Iowa Senate panel backs governor’s plan to make schools spend reserves before raising taxes

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Iowa panel backs plan to limit school tax hikes

DES MOINES, Iowa — An Iowa Senate panel approved Gov. Chet Culver’s proposal to require school districts to spend down cash reserves before seeking more taxes from property owners.

The Senate Education Committee approved the measure 10-3 Wednesday, sending the issue to the full Senate for debate despite concerns by some lawmakers that the panel was moving too quickly.

Some said it was wrong to vote on the measure without a chance to hear from local officials about how the changes could affect their schools.

“We’re becoming Big Brother to our school districts,” said Sen. Randy Feenstra, R-Hull. “If the federal government did this to the state, we’d all be crying foul.”

Local school budgets are a mixture of state dollars and local property taxes. Culver proposed the limits on local school districts in response to criticism that a 10 percent across-the-board budget cut he previously ordered would prompt those districts to raise property taxes.

The Democratic governor has said many school districts have big cash reserves, and he believes they should spend those down before raising property taxes.

Sen. Becky Schmitz, who heads the committee, said quick action was needed because legislative leaders have agreed to shorten this year’s session to save money.

“We have an 80-day session and a lot of important work to do,” said Schmitz, D-Fairfield.

But Sen. Nancy Boettger, R-Harlan, said a few more days wouldn’t have hurt anyone.

“What is the rush of moving the bill forward without having a weekend to talk to our school board members?” Boettger asked.

The measure doesn’t set hard numbers on the size of a reserve a school district can retain. It lets the state’s School Budget Review Committee work with local schools on the issue.

The House Education Committee also approved a plan that eases the state’s limit on charter schools and creates concrete steps for dealing with failing schools. Those actions could make the state eligible for up to $175 million from a $5 billion program President Barack Obama established to upgrade schools.

Culver urged lawmakers during Tuesday’s condition of the state speech to take that step.