Vander Linden Capitol Update – February 2, 2017

School funding is the next upcoming issue for discussion. Republicans are working to live with in our means and provide a great education for all of Iowa’s students. Below you will find some helpful information concerning some issues the legislature is addressing this session. Please contact me with any questions or concerns you may have.

House Moves Forward on $40 Million New Dollars for Schools

House Republicans moved forward this week on a bill to establish school funding for the school year beginning in the fall of 2017. It was a move done intentionally early this session so schools can plan on their resources when certifying their budgets this spring. The bill not only sets school funding, but it also makes changes on the method of setting school aid.

New Funding – $40 million

The bill increases funding by $40 million or a 1.11% growth rate per student. $40 million new dollars is provided to schools for the upcoming school year. There are several numbers within the numbers that determine that final dollar amount, but House Republicans are committed to providing a realistic, reasonable and sustainable funding amount.

Changing the process – Providing stability

Current law requires the legislature to set school aid a year before any other budget items are considered and nearly a year before state revenues are known with any degree of certainty. It’s often a shot in the dark and has led to numerous unsustainable budgeting decisions. This has resulted in the state short-changing school districts on numerous occasions, by providing less funding than the state is required to provide or through across-the-board cuts, both of which result in local property tax payers picking up the slack. Shifting the cost to property taxpayers is a practice in which the Democrats engaged while controlling the Legislature.

House Republicans have argued for years that this process needs to change. This bill brings the school funding discussion back under the umbrella of the full budget discussion and frames it within the boundaries of the revenue the state is required by law to work within. It will lead to more knowledgeable decisions based on more focused revenue estimates and provide stability to state budget planning.

The Results

Combining this new funding increase for school districts, the state has now increased school funding by over $730 million over the past 7 years. Teacher leadership funds are delineated separately due the unique nature of its interaction with school funding overall and to provide clarity to the conversation. State investment in general K-12 education has increased from $2.446 billion in FY11 to $3.183 billion in FY18, a 30% increase.

Where does that land us in relative terms?

It’s always a popular discussion to see where we fall relative to other states. Several years ago, according to stats from the National Education Association, we ranked 35th in terms of our per pupil spending on education. This number was used often in debate by Democrats and the education lobby at that time. In fact, the Democrats made a prediction that we would drop to 40th in the nation under the proposal we passed at the time. While the numbers aren’t available yet for that year, the trend has been going in the opposite direction of that prediction.

The Senate has moved on an identical bill for school funding and what is before the House for full consideration will likely move to the Governor’s desk for signature soon.

The House will convene a public hearing on the matter on Monday, February 6, with floor debate following closely afterwards.