School Funding, State Aid and Property Taxes

Iowa law guarantees that every child in the state receives an “equal” amount of money to fund his/her education. A district’s budget is basically derived from the number of children enrolled in the district multiplied by the district’s cost per child. However, economic factors change from year-to-year, and it is up to state lawmakers to decide just how much to increase the cost per child to reflect that change. This increase used to be called “allowable growth" and is now referred to as "State Supplemental Aid Increase."

Patti Schroeder, education finance co-director for the Iowa Association of School Boards, explains the principle this way: “Under the basic finance formula, each district’s spending is based upon a district cost per pupil. The total amount the district is allowed to spend is that per pupil amount times the number of students enrolled. A district can spend less than the maximum, but cannot spend more.” So in this way, school districts are budget limited in what we can spend. We have limited flexibility to increase revenues and spend authority through the current tax system.

An allowable growth rate is recommended by the Governor and established by the Legislature. The rate is multiplied by the state cost per pupil to calculate an allowable growth amount per pupil. All districts receive the same amount per pupil. Allowable growth per pupil is intended to further provide equity in school districts throughout the state. The legislature set a principle that each child is worth the same amount, no matter where he/she lives. Recently our legislature set an allowable growth rate for school at a 1.0% increase. This equates to an increase of $67 per student.

Local property taxes account for one-third of the total funds going into districts’ programs and represent about 40% of the overall state property tax funds levied. The state's school funding formula largely determines school property tax rates and, therefore, the amount each district receives in state aid.

People often ask, "Why don't we just remove property taxes from the formula entirely?" There are several reasons why this isn’t a wise move.

• It would take away roughly $1.5 billion dollars statewide, leaving lawmakers to decide whether to raise the state sales tax or income taxes to make up that difference.

• Property taxes also add stability to the funding of school districts. For example, if we operated solely under the sales tax, the amount available for school funding would surely fluctuate depending on consumer spending.

• Just as many people found out during the 1990s, too much reliance on a single funding source invites large swings in funding, which isn’t good for an entity unable to adjust to midyear revenue changes. Diversification is a prudent investing strategy that applies to schools as well.

Considering the aforementioned reasons and the present revenue and political climate, removing property taxes from the school finance formula seems unlikely.

Due to changes in our school district's budgeting practices, whole grade sharing, and operating as lean as possible, we have been able to maximize our local and state funding sources. This, along with increased property valuations, has allowed our local school property taxes in both the Alta and Aurelia school districts to come down over the past 4 years. If the current trend from the capitol to underfund schools continues, taxes will go back up.

No public official, whether our local school board members and administrators or the city and county officials, take the impact of raising property taxes lightly. In most cases, public officials exhaust all other options before asking property taxpayers for more funds. However, when the General Assembly cuts short our state aid and we experience additional, unforeseen expenses such as increased fuel and energy prices, we really have no alternative except to raise local property taxes or reduce expenditures.

Seventy-five to 85 percent of school district budgets are comprised of salary and benefit costs, which doesn’t leave much discretionary spending to cut. No one likes property taxes, but they are an essential part of efficient funding of our schools.

Next year's tax rate for Alta taxpayers will be set at $9.69 (a $2.00 reduction from last year). The tax rate for Aurelia taxpayers will be set at $8.52 (a reduction of over $1.00from last year).

We are fortunate in the short term that local Alta-Aurelia School District taxes will be reduced. This is a direct product of the school reorganization that will take effect on July 1st. For school's reorganizing, the foundation levy is reduced by the state from $5.40 to $4.40 the first year and gradually increases back to $5.40 over the next three years.

Currently, 70% of the total Alta-Aurelia levy rate is determined by the State's school funding formula. 15% of the total levy rate is voter controlled and 15% is controlled by the school board. The

Once all school districts establish their budgets based on the combination of state aid and local property taxes they receive, there are still many restrictions on where and how that funding can be spent. This is known as "Dillion's Rule" and will be a topic of discussion in a future article.

School Bus Safety Reminders

As the second semester progresses and we look forward to the coming Spring weather, drivers should remain vigilant as students and school buses are on the roadways in sometimes deteriorating conditions. That means: Put the cell phone away, set your cup of coffee down, don't look in your rear-view mirror to fix your hair. Concentrate on who and what is around you. Our ultimate goal is to make sure everyone safely arrives at their destination. Motorists should avoid distractions and obey school bus and school zone traffic laws so we have the safest possible environment for students boarding and exiting buses.

