Capitol Update - January 23, 2025
UEN Legislative Update
January 23, 2025
(Download this week's printable UEN Legislative Update & Bill Tracker)
This UEN Weekly Report from the 2025 Legislative Session includes:
- More Details about the Governor’s Budget Recommendations: SSA and PK
- ESA Update: Enrollment and Cost Assumptions in the Governor’s Budget
- Subcommittee Motion: Civics Test for Graduation
- Advocacy Resources: Advocacy Handbook and List of Legislative Forums
- Advocacy Actions for the Week
- Bill Tracker Detailing Actions on Committees, Subcommittees & New Bills for the Week
Governor’s Details on SSA and PK: (Source: LSA Analysis of the Governor’s Budget Recommendation https://www.legis.iowa.gov/docs/publications/LAGR/1520305.pdf
The LSA Analysis shows a statewide picture of the Governor’s 2% increase for SSA, setting a state cost per pupil of $7,983. These tables confirm the 2% funding details, including categorical funds, property tax relief, and budget guarantee, impacting 17 different budget lines:
Note: the recommendation increases regular program district cost statewide by $51.7 million. Budget Guarantee grows to $25 million, and increase of $9.5 million, or 61.6%. TSS is up $48.9 million (over $450 million total), which includes an assumption on the cost for districts to meet the escalated teacher pay minimums of $50K and $62K plus a growth assumption on the number of students receiving Education Savings Accounts (school districts count those resident students receiving ESAs). We believe that the TSS assumption is based on Oct. 2023 Staff BEDS data, since 2024 is not yet available to DOM which would more accurately estimate the cost. Therefore, that number is likely to change. Notice that the PD, EICS and TLC are also increased by more than the 2% growth rate, also due to ESAs per resident student, which generate those funds for the public school district.
Since school formula funding comes from state and local funds, the next two tables break those down. In the following, notice that regular program district cost grows by $36 million in state dollars. Special education weighting is up $14 million. (Note: the FY 2024 special education deficit statewide topped $200 million for the first time, now $207 million, as the growth in per pupil cost in the formula has not kept pace over the last decade with the expenditures needed to provide services in students’ IEPs.) Supplementary weighting grows by $10.4 million. Statewide Voluntary Preschool is down half a million, based on the enrollment count in last fall’s PK classrooms.
This table provides information about property taxes. The uniform levy of $5.40 per $1,000 of net, assessed taxable valuation grows by 3.7%, since that’s the agreed to assumption on valuation growth by DOM and the LSA. The additional levy grows less, at 2.6%, partially because of the property tax relief paid by state aid in the prior table.
The LSA analysis also reports that the 2% recommendation leaves 159 districts (out of 325 statewide) on the budget guarantee, costing property taxpayers $25 million to provide a 1% growth in RPDC compared to the prior year’s RPDC. Budget enrollment declined just over 3,000 students. Statewide categorical funds grew in total, $59 million, to $747.5 million, which is a growth of 8.61%. The property tax relief payment per pupil also grew just over 8%, which combined with the foundation base supplement per pupil, delivered $23 million in property tax relief through the formula. This last table shows this information, plus the change in budget enrollment and growth in the transportation equity program:
Governor’s Policy Recommendations on Preschool - Grants for PK/childcare partnerships Although we are waiting for confirmation once a bill is available, the LSA explained the Governor’s proposal is an “Early Childhood Continuum of Care Grant Program — The Governor is recommending a new Early Childhood Continuum of Care program to provide three-year grants for preschool providers and child care providers partnering to provide an all-day continuum of care for preschool-age children. Grants in the amount of $16,000,000 would be funded with existing State Early Childhood Iowa funding and supported by federal funds through the Child Care and Development Fund. In addition, $3,600,000 in existing Shared Visions funding, which is included in the State Child Development appropriation, would be used for preschool grants. Shared Visions programs would be required to participate in the Statewide Voluntary Preschool Program.”
Note: The State Child Development appropriation is contained within the Department of Health and Human Services, HHS, Budget, not the Education Budget. It is found under the appropriation of Early Intervention and Supports.
Update on ESAs (Enrollment and Funding Assumptions):
ESAs are funded by a standing unlimited state general fund appropriation. Here are the costs by fiscal year, with FY 2026 being the Governor's estimated budget (2% SSA plus an estimate on how many will be awarded, either of which could change by the time school starts in August):
FY 2024 $129.1 million 16,757 ESA recipients
FY 2025 $218.0 million 27,862 ESA recipients
FY 2026 $314.6 million 29,415 estimated appropriation and ESA recipients
Total nonpublic school enrollment reported on DE’s Education Statistics web page, FY 2025 is 42,898. That is an increase of 2,467 compared to the 2023-24 school year.
