Federal dollars help fund public schools

While most of the funding for public school districts in Iowa come from local and state governments, the federal government does send funds as well. According to data collected in December of 2024, about 13.6% was collected from the federal government for public schools in Iowa for the 2021-22 school year. That equates to roughly $2,200 per student in K-12 public schools; in Iowa, school vouchers did not come into effect until the 2023-24 school year.

Most federal funds are based on formulas that factor in a school district’s rural location and poverty status. Such programs for federal schools include: nutrition programs, Title I education and special education. Federal funds account for up to 28.8% of district budgets in 2021-22. According to available data, Clarke Community Schools received $2,100 per student in federal funding, 12.3% overall. Murray Community Schools received $1,900 per student, 12.8% overall. Seymour Community School District received the highest in the state, with 28.8% federal funding and $6,300 per student.

Countrywide, in 2021-22, school districts in Arkansas, Mississippi and South Dakota received the most in federal funding, with Arkansas and South Dakota over 21% and Mississippi over 23%. Montana and Alaska topped 20%. New Jersey and New York received the least amount with 7.7% and 7.3% respectively. In per student funds, Alaska, North Dakota and Washington, DC, received the most funds per student, ranging from $3,500 to $4,400. Colorado, Kansas and Utah received the least from $1,500 to $1,700.

Iowa budgets

In February, the Iowa House passed a bill that reflected a 2.25% increase in per-pupil funding in State Supplemental Aid (SSA), which provides a specific amount of money for school districts based on the amount of certified students, as well as transportation equity payments and a one-time boost of $22.6 million in per-pupil costs. The Iowa Senate proposed a 2% SSA rate with no additional funding components. While Republicans are for the measures, calling them responsible and sustainable increases for public school funding, Democrats and advocates are not so sure, calling for a 5% SSA rate.

Anne Cross, president of the Des Moines Education Association, and Ruth Henderson, retired teacher representing the Iowa State Education Association, spoke to lawmakers about how the 5% is needed to keep up with rising costs, outdated classroom materials and crowded classrooms, and spoke against the Education Savings Account program, which provides public funds for private school tuition, often referred to as the school voucher system.

“The rising cost of running our schools has not been adequately addressed,” Crosse said. “Further, the private school voucher program in Iowa is exasperating the problem. With the state focusing on spending millions of dollars for just 40,000 students in private schools, the 480,000 students in our public schools are being shortchanged.”

For Henderson, she argued that 5% SSA should be a minimum, as public schools across the state face budget cuts that hinder staff retention and fewer student resources. Others in speaking to lawmakers pointed to changes in 2024 to Area Education Agencies that had raised costs for schools and underfunded mandates required of schools while not providing adequate resources to address those mandates. In raising the SSA to 5%, it would help public schools to achieve benchmarks set forth by Gov. Kim Reynolds in her bills she introduced earlier this year.

“If school districts are mandated to make major curriculum changes, or add expensive classes like computer science, or mandated to improve scores, they must receive additional funding to make these things happen,” Rep. Monica Kurth, D-Davenport said. “Funding that falls below the current prediction of inflation, which is expected to be well over 3% in the coming year, does not allow for the time and money to make these things happen.”

Democrats in both the House and Senate filed amendments to change the SSA increase to 5%; both amendments failed.

“Six billion dollars, that is the size of Iowa’s budget surplus,” Rep. Heather Matson, D-Ankeny said. “When I say we can do better with school funding, I mean quite literally, we have the capacity in our budget to do better. It’s not a platitude, our amendment will increase school funding by $401 per student, rather than $186. Our amendment would significantly decrease the number of school districts that will need to raise local property taxes just to make ends meet.”

It was noted that amendments with proposals for additional funding in the Iowa House were headed back to the Senate for discussion.

Robin Opsahl with Iowa Capital Dispatch contributed to this story.