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Financial Management

"Categorical funding" as defined by Iowa Administrative Code 281-98, means financial support from state and federal governments that is targeted for particular categories of students, special programs, or special purposes. This support is in addition to school district or area education agency general purpose revenue, is beyond the basic educational program, and most often has restrictions on its use. Where categorical funding requires a local match, that local match also is considered to be categorical funding. Categorical funding includes both grants in aid and budgetary allocations. Although grants in aid and budgetary allocations are both categorical funding, they are defined separately to distinguish unique characteristics of each type of categorical funding. Chapter 281.98 describes appropriate uses of grants in aid, budgetary allocations and tax levies and funds. In addition Chapter 291.98 also addresses indirect cost recovery, restriction on supplanting, mandatory carryforward, discontinued funding, expenditures, restriction on duplication, excess expenditures, commingling, and uses of levies and funds.

2017 Iowa Acts chapter 153, House File 564 and Iowa Acts chapter 172, House File 642 included additional allowed uses for certain categorical funds. The impacted funds include the professional development supplement (project 3376), at risk and dropout prevention modified supplemental amount (project 1119; also impacts project 1116), and preschool foundation aid (project 3117). See Flexibility Legislation Guidance.

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Categorical Funding and Budgetary Allocations Carryforward

FY22 Carryforward of Categorical Funding

FY21 Carryforward of Categorical Funding

FY20 Carryforward of Categorical Funding

Previous years data is available upon request.

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Budgetary Allocations Information

State Aid Payment Summary

Sources for Local Projects - Includes information for the following programs:

  • Limited English Proficient (LEP)
  • Home School Assistance Program (HSAP)
  • Property Tax and State Aid Financed Weighted At-Risk, Alternative, Potential or Returning Dropout Programs
  • Gifted and Talented Programs
  • SBRC Modified Supplemental Amount for At-Risk, Alternative, Potential or Returning Dropout Programs
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Teacher Salary Supplement (TSS)

House File 68 (HF 68) was signed into law on January 24, 2023. HF 68 Guidance: Categorical Funding and Operational Sharing identifies non-TSS sources that may be used for TSS purposes as well as the related account coding. The legislation increases allowable uses of the following categorical funds: professional development (PD) (Iowa Code Β§ 257.10(10)”D”), teacher leadership and compensation (TLC) (Iowa Code Β§ 257.10(12)”d”), and gifted and talented (TAG) (Iowa Code Β§ 257.46(3)). Beginning with FY24, available PD, TLC, or TAG funds may be used for teacher salary supplement (TSS) purposes and distributed to teachers pursuant to Iowa Code section 284.3A: teacher compensation - single salary system. Available funds include any balance carried forward from the prior year (i.e., carryforward balance) as well as the current year’s allocation. Transfers may be made beginning July 1, 2023.

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Early Intervention Supplement

The Early Intervention Supplement is a per pupil funding included in the state aid paid to districts. Each year the per pupil amount changes based on the amount calculated for the categorical state percent of growth established by the legislature for the budget year. The amount of the Early Intervention Supplement for each district is published on the "Aid and Levy, Tax Certification, and Program Summary" file located on the Iowa Department of Management's School Resources webpage.

Beginning July 1, 2018, funds generated through the Early Intervention Supplement can be used for any general fund purpose. Any portion of the budget authority granted to districts for the Early Intervention Supplement which is unexpended at the end of the fiscal year is reported on the Certified Annual Report as a restricted fund balance for Project 3216. This amount is carried forward into the next fiscal year and expended first before expenditures from the Early Intervention Supplement provided for that next fiscal year.

Program Information Related to Specific Categorical Funding

Use of Unexpected General Fund Balance

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Grants-in-Aid Information

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Levies and Funds

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