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Iowa GOP lawmakers advance 2% school funding increase panned by school advocates
Districts report budget challenges tied to enrollment declines and rising costs
Feb. 19, 2026 6:50 pm, Updated: Feb. 19, 2026 8:20 pm
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DES MOINES — Iowa’s K-12 schools will see a 2 percent increase in general state funding for the coming fiscal year under an agreement reached between legislative leaders and Gov. Kim Reynolds.
House lawmakers Thursday approved an amended school funding bill, while rejecting a Democratic proposal for a larger boost. The agreement falls between earlier proposals this session — lower than House Republican’s proposed 2.25 percent increase but higher than the Senate’s 1.75 percent plan — and aligns with Reynolds’ budget recommendation released last month.
Lawmakers amended Senate File 2201 to set per-pupil funding at $8,148, an increase of about $160 per student. The plan includes roughly $105.9 million in new spending when factoring in other provisions and represents a 2.7 percent overall increase in general fund support compared with the current budget year.
The bill passed 58-35, with five Republicans joining Democrats in opposition, and now returns to the Senate for final approval.
Rep. Dan Gehlbach, R-Urbandale, who managed the bill on the House floor, said the plan offers stability for schools while balancing taxpayer concerns.
“This is the largest single appropriation we will make this year,” he said, noting the state will spend nearly $4 billion on K-12 education — more than 40 percent of the entire general fund.
Gehlbach pointed to improving student outcomes, including gains in reading and science scores and declining absenteeism, as evidence current funding levels are effective. Education advocates, however, warned the level falls short of what districts need to keep pace with inflation and rising operational costs, particularly as they face declining enrollment and additional responsibilities tied to state and federal mandates.
Democrats’ 5% proposal rejected
House Republicans rejected a Democratic amendment that would have increased school funding by 5 percent, or by about $400 per student.
Rep. Heather Matson, D-Ankeny, said districts are struggling with rising costs, including special education deficits, mental health needs and pressures tied to the state’s taxpayer-funded private school Education Savings Accounts program.
“School districts told us they feel like they are in an arms race, because of vouchers,” Matson said, adding the increase would help public schools “climb out of survival mode.”
Republicans opposed the amendment, with Gehlbach estimating it would add $126 million to the state budget. “I respectfully ask the minority party where these funds will be coming from,” he said.
Matson countered that the state has the capacity to invest more, pointing to projections that state revenue will grow by 4.2 percent in fiscal 2027.
Ongoing divide over school funding levels
Democrats argued the 2 percent increase continues a long-term trend of underfunding public schools.
From 1973, when the current public school funding formula was created, until 2010, general state funding to K-12 public schools increased by an annual average of 5 percent. Since Republicans regained at least partial control of the state lawmaking process in 2011, that annual increase has averaged 2.1 percent. Last year, the funding increased 3 percent.
Districts across the state have reported budget challenges tied to enrollment declines and rising costs, with some announcing staff cuts, program reductions or building consolidations. Parents and educators have raised concerns about larger class sizes and fewer course offerings.
“Excellence cannot be sustained on an empty promise,” said Rep. Mary Lee Madison, D-West Des Moines. “We cannot expect world-class results from classrooms held together with duct tape and determination.”
What the bill does
In addition to the 2 percent per-pupil increase, the legislation:
- Extends property tax relief by having the state cover growth in certain school levies
- Continues state funding for the “budget guarantee,” ensuring districts with declining enrollment receive at least 101 percent of prior funding and preventing tax increases that would otherwise be levied locally
- Provides $7 million for paraeducator and support staff pay — about half the $14 million originally proposed by House Republicans, who say they will continue negotiations with the Senate to secure additional funding.
- Increases transportation equity funding — which provides additional support to districts with high per-pupil busing costs — by 2 percent and caps it at $1 million per district
- Adds a second enrollment count date in January to better reflect student attendance
Republicans: More funding, fewer students
Gehlbach argued the plan increases resources even as enrollment declines.
He said the bill adds more than $100 million in funding while public school enrollment has dropped 1.5 percent this year to about 473,000 students.
“That demographic reality driven by lower birth rates means fixed costs are spread across a smaller base, naturally boosting dollars remaining per student in the classroom,” Gehlbach said.
The bill also shifts the cost of the “budget guarantee” from property taxpayers to the state, directing an additional $42.2 million to districts with declining enrollment.
He also pointed to long-term trends in school staffing, noting that while K-12 enrollment has declined by 5 to 6 percent over the past decade, total school staff has increased by 11 percent. He said administrative positions have grown even faster.
“I would suggest they do what Iowa has done, and take a hard look at spending and budgeting,” he said.
Gehlbach added that total education funding in Iowa — including state, local and federal sources — exceeds $11 billion annually, or about $24,000 per student.
He also defended the state’s ESA program, noting each account is funded at the same $8,148 per-pupil amount while public schools retain more than $1,600 in categorical funding for students who leave. About 42,000 students are using ESAs this year at a cost of roughly $330 million.
“In Iowa, we don’t have public money — we have taxpayer money,” Gehlbach said. “ … We have given parents the ultimate choice on what is best for their child in Iowa. We're not funding the system, we're funding the students.”
Democrats: Costs rising, flexibility limited
Matson pushed back on claims of administrative bloat, arguing that staffing growth in recent years largely has been in student-facing roles such as special education teachers, paraeducators, mental health supports, English learner instructors, career and technical education teachers and safety personnel — many tied to mandates.
She added that declining enrollment does not automatically translate to proportional cost reductions, since buildings must remain open, buses must run routes and specialized staff must remain available even if a few students leave a grade level.
Matson also argued Republicans overstate available funding by including restricted dollars in total spending figures. Not all education funding can be used for general classroom expenses, she said, pointing to federal programs like Title I that are earmarked for specific student populations.
Local impacts highlighted
Matson cited examples from across the state to illustrate the impact.
In Boone, she said, a 100-year-old orchestra program is at risk. Urbandale faces a $1.5 million deficit that could lead to 21 job cuts and reductions to music programs. In Fort Madison, she cited school board concerns that “after years of underfunding and the rise in special education deficits and unfunded mandates, our deficits are bleeding us, and we are anticipating that deficit to double by July 1.”
In her home district of Ankeny, Matson said officials are planning more than $5 million in cuts over the next four years, which could include fewer elective courses, larger elementary class sizes and reduced staffing.
“When Ankeny — a growing district that budgets very conservatively — is facing cuts in the millions, you know something is really wrong,” she said.
Matson also warned that 199 districts could fall under the budget guarantee, potentially increasing pressure on property taxes. While Republicans included state funding to offset those costs, she called it a temporary fix.
“This bill simply doesn’t get us back on track,” she said.
Comments: (319) 398-8499; tom.barton@thegazette.com
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