We are closing in on the fifth week the 88th General Assembly has been in session. In my opinion (and mine alone) it has been relatively quiet. Sure, there have been the normal fireworks and legislative proposals that have caused bloggers and news outlets to throw the penalty flag, but in terms of education policy I don't have a lot of complaints right now. Well, I do have a few but they are relatively minor.
The best news to come out of Des Moines so far came yesterday when the Senate approved the funding package for K-12 education. That action followed the House passage of the same legislation earlier in the week, meaning it has cleared the final hurdle. With this bill now on its way to the governor, the legislature will for the first time in many years meet the 30 day deadline that is required by law. This legislation will increase the state cost per pupil by 2.06%. In total it will invest $78.6 million in the per pupil formula, $7.8 million to address transportation costs for school districts with large transportation budgets (Hudson is not one of them), and $2.3 million for school districts who have the lowest per pupil costs in the state (again not Hudson).
For Hudson's regular program cost, this will mean an increase of $188,647. Sure, we would have liked more and certainly advocated for a larger percentage! But in the final analysis we should be able to meet our budget obligations for fiscal year 2020 without too much trouble. Plus, albeit a smaller number than we would have preferred, it is the highest dollar amount of growth we have had in the last five years. However, my relative calmness comes with a caveat: the primary reason we will be fortunate enough to see an increase in our regular program district cost is because of enrollment growth. Consider this: in the last five years, our certified enrollment has by 38.42 students. However, this enrollment growth hasn't always translated into greater revenue growth. The prior two years the state cost per pupil only grew by 1.11% and 1.0% respectively. In FY 2017, when our regular program cost grew by $169,172, the percentage increase that year was 2.25%. In school districts with declining or stagnant enrollment, the 2.06% increase simply isn't enough.
In other legislative news, plans to extend the SAVE fund are moving forward. Last year the House passed this extension on a 95-3 vote, but it ultimately stalled in the Senate. This year, identical bills are being run through both chambers simultaneously and it appears they are gaining momentum. This extension would maintain the one cent sales and infrastructure tax for schools through 2050. An important piece of legislation since schools like Hudson bond against future sales tax revenue with a mechanism known as a Tax Anticipation Revenue Bond (TARB), in lieu of a general obligation bond which would come with a property tax increase. Passage of this legislation is critical for a school district like Hudson! We are currently finalizing a $5.14 million TARB to fund Phase III of the elementary renovation project, which is about the maximum we can bond under the current legislation, which is scheduled to sunset in 2029. I suppose that would be fine if we wouldn't have to do any more facility projects after this one is completed. But we know that isn't true! Once we finish Phase III, we will need to start planning for our next facility project. Using SAVE will be the key to paying for it!
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