Cedar Rapids schools could lose $1.3M in Branstad budget

CEDAR RAPIDS - A proposed education budget Iowa schools could cost the Cedar Rapids school district $1.3 million, according to Superintendent Dave Benson.

Governor Terry Branstad's recommended allowable growth rate of zero percent would severely hurt the district's funding for the 2011-2012 school year. The level of decline is based on the district's enrollment decline of 3.3 percent during the 2008-2009 school year following the Cedar Rapids flood in 2008.

“Zero percent allowable growth does not allow our funding formula to grow to allow for the loss of enrollment,” said Benson.

In the event of cuts, Benson said that 80 percent of the district's expenses came from staff, which would have to be part of that discussion. Benson said the administration would work with staff unions to try and come up with a mutually-agreeable plan if cuts become necessary.

The possibility of a loss in funding comes at the same time the district is preparing to take on $1.2 million in previously-negotiated additional contributions to the Iowa Public Employees Retirement System. The increase is scheduled to go into effect July 2011.

Benson also was concerned over proposed changes to the statewide voluntary preschool program, which was a hotly-debated political point during the fall election campaign. The Iowa House of Representatives recently voted to cut the program's $65 million in funding, of which the district receives $1.8 million to provide free preschool to all four-year olds in the district.

Governor Branstad proposes a new $43 million system that would use a sliding scale of vouchers and stipends to allow families to choose whether to send their students to private or public preschool.

“I'd like to see every kid in preschool, but it won't be free,” said Branstad during a meeting with The Gazette editorial board. “We need to let the parents choose.”

That still leaves a $21 million net gap in statewide preschool funding. Cedar Rapids' current program was mostly created from the mandate provided by the state program.

“We have put those programs in place because we have this funding stream, the loss of that funding stream would put those programs in jeopardy,” said Benson.

While there are obvious budget concerns for both the district and its school board to tackle, Benson stressed that it was important for the Legislature to agree on an allowable growth rate so the district could begin planning for the next fiscal year and start collective bargaining with its employee unions.