A look at school finance and property taxes
~by Mary Weaver
If the Governor and the Legislature are successful in allowing state educational funds to be transferred to private schools, what might occur?
This writer naively thought the school board could just raise the property tax rates to cover the needs of the children being educated in Greene County. A great deal has been learned about the funding of our schools by talking with Greene County public servants: Greene County Schools business manager Brenda Muir, Greene County assessor Adam Smith, Greene County treasurer Katlynn Mechaelsen, and Pam Olerich of the auditor’s office.
First some abbreviations and definitions so you know the territory.
SSA-Supplemental Security Aid: These funds come from the State of Iowa. They are generated by federal funding, and state income tax. SSA is measured in per pupil cost, based upon enrollment. SSA funds go into the local school general fund. They may be used for staffing, such as teachers, and administrators, and for classroom supplies, utilities, cleaning supplies, etc. SSA may be “weighted” for special education, and home school students, and several other descriptors. Districts may receive different dollar amounts, but the percentage of increase to a school is uniform. The legislature determines the percentage amount, but it is based upon enrollment. Very simply, more students, more money. Enrollment decreases, less money.
Spending authority: A cap is placed upon school tax levies by the Iowa Code, which comes from the Iowa Legislative Body.
Certified and open enrollment: This measurement is for every student within the district age 5 through 21(or graduation). This is computed on October 1 of each year. Greene County Community School had 1,185 students as their measurement, in 2022. but due to open enrollment students in the district there were 1,259 students in school on October 1. Brenda Muir in turn, bills the district where the open enrolled students originated. Cost per student in the district $7,452 per pupil, or $42.00 per day.
Parents may now choose to move their child to a different school anytime during the school year. This is a hardship on school budgets, as once a teacher ‘s contract is established, it must be fulfilled. For example, if all the physics students determine to leave the school, the physics teachers’ contract must still be fulfilled.
State of Iowa oversight: The classes/curriculum for preK-12, and verification of the teacher’s certification are submitted to the Department of Education each year. The school budget is submitted to the Department of Management on April 15. The Department of Management determines the revenue the school will receive from the State of Iowa.
Private schools will not have these requirements, nor oversight by the State of Iowa.
Muir patiently explained this information, but it does not begin to delve into the depth of the single spaced, 6-page double sided 2023 Aid and Levy Worksheet for Greene County Community School.
It seemed appropriate to interact with Adam Smith, Greene County assessor, as he establishes the assessed values. Smith does not establish the tax rates. The Iowa Department of Revenue sends him CSR (Corn Suitability Rating) data that he plugs into a formula that generates the assessed land value. The CSR number is composed of data around input costs, yields, soil types, the price of land, tillable land versus, wooded areas, etc. As a side note I learned there are about 450 soil types that may be identified. People, it is not just dirt!
Adam implored me to understand, “do not assume that if the assessed value goes up, the taxes go up. If the taxing bodies don’t need any more money for their budgets and the assessed value went up, the levy rates would go down.” Less tax even though assessed value increased.
If you, the readers, have given up on this “into the weeds information” permission granted to search other topics, but I feel I should share what was learned from the Greene County treasurer Katlynn Mechaelsen and Pam Olerich from the county auditor’s office.
The assessed and taxable valuations are submitted by the county auditor’s office to the State Department of Management on or before Jan. 1.
Once the school budget has been adopted, it is also sent to the Department of Management and the county auditor’s office for verification certification.
The Department of Management will then provide the auditor’s office with the tax rates which are used to create the tax statements. The valuation that is needed from the land assessment is identified. The valuation is completed on Jan. 1 for the past year, so the tax levy always lags a year.
Property taxes paid on property in Greene County stay in Greene County. “From the people to the treasurer, to the schools,” states treasurer Mechaelsen.
So, my initial thought to just raise taxes to retain our school was FALSE. Concern about the loss of my property tax dollars going to an urban couple wanting to send their child to Dowling High School in Des Moines was also FALSE. It is our State of Iowa income tax dollars that will go to pay for the Dowling (or another school) student to attend a private school.
I am sure you have seen the ad featuring Governor Reynolds talking about PARENTAL CHOICE. That is a misnomer. Dowling or any of the other private schools do not have to accept a student and will not if he/she is a disabled, or a behavior problem. Parents do not have a choice for private schools in Greene County as there are none. They do have a choice if they choose to leave Greene County Community Schools and transfer under open enrollment to a different school.
There is still time to contact Senator Jesse Green, at 515-281-3371 or Representative Carter Nordman at 515-281-3221. Express your concern about the loss of tax dollars from Greene County Schools. Keep public dollars in public schools to assure equal education for all students.