Subcommittee Motion: Civics Test for Graduation
A Subcommittee of the House Education Committee, including Reps. Henderson, Kniff McCulla and Levin met on Thursday and voted 2:1 on party lines to move HSB 30 forward to the full Committee. The bill requires that high school students pass the test given to new citizens by the Immigration and Naturalization Service with at least 60% correct in order to demonstrate knowledge of civics as a condition for high school graduation. It allows students to retake the test as many times as necessary. It requires the State Board of Education to administer rules regarding administration of the test. The bill does not mention accommodations for students with IEPs, 504 plans, or being served in English-Learner programs. UEN shared our concerns at the subcommittee meeting regarding the high-stakes nature of the test, the unengaging method of multiple-choice tests, the lack of attention to students with special needs or test anxiety, and the potential cost of accessing the test and administering it. UEN is registered opposed. The Senate has scheduled their subcommittee meeting for SSB 1030 Civics Test for Graduation for Thursday, Jan. 30, at noon. Subcommittee members include Sens. Green, Quirmbach and J. Taylor.
New UEN Advocacy Resources:
Check out the updated 2025 Session Advocacy Handbook, with everything advocacy beginners and experienced pros can use to advocate with legislators, at the statehouse or back in your district. Find the handbook on the UEN Advocacy Website at: https://www.uen-ia.org/advocacy-handbook
The Iowa Senate Democrats publish a list of legislative forums, which they will continue to update throughout the Session. Find out if and when any forums are scheduled in your area by checking out the list here https://iowasenatedemocrats.com/events/. If you decide to attend and want to discuss what you might share or let us know what you heard at the forum, please reach out to margaret@iowaschoolfinance.com or call my cell (515)201-3755.
Advocacy Actions This Week:
Adequate School Funding: Contact legislators regarding SSA. The Governor’s recommendation of 2.0% falls short of inflation. The teacher salary investment last year was a really good start, but SSA has to keep pace or our staff and programs for students will be compromised. See the UEN Issue Brief for additional information. The deadline for deciding SSA is Feb. 13, so the advocacy window is tightening. No bills sponsored by Republicans have yet been introduced to set the SSA rate. Additional Supports:
- Download the UEN 2025 Adequate School Funding Issue Brief, providing education funding history, comparing total Iowa education expenditures per pupil, which most recently ranked our state as 35th in the nation, now spending more than $2,000 per student LESS than the national average, and including some talking points to help you advocate with your legislators. UEN’s Legislative Priority supports an SSA rate that at least matches the inflation rate schools are experiencing.
- ISFIS New Authority Calculator allows users to set the SSA rate and calculate the impact for all districts for FY 2026 on your regular program (not including special education or other supplemental weightings or categoricals). Enter the SSA percentage increase and your Budget Enrollment and you can compare to the new money you’d receive if the SSA rate matched inflation (either 2.9% for CPI and 3.2% for Core Inflation) compared to the Governor’s Recommendation of 2.0%.
Quality Preschool and Other UEN Priorities: in every communication, find a way to mention Quality Preschool and Teacher and other Staff Shortages. Find Issue Briefs and other resources on the UEN Website to find talking points or as resources to share when you meet with policymakers.
Connecting with Legislators: To call and leave a message at the Statehouse during the legislative session, the House switchboard operator number is 515.281.3221 and the Senate switchboard operator number is 515.281.3371. You can ask if they are available or leave a message for them to call you back. You can also ask them what’s the best way to contact them during session. They may prefer email or text message or phone call based on their personal preferences.
Find out who your legislators are through the interactive map or address search posted on the Legislative Website here: https://www.legis.iowa.gov/legislators/find
Other UEN Advocacy Resources:
Check out the UEN Website at www.uen-ia.org to find Issue Briefs, these UEN Weekly Update Reports and Videos, UEN Calls to Action when immediate advocacy action is required, testimony presented to the State Board of Education, the DE or any legislative committee or public hearing, and links to fiscal information that may inform your work. The latest legislative actions from the Statehouse will be posted at: www.uen-ia.org/blogs-list. The 2025 UEN Advocacy Handbook will be available and posted shortly.
Bill Action This Week
Check out the attached pages for all the details.
Contact Us
Stay tuned for a thorough explanation of Statehouse actions this week.
Margaret Buckton
UEN Executive Director
margaret@iowaschoolfinance.com
515.201.3755 Cell
Thanks to our 2024-25 UEN Corporate Sponsors:
Special thank you to your UEN Corporate Sponsors for their support of UEN programs and services. Find information about how these organizations may help your district on the Corporate Sponsor page of the UEN website at www.uen-ia.org/uen-sponsors.
- Solution Tree - www.solutiontree.com/st-states/iowa
