Iowa House Bill HF407

Iowa 2025-2026 Regular Session

• Introduced: 2/13/25
• Refer: 2/13/25

Caption

A bill for an act relating to open enrollment by requiring the payment of certain moneys received from the secure an advanced vision for education fund.

Summary

HF 407 amends Iowa’s open enrollment law to require an additional transfer of funding when a student enrolls in a district other than the district of residence. Beginning with school years starting on or after July 1, 2026, the resident district would have to pay the receiving district an amount tied to the per-pupil distribution the resident district received from the Secure an Advanced Vision for Education (SAVE) fund in the prior school year. The bill applies only to students participating in open enrollment and directs that the transferred money be used only for purposes allowed under chapter 423F. In practical terms, the bill links open enrollment payments to the local school infrastructure funding that districts receive through the SAVE fund. It would require resident districts to pass along a matching per-pupil amount from those SAVE revenues to the receiving district, adding to the existing open enrollment payment obligations already in law. The bill is aimed at ensuring that receiving districts are not disadvantaged when students leave their home district while the home district continues to receive SAVE-related funding. The bill’s overall sentiment appears neutral to supportive based on its introduction and referral to subcommittee, but there is no recorded committee debate or vote history in the provided materials. Because no transcripts or votes are available, there is no direct evidence of organized opposition or endorsement in the record provided. The main point of potential contention is fiscal: districts of residence may view the bill as reducing the local benefit of SAVE fund revenues when students open enroll out, while receiving districts may support the measure as a way to better align funding with student enrollment. Another possible issue is whether SAVE dollars, which are generally associated with school infrastructure and capital purposes, should be transferred in this way as part of open enrollment funding.

Impact

The bill would amend Iowa Code section 282.18 governing open enrollment by adding a new payment requirement tied to SAVE fund distributions under chapter 423F. For school years beginning on or after July 1, 2026, resident districts would owe receiving districts an additional per-pupil amount equal to the prior year’s SAVE distribution received by the resident district for each open-enrolled student. This would affect school district finances, especially districts with significant open enrollment outflow, and would direct the receiving district to use the funds only for chapter 423F-authorized purposes.

Sentiment

The available record suggests the bill was introduced and sent to subcommittee without any recorded floor action, committee vote, or transcripted debate. As a result, the public sentiment in the provided materials appears limited and procedurally neutral rather than clearly favorable or opposed. The bill’s structure suggests it may appeal to districts receiving open-enrolled students, while potentially drawing concern from resident districts that would have to share additional SAVE-related revenue.

Contention

The likely contention centers on school finance and the treatment of SAVE fund dollars in open enrollment. Opponents or cautious stakeholders may argue that resident districts should retain SAVE revenues for local infrastructure and capital needs, even when students leave the district. Supporters may argue that funding should follow students more fully and that receiving districts should not lose access to resources associated with those students. The absence of committee testimony or votes means these positions are inferred from the bill’s fiscal design rather than documented debate.