Charging all taxpayers private tuition

Vouchers are about mandates, forcing everybody to pay for the few, and diverting resources from public schools.

Iowa taxpayers are on the hook for over $65 million in subsidies each year to private schools in Iowa.[1] Nearly all of these schools are religious schools. While only 6 percent of the students in elementary schools in Iowa are in private schools, all taxpayers help pay for their education (and religious training) through the state taxes they pay. And in nearly three-fourths of Iowa public school districts there is no private school option.

Proposals once again making their way through the Iowa Legislature would expand the subsidies to these private schools, and to the parents who choose to send their children there, through the creation of education savings grants. These proposals would end up costing over $100 million per year, and potentially up to $200 million, money that could instead be used to strengthen education in the public schools serving 94 percent of Iowa’s children.[2]

There are 330 public school districts in Iowa. In 242 of those districts there is no private school offering classes in any grade, Kindergarten through 12th. Private schools are concentrated in Iowa’s metropolitan areas. Nearly half of the total private school enrollment in the state is in just 12 school districts, all located in one of Iowa’s nine metropolitan areas.

The map below shows just how scarce private schools are in rural Iowa. While all 21 of the Iowa counties that are part of a metropolitan area (lighter blue in map) have at least one private school, only 38 of the 78 non-metro counties have a private school option. And in 12 of these counties the options are quite limited: a single school with total enrollment ranging from just 20 to 98. (For an interactive version of the map, click on the image.)

[1] http://www.iowapolicyproject.org/2018docs/181105-IFP-pvtschools-bgd.pdf

[2] http://www.iowapolicyproject.org/2018docs/181105-roadmap-vouchers.pdf

Peter S. Fisher is research director of the Iowa Policy Project.

pfisher@iowapolicyproject.org

For starters, issues to watch in 2019

There are many issues to watch in the new Iowa legislative session. Here is a non-exhaustive list, identifying where policy changes could affect opportunity for many thousands of Iowans.

With the 2019 session of the Iowa Legislature officially underway, the Iowa Policy Project is a dependable source for quality information and analysis on Iowa’s most pressing policy challenges. IPP’s Roadmap for Opportunity project will highlight and clarify many of these challenges as they emerge. Among issues to watch:

Public funds for private schools

Vouchers or “education savings grants” stand to take more money away from public schools and add to the $66 million Iowa taxpayers pay every year to support private education. Funding for Iowa’s public schools has failed to keep up with rising costs. Underfunded schools impact student development and workforce potential. Read more in our Roadmap piece, “Strengthening public education, no new subsidies to private schools” and the accompanying backgrounder, “Taxpayer support of private education in Iowa.”

Unemployment compensation

Unemployment insurance is an important program that supports workers experiencing temporary unemployment and acts as a macroeconomic stabilizer during economic downturn.[1] Because states are granted flexibility in shaping the program, there lies potential to undermine it, as other states have recently. More to come on this issue.

Attacks on public pensions

Maintaining a strong public pension system in Iowa ensures that we are able to attract and retain quality state employees who teach our children and protect our communities. It is important that Iowa wards off attempts to restructure the Iowa Public Employees’ Retirement System (IPERS) in ways that erode retirement security. For more, read our Roadmap piece, “IPERS works to boost retirees, economy.”

Further tax cuts

During the 2018 session, legislators passed a package of tax changes that largely benefit wealthy Iowans, with 2.5 percent of Iowa earners taking nearly half of tax cuts. The current administration has signaled support for further cuts that would endanger services that promote thriving communities such as education and healthcare. Read more on “What real Iowa tax reform would look like.”

Protecting Iowans’ health

Iowa’s privatized Medicaid system continues to cut off patient care and miss payments to providers. With little hope of returning the program to state control anytime soon, we must ensure that cost savings are achieved by increasing innovation and efficiency, not by undercutting health care providers or denying services to the sick and disabled. We should also stay away from Medicaid work requirements, which lead to disenrollment and additional barriers for elderly and disabled Iowans without meaningfully improving employment.[2] For more, read out Roadmap piece, “Restoring success of Iowa Medicaid.”

As noted above, this is not an exhaustive list — only a start. Stay up to date on our analysis through Facebook, Twitter, and our email newsletter.

[1] Chad Stone and William Chen, “Introduction to Unemployment Insurance.” July 2014. Center on Budget and Policy Priorities. https://www.cbpp.org/sites/default/files/atoms/files/12-19-02ui.pdf

[2] Center for Law and Social Policy, “Medicaid Works: No Work Requirement Necessary.” December 2018. https://www.clasp.org/publications/report/brief/medicaid-works-no-work-requirement-necessary

Natalie Veldhouse is a research associate for the nonpartisan Iowa Policy Project. nveldhouse@iowapolicyproject.org