Dr. Jorgensen's Highlights
March 24, 2020
Highland Highlights
During the first week of March, the Iowa Legislature settled on a 2.3% SSA (State Supplemental
Aid) package for Iowa schools. This was a compromise between the Senate at 2.5 and the
House at 2.1%. Per pupil funding from the state will increase 2.3% over last year. This article
will give a few simplified examples of what this means and will also examine the history of SSA
and how it has changed over the last two decades.
Schools receive the largest portion of the State of Iowa budget. The school funding formula is
based on a per pupil amount paid by the state. The majority of school funding is based on state
aid and property taxes. 2.3% increase in SSA means that the funding for each student will
increase by that percentage. This does not necessarily guarantee an increase in funding for
each school district. The funding formula is based on the enrollment count taken on the
previous October 1st. Let me give you a couple of simplified examples. Let’s say that each
student is funded at $1,000 per student during the current year. A 2.3% increase would mean
that the district would receive $1023 for each student next year. If the district has 1,000
students, state aid this year would of been $1,000,000. Next year it would be $1,023,000,
meaning $23,000 of “new money”. New money is the increase in money over what the district
received the previous year. However, let’s say that enrollment dropped 50 students from the
previous year. $1,023 x 950 students =$971,850. Even though the district received a 2.3%
increase, their actual revenue will be $28,150 less than the previous year. Let’s say a district
had an increase of 50 students on count day. 1023 x 1050 students =$1,074,150. New money
of $74,150. Iowa’s per student funding for 2019-2020 is actually $6,880 and will increase to
$7,048.
A lot of change has occurred in the SSA since I first became a Superintendent in 1998,
including the name. At that time it was referred to as ‘Allowable Growth”. Allowable Growth
was a state mandate to the legislature that was to be determined two years in advance to allow
schools district to have adequate time to plan a budget. The law stated that the legislature was
required to set the allowable growth for schools within three weeks from the time the Governor
released their budget. The figure set was for the school year two years down the road as
opposed to the next school year.
Terry Branstadt was Governor in 1998 but was replaced by Tom Vilsack in 1999. The allowable
growth for schools was set at 4% on a consistent basis for well over a decade during that time.
This changed in fiscal year 2010 following the financial crisis of 2008. Chet Culver was the
Governor in 2009 when an across-the-board 10% cut was ordered to wipe out a state shortfall
of $415 million. Terry Branstad again became Governor and the House and Senate both
became Republican led. In an effort to avoid future across-the-board cuts, the legislature took a
much more conservative approach which included changing the laws in regards to setting the
allowable growth figure two years in advance and replacing it with the State Supplemental Aid
on an annual basis. This figured has wavered around 1 to 2% over the last decade.
Iowa Superintendents live with more anxiety now, not knowing the SSA figure until spring of the
year prior. Budgets must be set in April and there have been some years where the Iowa
Legislature has not set the SSA figure by the budget deadline. This unknown is very difficult for
schools and they have learned to build in flexibility where they can to address the unknown.
SSA figures below 4% generally mean lean increases for school districts and they have small
margins to work with in their planning for the future.