"Kadyn's Law," in memory of Kadyn Halverson, went into effect in Iowa with the governor's signature March 16, 2012. The 7-year-old first grader from Kensett was killed by a driver who had illegally passed a stopped school bus.  This provision increases the penalties for drivers who fail to abide by the law (Iowa Code 321.372) on stopped school buses. Previously, a motorist who passed a bus when the red warning lights were flashing was fined $200. The new Iowa law increased the penalty to at least $250 and as high as $675 for a first offense and up to 30 days in jail. For subsequent violations, a driver could face fines of up to $1,875. A driver who violates the law and causes an injury could face added fines, jail time and license suspension. 

In addition to the situations described below, drivers should never pass on the right. Violations of Iowa's motor vehicle laws should be reported to local law enforcement. 

Scenario 1 – You are traveling on a two-lane or three-lane

• Nearing the bus from the rear; drivers must always stop when either the amber lights or red lights are flashing. Stop no closer than 15 feet from the bus. 

• Meeting the bus from the front; drivers must slow their vehicles to 20 mph when amber lights are flashing. Stop when the lights change to red and the stop arm comes out. Remain stopped until the lights stop flashing and the stop arm is withdrawn.

Scenario 2 – You are traveling on a road with two or more lanes in each direction

• Stop if nearing the bus from the rear when amber or red lights are flashing. Stop no closer than 15 feet from the bus.

• When meeting the bus in one of the opposite two lanes (or more), you do not need to stop even if the bus has stopped with lights flashing and stop arm out. The bus is not permitted to load or unload children who must cross this type of roadway unless there are official traffic control devices or police officers present.

Below are a few safety reminders for school bus riders (parents, please remind your students to follow these rules.)

1. Be alert to traffic. Check both ways for cars before stepping off the bus.

2. Make eye contact with the bus driver. Wait for the bus driver’s signal before you cross the street.

3. Walk in front of the bus; never walk behind the bus to cross the street.

4. While waiting for the bus, stay in a safe place away from the street.

5. Never go under the bus to retrieve something you’ve dropped.

6. Never walk in between buses.

7. Be aware of backpacks or loose clothing that could get snagged on bus doors or hardware.

Investing in Early Childhood Education

The emotional, social and physical development of young children has a direct effect on their overall development and on the adult they will become. That is why understanding the need to invest in very young children is so important, so as to maximize their future well-being.

Research has shown that much of what you need to succeed in life is established before you enter kindergarten. During that time, the human brain undergoes rapid development; it’s a period when a child builds cognitive skills (the foundation for reading, math, science and academics), as well as character skills, social-emotional growth, gross-motor skills and executive functioning, which includes everything from impulse control to problem solving.

Research also states that children who attend early-learning programs demonstrate higher levels of school achievement and better social adjustment than those who have no formal early education. They’re less likely to repeat a grade or be placed in special education classes, since learning issues can be identified and mediated early. Children who have had formal early-learning experiences are also more likely to graduate from high school.

The Alta-Aurelia school system is helping our communities to invest in our children's early development in a number of creative ways that will not only help ensure our children's future success, but also make our towns attractive places for young families to live and grow.

Alta Preschool/Tornado Safe Room

The Alta Communty School District has received a grant from Iowa Homeland Security and Emergency Management totaling over $1,022,000 to help the district to construct a modernTornado Safe Room attached to our existing Elementary/High School building.  This will greatly improve the safety of our school for students, staff and visitors.  

When not being used as a storm shelter, the space will be utilized as up-to-date preschool classrooms designed for the current best practices in early childhood education as supported by Head Start standards and the Iowa Statewide Voluntary Preschool Program standards.  

Plans are being developed currently, the the current timelines scheduling ground breaking this coming Spring! The construction will not require a bond issue or any raising of property taxes.  The school district's finacial contribution will be supported by the one cent sales tax (SAVE Fund), and the Physical Plant and Equipment Levy currently in place.

Partnerships with Day Care Boards

Both the Alta and Aurelia schools are working hard to help our communities fill the severe need for quality, affordable and accessible day care.  There are fewer in home providers in our small towns, which places a huge burdon on existing young families, and becomes a deterent for attracting new young families to our communities.

