Iowa City schools proposing $8M in cuts, including reducing teachers

IOWA CITY — Potential spending cuts of $8 million for the 2026-27 school year — including reducing up to about 23 educators — as well as guidance for how the district will lower spending for the remainder of this academic year is being presented Tuesday to the Iowa City school board.

The proposal for the upcoming academic year includes adjusting the district’s class size model at its elementary schools to reduce up to 10 classroom teachers through retirements and resignations, a savings of $900,000, according to school board documents.

Another five to six teaching staff could be reduced from the district’s middle schools and six to seven teaching staff could be reduced from the district’s high schools, a combined cost savings of $1.1 million. The reductions would occur through attrition.

Another $1 million could be saved through performance-based non-renewals of probationary teachers as recommended by building administrators. The board document does not specify how many positions could be affected.

The Iowa City Community School District uses a model called the Weighted Resource Allocation Model to control elementary class sizes based on rates of students who face barriers in their education. For example, if 70 percent or more students in a classroom receive free or reduced-price lunch, that class size will be smaller than a classroom that has fewer than the 70 percent.

The Iowa City school board will hear the potential budget reduction ideas at its meeting starting at 6 p.m. Tuesday at 2255 N. Dubuque Rd. in Iowa City. The meeting is open to the public, and there will be a public comment period.

The cost-saving measures are being proposed as the district faces an unknown financial cliff. Last year, the school board approved a $279 million fiscal 2026 budget — down about $40 million from the previous fiscal year that had included cuts like the closing of an elementary school in Hills.

But that reduction appears to have not been enough.

In January, Iowa City school board members learned about a $10 million internal loan taken out in August 2025 without their knowledge. The school board last month retroactively approved the loan, but questions linger about the district’s financial health as expenses this fiscal year have outpaced projections. The district saw a 9 percent average payroll cash increase this academic year — much more than was anticipated — and projected $15.7 million more in salary and benefits costs than the prior year, according to board documents.

The district spends about 86 percent of its general fund budget on salaries and benefits, higher than the 80 percent of the general fund that neighboring districts spend on payroll.

To make ends meet, the district plans to take out a $3 million short-term loan next month to repay in April when it receives its property tax payments. Although district officials anticipate current funding will cover March expenses, a loan allows them to maintain a cash reserve.

School officials say another longer-term loan will be needed in the future, but have yet to specify the amount.

District office, personnel savings proposed

District officials also are proposing millions in cost savings by reducing about 20 positions from the district office.

This could include reassigning district office staff to school-based positions which would reduce district office staff by up to 16, a $1.2 million cost savings, and not replacing its current resigned positions next year, a $300,000 savings.

Reassigning special education lead support teachers to available teaching positions would affect a projected four educators and save $360,000.

Reassigning district administrators to building positions and reducing administrative contract positions could be a potential savings of $500,000.

Other staffing adjustments could be a potential savings of $950,000. This includes:

Reducing operations expenses

Another $750,000 could be saved by reducing staff based on attrition and reassigning substitutes for custodians into open positions. More cost savings could be achieved by reducing temporary technology, grounds and painting staff this summer.

Limiting spending through the end of the 2025-26 school year

The district is setting limits on spending and purchasing for the remainder of the current school year. The guidance will be provided to building administrators, department leads and other budget holders, according to a draft of the guidance in board documents.

A general hiring freeze is in place for the remainder of the 2025-26 school year, and essential teacher hires for the 2026-27 school year will have restricted levels of experience and education.

Any spending request of $5,000 must be pre-approved by the district’s executive director for elementary or secondary schools and the chief operating officer.

District credit card limits will be reduced by 50 percent, access to certain categories of vendors will be restricted and purchase orders should be the primary method for purchases.

Building budgets have been reduced overall by 20 percent from the year’s beginning allocation, and there will be no carryover to the upcoming budget.

Any coverage required for meetings or activities must be provided using building-level resources. Substitute coverage during staff meetings will not be approved. All special education purchases must follow the district-level purchasing process and be necessary to implement a student’s Individualized Education Plan and ensure the provision of the Free Appropriate Public Education Act.

Overtime will not be allowed without prior approval from human resources or the chief operating officer. Building substitutes should not be assigned to the role of paraprofessional.

New curriculum pilots and adoption of new English Language Arts materials for K-5 will be delayed, and professional development that requires a substitute or work outside of teacher contract time will be discontinued, except for required training to maintain compliance.

Student athletics, activities and events will proceed as normal, according to board documents. Transportation should be limited to yellow school buses or district-owned vans.

Booster Club, parent-teacher associations and organizations and dollars that have been fundraised can continue to be spent as planned, the guidance shows.

Comments: (319) 398-8411; grace.king@thegazette.com