Branstad backs 0% allowable growth

DES MOINES – Gov. Terry Branstad called Iowa House approval of a 0 percent allowable growth rate for school funding for the next two years consistent with his efforts to put Iowa's fiscal house in order.

“I believe that 0 percent for the next two years makes sense while we get the state's financial house in order,” Branstad said Feb. 9 after taking part in an announcement of a financial literacy program for high school students. Like teenagers, Branstad said, lawmakers need to learn to “live within a budget, save and invest, and use the credit card only as needed.”

Locking in 0 percent allowable growth “will give us a platform to move into the future in a strong position,” the governor said.

In the Senate, majority Democrats are moving ahead with a plan for a 2 percent increase in allowable growth, which, they say will cost only $65 million more than a 0 percent allowable growth rate. At 0 percent, the increase in state funding for local school districts will be $215 million.

At 0 percent, Branstad said, the state can fulfill its commitments to local districts.

“I promise that we're going to restore stability and predictability in funding,” he said. “The state is no longer going to short school districts.”

Last year, the Legislature approved a 2 percent increase, but didn't fund $156 million of that. Instead, the Legislature let local school districts either spend their reserve funds or raise property taxes to make up the difference.

Branstad indicated he doesn't see 0 percent as a starting point for negotiations with the Senate. Zero percent is his recommendation because it's sustainable, he said.

The 0 percent funding level is consistent with other areas of state government that face “significant reductions” in his proposed budget. It also comes with a commitment there won't be an across-the-board cut later, he said.

Likewise, Senate Majority Leader Mike Gronstal, D-Council Bluffs, has indicated Senate Democrats don't see 2 percent as a bargaining position. They will insist on 2 percent allowable grow, he said.