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.

STATE OF IOWA
KIM REYNOLDS
GOVERNOR
May 19, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 167, 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.
The above Senate File is hereby approved on this date.
Since. ely,
ynold
Governor of Io
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 FAX 515.725.3527 WWW.GOVERNOR.IOWA.GOV
r
. isillilll i t
! 11 :121111111111111111111 ID 1111 N• Il::::uunnnnnuuununnuluum:::;u
IIII:III.:.:•'
V•' i ' 1 `
•
• ' •> • • J wuu'iuuinuiuuii•. • a i \ . uiunnnnïGinill
III m umnuumllllmnlll
I 1"A1Z.AI, ASSEMBLY lIfII11YVI111111U111111111lI",lIl11YIII1111Ulllltllllll°EIYIlIlnllllllllilllllllll?IUV3lIIIIIIIIIIII IIIIIIIIIIIIYII VVYEIEEI?IiI11111141111IlUVEIf IC°UIIIIIIIIIIIIIII111441EIIEIlIIIUIIIIYIIIIIII1VYIflflll
Senate File 167
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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA.:
DIVISION I
STATE AND CATEGORICAL PERCENTS OF GROWTH AND PROPERTY TAX
REPLACEMENT PAYMENTS
Section 1. Section 257.8, subsections 1 and 2, Code 2025,
are amended to read as follows:
1. State percent of growth. The state perccnt of growth for
the budget year beginning July 1, 2022, i3 two and one half
perccnt. The state percent of growth for the budget year
beginning July 1, 2023, is three percent. The state percent of
growth for the budget year beginning July 1, 2024, is two and
one-half percent. The state percent of growth for the budget
year beginning July 1, 2025, is two percent. The state percent
of growth for each subsequent budget year shall be established
Senate File 167, p. 2
by statute which shall be enacted within thirty days of the
transmission of the governor's budget required by February
1 under section 8.21 during the regular legislative session
beginning in the base year.
2. Categorical state percent of growth, The eategerieal
state percent ef grewth fer the budget year beginning july
1, 2022, i3 two and one half perccnt. The categorical state
percent of growth for the budget year beginning July 1, 2023,
is three percent. The categorical state percent of growth for
the budget year beginning July 1, 2024, is two and one-half
percent. The categorical state percent of growth for the
budget year beginning July 1, 2025, is two percent, except for
calculating the appropriation to the transportation equity
fund under section 257.16C. The categorical state percent
of growth for purposes of calculating the appropriation to
the transportation equity fund under section 257.16C for the
budget year beginning July 1, 2025, is five percent. The
categorical state percent of growth for each budget year shall
be established by statute which shall be enacted within thirty
days of the transmission of the governor's budget required by
February 1 under section 8.21 during the regular legislative
session beginning in the base year. The categorical state
percent of growth may include state percents of growth for
the teacher salary supplement, the professional development
supplement, the early intervention supplement, the teacher
leadership supplement, and for budget years beginning on or
after July 1, 2020, transportation equity aid payments under
section 257.16C.
Sec. 2. Section 257.16B, subsections 1 and 2, Code 2025, are
amended to read as follows:
1. For each fiscal year beginning on or after July 1, 2022
2023, there is appropriated from the general fund of the state
to the department of education an amount necessary to make all
school district property tax replacement payments under this
section, as calculated in subsection 2.
2. a, ( 1) For the budgct y ar bcginning July 1, 2022,
the amount of each School district's property tax rcplaccmcnt
payment shall be the preduet of the school district's wcightcd
Senate File 167, p. 3
enrellment fer t y ar multiplied by the per pupil
property tax rcp-lae­eff•_-• a-meu-n-t fe-r the budget year calculated
under subparagraph ( 2).
( 2) The per pupil property tax replacement amount for the
budget yc-ar beginning July 1, 2022, is equal to the sum of one
hundred fifty - three dollars plus - the - d±fferen - ee b etween
following:
( a) The regular pregram state eest per pupil fer the budge
y ar beginning July 1, 2022, multiplied by one hundred percent
pursuant to section 257.1 for the budget y ar beginning July
1, 2022.
( b) The regular pregraffl state eest per pupil fer the budget
y ar beginning July 1, 2021, hundred percent
pursuant to section 257.1 for the budget year beginning July
1, 2022.
b= a. ( 1) For the budget year beginning July 1, 2023,
the amount of each school district's property tax replacement
payment shall be the product of the school districts weighted
enrollment for the budget year multiplied by the per pupil
property tax replacement amount for the budget year calculated
under subparagraph ( 2).
( 2) The per pupil property tax replacement amount for the
budget year beginning July 1, 2023, is equal to the sum of one
hundred fifty-three dollars plus the difference between the
following:
( a) The regular program state cost per pupil for the budget
year beginning July 1, 2023, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the budget year beginning July
1, 2023.
( b) The regular program state cost per pupil for the budget
year beginning July 1, 2021, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the budget year beginning July
1, 2023.
e: b. ( 1) For each the budget year beginning on or after
July 1, 2024, the amount of each school district's property
Senate File 167, p. 4
tax replacement payment shall be the product of the school
district's weighted enrollment for the budget year multiplied
by the per pupil property tax replacement amount for the budget
year calculated under subparagraph ( 2).
