Senate Approves $100 million Funding Increase for K-12 Schools
Lawmakers Set Allowable Growth at 4 Percent
Iowaís K-12 public schools will see a $100 million increase in state aid for the 2006-2007 school year under legislation approved this week in the Iowa Senate.
The bill sets the ìallowable growth rate,î for Iowaís schools at 4 percent. Under 4 percent allowable growth, total funding for schools during the 2006-2007 school year will top $3.1 billion. Of that amount, roughly $2.07 billion will come from the state and $1.07 billion will come from local property taxes.
Allowable growth and enrollment changes are two key factors in K-12 budget growth. A local school districtís budget is primarily determined by the number of students within the district multiplied by a district cost per pupil.
The allowable growth percentage works in a way similar to an inflationary factor. Each year, the cost per pupil is adjusted by the allowable growth percentage to provide increased funds to education.
When the 2006-2007 funding is spread across the state, it equates to approximately $5,128 per pupil, an increase of about $197 per pupil over funding for the 2005-2006 school year. Senator Maggie Tinsman emphasized ìThe following school districts will receive: Davenport 73.6 million dollars; Bettendorf 16.2 million dollars; North Scott 11.7 million dollars; and Pleasant Valley 12.7 million dollars for the 2006-2007 school year. This decision is made a year and one half years in advance of the school year in order to give the districts time to plan for the future.î
Allowable growth is the most significant source of funding available for Iowa schools. Yet, while additional funding for education is important, it is not the only answer.
ìNow that lawmakers have funded allowable growth, we need to focus on additional legislative initiatives to further improve Iowaís quality education system and increase accountability in our schools,î Senator Tinsman said.
As the Governor said in his annual Condition of the State speech, ìWhile our schools are good, they must be the best if our youngsters are to succeed in [global] competition and to succeed in life.î
ìI am committed to helping Iowa students achieve future success. With that in mind, we will be unveiling several education-related legislative proposals in the coming weeks,î stated Senator Tinsman.
Governor Issues FY05 Supplemental Spending Bill
The Governor has released his proposal to appropriate an additional $213 million to state government for the current budget year. In the past, the Legislature has approved a supplemental appropriations bill for critical programs that would cease to function without an infusion of cash.
For example, Medicaid, the state program to provide health care for the elderly and disabled, has received supplemental appropriations over the years because the need to provide health care services has exceeded the dollars originally set aside for the program.
However, the governor has proposed establishing new programs within the supplemental this year. He has chosen to fund his early childhood education proposal with the funds from fiscal year 2005 because the revenue coming into the stateís coffers is exceeding previous estimates.
It appears the budget games have begun. Within the Governorís proposal, approximately $72 million addresses critical needs, such as Medicaid, correctional officers, and Glenwood and Woodward State Resource Centers. However, $40 million in the proposal clearly establishes new programs.
If the Legislature chooses to follow this budget proposal, chaos could ensue. If the revenues fail to materialize in FY 2005, then the stateís budget will be in the red. ìWe are again robbing Peter to pay Paul and Peter always wants to be repaid,î stated Senator Tinsman.
We will continue to guard the taxpayersí dollars and prudently examine all requests for funding in an effort to ensure appropriations are spent wisely. Beginning the legislative session with such a reckless spending package will only set up the FY 2006 state budget for more of the same.
Budgeting for Results
This year the governor, with the help of the Department of Management and the Public Strategies Group (PSG), has established his budget by using the principles of Budgeting for Results (BFR). BFR is a form of budgeting driven by goals and performance that ties the appropriation of resources to the expected outcomes or results of a program. ìFor years, I have been talking about this kind of budgeting, as Scott County implemented in the 1980ís. Finally, it appears the state is beginning to listen. Now, we need to make funding decisions based on results,î Senator Tinsman emphasized.
In 2002, Washington Governor Gary Locke, with the help of PSG, transformed the stateís budgeting practices by delivering results to the citizens of Washington at the price they were willing to pay. Washington is now in its second year of budgeting using these principles. Following the success of the state of Washington, the city of Spokane and Snohomish County, Washington, the cities of Azusa and Los Angeles in California have all embraced these concepts. Now Governor Vilsack has taken the plunge.
The following steps are the core of Budgeting For Results:
Set the price of government ñ Establish upfront how much citizens are willing to pay for the results they want from government.
Set the priorities of government ñ Define what matters most to citizens, such as safety, jobs and health. Officials need to find out and articulate what matters most to their constituents.
Set the price of each priority ñ Divide total revenue among the priorities on the basis of their relative value to citizens.
Develop a purchasing plan for each priority ñ Create ìbuyer teamsî to act as purchasing agents for the citizens. Ask each team to determine what matters most when it comes to delivering its assigned result.
Solicit offers from providers to deliver the desired result ñ Buyers than solicit offers from state agencies to see who can deliver the most results for the most money. This solicitation replaces the traditional budget instructions. The request for results can be sent to all agencies and departments, to other governments, even to unions, nonprofits, and for- profits organizations.
Buy the best, leave the rest ñ After the offers are in, the buyers must rank them in terms of results delivered per dollar, then move down the list, buying according to priority until all available resources are used. Then draw a line. Those proposals about the line are in those below are out. This buying plan becomes the budget.
Negotiate performance agreements with the chosen providers ñ Finally frame the budget as a collection of performance agreements. These should spell out the expected inputs and outcomes, how they will be measured, the consequences for performance, and the flexibilities granted to help the provider maximize performance.