Rep. Jon Dunwell wants to rework Iowa’s public school spending formula as early as next session

Editor’s note: This is the second in a series of articles covering the topics discussed at legislative gatherings hosted by the League of Women Voters of Jasper County.

Iowa House Rep. Jon Dunwell, R-Newton, wants to propose a bill that would give public schools a three-year funding package to allow districts better planning.

Although he was hesitant to mention this idea at a recent legislative gathering hosted by the League of Women Voters of Jasper County in the DMACC Newton Campus, Dunwell said it is a passion of his to introduce this bill next year. Then at the same time lawmakers would use those three years to rebuild the formula.

“To figure out how we’re allocating dollars to our schools, because it’s a very complicated formula and it’s not the same for every district,” Dunwell said at the Feb. 15 gathering. “My four districts are all different from each other in terms of how the dollars come out. Rework the formula, rework the spending.”

Systems in government can be inefficient, he added, but giving schools a set expectancy of funding could help. Dunwell said when he spoke to officials at the Baxter school district, they told him if they knew a 2.5 increase in SSA was coming every year, for example, they would be fine.

“We have a lot of what’s called categorical dollars that the school can’t access, categorical dollars they can’t spend,” Dunwell said, noting some districts have their hands tied. “So when you look at our penny sales tax, Newton here has primarily chosen to use that in the past couple years more for sporting facilities.”

Dunwell noted if the Newton Community School District had greater freedom in spending its money it might help them out. However, he also said there is a reason why categorical funding exists. But he ultimately believes lawmakers need to create time and space to rework a system that matches Iowa.

“That’s not an easy process,” he said. “Not sure you can do that in a session. I say let’s approve of a multi-year increase and then let’s work on the system and see if we can’t come out with a better, more efficient system, and get some of that money that’s hung up in the system back into students and education.”

CONVERSATION STARTED OVER ESA FUNDING

Discussion about Dunwell’s idea surfaced when confronted with questions about the state’s education savings accounts (ESAs), which are often referred to as vouchers by opponents. Dunwell condemned that term as offensive and argued that vouchers and ESAs mean different things.

He also denounced claims that ESA funding is increasing by 44 percent while funding for public schools is increasing by 2.25 percent. While true, Dunwell suggested these statements are not giving the full truths. He explained the amount of funding for ESAs and public schools is drastically different.

In total, Dunwell said the state will be devoting more than $3.9 billion in state aid to public schools in fiscal year 2026. ESAs will be getting more than $315 million.

Dunwell also noted public schools will receive federal funds and property tax.

“We implemented ESAs in a three-year phase in. This is the final phase in where anyone can qualify for an ESA,” Dunwell said. “The amount of dollars that we send to an ESA account is the equivalent to the amount of dollars we put into supplemental aid per student in a public school.”

TAXPAYERS WONDER WHY SO MUCH IS INVESTED IN EDUCATION

Iowa Sen. Ken Rozenboom of District 19 was also in attendance at the legislative forum. He reiterated the fact public schools receive local, state and federal dollars to fund education. Altogether, he claimed taxpayers are paying about $18,722 per student. The state provides about $8,000 per student.

“Every classroom that has 20 kids, taxpayers are paying $342,000 a year. If a teacher makes $100,000 in pay and benefits, that still leaves $242,000 going to that classroom to teach our kids,” he said. “Taxpayers would like to know where all that money goes if it’s not going to the teacher … where’s all the rest of it?”

Rozenboom has served in the Iowa Legislature for about 13 years, and every year he has heard people say the state is not giving enough money to public schools. He adamantly opposes these claims, saying the United States and Iowa spend a lot of money on education. But taxpayers ask him why it’s so expensive.

“From a taxpayer’s perspective again, every private school student costs the state taxpayer $7,983 — that’s all they get,” Rozenboom said. “Every public school student, the taxpayer’s on the hook for $18,722. More than double what the state contribution is.”