( 2) The per pupil property tax replacement amount for
the budget years year beginning on or after July 1, 2024, is
equal to the sum of one hundred fifty-three dollars plus the
difference between the following:
( a) The regular program state cost per pupil for the budget
year beginning July 1, 2024, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the applicablc budget year undcr
this paragraph beginning July 1, 2024.
( b) The regular program state cost per pupil for the budget
year beginning July 1, 2021, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the applic-ablc budget year undcr
thi3 paragraph beginning July 1, 2024.
c. ( 1) For each budget year beginning on or after July
1, 2025, the amount of each school district's property
tax replacement payment shall be the product of the school
district's weighted enrollment for the budget year multiplied
by the per pupil property tax replacement amount for the budget
year calculated under subparagraph ( 2).
( 2) The per pupil property tax replacement amount for budget
years beginning on or after July 1, 2025, is equal to the sum
of one hundred fifty-three dollars plus the difference between
the following:
( a) The regular program state cost per pupil for the budget
year beginning July 1, 2025, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the applicable budget year under
this paragraph.
( b) The regular program state cost per pupil for the budget
year beginning July 1, 2021, multiplied by one hundred percent
less the regular program foundation base per pupil percentage
pursuant to section 257.1 for the applicable budget year under
this paragraph.
Sec. 3. CODE SECTION 257.8 — IMPLEMENTATION. The
Senate File 167, p. 5
requirements of section 257.8, subsections 1 and 2, regarding
the enactment of bills establishing the state percent of growth
and the categorical state percent of growth within thirty
days of the transmission of the governor's budget required by
February 1 under section 8.21 during the regular legislative
session beginning in the base year, do not apply to this
division of this Act.
Sec. 4. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION II
STATE COST PER PUPIL
Sec. 5. Section 257.9, subsection 2, Code 2025, is amended
to read as follows:
2. Regular program state cost per pupil for 1992-1993 and
succeeding years.
a. For the budget year beginning July 1, 1992, and
succeeding budget years beginning before July 1, 2018, the
regular program state cost per pupil for a budget year is the
regular program state cost per pupil for the base year plus the
regular program supplemental state aid for the budget year.
b. For the budget year beginning July 1, 2018, the regular
program state cost per pupil is the regular program state
cost per pupil for the base year plus the regular program
supplemental state aid for the budget year, plus five dollars.
c. For the budget year beginning July 1, 2019, the regular
program state cost per pupil is the regular program state
cost per pupil for the base year plus the regular program
supplemental state aid for the budget year, plus five dollars.
d. For the budget year beginning July 1, 2020, the regular
program state cost per pupil is the regular program state
cost per pupil for the base year plus the regular program
supplemental state aid for the budget year, plus ten dollars.
e. For the budget year beginning July 1, 2021, the regular
program state cost per pupil is the regular program state
cost per pupil for the base year plus the regular program
supplemental state aid for the budget year, plus ten dollars.
f. For the budget year beginning July 1, 2022, the regular
program state cost per pupil is the regular program state
cost per pupil for the base year plus the regular program
Senate File 167, p. 6
supplemental state aid for the budget year, plus five dollars.
g. For the budget ycar years beginning July 1, 2023, and
ouccccding budgct ycvrs July 1, 2024, the regular program state
cost per pupil for a budget year is the regular program state
cost per pupil for the base year plus the regular program
supplemental state aid for the budget year.
h. For the budget year beginning July 1, 2025, the regular
program state cost per pupil is the regular program state
cost per pupil for the base year plus the regular program
supplemental state aid for the budget year, plus five dollars.
1. For the budget year beginning July 1, 2026, and
succeeding budget years, the regular program state cost per
pupil for a budget year is the regular program state cost per
pupil for the base year plus the regular program supplemental
state aid for the budget year.
Sec. 6. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION III
SUPPLEMENTARY WEIGHTING FOR SHARED OPERATIONAL FUNCTIONS
Sec. 7. Section 257.11, subsection 5, paragraph d, Code
2025, is amended to read as follows:
d. Supplementary weighting pursuant to this subsection shall
be available to a school district during the period commencing
with the budget year beginning July 1, 2014, through the budget
year beginning July 1, 2034. gi-e For budget years beginning
prior to July 1, 2025, the maximum amount of additional
weighting for which a school district shall be eligible in a
budget year is twenty-one additional pupils; and for budget
years beginning on or after July 1, 2025, the maximum amount
of additional weighting for which a school district shall be
eligible in a budget year is twenty-five pupils; provided,
however, that for budget years beginning on or after July
1, 2024, the supplementary weighting assigned for a shared
operational function in the area of a college and career
transition counselor or coordinator shall not count toward this
maximum amount. Criteria for determining the qualification
of operational functions for supplementary weighting shall be
determined by the department by rule, through consideration of
increased student opportunities.
Senate File 167, p. 7
Sec. 8. EFFECTIVE DATE. This division of this Act, being
deemed_of immediate importance, takes effect upon enactment.
AMY SINCL• j/ R
President of the Senate
PAT GRASSUFY
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 167, Ninety-first General Assembly.
PAA
Approved NA&W 2025
W. CHARLES SMITHSON
Secr-t- v o — e Senate
KI
Governor