The Aurelia School District has a long standing history of working with the local communith day care that goes back to when it was hosted at the United Methodist Church. Eight years ago, the Aurelia Day Care was moved into an existing classroom to create space for 20 children.  

The need for day care has out grown the existing space, so the Aurelia Day Care board has been able to obtain funding through grants and low interest loan programs to build their own building. The Aurelia School District will continue to partner with the Aurelia Day Care board through a long-term land lease (providing space for the building to be constructed) and a food service agreement (providing low cost meals to day care children).  

The building is currently under construction with the goal of opening shortly after the 1st of the year.  The new space will provide day care for up to 52 children!

In Alta, the school district has partnered with the Ready, Set, Grow day care board to provide space on the first floor of the old high school building for use as a community day care. Ready, Set, Grow currently occupies 2 newly remodeled classrooms to provide day care space for 20 children (infants through toddlers). Additionally, a partnership exists between the day care and the school through a food service agreement for the school to provide low cost meals to the day care children.

Before and after school day care for school aged students continues to be offered at the Elementary as has been the case for a number of years.

Long range plans are to offer additional space to Ready, Set, Grow day care, as their need grows, and space becomes available after the relocation of the current preschool.

The Boards of Education for both the Alta and Aurelia Community School Districts recognize and support the need for accessible day care and quality early childhood education programs as an aid in growing our communities, preparing our children for their future success, and meeting the needs of young families.  

These are truly exciting times to be a part of Alta-Aurelia!

So, what is the difference between Whole Grade Sharing and Re-Organization?

During our recent November school board meeting, the Alta and Aurelia boards participated in a presentation and discussion facilitated by Dr. Tim Grieves, Chief Administrator with Northwest AEA.  He presented on the topic of reorganization.

Primarily he lead the boards through Iowa Code 275 and how this relates to school reorganizations, the timelines involved, and the process as a whole.  Discussion was held on not only Iowa Code, but also how to structure a newly reorganized school board, petitions, and dates a vote can legally be held.  Many questions were asked concerning pro's and con's of reorganiziing school districts, examples of reorganization processes that have been most successful, and pit falls in the process to avoid.

So, what is the difference between whole grade sharing and reorganization?

In Whole Grade Sharing, two school districts agree to share students, classes, and staff but remain separate school districts. The two districts maintain separate school boards, separated budgets, and separate taxing authorities.  Currently, Alta and Aurelia whole grade share student in middle school through high school.  The boards are now learning more about a move to reorganization to determine if and when we should move to a true k-12 school merger through reorganization.

In re-oganization (commonly referred to as ‘consolidation’).  Two separate school districts join to become one new district with one new school board, one budget and one taxing authority. 

Whole Grade Sharing requires a vote of the school boards to approve.  Re-Organization (consolidation) requires a vote of the public passed by simple majority.

There are pro’s and con’s to each.  In the current Whole Grade Sharing Agreement between Alta and Aurelia there are a number of shared positions for which both districts receive additional funding (superintendent, business manager, transportation director, curriculum coordinator to name a few). This additional funding would not be available if the two districts consolidated.  For districts that vote to consolidate, there are some efficiencies gained and a small property tax incentive for three years.

The above mentioned loss in funds will not only be off-set by both districts applying for "jointly employed" funding, but funding would increase considerably for the final year of the whole grade sharing and the first three years of the reorganization . The districts are eligible for "jointly employeed" funding now that they have the same professional development plans, similar salary schedules, and utilize the same evaluation process and instruments.

As the boards move forward in learning more about reorganization, information will be made public. Once it is determined to pursue if reorganization is the proper fit or not for our situations, public surveys will be used, along with pubilc meetings and newsletters to get accurate information out to the public prior to any formal decisions being made.

Personally, as long as Alta and Aurelia remain together in whatever fashion the school boards and communities see fit, I view it as a huge positive. As I am out visiting classrooms, I witness more students in the elective classes than in years prior to the sharing agreement.  Elective courses that would have literally had 2 or three students in the past now have double digits.  Small class sizes are great, but there comes a point where a class is so small that it impedes education. In some of our elective classes, that is where we were when we were separate.

