Schools react to legislature’s 2.5% SSA increase

The Iowa Legislature passed a school funding bill Tuesday that raises State Supplemental Aid allocations by 2.5%, which Gov. Reynolds is broadly expected to sign.

While the amount is greater than the 2.25% proposed by the state Senate, superintendents said they were broadly disappointed by the decision.

The move came after a lengthy partisan debate, with State Democrats fighting for a 5% increase, a call backed by many school districts.

“That would cost the state roughly $300 million, that happens to be almost the exact same amount that the governor’s proposed tax cut for corporations would cost the state in lost revenue,” said Sen. Herman Quirmbach, a Democrat from Story County. “What we have here is a priority choice, $300 million for investing for investing in our kids … or $300 million to line the treasuries of big corporations.”

State Sen. Amy Sinclair, a Republican from Wayne County and chair of the body’s education committee, defended the 2.5% proposal.

“Republican senators establish rates of growth that are sustainable, predictable, reliable and funded,” she said. “We make promises that we keep, and we will continue to do so.”

Washington County superintendents “disappointed.”

All three superintendents in Washington County described their reaction to the news as one of disappointment.

“With CPI being at 7.5% and them giving the districts 2.5%, all of our costs are going up at a rate of approximately 7.5% and that math just doesn’t work out,” Washington Superintendent Willie Stone said. “I guess I’m not sure how they expect everyone to be where they’re supposed to be at to be able to operate … we are finding out where education stands on everyone’s docket.”

The low rate of growth qualifies the Washington school district for a budget guarantee, a mechanism that allows districts that would receive less state revenue than the previous year to set a budget 101% of that prior year, with the difference made up by local property tax dollars.

“That’s the thing that a lot of people don’t understand, by them not funding districts the way they’re supposed to be, they’re actually raising property taxes in … 82 districts,” Stone said. “It’s one of those things that’s just going to happen, and we approved the budget guarantee resolution at our last board meeting. It’s something we’ll have to use to keep ourselves where we need to be.”

Stone said his disappointment was magnified by the current budget surplus.

“This year is the year of all years that it’s feasible for SSA,” he said at a meeting in January. “Their coffers are full, every reserve they have is as full as it could possibly be, legally. Beyond that, they got $2.4 billion above their projected revenue in the summer, and the projections for this year are good, meaning that revenue is supposed to be even better.”

School officials said they felt overlooked by their representatives.

“I think Mr. Shipley’s response is pretty shameful for a legislator,” Washington school board member Troy Suchan said, referring to the state representative’s comments that districts would receive more if some stopped teaching critical race theory. “If he wants to sit and penalize school districts because he doesn’t like how some districts are following the law, instead of enforcing that law, and punishing the rest of us, then he’s a POS as far as I’m concerned, and he can come sit here and talk to us about it, and I will discuss and debate it with him face-to-face.”

Mid-Prairie Superintendent Mark Schneider said 2.5% growth locked schools into losses under the state’s union negotiation laws.

“If you go to binding arbitration, the arbitrator has to choose between either 3% or the consumer price index at that time,” he said. “Inflation is something like 5, 6, 7% this year, so the teachers’ association will know that if they carry things to arbitration, they’re going to get 3% … the legislature set the SSA at 2.5%, so every district in the state of Iowa is basically guaranteed that the money that they receive is not going to be able to cover the salary and benefits increase.”

Highland and WACO Superintendent Ken Crawford said the decision reflected poorly on the legislature.

“I think the value they have put to education in rural Iowa is very little,” he said. “This is about six years in a row that we’ve gotten 2.5% or less … and that’s not how we can operate our business, so to speak. It’s education, this is affecting kids, this is hurting kids, straight out, and I don’t know why that doesn’t make sense to Des Moines and why they continue to squeeze us out.”

Jefferson County area

Superintendents at Cardinal, Pekin and Van Buren schools said they were hoping for more than a 2.5% funding increase from the state Legislature. They said that the increase in revenue from the state is not keeping up with their rising costs, or with inflation.

Van Buren County CSD Superintendent Jeremy Hissem said Iowa schools are seeing cost increases between 5-7%, double the increase of what the schools are getting in revenue.

“The math is easy, and it's not hard to see that doing this year after year will force districts to minimize the expenditures, which will result in less opportunities for our students and staff,” Hissem said.

Cardinal Superintendent Joel Pedersen said that, though he was thankful the Legislature came to its decision in a timely manner, he was disappointed at the amount. He noted that inflation is about 7%.

“The state of Iowa has a $3 billion surplus, and I think this year, schools deserved more,” Pedersen said. “With current economic conditions, staffing conditions and state budget surpluses, if not now, when for increased funding? Schools are being challenged like never before and extra resources help with mental health supports, not just teachers.”

Pekin and Sigourney Superintendent Kevin Hatfield said that, while he doesn’t believe in “throwing money” at problems, he also felt Iowa schools needed more support.

“We’ve averaged just under 2% SSA for over seven years now,” he said. “To me, with respect to the record level of available state funding that’s sustainable for many, many years, if there was ever a time to truly invest in or schools and in our students, now would be the time.”

Hissem said school districts are negotiating a 3% wage increase with their staff, owing to the rise in the Consumer Price Index (inflation indicator) and rise in wages in the private sector. He said he was hoping for an increase in revenue of 3.5-4%.

Van Buren County’s teachers have been at the bottom of the salary range in the district’s Area Education Agency, but the district plans to bump salaries 2.75% plus $2,000 for teachers and administration, and increase wages for non-certified staff by 3.5%.

“One of the board’s goals is to improve our compensation package in order to recruit and retain quality staff,” said Hissem, adding that adequate supplemental state aid is a critical piece of the puzzle.

Fairfield school Superintendent Laurie Noll did not respond to a request for comment on the issue.

Mt. Pleasant

The superintendent at the Mt. Pleasant school district was hoping for more money than the 2.5% funding for the state Legislature.

“I ran the numbers through the new money calculator for Mt. Pleasant,” said Mt. Pleasant Superintendent John Henriksen. “Because of our enrollment decrease, it is going to be a very small increase. It is $20,747 that we will see off of the 2.5% increase issued to the schools. That’s .15% new money. “

“The state money that we will receive next year is $13,565,790. That’s our education aid from the state of Iowa,” said Henriksen. “That’s only $20,000 higher than the year that we are in now.”

“The problem is that you are trying to settle contracts and deal with 8% inflation, and all of these things,” said Henriksen. “And then you get $20,000 in new money to deal with all of it.”

Henriksen explained that the school board knew that the amount would be somewhere between 2% to 2.5%. They would have had to have had an allowance of supplemental aid 3.5% just to make 1.13% in new money.

“We are going to have to really tighten our belts,” said Henriksen.