Iowa House OKs 3 percent school funding increase

DES MOINES — Iowa’s funding for K-12 schools would increase by $147 million under a bill Iowa Republicans passed out of the House on Thursday.

The bill, House File 2613, sets the growth rate for Supplemental State Aid — the money the state pays to school districts — at 3 percent for the 2024-25 school year. The increase would amount to a $229 increase per student, bringing the state’s per-pupil spending to $7,864.

The increase would bring the total K-12 spending from the state’s general fund to around $3.8 billion.

The bill was passed by majority Republicans largely along party lines, 60-36. Republican Rep. Brian Lohse of Bondurant joined Democrats in voting against the bill.

Republicans said the bill's plan is sustainable and would provide budget stability for schools. Democrats decried the bill as a de-facto cut to school funding and said it would cause cuts to staff, programs and services.

Iowa Senate lawmakers have not settled on a number they will propose to boost school funding. Senate Republicans have advanced a shell bill that does not include a funding increase.

Since Republicans gained full control of the Legislature in 2017, they’ve increased school funding by an average of 2 percent each year, according to data from the Legislative Services Agency. The Legislature passed a 3 percent increase in school funding last year.

Gov. Kim Reynolds’ budget proposed a 2.5 percent increase in school funding.

House Republicans have also proposed a bill that would increase pay for starting teachers to $50,000 over two years and boost pay for paraeducators and other school support staff.

Democrats ask for 6 percent boost

House Democrats called the 3 percent increase in school funding insufficient to keep up with rising costs at schools. Rep. Sharon Sue Steckman, a Democrat from Mason City, proposed an amendment to increase the state’s public school funding by 6 percent, or around $294 million.

Democrats said the higher increase would allow schools to keep up with rising wages, increasing costs and help them fund vital programs like work-based learning. With a 3 percent increase, they warned schools would not be able to rehire teachers and would have fewer offerings with larger class sizes.

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“Their wages have not kept pace with the economy, because the school funding has not kept pace with the economy, so more and more are working additional jobs just to make ends meet,” said Rep. Monica Kurth, D-Davenport.

Democrats compared the funding increase to the amount the state will spend this year on private school savings accounts, which Republican lawmakers approved last year. The program allows families to take the state’s full per-pupil allocation for their students and spend it on private school tuition.

Around 16,750 students used an education savings account for the current school year, for an estimated cost of $127.3 million. By year four, when every family will be eligible regardless of income, the program is expected to cost $345 million annually, according to estimates from the Legislative Services Agency.

Private school enrollment increased 7.4 percent during this school year, to 36,195. Public school enrollment dropped by half a percent to 483,699.

"Since there are fewer than 45,000 private school students in the state, getting about $300 million over a couple years, the least we can do is give that much to our public schools," said House Minority Leader Jennifer Konfrst, D-Windsor Heights. "So we were very disappointed that Republicans chose not to engage in this conversation and have concerns about where we finally end up."

Republicans: SSA boost part of larger package

Republicans noted on Thursday they are pushing for a separate bill that would increase the starting teacher salary to $50,000 over two years and increase pay for paraprofessionals.

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House Speaker Pat Grassley of New Hartford said the bill was part of a "global package" on school funding.

"We wanted to make sure that we give schools flexibility with (state supplemental aid), at the same time recognizing we need to put more money to paraeducation and teacher pay," Grassley said.

Responding to accusations that Republicans were prioritizing private school students, Republican Rep. Phil Thompson of Boone said private school and public school students receive the same level of funding.

"We have consistently delivered steady increases and SSA to the tune of nearly a billion dollars in the last decade," Thompson said. "This is my sixth year here. This is the sixth time that I get to vote for a sustainable increase in SSA, something I'm very proud of.“