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(Des Moines, IA) -- With one week until school districts must submit their final budget plans for 2025-26, the Iowa Legislature is approving a funding plan. The Republican majority in both chambers initially disagreed on the level of Supplemental State Aid they would give, but they have come to an agreement. The new proposal would raise the funding by over $235 million, or 2%, which is about a percentage point under the current rate of inflation.
State Rep. Dan Gehlbach (R-Urbandale) managed the bill.
"When we first voted on this bill [House Republicans] wanted more," Gehlbach says. "This plan isn't everything we initially voted on, but it's a hard-fought victory that moves us forward."
The new plan also includes a 5% increase to the state's transportation equity fund, which Republicans say would benefit rural school districts. Opponents, mostly Democrats, argue that it's not enough. That includes State Sen. Mike Zimmer (D-DeWitt).
"If the state underfunds their portion of it, every school district is left with the option of increasing property tax," Zimmer says.
Others say they've already heard from school districts thinking about raising levies. That includes State Rep. Larry McBurney (D-Urbandale).
"I know two of my school districts have already proposed tax levy increases," McBurney says. "One as drastic as 88 cents...if we're going to do it, let's do it right."
Republicans say the final proposal is about balancing the budget. That includes State Sen. Lynn Evans (R-Aurelia), chair of the Senate Education Committee.
"We believe it's important to be honest with our school districts about the state's finances and not over-promise," Evans says. "This bill continues our focus of funding students over systems."
Evans says K-12 education will now get over $4 billion in funds, or 44% of the total state budget. The bill now moves to Governor Kim Reynolds' desk. The deadline for school districts to submit final budget proposals is April 15th.