Get school funding numbers right

A good report by the Center on Budget and Policy Priorities * (CBPP) shows states generally have done an exceedingly poor job in restoring education funding in the wake of the Great Recession. Unfortuntately in Iowa, this report is being characterized inaccurately by some at the Statehouse, including Governor Reynolds.

A two-page IFP backgrounder on this issue published Jan. 8 offers a summary of how to look at Iowa education funding in the full context of state education funding policy, which governs both state and local funding of education.

Here is a link to view the IFP piece online.

And here is a link to the PDF file.

Governor Reynolds is cherry-picking one figure in the report that looks exclusively at the state share. That figure misses how some education funding has been shifted from local to state responsibility without significantly increasing actual total funding per pupil for Iowa’s K-12 schools.

Instead of the graph (Figure 3)* she is using to paint a rosy picture of Iowa’s performance on school funding, anyone serious about using the CBPP analysis to see what has happened in Iowa should look at Figure 8 of the report, reproduced below.

11-29-17sfp-f8

As you can see from the graph — which, again, is in the same report that Governor Reynolds and others have been citing — Iowa “ranks” 13th, if the ranking matters. More importantly, Iowa has increased state and local funding per student from 2008-15 by only 4.9 percent, far less than the figure quoted by Governor Reynolds in choosing only to look at the state funding number. That works out to seven-tenths of 1 percent per year for seven years.
At IFP, we continue to suggest that the only fair way to look at education funding in Iowa over time is to consider both state and local funding, as both are governed by what the Legislature and Governor permit. The best way to make that comparison is to look at the SSA (State Supplemental Aid) number, which governs the per-pupil building block for setting a school budget. Over the last eight years, this has been below 1.8 percent on average (see the IFP backgrounder linked above).

 

2017-owen5464Mike Owen is executive director of the nonpartisan Iowa Policy Project in Iowa City. mikeowen@iowapolicyproject.org.

 

* Editor’s Note: The Center on Budget and Policy Priorities has updated its report to revise the figure cited by the Governor, to better reflect an apples-to-apples comparison across the years covered. See Figure 3 of the report, found here. This change was made to account for a shift of local funding to state funding during the period, rather than an actual increase of funding. It now shows a 4.9 percent change from 2008-15, rather than the previous 20.6 percent change. The ranking by that measure changes from fourth to ninth. Figure 8, examining total state and local funding (includes property tax) — also using Census data — also finds a 4.9 percent change over the period.

Author: iowapolicypoints

The Iowa Policy Project is a nonprofit, nonpartisan organization that provides research and analysis to engage Iowans in state policy decisions. We focus on tax and busget issues, the Iowa economy, and energy and environmental policy. By providing a foundation of fact-based, objective research and engaging the public in an informed discussion of policy alternatives, IPP advances effective, accountable and fair government.

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