Iowa House Approves Freeze on State Aid to Schools (IA)

February 9, 2011

The Iowa House on Tuesday approved a package of measures that would freeze basic state aid to public schools for the next two years.

The package was approved largely along party lines, with Republicans approving the freeze in the amount of money the state puts into the complex school funding formula. One measure would shift about $48 million from other parts of the budget to help offset expected property tax hikes as a result of the freeze. That measure received some support from Democrats.

Spending on local elementary and secondary schools is the largest single item in the state’s budget, amounting to roughly $2.5 billion in the $6 billion state budget. Backers of the plan to freeze funding said public school districts understand the budget crisis facing the state and have been planning for cutbacks. Critics complain that the move is unprecedented in Iowa and comes even as Republicans who control the House are pushing for big cuts in business taxes.

"What message are we sending to our young people?" said Rep. Sharon Steckman, D-Mason City.

Rep. Greg Forristall, R-Macedonia, said Republicans are being forced to cut deeply into state spending throughout the government but decided to spare schools.

"Many states across the country are actually cutting education and we are not doing that," said Forristall.

Democrats who control the Senate are pushing for a 2 percent increase — or about $65 million — in basic state funding for schools.

Local school budgets are a complex mix of state dollars and local property tax dollars. Each year, lawmakers approve measures spelling out how much the state will allow local school budgets to grow and providing the money to pay for the state’s share of the increase. Because funding is tied to enrollment, districts with fewer students could actually see their aid reduced.

Th e $48 million that would be shifted from other parts of the budget is meant to help districts so they don’t have to resort to property tax hikes.

Critics said most schools have cost increases that are built in, with insurance costs growing, contracts with teachers already bargained and other fixed costs that are certain to grow. They warned that the GOP effort would mean the burden for paying for school spending increases would fall to property taxpayers.

"They are not exaggerating when they say they are going to have to lay off teachers," said Rep. Mary Mascher, D-Iowa City. "This will force small school districts to close."

Mascher drew a contrast with tax cuts being pushed by Republicans, including Gov. Terry Branstad. "We are proposing over $200 million in tax break for the big corporations in Iowa," said Mascher.

Forristall noted that school spending has been on a steady increase for decades, while student numbers are slipping.

The state has 50,000 fewer students this year than in 1981, while the number of teachers has increased by 3,000, he said.

More bargaining is certain to come in a deeply divided Legislature.

Republicans control the House on a 60-40 margin, and GOP lawmakers are insisting on no increase in state funding. Democrats control the Senate, however, on a 26-24 margin.