Last Action: Education Appropriations Bill House Study Bill 698

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Education Appropriations BillHouse Study Bill 698Last Action:House SubcommitteeApril 30, 2018An Act relating to the funding of, the operation of, and the appropriation of moneysto the college student aid commission, the department for the blind, the departmentof education, and the state board of regents, and providing for related matters, andincluding applicability provisions.Fiscal Services DivisionLegislative Services AgencyNOTES ON BILLS AND AMENDMENTS (NOBA)962798Available online at riationBillAnalysisLSA Staff Contacts: Robin Madison (515.281.5270) Josie Gerrietts (515.238.2833)

EXECUTIVE SUMMARYHOUSE STUDY BILL 698EDUCATION APPROPRIATIONS BILLFUNDING SUMMARYGeneral Fund FY 2019: Appropriates a total of 912.6 million from the General Fund and 11,940.3full-time equivalent (FTE) positions for FY 2019 to the Department for the Blind, the College Student AidCommission, the Department of Education, and the Board of Regents. This is an increase of 16.5 millionand 6.8 FTE positions compared to estimated net FY 2018.NOTE: The FTE positions authorized in this Bill for FY 2019 have been updated to reflect the Governor'srecommendations or actual usage.Other Funds FY 2019: Appropriates a total of 40.3 million from the Skilled Worker and Job CreationFund (SWJCF) for FY 2019. This maintains the current level of funding compared to estimated net FY 2018.Standing Appropriations FY 2019: In addition to the appropriations in this Bill, the attached trackingincludes the standing appropriation of 1.8 million for the Vocational Technical Tuition Grant.The standing appropriation of 2.8 million for College Work Study was suspended for FY 2019 in HF 642(FY 2018 Education Appropriations Act) enacted in the 2017 Legislative Session.NEW PROGRAMS, SERVICES, OR ACTIVITIESDepartment of Education: A new General Fund appropriation of 2.7 million to be distributed to schooldistricts for the statewide student assessment.Page 9, Line 26Department of Education: A new General Fund appropriation of 250,000 for the creation of a statewideclearinghouse regarding work-based learning.Page 9, Line 31Department of Education: A new General Fund appropriation of 600,000 for a Summer Joint EnrollmentProgram to allow high school students to enroll in community college classes during the summer monthsunder an agreement between the school district and the community college.Page 10, Line 1Department of Education: A new General Fund appropriation of 500,000 for the Computer ScienceProfessional Development Incentive Fund.Page 12, Line 7MAJOR INCREASES/DECREASES/TRANSFERS OF EXISTING PROGRAMS

EXECUTIVE SUMMARYHOUSE STUDY BILL 698EDUCATION APPROPRIATIONS BILLCollege Student Aid Commission (CSAC): An increase of 476,000 compared to estimated net FY 2018.The changes include:Page 1, Line 19An increase of 1.6 million for the National Guard Educational Assistance Program to meetanticipated demand.A decrease of 1.1 million for the For-Profit Iowa Tuition Grant to reflect a reduction in eligiblestudents due to the purchase of Kaplan University by Purdue University in Indiana. This is a change tothe standing appropriation in statute and occurs later in the Bill.Department of Education: An increase of 7.6 million compared to estimated net FY 2018. The significantchanges include:Page 4, Line 3An increase of 54,000 for Early Childhood Iowa (ECI), which restores the appropriation to theoriginal FY 2018 level.An increase of 50,000 for Student Achievement/Teacher Quality programs.An increase of 1.0 million for the Iowa Jobs for America's Graduates program (iJAG).An increase of 345,000 for the Iowa Reading Research Center.An increase of 2.0 million for General Aid for Community Colleges.An increase of 107,000 for Vocational Rehabilitation to meet maintenance of effort requirements forfederal funds.An increase of 68,000 for Iowa Public Television (IPTV) to restore funding to the original FY 2018level.CHANGES TO PRIOR APPROPRIATIONSMoves the salary for the Executive Director of the College Student Aid Commission from the State OfficerSalary Range 4 to Range 5.Page 21, Line 15STUDIES AND INTENTNational Guard Educational Assistance Program: Permits National Guard members who have beenattending Kaplan University and receiving aid under the National Guard Education Assistance Program tocontinue receiving aid despite Kaplan becoming an out-of-state entity. Kaplan University has beenpurchased by Purdue University in Indiana.Page 2, Line 8Teacher Shortage Loan Forgiveness Program: Specifies that the Program will not accept new applicationsin FY 2019, but may continue renewing loan forgiveness for previous recipients who remain eligible.Page 2, Line 21

