Schools prepare for Public Schools State Funding
School officials are preparing for various scenarios for public school funding from state lawmakers.
Iowa Governor Kim Reynolds proposed a 2% increase in supplemental state aid for the state's K-12 schools in last week's Condition of the State Address, and in her budget proposal for fiscal year 2027. That's the same level approved by legislators near the end of the 2025 Iowa General Assembly.
Clarinda School Superintendent Jeff Privia and Director of Finance, Nancy McKinnon, are planning for various SSA amounts, depending on what lawmakers decide.
Missouri Valley Superintendent Christi Gochenour stated,
“The recent proposal for a 2% increase in Supplemental State Aid (SSA) for the upcoming fiscal year presents significant challenges for Missouri Valley CSD and many others across Iowa. While I appreciate the Governor’s early commitment to a figure, a 2% increase does not keep pace with the rising costs of providing a high-quality education.”
“The MVCSD school board remains committed to delivering an excellent education for every student, regardless of the final funding outcome, but we will continue to advocate for the resources necessary to help our students thrive as well support our staff with the increasing cost of living.”
The Impact of 2% SSA at Missouri Valley
Budget Guarantee Constraints: At 2%, nearly 200 districts—including many in our region—will remain on a "budget guarantee." This means the state formula doesn't provide enough new money to cover basic costs, forcing districts to rely on local property tax mechanisms just to maintain the previous year’s funding level.
Inflation vs. Funding: Our operational costs are not static. We are seeing insurance premiums rise by up to 10% and significant increases in utilities and classroom supplies.
Supporting Our Staff: Our teachers and support staff are our greatest asset. A 2% increase makes it incredibly difficult to offer the competitive raises they deserve to keep up with the cost of living.
Logan-Magnolia Superintendent Jacob Hedger added, “The SSA is key to our budget process. Planning and setting a budget become very difficult if the legislators do not determine SSA earlier than last year. Additionally, if the governor's proposed 2% is the final SSA amount, schools will be pinched. Rising costs of food, insurance, fuel, and other necessities cause a strain on the budget. Additionally, I think it is really important to pay staff well. That becomes harder year after year of low SSA amounts.”
David Gute, superintendent of the Fremont-Mills and Stanton School Districts, says receiving the same state funding level as last year would make it more difficult for his district and others to meet increased expenses.
"The concern there for me is if our insurance goes up 10%," said Gute. "So, if we get even money, or the same amount of money as last year, we do have years when line item insurance goes up 10%. Then, with everything else and inflation, people are going to want a raise. We'll just have to work out all those things."
