Senate File 277 expanded the allowable uses of market factor incentives to include, but not be limited to, "salaries, educational opportunities and support, moving expenses, and housing expenses for the recruitment and retention needs of the school district in such areas as hard-to-staff schools and subject-area shortages, improving the racial or ethnic diversity on local teaching staff, funding to prepare a teacher to attain a license or endorsement in a shortage area, or funds to support educational support personnel in pursuing a license in a shortage area."
The Teacher Quality Committee "shall make recommendations to the school board and the certified bargaining representative regarding the expenditures of market factor incentives."
Market Factor funds are not allocated for area education agencies. Use of Market Factor Incentives is limited to classroom teachers and/or educational support personnel (e.g., paraprofessionals) who are pursuing a license in a shortage area. Districts are required to certify to the Iowa Department of Education how funds received were used. The distribution amounts are posted to the Iowa Department of Education website.