All Roll Calls
Yes: 143 • No: 138
IowaSF 220191st 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, 2026, modifying provisions relating to property tax replacement payments, transportation equity aid funding, funding for school district budget adjustments, and school district enrollment, establishing an education support personnel salary supplement, making appropriations, and including effective date and applicability provisions. (Formerly SSB 3100.) Effective date: 02/26/2026, 07/01/2026. Applicability date: 07/01/2026.
Sponsored By: COMMITTEE ON EDUCATION
Signed by Governor
appropriations
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 3 benefits, 1 costs, 3 mixed.
School funding growth rates set
The law sets school funding growth rates. Regular program growth is 3.0% for 2023, 2.5% for 2024, and 2.0% for 2025 and 2026. Categorical growth matches those years, except 5.0% is used to fund transportation equity for 2025. Future rates must be set in law. This division does not have to follow the usual 30‑day timing rule for passing growth rates.
State pays 2026–27 budget adjustments
For the school budget year starting July 1, 2026, each district’s budget adjustment is added to its combined foundation base. The adjustment is paid with state foundation aid. It is not funded by district property taxes for that year.
Cap on school transportation aid
Beginning July 1, 2026, a district’s transportation equity aid cannot be more than $1,000,000 each year. Districts must meet the program’s eligibility rules to receive aid. If a district’s calculated aid is higher, it is reduced to $1,000,000. This may shift more cost to local budgets in very high‑cost districts.
Per-student property tax replacement set
Beginning July 1, 2026, the per‑student property tax replacement equals $153 plus a calculated difference using the 2026 and 2021 state cost per pupil and the foundation base percentage. Each district’s payment equals that per‑student amount times its weighted enrollment. The state also provides the money needed each year, starting July 1, 2024, so the Department of Education can make these payments. This money helps offset school property taxes.
One-year boost for school support staff
For FY 2026–2027, the state provides $7,000,000 to raise pay for education support staff who are not salaried. Each district’s share equals $7,000,000 times its share of statewide 2025 budget enrollment. Districts must report their number of support staff by July 1, 2026 to receive funds. Payments follow foundation aid timing and do not raise future district costs.
New dates and rules for enrollment counts
Districts must certify actual enrollment by October 15 each year. The state sets an adjusted enrollment each January 15 (or the third Monday), and districts must certify it by January 30. The Department of Education sends adjusted‑enrollment data to the Department of Management within 21 days, and sends actual‑enrollment data within 30 days. The state uses this data to adjust the audit‑year enrollment and to fix budgets two years later. If the state finds a problem with a district’s count, the district has five business days to resolve it before the state makes the final decision. These changes apply to enrollment determinations on or after July 1, 2026 and affect budgets starting July 1, 2027.
Quarterly area education agency payments
The law moves many state aid payments and deductions to a quarterly schedule. Starting in FY 2027, the state deducts amounts from district aid and pays area education agencies on July 15, October 15, January 15, and April 15. These payments cover AEA teacher salary supplements, shared operational weights, and media and educational services for nonpublic students. This changes cash flow, not total annual funding.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON EDUCATION
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 2/23/2026
Passed Senate
Yes: 27 • No: 20
Senate vote • 2/19/2026
Amendment H-8010 to committee amendment H-8004
Yes: 30 • No: 63
House vote • 2/19/2026
Passed House
Yes: 58 • No: 35
Senate vote • 2/10/2026
Passed Senate
Yes: 28 • No: 20
Actions Timeline
Signed by Governor.
2/26/2026GovernorReported correctly enrolled, signed by President and Speaker, and sent to Governor.
2/26/2026SenateMessage from Senate.
2/23/2026SenateImmediate message.
2/23/2026legislaturePassed Senate, yeas 27, nays 20.
2/23/2026SenateSenate concurred with S-5018.
2/23/2026SenateFiscal note.
2/23/2026legislatureAmendment S-5018 filed.
2/23/2026legislatureMessage from House.
2/23/2026HouseImmediate message.
2/19/2026legislatureExplanation of vote.
2/19/2026legislaturePassed House, yeas 58, nays 35.
2/19/2026HouseAmendment H-8004 adopted, as amended.
2/19/2026legislatureAmendment H-8008 ruled out of order.
2/19/2026legislatureAmendment H-8012 to committee amendment H-8004 filed, adopted.
2/19/2026legislatureAmendment H-8010 to committee amendment H-8004, yeas 30, nays 63, lost.
2/19/2026legislatureAmendment H-8010 filed.
2/19/2026legislatureAmendment H-8008 filed.
2/18/2026legislatureCommittee amendment H-8004 filed.
2/16/2026legislaturePlaced on Appropriations calendar.
2/16/2026legislatureCommittee vote: Yeas, 15. Nays, 8. Excused, 2.
2/16/2026legislatureCommittee report, recommending amendment and passage.
2/16/2026legislatureSubcommittee recommends passage.
2/16/2026legislatureSubcommittee Meeting: 02/16/2026 11:30AM RM 103.
2/12/2026legislatureFiscal note.
2/12/2026legislature
Bill Text
As Introduced
Enrolled
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