Because of our now larger student numbers, we are able to offer more elective classes at the high school and more exploratory classes in the middle school than we have been able to offer in many years, and possibly ever.  Advanced Science classes have been developed, expanded offerings in Business, Family/Consumer Science, Business and Industrial Technology are now offered. Multiple sections of elective classes as well as multiple sections of required classes are now offered, where, prior to the sharing agreement, only one section may have been available in the schedule.  This gives students greater choice and flexibility to take classes in their areas of interest and need.

The extra-curricular and co-curricular offerings are richer together than when we were separate.  Increased numbers have allowed for for multiple levels of competition in many of our activities.

There are strong numbers in our music programs at both middle school and high school.  Interest is high and we anticipate those numbers continuing to increase.   Greater numbers in many of our co-curricular and extra-curricular programs gives us the opportunity to now have truly developmental programs.  Students aren't forced into situations where they have to compete at levels above or below their skill levels, as was the case at times when both schools were separate.

The board of education for both Aurelia and Alta meet at joint monthly board meetings.  Each gets to hear the discussions of the other district and both boards are taking a keen, positive, interest in the business of the other. If you were to walk in the board room as an observer, I think it would be difficult to determine who was an Alta board member and who was an Aurelia board member. The discussion is positive and forthcoming. There is a sense of "team" that has been developed in the board room.  This is not only exciting and positive, but it will continue to have a positive impact in the classrooms and our students' educational experience.

There are two questions that I have continually asked myself over the past six years, "Are we better together than on our own?" and "Is being together better than the alternatives both school districts faced for their futures?" Based on what I am currently witnessing, the answer to both questions is a definite "Yes!"  I for one am looking positively to the future as Alta and Aurelia continue to grow together for the benefit of our children’s education.

Enrollment Has An Effect On Resources

Every year public schools in Iowa spend billions of dollars to educate children, sparking taxpayers to often ask school board members, administrators and lawmakers: “Where does that money go?” That’s why part of the Alta Community School District and Aurelia Community School District’s mission is to help taxpayers understand how districts are spending that money, in an attempt to dispel the mysteries surrounding school funding. Knowing how the state school funding formula works is important in helping understand the pressures facing local school districts. Because the formula is based on the number of children enrolled in the district, as we gain children, we gain revenues to serve those children and, if enrollment declines, we also lose revenue.

While the area of school finance is complex, some basic principles make it understandable to the average citizen, including:

1. The number of children enrolled in each district determines a district’s budget/revenues.
2. The General Assembly through the finance formula “equalizes” funding statewide so the “cost per student” is roughly the same in every district and every student has access to a quality education.
3. The Governor recommends the annual change in per pupil allowable growth.  The General Assembly is responsible for passing legislation to establish the annual increase in the “cost per student/allowable growth”.
4. Property taxes matter. They determine how much money each district receives in state aid.
5. Funds are restricted. We can only use funds on what the legislature tells us we can.
6. Schools are budget limited. Most other public entities are property tax rate limited. This difference is monumental.

Iowa’s school funding formula is a child-based formula, meaning that the allowable spending for a school district is based upon the number of children enrolled in that district on October 1 of each year. The number of students counted on that day is used to establish the district’s budget for the following year. This means our revenues are always a year behind the actual number of children we are serving in our classrooms. For the Alta Community School District, our October 1 certified enrollment is 517 for the current year, which is down 17 students as compared  to last year's certified enrollment. For the Aurelia Community School District, our October 1 certified enrollment is down 7 students for the current year as compared to last year.  Combined, this is a loss of revenue for Alta-Aurelia of approximately $156,000 for the 2017-18 school year as this October's count generates next school year's funding.

Because the enrollment for our districts have been relatively stable over the past six years, we’ve been fortunate that our budgets have been stable as well. However, if enrollment continues to decline in the future, along with increasing costs, we will be faced with the prospect of reduced resources to serve the needs of our district. This could result in personnel reductions and have an impact on programs.

Enrollment Has An Effect On Resources

Every year public schools in Iowa spend billions of dollars to educate children, sparking taxpayers to often ask school board members, administrators and lawmakers: “Where does that money go?” That’s why part of the Alta Community School District and Aurelia Community School District’s mission is to help taxpayers understand how districts are spending that money, in an attempt to dispel the mysteries surrounding school funding. Knowing how the state school funding formula works is important in helping understand the pressures facing local school districts. Because the formula is based on the number of children enrolled in the district, as we gain children, we gain revenues to serve those children and, if enrollment declines, we also lose revenue.

