School districts face state funding disparities

By Erin Murphy, Gazette-Lee Des Moines Bureau

DES MOINES - State lawmakers are attempting to address what some say is an inequity in Iowa's school funding formula.

Taking the lead on the effort are legislators from the Quad Cities, where the Davenport superintendent announced his plan to use the district's reserve funds to spend more than legally allowed.

'I think it's good news, just the fact that the subject is being talked about,” said Art Tate, superintendent of Davenport Community Schools.

A portion of the state school funding formula sets a per-pupil dollar level at which districts are allowed to spend.

The disparity stems from the 1970s, when the state adopted its school aid formula to take some of the burden off local property taxes, which were used to fund schools.

In doing so, lawmakers set a single per-pupil cost, based on enrollment and expenditures. But some districts were spending more per pupil at the time, and those districts were allowed to continue.

As a result, in fiscal 2015, some districts are allowed to spend up to $6,541 per pupil, while others, including Davenport, are permitted to spend the minimum $6,366 per student, or 2.7 percent less, even if they have available funds.

In Davenport, for example, the district could budget an additional $2.8 million if it were allowed to spend up to the $6,541-per-pupil level.

Some state lawmakers are examining ways to alter that funding formula to allow districts to spend up to the maximum per-pupil level.

'It's kind of frustrating sitting back here knowing we have some logical language that would do no harm to anyone, but would benefit my students greatly,” Tate said. 'I think it's a logical, common-sense approach.”

In part because of what schools think will be inadequate state school funding this year, Tate said he plans in the 2016-2017 school year to budget for higher per-pupil spending than the district is allowed. Tate said he would dip into the district's reserves to cover the difference.

Tate said he plans to take the action even though his license could be revoked as a result.

Rep. Ross Paustian, R-Walcott, said he is working on drafting legislation that would resolve the issue. He said it could be similar to a proposal previously introduced by Rep. Cindy Winckler, D-Davenport.

'It's really not fair,” Paustian said. 'Why should one district be able to spend up to $175 more per student? It really hurts those districts at the lower level.”

Winckler asked the Department of Education to weigh in on possible solutions. The department responded with three options:

l Allow all districts to spend up to the maximum if they choose and have the available funds.

l Reduce per-pupil maximums and make consistent all schools' per-pupil spending.

l Lower the maximum and offset with adjusted state funding.

Winckler and other Quad Cities Democrats previously introduced legislation to allow districts with available resources to spend up to the maximum level. She expressed concerns with the other options.

'All we are doing is giving them the authority to spend (the money) on student programs and services,” Winckler said.

Any new policy bills are ineligible for the remainder of this legislative session. But Paustian remains hopeful that if a proposal is presented, it could be resurrected through one of several available procedures.

Senate Majority Leader Mike Gronstal, D-Council Bluffs, said the Senate would be open to a proposed resolution.

l Comments: (515) 422-9061; erin.murphy@lee.net