EXECUTIVE SUMMARYHOUSE STUDY BILL 698EDUCATION APPROPRIATIONS BILLSIGNIFICANT CODE CHANGESModifies provisions enacted under Division VII of Senate File 475 (FY 2018 Education Omnibus Act),allowing the required financial literacy course to be counted as a social studies or other combination ofcoursework unit under social studies, mathematics, or career and technical areas.Page 22, Line 18Modifies provisions regarding online education enacted under Division I of Senate File 475 (FY 2018Education Omnibus Act).Page 24, Line 13Reduces the General Fund standing appropriation to the College Student Aid Commission for the For-ProfitIowa Tuition Grant Program by 1.1 million compared to estimated net FY 2018, for a total FY 2019appropriation of 376,000. Specifies that up to 80,000 of the appropriation is to be used for studentsattending qualifying barber and cosmetology schools. The remainder of the appropriation, 296,000, is to beused for students attending Waldorf University. Kaplan University has been purchased by Purdue Universityin Indiana and is no longer eligible for the Program.Page 25, Line 24Requires applicants for the National Guard Educational Assistance Program to complete the FreeApplication for Federal Student Aid (FAFSA) and to apply for all available State and federal financial aid.Specifies that awards from the Program will be calculated based on the student's need after all other forms ofState and federal financial assistance have been identified.Page 26, Line 2Specifies that the College Student Aid Commission will not enter into new program agreements under theRural Iowa Advanced Registered Nurse Practitioner and Physician Assistant Loan Repayment Program onor after July 1, 2018. Removes language permitting participants in the Rural Iowa Advanced RegisteredNurse Practitioner and Physician Assistant Loan Repayment Program to engage in less than full-timepractice. Specifies that any funds remaining in the Rural Iowa Advanced Registered Nurse Practitioner andPhysician Assistant Trust Fund on June 30, 2023, shall not revert to the General Fund but be transferred tothe Health Care Loan Repayment Fund established in this Bill. Repeals Iowa Code section 261.114,pertaining to the Rural Iowa Advanced Registered Nurse Practitioner and Physician Assistant LoanRepayment Program, effective July 1, 2023.Page 27, Line 4Establishes the Health Care Loan Repayment Program to provide repayment of qualified loans of registerednurses, advanced registered nurse practitioners, physician assistants, and nurse educators who practicefull-time in a service commitment area or teach in Iowa. Specifies that the annual repayment to a recipientshall not exceed 6,000 or 20.0% of the recipient's qualified student loan, whichever is less. A recipient canreceive repayment for no more than five consecutive years. Requires the College Student Aid Commission tosubmit an annual report to the General Assembly by January 1 in regard to the Program.Page 29, Line 15

EXECUTIVE SUMMARYEDUCATION APPROPRIATIONS BILLHOUSE STUDY BILL 698

House Study Bill 698House Study Bill 698 provides for the following changes to the Code of Iowa.Page #Line #2525262627272728292933243528415172312155Bill mendAmendStrikeAmendAmendAddAmendAmendCode .13.1.a,b,c,e,f,g

