Iowa educators say spending freeze would lead to layoffs

Education interest groups called on Iowa lawmakers April 4 to set education funding for the coming year.

Calling for at least a 2 percent increase in allowable growth, representatives of groups representing teachers, school administrators and the area educations associations warned of larger class sizes as well as fewer services and class offerings if Gov. Terry Branstad and House Republicans prevail in setting allowable growth at 0 percent.

“It's time to act,” said former Republican Speaker of the House Brent Siegrist, now with the area education agencies. The impasse created by the failure of Branstad, House majority Republicans and Senate majority Democrats to agree on a funding level has left education “hanging in the wind.”

While they wait for a decision, school boards are sending pink slips to teachers and other staff because they don't know if their 2012 budgets will cover current staffing levels.

Across the state, more than 500 positions are being cut, according to Chris Bern of the Iowa State Education Association, and he expects that number to increase as April 30 contract deadline approaches.

Cedar Rapids is eliminating 61 positions, Sioux City 106 – 10 percent of its staff, Council Bluffs, 50 and Iowa City, 60, Bern said. He estimated as many as 1,500 positions could be eliminated.

The difference between 0 percent and 2 percent is about $65 million in state aid or about $115 per student.

At 0 percent, House Republicans would direct about $215 million in state aid to local school districts to “back fill” school costs shifted to property taxpayers, but would provide no new base funding for K-12 schools and would not increase spending for “categorical” education costs like teacher pay raises, class-size reductions, reading readiness or professional development programs.

Speakers referred to increasing state revenues – up 4.3 percent in March, according to the Legislative Services Agency – and said legislators can find funds for schools and tax relief.

“It's a $6 billion budget,” Siegrist said. “It's not either or. In a budget that large, they can find the money.

In Cedar Rapids, 0 percent means a $1.3 million decrease in the regular program cost, Superintendent Dave Benson said at the Statehouse. “And that's just the beginning,” he said.

While all school districts will feel the pain, Benson said large districts like Cedar Rapids “educate the most vulnerable of the vulnerable.” The eight largest districts in Iowa – Cedar Rapids, Council Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Sioux City and Waterloo – educate 25 percent of the state's students, 38 percent of low-income students, 51 percent of minority students and 62 percent on non-English speaking students, Benson said.

Built-in increases in the district's cost, including a mandatory increase in IPERS retirement contributions, will be more than $5 million next year, Benson said.

Zero percent allowable growth means larger classes, layoffs, and fewer opportunities for students, he said.

Also, 0 percent allowable growth means a property tax total levy rate of $15.16472, he said, compared with $14.80074 at 2 percent allowable growth.