260C.18C - STATE AID DISTRIBUTION FORMULA.
260C.18C STATE AID DISTRIBUTION FORMULA.
1. Purpose. A distribution plan for general state financial
aid to Iowa's community colleges is established for the fiscal year
commencing July 1, 2005, and succeeding fiscal years. Funds
appropriated by the general assembly to the department for general
financial aid to community colleges shall be allocated to each
community college in the manner provided under this section.
2. Definitions. As used in this section and section
260C.18D, unless the context otherwise requires:
a. "Base funding allocation" means the amount of general
state financial aid all community colleges received in the base year.
b. "Base year" means the fiscal year immediately preceding
the budget year.
c. "Below-average support per FTEE" for a community college
means the state-average combined support per FTEE minus the combined
support per FTEE for the community college if the community college's
combined support per FTEE is less than the state-average combined
support per FTEE.
d. "Budget year" means the fiscal year for which moneys are
appropriated by the general assembly.
e. "Combined support" for a community college means the total
amount of moneys the community college received in general state
financial aid in the base year plus the community college's general
fund property tax revenue, including utility replacement, for the
base year.
f. "Combined support per FTEE" for a community college means
the community college's combined support divided by its three-year
rolling average full-time equivalent enrollment for the three years
prior to the base year.
g. "Contact hour" for a noncredit course equals fifty minutes
of contact between an instructor and students in a scheduled course
offering for which students are registered.
h. "Credit hour", for purposes of community college funding
distribution, shall be as defined by the department by rule.
i. "Eligible credit courses" means all credit courses that
are eligible for general state financial aid which are part of a
department-approved program of study. The department shall review
and provide a determination should a question of eligibility occur.
j. "Eligible growth support" for a community college is the
community college's below-average support per FTEE multiplied times
its three-year rolling average full-time equivalent enrollment.
k. "Eligible noncredit courses" means all noncredit courses
eligible for general state financial aid which fall under one of the
eligible categories for noncredit courses as defined by rule of the
department. The department shall review and provide a determination
should a question of eligibility occur.
l. "Eligible student" means a student enrolled in eligible
credit or eligible noncredit courses. The department shall review
and provide a determination should a question of eligibility occur.
m. "Fiscal year" means the period of twelve months beginning
on July 1 and ending on June 30.
n. One "full-time equivalent enrollment (FTEE)" equals
twenty-four credit hours for credit courses or six hundred contact
hours for noncredit courses generated by all eligible students
enrolled in eligible courses.
o. "General fund property tax revenue" means the amount of
moneys a community college raised or could have raised from a
property tax of twenty and one-fourth cents per thousand dollars of
assessed valuation on all taxable property in its merged area
collected for the base year.
p. "General state financial aid" means the amount of general
state financial aid the community college received from the general
fund.
q. "Inflation adjustment amount" means the inflation rate
minus two percentage points multiplied times the base funding
allocation. The inflation adjustment amount shall not be less than
zero.
r. "Inflation rate" means the average of the preceding
twelve-month percentage change, which shall be computed on a monthly
basis, in the consumer price index for all urban consumers, not
seasonally adjusted, published by the United States department of
labor, bureau of labor statistics, calculated for the calendar year
ending six months after the beginning of the base year.
s. "State-average combined support per FTEE" means the
average of the combined support per FTEE for all community colleges
in the state in the base year.
t. "Three-year rolling average full-time equivalent
enrollment" means the average of the audited full-time equivalent
enrollment for a community college over the three fiscal years prior
to the base year as determined by the department.
u. "Total growth support amount" means the sum of the
eligible growth support for all the community colleges.
3. Distribution formula. Moneys appropriated by the general
assembly from the general fund to the department for community
college purposes for general state financial aid for a budget year
shall be allocated to each community college by the department as
follows:
a. If the inflation rate is equal to two percent or less:
(1) Base funding allocation. The moneys shall first be
allocated in the amount of general state financial aid each community
college received in the base year. If the appropriation is less than
the total of the amount of general state financial aid each community
college received in the base year, the moneys shall be allocated in
the same proportion as the allocation of general state financial aid
each community college received in the base year.
(2) Marginal cost adjustment. After the base funding has
been allocated, each community college shall be allocated up to an
additional two percent of its base funding allocation. The community
college's allocation shall be in the same proportion as the
allocation of general state financial aid each community college
received in the base year.
(3) Three-year rolling average of full-time equivalent
enrollment. If the increase in the total state general aid exceeds
two percent over the base funding allocation, an amount up to an
additional one percent of the base funding allocation shall be
distributed based upon each community college's proportional share of
the three-year rolling average full-time equivalent enrollments for
all community colleges.
(4) Extraordinary growth adjustment. If the increase in
total state general aid exceeds three percent over the base funding
allocation, an amount up to an additional one percent of the base
funding allocation shall be distributed as follows:
(a) Forty percent of the moneys shall be allocated based upon
each community college's proportional share of the three-year rolling
average full-time equivalent enrollments for all community colleges.
(b) Sixty percent of the moneys shall be allocated to community
colleges that have eligible growth support. The allocation shall be
based upon the proportional share that each community college's
eligible growth support bears to the total growth support amount.
