IowaSF 16791st General Assembly (2025–2026)SenateWALLET

A bill for an act relating to school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2025, modifying provisions relating to the property tax replacement payments, modifying provisions relating to the regular program state cost per pupil and funding for shared operational functions, and including effective date provisions. (Formerly SSB 1053.) Effective date: 05/19/2025.

Sponsored By: COMMITTEE ON EDUCATION

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

School funding grows 2% for 2025-26

The law sets the statewide growth rate for school funding at 2% for the year starting July 1, 2025. It also sets a 2% growth rate for targeted funds like teacher salary, professional development, early intervention, teacher leadership, and transportation equity aid. For future years, lawmakers must set these growth rates within 30 days after the Governor sends the budget (due by February 1). The act takes effect on 05/19/2025. This helps districts plan and can ease pressure on local property taxes.

State funds school property tax replacement

The state pays the amount needed from the general fund each year to make school district property tax replacement payments, starting with fiscal years on or after 07/01/2023. Each district’s payment equals its weighted enrollment times a per‑pupil amount. The per‑pupil amount is $153 plus a formula that uses the regular program state cost per pupil and the 88.4% foundation base percentage. The law spells out the formula for 2022 and 2023, and from 2024 onward it uses 2021 as the baseline in the calculation. This keeps school funding steady and can help limit pressure on local property taxes.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON EDUCATION

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 209 • No: 167

House vote 4/8/2025

Passed House

Yes: 60 • No: 36

Senate vote 4/7/2025

Passed Senate

Yes: 32 • No: 15

legislature vote 2/13/2025

Amendment H-1008

Yes: 30 • No: 63

House vote 2/13/2025

Passed House

Yes: 58 • No: 35

Senate vote 2/11/2025

Passed Senate

Yes: 29 • No: 18

Actions Timeline

  1. Signed by Governor.

    5/19/2025Governor
  2. Reported correctly enrolled, signed by President and Speaker, and sent to Governor.

    5/19/2025Senate
  3. Explanation of vote.

    4/24/2025legislature
  4. Fiscal note.

    4/9/2025legislature
  5. Message from House.

    4/8/2025House
  6. Immediate message.

    4/8/2025legislature
  7. Passed House, yeas 60, nays 36.

    4/8/2025House
  8. House concurred with Senate amendment H-1220.

    4/8/2025Senate
  9. Senate amendment H-1220 filed.

    4/8/2025Senate
  10. Message from Senate.

    4/8/2025Senate
  11. Immediate message.

    4/7/2025legislature
  12. Passed Senate, yeas 32, nays 15.

    4/7/2025Senate
  13. Senate concurred with S-3004, as amended.

    4/7/2025Senate
  14. Amendment S-3067 to S-3004 filed, adopted.

    4/7/2025legislature
  15. Fiscal note.

    2/18/2025legislature
  16. Explanation of vote.

    2/18/2025legislature
  17. Explanation of vote.

    2/18/2025legislature
  18. Message from House, with amendment S-3004.

    2/17/2025House
  19. Immediate message.

    2/13/2025legislature
  20. Passed House, yeas 58, nays 35.

    2/13/2025House
  21. Amendment H-1010 adopted.

    2/13/2025legislature
  22. Amendment H-1008, yeas 30, nays 63, lost.

    2/13/2025legislature
  23. Substituted for HF 319.

    2/13/2025legislature
  24. Amendments H-1008 and H-1010 filed.

    2/12/2025legislature
  25. Read first time, passed on file.

    2/12/2025legislature

Bill Text

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