PG LN11111111111111111GA:87 HSB698Explanation1DIVISION I2FY 2018-2019 APPROPRIATIONS3DEPARTMENT FOR THE BLIND4Section 1. 2017 Iowa Acts, chapter 172, section 45, is5 amended to read as follows:67891011121314151617SEC. 45. ADMINISTRATION. There is appropriated from thegeneral fund of the state to the department for the blindfor the fiscal year beginning July 1, 2018, and ending June30, 2019, the following amounts, or so much thereof as isnecessary, to be used for the purposes designated:For salaries, support, maintenance, and miscellaneouspurposes, and for not more than the following full-timeequivalent positions:1,093,671. 2,167,62288.00. FTEs78.001 18COLLEGE STUDENT AID COMMISSION1111111192021222324251111111261. GENERAL ADMINISTRATION27For salaries, support, maintenance, and miscellaneous28 purposes, and for not more than the following full-time29 equivalent positions:214,64030. 31429,27932. FTEs3.95General Fund appropriation to the Department for the Blind for generaloperations.DETAIL: Maintains the current level of funding and full-time equivalent(FTE) positions compared to estimated net FY 2018.Sec. 2. 2017 Iowa Acts, chapter 172, section 46, is amendedto read as follows:SEC. 46. There is appropriated from the general fund of thestate to the college student aid commission for the fiscal yearbeginning July 1, 2018, and ending June 30, 2019, the followingamounts, or so much thereof as is necessary, to be used for thepurposes designated:1 332. HEALTH CARE PROFESSIONAL RECRUITMENT PROGRAM1 34For the loan repayment program for health care professionals1 35 established pursuant to section 261.115:200,4872 1. 2 2400,973General Fund appropriation to the College Student Aid Commission foradministration.DETAIL: Maintains the current level of funding compared to estimatednet FY 2018. The reduction of 5.05 FTE positions reflects actualusage. Commission administrative costs are funded by a combinationof the annual General Fund appropriation and the agency's OperatingFund. The Fund consists of revenue from the remainder of theagency's federal student loan portfolio.General Fund appropriation to the College Student Aid Commission forthe Health Care Professional Recruitment Program.DETAIL: Maintains the current level of funding compared to estimatednet FY 2018.

PG LN22222GA:87 HSB69833. NATIONAL GUARD EDUCATIONAL ASSISTANCE PROGRAM4For purposes of providing national guard educational5 assistance under the program established in section 261.86:1,550,0006. 74,700,000Moneys appropriated in accordance with this subsection maybe distributed to a public university that purchased an Iowafor-profit accredited private institution effective March 22,2018, whose students were eligible members of the nationalguard who received educational assistance under the nationalguard educational assistance program in the fiscal yearbeginning July 1, 2017, if the students continue to meet therequirements of section 261.86.ExplanationGeneral Fund appropriation to the College Student Aid Commission forthe National Guard Educational Assistance Program.DETAIL: This is an increase of 1,600,000 compared to estimated netFY 2018 to meet anticipated demand for the Program.222222228910111213141522222164. TEACHER SHORTAGE LOAN FORGIVENESS PROGRAM17a. For the teacher shortage loan forgiveness program18 established in section 261.112:100,00019. 20105,828General Fund appropriation to the College Student Aid Commission forthe Teacher Shortage Loan Forgiveness Program.222222122232425Specifies that the Program will not accept new applications in FY 2019but may continue renewing loan forgiveness for previous eligiblerecipients.22222265. ALL IOWA OPPORTUNITY SCHOLARSHIP PROGRAM27a. For purposes of the all Iowa opportunity scholarship28 program established pursuant to section 261.87:1,420,42729. 302,840,854General Fund appropriation to the College Student Aid Commission forthe All Iowa Opportunity Scholarship Program. DETAIL: Maintains thecurrent level of funding compared to estimated net FY 2018.2222233313233343512Permits private colleges and universities that are eligible for the IowaTuition Grant Program to be included in the All Iowa OpportunityScholarship Program if the amount appropriated for FY 2019 exceeds 500,000.33333b. For the fiscal year beginning July 1, 2018, andending June 30, 2019, the commission shall not provide loanforgiveness under the program to any new applicant, but mayrenew loan forgiveness for an applicant who continues to meetthe eligibility requirements of section 261.112.b. For the fiscal year beginning July 1, 2018, if the moneysappropriated by the general assembly to the college student aidcommission for purposes of the all Iowa opportunity scholarshipprogram exceed 250,000 500,000, “eligible institution”as defined in section 261.87 shall, during the fiscal yearbeginning July 1, 2018, include accredited private institutionsas defined in section 261.9.36. TEACH IOWA SCHOLAR PROGRAM4For purposes of the teach Iowa scholar program established5 pursuant to section 261.110:200,0006. 7400,000Permits National Guard members who have been attending KaplanUniversity and receiving aid under the National Guard EducationAssistance Program to continue receiving aid despite Kaplan becomingan out-of-state entity. Kaplan University has been purchased byPurdue University in Indiana.DETAIL: Maintains the current level of funding compared to estimatednet FY 2018.General Fund appropriation to the College Student Aid Commission forthe Teach Iowa Scholar Program.DETAIL: Maintains the current level of funding compared to estimatednet FY 2018.