Once the moneys allocated under this subparagraph division equal the
total growth support amount, the remaining moneys allocated under
this subparagraph shall be allocated as provided in subparagraph
division (a).
(5) Additional three-year rolling average FTEE allocation.
If the increase in total state general aid exceeds four percent over
the base funding allocation, all remaining moneys shall be
distributed based upon each college's proportional share of the
three-year rolling average full-time equivalent enrollments for all
community colleges.
b. If the inflation rate is greater than two percent but less
than four percent:
(1) Base funding allocation. The moneys shall first be
allocated in the amount of general state financial aid each community
college received in the base year. If the appropriation is less than
the total of the amount of general state financial aid each community
college received in the base year, the moneys shall be allocated in
the same proportion as the allocation of general state financial aid
each community college received in the base year.
(2) Marginal cost adjustment. After the base funding has
been allocated, each community college shall be allocated up to an
additional two percent of its base funding allocation. The community
college's allocation shall be in the same proportion as the
allocation of general state financial aid each community college
received in the base year.
(3) Three-year rolling average of full-time equivalent
enrollment. If the increase in the total state general aid exceeds
two percent over the base funding allocation, an amount up to an
additional one percent of the base funding allocation shall be
distributed based upon each community college's proportional share of
the three-year rolling average full-time equivalent enrollments for
all community colleges.
(4) Extraordinary growth adjustment. If the increase in
total state general aid exceeds three percent over the base funding
allocation, an amount up to an additional one percent of the base
funding allocation shall be based as follows:
(a) Forty percent of the moneys shall be allocated based upon
each community college's proportional share of the three-year rolling
average full-time equivalent enrollments for all community colleges.
(b) Sixty percent of the moneys shall be allocated to community
colleges that have eligible growth support. The allocation shall be
based upon the proportional share that each community college's
eligible growth support bears to the total growth support amount.
Once the moneys allocated under this subparagraph division equal the
total growth support amount, the remaining moneys allocated under
this subparagraph shall be allocated as provided in subparagraph
division (a).
(5) Inflation adjustment. If the increase in total state
general aid exceeds four percent over the base funding allocation, an
amount up to the inflation adjustment amount shall be distributed to
each community college in the same proportion as the allocation of
general state financial aid each community college received in the
base year.
(6) Additional three-year rolling average FTEE allocation.
If there are remaining moneys to be distributed under this paragraph
after distributing moneys under subparagraph (5), all remaining
moneys shall be distributed based upon each community college's
proportional share of the three-year rolling average full-time
equivalent enrollments for all community colleges.
c. If the inflation rate equals or exceeds four percent:
(1) Base funding allocation. The moneys shall first be
allocated in the amount of general state financial aid each community
college received in the base year. If the appropriation is less than
the total of the amount of general state financial aid each community
college received in the base year, the moneys shall be allocated in
the same proportion as the allocation of general state financial aid
each community college received in the base year.
(2) Marginal cost adjustment. After the base funding has
been allocated, each community college shall be allocated up to an
additional two percent of its base funding allocation. The community
college's allocation shall be in the same proportion as the
allocation of general state financial aid each community college
received in the base year.
(3) Three-year rolling average of full-time equivalent
enrollment. If the increase in the total state general aid exceeds
two percent over the base funding allocation, an amount up to an
additional one percent of the base funding allocation shall be
distributed based upon each community college's proportional share of
the three-year rolling average full-time equivalent enrollments for
all community colleges.
(4) Inflation adjustment. If the increase in total state
general aid exceeds three percent over the base funding allocation,
an amount up to the inflation adjustment amount shall be distributed
to each community college in the same proportion as the allocation of
general state financial aid each community college received in the
base year.
(5) Extraordinary growth adjustment. If there are remaining
moneys to be distributed under this paragraph after distributing
moneys under subparagraph (4), an amount up to an additional one
percent of the base funding allocation shall be based as follows:
(a) Forty percent of the moneys shall be allocated based upon
each community college's proportional share of the three-year rolling
average full-time equivalent enrollments for all community colleges.
(b) Sixty percent of the moneys shall be allocated to community
colleges that have eligible growth support. The allocation shall be
based upon the proportional share that each community college's
eligible growth support bears to the total growth support amount.
Once the moneys allocated under this subparagraph division equal the
total growth support amount, the remaining moneys allocated under
this subparagraph shall be allocated as provided in subparagraph
division (a).
(6) Additional three-year rolling average FTEE allocation.
If there are remaining moneys to be distributed under this paragraph
after distributing moneys under subparagraph (5), all remaining
moneys shall be distributed based upon each community college's
proportional share of the three-year rolling average full-time
equivalent enrollments for all community colleges.
4. Information supplied by colleges and adoption of rules.
a. Each community college shall provide information in the
manner and form as determined by the department. If a community
college fails to provide the information as requested, the department
shall estimate the full-time equivalent enrollment of that college.
b. Each community college shall complete and submit an annual
student enrollment audit to the department. Adjustments to community
college state general aid allocations shall be made based on student
enrollment audit outcomes.
c. The department shall adopt rules under chapter 17A as
necessary for the allocation of general state financial aid. Section History: Recent Form
2005 Acts, ch 169, §24; 2008 Acts, ch 1181, § 25; 2009 Acts, ch
41, §263