Appropriations Committee – Week 5, 2021

FLOOR AND COMMITTEE ACTION:

SF 284/SSB 1162 – Workday Supplemental

SF 284/SSB 1162 appropriates $21 million from FY21 (current fiscal year) from the General Fund to the Office of Chief Information Officer for the implementation of a new state central personnel, accounting and budget system (Workday).
[COMMITTEE 2/8: 13-8, party-line] [FLOOR 2/9: 32-17 (Yes: Republicans, Bisignano; Excused: Nunn)]

COMMITTEE ACTION:

SF 269—Republican School Funding

SF 269 is the Senate Republican proposal for basic school funding for the 2021-2022 school year. They propose 2.2% increase in State Supplemental Aid (SSA), which is an additional $155 per pupil the 2020-2021 school year. Additionally, the bill increases the state cost per pupil equity by $15, which is an additional $8.7 million that goes to schools to close the gap between the state cost per pupil (SCPP) and a higher district cost per pupil (DCPP) paid for through local property taxes. This brings the total increase to $170 per pupil over the 2020-2021 school year. The total new state cost per pupil is $7,218. If a school district has the same or higher SCPP as their DCPP, this state funding translates to property tax relief. Under this proposal, 197 districts receive new funding for per pupil equity, 25 districts will receive a combination of funding and property tax relief, and 105 districts will receive only property tax relief from per pupil equity.

This bill has the state pay for the total cost of SSA and pick up the generated $11 million in property taxes associated with 2.2% SSA. The total state funding for these three efforts is $30 million new dollars. Please note: While this bill does not cut the school aid formula for AEAs, it is expected that the Standings bill will cut state aid by an additional $15 million for AEAs, bringing the real new total for schools down to $15 million for FY22 SSA.

The second part of this bill, which is outside of the basic school funding formula, address transportation equity for districts with higher than average transportation costs. The bill provides $750,000 in new money, which will buy every school district down to statewide average this year. The transportation equity effort will now total $27.4 million, with 218 districts expected to receive a payment from this fund. Going forward, this funding will be linked to the rate of increase in SSA and will grow by the same amount (outside the funding formula).

The third part of this bill is a supplemental bonus: $30 million in one-time money for certain school districts for FY22. This funding will provide what is essentially a $65-per-pupil bonus for school districts that have complied with Governor’s executive orders and guidance during the 2020-2021 school year. In the Senate version, all districts except Des Moines would be eligible for this one-time payment.
[2/8: 13-8, party-line] See Education Weekly report for the floor vote