nonpublic school pupil transportation and sets instructional support state aid to zero for that fiscal year, directly affecting schools. The bill also allows salary adjustments to be funded from unappropriated moneys in specific state special funds. Additionally, it transfers over $21 million from the taxpayer relief fund to the general fund to support school foundation aid, and reduces amounts for school districts and area education agencies by $25 million. The bill also includes technical corrections to other state laws.
This bill modifies how Iowa school districts receive supplemental funding based on open enrollment. It sets a 35% threshold for open enrollment (students from outside the district) to qualify for aid, requires districts to hold a public hearing before applying, and caps aid at 50% of the net enrollment increase multiplied by specific per-pupil costs (like teacher salaries and professional development). Districts where over half of open-enrollment students use private online instruction are excluded. The changes apply to school budgets starting July 1, 2025, and repeal a prior tax levy limitation.
HF 810 modifies Iowa's funding formula for school districts with high open enrollment (over 45% of students enrolled through open enrollment). It removes the "teacher salary supplement" from the calculation for supplemental aid, expands eligibility beyond the 2024 budget year, and requires school boards to hold public hearings before requesting aid. The bill also limits property tax increases for districts receiving aid after 2025, capping the next year's tax rate at the level of the aid year. It applies to school budget years starting July 1, 2025.
HSB 335 is a bill concerning state finances, primarily impacting education funding and state appropriations. It allocates $14 million annually for fiscal years 2025-2026 and 2026-2027 to supplement compensation for education support personnel in school districts, distributed based on student enrollment. The bill also limits funding for nonpublic school pupil transportation and sets instructional support state aid to zero for FY 2025-2026. Furthermore, it reduces overall funding for school districts and area education agencies by $25 million for FY 2025-2026. The bill also transfers over $21 million from the taxpayer relief fund to the general fund to support foundation aid and allows the use of special funds for state employee salary adjustments.