PG LNGA:87 HSB698Explanation3 87. RURAL IOWA PRIMARY CARE LOAN REPAYMENT PROGRAM3 9For purposes of the rural Iowa primary care loan repayment3 10 program established pursuant to section 261.113:562,2513 11. 3 121,124,502General Fund appropriation to the College Student Aid Commission forthe Rural Iowa Primary Care Loan Repayment Program.33333General Fund appropriation to the College Student Aid Commission forthe Health Care-Related Loan Program.138. HEALTH CARE-RELATED LOAN PROGRAM14For purposes of the health care-related loan program15 established pursuant to section 261.116:100,00016. 17200,000DETAIL: Maintains the current level of funding compared to estimatednet FY 2018.DETAIL: Maintains the current level of funding compared to estimatednet FY 2018.3 18Sec. 3. 2017 Iowa Acts, chapter 172, section 47, is amended3 19 to read as 3233343512SEC. 47. IOWA TUITION GRANT APPROPRIATIONS.Notwithstanding the standing appropriations appropriation inthe following designated sections section for the fiscal yearbeginning July 1, 2018, and ending June 30, 2019, the amountsamount appropriated from the general fund of the state to thecollege student aid commission pursuant to these sectionsfor the following designated purposes shall not exceed thefollowing amounts:1. For for Iowa tuition grants under section 261.25,subsection 1: shall not exceed 46,630,951. 23,315,4762. For tuition grants for students attending for-profitaccredited private institutions located in Iowa under section261.25, subsection 2:. 750,0003. For vocational-technical tuition grants under section261.25, subsection 3:. 875,0934 34 44 54 64 74 84 94 10DEPARTMENT OF EDUCATIONSec. 4. 2017 Iowa Acts, chapter 172, section 50, is amendedto read as follows:SEC. 50. There is appropriated from the general fund ofthe state to the department of education for the fiscal yearbeginning July 1, 2018, and ending June 30, 2019, the followingamounts, or so much thereof as is necessary, to be used for thepurposes designated:4444111. GENERAL ADMINISTRATION12a. For salaries, support, maintenance, and miscellaneous13 purposes, and for not more than the following full-time14 equivalent positions:CODE: General Fund appropriation to the College Student AidCommission for the Iowa Tuition Grant Program (Nonprofit).DETAIL: Maintains the current level of funding compared to estimatednet FY 2018.NOTE: The For-Profit Iowa Tuition Grant is funded by amending thestanding appropriation in statute later in the Bill. The standingappropriation in statute for the Vocational Technical Tuition Grant isnot changed for FY 2019 and remains at 1,750,0185.General Fund appropriation to the Department of Education foradministration.DETAIL: This no change compared in funding and an increase of 1.00

