Culver says state should 'rethink' education in light of budget cuts

Iowa Gov. Chet Culver delivered a somber budget lesson to school board members from across the state Thursday, but argued financial constraints offer a historic opportunity for reforms.

Culver said the state has to change the way it looks at funding schools and find more efficiencies and cost savings.

“I believe now is the time to challenge this state to rethink education,” Culver said. “From pre-school to college, the old ways of doing things are no longer an option.”

Declining state revenues forced Culver to slash the state budget 10 percent, which included deep cuts in state aid to local schools.

“No one here likes these cuts, including me, and this was not a decision that I wanted to make, but as governor, this was a decision that I felt I had to make,” Culver told school board members and officials at the Iowa Association of School Boards' annual convention.

Culver said he does not want to see schools automatically shift the burden they're facing from reduced state funding onto local property taxpayers.

The governor plans to ask the Iowa Legislature to require some districts to use their cash reserves to offset cuts in state aid rather than raising property taxes.

Culver said he realizes dozens of school districts already are facing financial hardships and don't have sufficient cash reserves, and said any legislation should acknowledge that reality.

“We're really talking about those school districts that do have a sizable reserve,” Culver said.

He cited the example of the Cedar Rapids school district's decision to use a significant portion of its reserves to fill the shortfall, and said they hope other school districts will follow that example if they have the resources.

Doug Olsen, vice president of the Audubon Community School District's board, said if the cuts in state aid were only one year, many schools could handle it. But he said it appears they will last longer, which could strain schools.

“We're looking at all of our options right now,” Olsen said.

Fort Dodge Superintendent Linda Brock said she would like to see more of the details about Culver's call to spend cash reserves before raising taxes and what that means for schools that have been responsible and built up cash reserves.

“So will those that have been responsible now be penalized in the process? I guess that's my biggest concern at this time,” Brock said.

Culver said $559 million in federal dollars the state has received has helped save more than 2,400 teaching jobs.

He said Iowa will compete for federal “Race to the Top” dollars which reward states with innovative education practices.

Turning around underperforming schools is one of the reforms on the agenda for Culver.

“One thing is for certain, Iowa's school system will not look the same a year from now as it does today,” Culver said.