While the area of school finance is complex, some basic principles make it understandable to the average citizen, including:

1. The number of children enrolled in each district determines a district’s budget/revenues.
2. The General Assembly through the finance formula “equalizes” funding statewide so the “cost per student” is roughly the same in every district and every student has access to a quality education.
3. The Governor recommends the annual change in per pupil allowable growth.  The General Assembly is responsible for passing legislation to establish the annual increase in the “cost per student/allowable growth”.
4. Property taxes matter. They determine how much money each district receives in state aid.
5. Funds are restricted. We can only use funds on what the legislature tells us we can.
6. Schools are budget limited. Most other public entities are property tax rate limited. This difference is monumental.

Iowa’s school funding formula is a child-based formula, meaning that the allowable spending for a school district is based upon the number of children enrolled in that district on October 1 of each year. The number of students counted on that day is used to establish the district’s budget for the following year. This means our revenues are always a year behind the actual number of children we are serving in our classrooms. For the Alta Community School District, our October 1 certified enrollment is 517 for the current year, which is down 17 students as compared  to last year's certified enrollment. For the Aurelia Community School District, our October 1 certified enrollment is down 7 students for the current year as compared to last year.  Combined, this is a loss of revenue for Alta-Aurelia of approximately $156,000 for the 2017-18 school year as this October's count generates next school year's funding.

Because the enrollment for our districts have been relatively stable over the past six years, we’ve been fortunate that our budgets have been stable as well. However, if enrollment continues to decline in the future, along with increasing costs, we will be faced with the prospect of reduced resources to serve the needs of our district. This could result in personnel reductions and have an impact on programs.

Filling Their Backpacks

John Dewey said, "Education is not preparation for life. Education is life."

     There are few professions where you can see the impact of your work so vividly. There aren't many jobs where hero, friend and mentor are part of the job description. There are few careers that have such a lasting impact on an entire generation.

     I like teaching. I like learning about teaching. And I especially like reading others' teaching philosophies. I love it when teachers select analogies-teaching is like lighting a bonfire, or teaching is like giving students wings-that explain, instruct and inspire.

     For me, teaching is a little like stuffing a backpack. You know the ones I mean-the heavy-duty, oversize backpacks that students shoulder down the halls of our schools. In these metaphorical backpacks, students carry with them the knowledge and skills they will need for their journey through life. When students enter our classrooms, their backpacks have already been partially filled by families, life experiences and other instructors. The backpacks are deep and sometimes it's hard to see what they are carrying in there.

     Through our teaching, we attempt to place items in our student' backpacks. All children do not arrive to school with a backpack full of the same experiences, nor are they all equally full. When students first enter our classrooms, we must determine what is in the backpack and begin filling from there. We add the foundations of language, reading, mathematics, the mechanics of writing and skill development. We pack in sharing and caring, character development, listening skills. Art, music and physical wellness are placed in the pack as well.

     By this time, the students' backpacks are pretty full, but we're not done yet. Our next job is to expand their backpacks so that more will fit in them. We do this by asking them to analyze, question and think.

     As children grow and mature, we ask them to look at what is in their backpacks and apply the items to real world situations. Sometimes, we can actually see their backpacks grow in class as they experience new ways of thinking about an issue. And sometimes students have to discard something from the bottom of their backpacks that has lain there, unexamined, for many years to make room for a new idea.

     The good thing about stuffing a backpack is that it is a lot of fun. We also know that as soon as students are out of our sight, they dump things out of the backpack to lighten the load. With these characteristics in mind, we can't just force items into the backpack. We have to get students to want to carry our backpack stuffers around. So we try new things in teaching. What do students discard? How can we get items to stick around longer in the backpack? Will this exercise expand that backpack or not? Mistakes are okay, because we can always try again. In addition, we find that the students might not notice how heavy the backpack has become if the stuffing process is interesting and even entertaining.

     As students prepare to graduate, they leave us, their backpacks full. Our sincere desire is that they journey farther than we have, see more, and achieve more. And somewhere along the way, they'll pull something out of their backpacks and think of a teacher who placed it there.