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Categorical Funding

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"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.

Categorical Funding and Budgetary Allocations Carryforward

FY21 Carryforward of Categorical Funding

FY20 Carryforward of Categorical Funding

FY19 Carryforward of Categorical Funding

Previous years data is available upon request.

Links to more Information about Budgetary Allocations

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

Teacher Salary Supplement (TSS) Balance Requirement

Iowa Code 284.3A(5) established a one-year provision requiring that any unexpended, unobligated Teacher Salary Supplement (TSS) funds (Project 3204) remaining at the conclusion of FY22 that exceed five percent of the amount received for FY22 be allocated and paid to eligible employees based on their full- or part-time status. Distribution of these funds, if any, should be made to eligible individuals employed during the 2022-2023 school year. This requirement applies to both districts and AEAs. The FY22 allocation, related balances, and the amount exceeding five percent of the FY22 allocation are included in the FY22 Preliminary TSS Carryover spreadsheet.

Program Information Related to Specific Categorical Funding

Use of Unexpected General Fund Balance

Links to more Information about Grants-in-Aid

Links to more Information about Levies and Funds