Schneider Statehouse Report: Allowable Growth for FY 2015 Set Before Reform Plan is Approved

By Sen. Charles Schneider
Two weeks ago, the Senate voted to set Allowable Growth (the annual increase in dollars available per student) for Fiscal Year 2014 at 4 percent. This week the Senate debated a bill setting Allowable Growth for Fiscal Year 2015 at 4 percent. The bill passed along party lines.

I joined my Republican colleagues in voting against the bill. It is premature to set Allowable Growth for the 2014-2015 school year for two main reasons.

First, we need to have a conversation about education reform before deciding on funding increases that won’t take effect until sixteen months from now. While Iowa has good schools and dedicated teachers, other states are passing us by when it comes to student achievement.

Democrats and Republicans agree that education reform is necessary to ensure that Iowa is keeping pace with student achievement in other states so that our children are prepared to compete with their peers for jobs in a global economy.

The Legislature has yet to agree on what the education reform plan will entail and how much it will cost. Assuming a plan is enacted, it will most likely be in place for Fiscal Year 2015. It therefore makes sense to hold off on setting Allowable Growth for Fiscal Year 2015 until we know how much it will cost to implement the reform plan.

Second, the Governor has proposed changing the Allowable Growth formula to be less dependent on property tax revenue. Given Iowa’s high property tax burden relative to other states, it makes sense to have a conversation about this during the legislative session.

If we can find a way to fund education without increasing property taxes, we will help all property tax payers. Setting Allowable Growth for Fiscal Year 2015 now makes it less likely that the Legislature will take the time to discuss this issue during the legislative session.

School districts need to know what Allowable Growth for Fiscal Year 2014 will be set soon so that they can set their budgets.  Fiscal Year 2015, however, is almost sixteen months into the future. Let’s take that time to agree on an education reform plan and take another look at the Allowable Growth formula.

Upcoming Legislative Forums

February 23, 9:30-11 a.m., Walnut Ridge Senior Campus in Clive
March 2, 9:30- 11 a.m., Waukee City Council Chambers
March 16, 9-10:30 a.m., West Des Moines City Hall
April 6, 9:30-11 a.m., Waukee City Council Chambers

(Sen. Charles Schneider, R-West Des Moines, represents District 22, which includes Waukee, Clive, Windsort Heights and part of West Des Moines. Contact him at charles.schneider@legis.iowa.gov or 515-281-3371.)