Iowa schools should expect tight budgets, Culver says

Iowa educators should expect scaled-back budgets for the foreseeable future with little hope of increased tax revenue, Gov. Chet Culver said Thursday.

Speaking at the annual convention of the Iowa Association of School Boards, Culver said he would push lawmakers to approve a law forcing local school districts to dip into cash reserves before seeking more in property taxes.

"I want to do all I can to avoid a tax increase on hard-working Iowans," Culver said at the convention.

Culver has ordered a 10 percent statewide spending cut, and since about 60 percent of the state's budget goes to education, that cut will have a heavy impact on local schools.

"I understand the consequences of this across-the-board cut," Culver said. "I recognize this decision will have far-reaching consequences for each and every school district."

Local school budgets are made up of a mixture of state dollars and local property taxes, and Culver warned against trying to make up for the cut in state dollars by tapping into property taxes.

"I do not want us to automatically shift the burden to local property taxpayers," Culver said. "We must all share in this sacrifice. Any proposed legislation must acknowledge this reality."

Culver's plan for depleting reserves before raising taxes was welcomed by House Majority Leader Kevin McCarthy.

"One of the first bills we'll do this session would require schools to draw down those reserves before turning to property taxes," said McCarthy, D-Des Moines.

Culver, who was a high school teacher and coach before he won elective office, played up his ties to education even while outlining a future of budget cuts with little help from the state.

"No one likes these cuts, including me," Culver said. "Simply put, the money is not there right now to fund our schools at the level we all want."

Culver said federal stimulus money helped them to avoid laying off as many as 2,400 teachers this year.

One of the first decisions the Legislature and Culver will face when lawmakers convene in January is how much they will allow local school budgets to increase.

Lawmakers last session agreed to a 2 percent increase for the school year beginning in fall 2010. Russ Wiesley of Waukee, incoming head of the school board group, said that would be the most important issue in the upcoming session.

"By setting this one priority, we send a strong message to the Legislature that allowable growth is the most critical issue for schools this year," he said.

Culver asked educators to use the budget problems as a spur to rethink how they educate students.

"From preschool to college, the old ways of doing things are no longer an option," he said.

The governor didn't offer specifics about how to change the system but was adamant that change was coming.

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

-- Associated Press