State panel tackles inequities in school funding

DES MOINES - School district budgets are being pinched by high transportation costs, low property tax bases and high-need students, issues that are exacerbated by the state's school funding formula.

A panel of state lawmakers met Wednesday at the Iowa Capitol to gather information on and discuss potential changes to the formula.

'These are issues that aren't new. They've been around for many, many years,” said Rep. Ron Jorgensen, R-Sioux City, a panel member and chairman of the Iowa House Education Committee.

Panelists discussed perceived inequities:

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Districts with large geographic areas that are forced to spend more of their general budget on transportation, which reduces what they can spend on instruction.

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Districts that are allowed to spend more per pupil than others.

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Inequities in property tax bases.

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Districts that have more students who are at-risk or for whom English is a second language. Such students typically require more intense instruction.

State education officials made presentations.

Panel members agreed to take the day's findings to the Legislature and declared an intention to meet again - probably early in the upcoming legislative session - to discuss making recommendations on potential solutions.

'We need to focus on finding solutions, taking into consideration the realities that we are facing today,” Jorgensen said.

Those realities, according to Jorgensen, include what legislative Republicans say will be a tight state budget.

Some of the proposals made Wednesday would cost tens of millions of dollars in new spending, which Jorgensen said would be unlikely to pass.

Jorgensen proposed freeing up school districts to use existing revenue streams, using the 1-cent sales tax on infrastructure as an example.

The discussion about per-pupil spending drew the interest of Davenport Schools Superintendent Art Tate, who attended Wednesday's meeting. He put a spotlight on inequity during the 2015 legislative session when he declared he would disregard state law and authorize the district to use its reserves to spend above its legally permitted limit.

Tate said the Davenport district will be looking to cut costs by $3 million to $5 million in its next budget, despite having ample funds in reserve.

He has proposed spending above its legal limit to avoid those cuts.

'To me, the most important thing is (state lawmakers) recognize the inequity, and I'm hearing that,” Tate said. 'As long as we're moving forward, that's what's important to me.”

Officials said growing transportation costs are hindering rural districts, especially as districts consolidate to remain viable, creating larger district boundaries.

'We're getting to a point where consolidation is bumping up into ... what is a practical time that students should be on school buses,” said Jeff Berger of the Iowa Department of Education.