PG LNGA:87 HSB698. 44441516171844444192021222344444444242. CAREER AND TECHNICAL EDUCATION ADMINISTRATION25For salaries, support, maintenance, and miscellaneous26 purposes, and for not more than the following full-time27 equivalent positions:299,09928. 29598,19711.5030. FTEs319.82General Fund appropriation to the Department of Education for Careerand Technical Education Administration.44445555323. VOCATIONAL REHABILITATION SERVICES DIVISION33a. For salaries, support, maintenance, and miscellaneous34 purposes, and for not more than the following full-time35 equivalent positions:2,812,8381. 25,677,908255.003. FTEs4244.00General Fund appropriation to the Iowa Vocational RehabilitationServices (IVRS) Division of the Department of Education. FTEs2,982,0245,949,04781.6760.43Explanationb. By January 15, 2019, the department shall submita written report to the general assembly detailing thedepartment’s antibullying programming and current and projectedexpenditures for such programming for the fiscal year beginningJuly 1, 2018.FTE position compared to estimated net FY 2018.Requires the Department to submit a written report by January 15,2019, to the General Assembly describing the Department'santibullying programming and current and projected expenditures onantibullying programming for FY 2019.DETAIL: Maintains the current level of funding and FTE positionscompared to estimated net FY 2018.DETAIL: This is an increase of 106,705 and no change in FTEpositions compared to estimated net FY 2018. The IVRS received aone-time appropriation of 106,705 in FY 2018 to meet federalmaintenance of effort requirements. The FY 2019 appropriation isincreased to maintain the current level of total funding.5 5For purposes of optimizing the job placement of individuals5 6 with disabilities, the division shall make its best efforts5 7 to work with community rehabilitation program providers for5 8 job placement and retention services for individuals with5 9 significant disabilities and most significant disabilities. By5 10 January 15, 2019, the division shall submit a written report to5 11 the general assembly on the division’s outreach efforts with5 12 community rehabilitation program providers.Requires the Vocational Rehabilitation Services Division to make itsbest efforts to work with community rehabilitation program providers forjob placement and retention services for individuals with significantdisabilities and most significant disabilities. Also requires the Division tosubmit a written report by January 15, 2019, to the General Assemblyregarding the Division's outreach efforts with community rehabilitationprogram providers.5555555General Fund appropriation to the Independent Living Program in theVocational Rehabilitation Services Division.13b. For matching moneys for programs to enable persons14 with severe physical or mental disabilities to function more15 independently, including salaries and support, and for not more16 than the following full-time equivalent position:42,41217. 1884,82319. FTEs1.005 20c. For the entrepreneurs with disabilities program5 21 established pursuant to section 259.4, subsection 9:DETAIL: Maintains the current level of funding and FTE positionscompared to estimated net FY 2018.General Fund appropriation to the Vocational Rehabilitation ServicesDivision for the Entrepreneurs with Disabilities Program.

PG LNGA:87 HSB69855555522. 69,25323138,50624d. For costs associated with centers for independent25 living:43,22926. 2786,4575555555284. STATE LIBRARY29a. For salaries, support, maintenance, and miscellaneous30 purposes, and for not more than the following full-time31 equivalent positions:1,265,03232. 332,530,06334. FTEs29.00ExplanationDETAIL: Maintains the current level of funding compared to estimatednet FY 2018.General Fund appropriation to the Department of Education for theState Library.DETAIL: This is an increase of 20,000 and no change in FTEpositions compared to estimated net FY 2018.5 35b. For the enrich Iowa program established under section6 1 256.57:1,232,4126 2. 6 32,464,823General Fund appropriation to the Department of Education for theState Library.DETAIL: Maintains the current level of funding compared to estimatednet FY 2018.6 45. PUBLIC BROADCASTING DIVISION6 5For salaries, support, maintenance, capital expenditures,6 6 and miscellaneous purposes, and for not more than the following6 7 full-time equivalent positions:3,794,7086 8. 6 97,589,41586.006 10. FTEs6 1160.17General Fund appropriation to the Department of Education for IowaPublic Television (IPTV).6666666126. CAREER AND TECHNICAL EDUCATION TO SECONDARY SCHOOLS13For reimbursement for career and technical education14 expenditures made by secondary schools regional career and15 technical education planning partnerships in accordance with16 section 258.14:1,315,06717. 182,630,134General Fund appropriation to the Department of Education for Careerand Technical Education Aid to be disbursed to regional career andtechnical education planning partnerships.666661920212223Requires appropriated funds to be used for reimbursement ofvocational expenditures made by regional planning partnerships toimplement the standards set in statute.6666247. SCHOOL FOOD SERVICE25For use as state matching moneys for federal programs that26 shall be disbursed according to federal regulations, including27 salaries, support, maintenance, and miscellaneous purposes, andMoneys appropriated in this subsection shall be used toreimburse school districts for regional career and technicaleducation planning partnerships for expenditures made bysecondary schools to meet the standards set in sections 256.11,258.4, and 260C.14 allowed under section 258.14.DETAIL: This is an increase of 68,421 and a decrease of 0.90 FTEposition compared to estimated net FY 2018.DETAIL: Maintains the current level of funding compared to estimatednet FY 2018. Any reduction in this appropriation may jeopardize allfederal Perkins funding, a potential loss of an estimated 12,032,821.General Fund appropriation to the Department of Education for schoolfood service.DETAIL: Maintains the current level of funding and no change in FTE

PG LN66666GA:87 HSB69828 for not more than the following full-time equivalent positions:29. 1,088,399302,176,79720.5831. FTEs3223.86Explanationpositions compared to estimated net FY 2018. Any reduction in thisappropriation results in a reduction in federal funding for schoolnutrition programs.6 338. EARLY CHILDHOOD IOWA FUND —— GENERAL AID6 34For deposit in the school ready children grants account of6 35 the early childhood Iowa fund created in section 256I.11:7 1. 11,081,4007 222,162,799General Fund appropriation for deposit in the School Ready ChildrenGrants Account of the Early Childhood Iowa (ECI) Fund for GeneralAid.7 3a. From the moneys deposited in the school ready children7 4 grants account for the fiscal year beginning July 1, 2018,7 5 and ending June 30, 2019, not more than 132,975 265,9507 6 is allocated for the early childhood Iowa office and other7 7 technical assistance activities. Moneys allocated under this7 8 lettered paragraph may be used by the early childhood Iowa7 9 state board for the purpose of skills development and support7 10 for ongoing training of staff. However, except as otherwise7 11 provided in this subsection, moneys shall not be used for7 12 additional staff or for the reimbursement of staff.Specifies the following uses for the moneys deposited in the SchoolReady Children Grants Account for FY 728b. Of the amount appropriated in this subsection fordeposit in the school ready children grants account of theearly childhood Iowa fund, 1,159,009 2,318,018 shallbe used for efforts to improve the quality of early care,health, and education programs. Moneys allocated pursuant tothis paragraph may be used for additional staff and for thereimbursement of staff. The early childhood Iowa state boardmay reserve a portion of the allocation, not to exceed 44,325 88,650, for the technical assistance expenses of the earlychildhood Iowa state office, including the reimbursement ofstaff, and shall distribute the remainder to early childhoodIowa areas for local quality improvement efforts through amethodology identified by the early childhood Iowa state boardto make the most productive use of the funding, which mayinclude use of the distribution formula, grants, or othermeans.Allocates 2,318,018 to be used by local ECI areas to improve thequality of early care, health, and education programs. Specifies that upto 88,650 of the allocation may be used for the technical assistanceexpenses of the State ECI Office, including the reimbursement of staffmembers.777772930313233c. Of the amount appropriated in this subsection fordeposit in the school ready children grants account of theearly childhood Iowa fund, 412,515 825,030 shall be used forsupport of professional development and training activitiesfor persons working in early care, health, and education byAllocates 825,030 to the State ECI Board to provide child care andpreschool providers with high-quality professional development incollaboration with the Professional Development Component Groups ofthe Early Childhood Iowa Stakeholders Alliance and local ECI boards.DETAIL: This is an increase of 53,803 compared to estimated net FY2018.Allocates a maximum of 265,950 for the ECI Office and othertechnical assistance activities. This is no change compared tothe FY 2018 allocation.Permits funds allocated under this paragraph to be used by theState ECI Board for the purpose of skills development andsupport for ongoing training of staff.Prohibits the use of funds for additional staff or for thereimbursement of staff.DETAIL: Maintains the current level of funding compared to theestimated net FY 2018 allocation.

PG LNGA:87 HSB698Explanation7 34 the early childhood Iowa state board in collaboration with7 35 the professional development component groups maintained by8 1 the early childhood Iowa stakeholders alliance pursuant to8 2 section 256I.12, subsection 7, paragraph “b”, and the early8 3 childhood Iowa area boards. Expenditures shall be limited to8 4 professional development and training activities agreed upon by8 5 the parties participating in the collaboration.DETAIL: This is an increase of 53,803 compared to the estimated netFY 2018 allocation.888888886789101112139. BIRTH TO AGE THREE SERVICESa. For expansion of the federal Individuals withDisabilities Education Improvement Act of 2004, Pub.L.No.108-446, as amended to January 1, 2018, birth through age threeservices due to increased numbers of children qualifying forthose services:860,700. 1,721,400General Fund appropriation to the Department of Education tosupplement federal funding for special education services to childrenfrom birth to three years of age.888881415161718b. From the moneys appropriated in this subsection, 191,885 383,769 shall be allocated to the child healthspecialty clinics administered

students due to the purchase of Kaplan University by Purdue University in Indiana. This is a change to the standing appropriation in statute and occurs later in the Bill. Department of Education: An increase of 7.6 million compared to estimated net FY 2018. The significant changes include: An increase of 54,000 for Early Childhood Iowa (ECI), which restores the appropriation to the original .