Branstad vetoes $55.7 million in K-12 school funding

Iowa schools will not receive $55.7 million in additional funding that had been approved by the Legislature for the 2015-16 school year after Gov. Terry Branstad vetoed the line item from a budget bill.

The veto was handed down late Thursday afternoon, as Branstad disposed of the last remaining bills from the legislative session, which concluded last month.

Educators across the state responded immediately with disappointment.

"It really seems like education is slipping on the priority list," said Tom Narak, government relations director with the School Administrators of Iowa. "The consequences are negative for schools, and especially for children. They're the ones who will suffer."

Schools were to receive the one-time cash infusion in addition to a 1.25 percent increase in overall state aid — an unusual budgetary maneuver that was the linchpin to resolving a bitter legislative dispute over K-12 funding in this year's state budget.

Branstad nixed it over concerns that it would cause "uncertainty" for schools. He also remains frustrated that the Legislature did not approve a second year of school funding, as he had requested and Iowa law calls for.

"By using one-time money and not providing supplemental state aid for the second fiscal year, the legislature compounded the uncertainty that school districts faced this entire legislative session," Branstad wrote in his formal message explaining the veto.

A gap to fill in Des Moines

The one-time money would have brought an additional $3.6 million into Des Moines Public Schools coffers, according to state estimates.

"I'm very disappointed, but not surprised," said Des Moines Superintendent Tom Ahart. "It follows the pattern that we've been experiencing in this legislative session. It gives us an even bigger deficit to cover."

Des Moines is in a better financial situation than other districts, because administrators made modifications early in the budget planning process to expect a "worst case" scenario of an increase of just 1.25 percent.

But Ahart said there's a roughly $7.5 million gap to be filled. For example, the district agreed to give 3 percent raises to employees, but state funding is increasing by only 1.25 percent. In addition, Ahart expressed frustration at the governor's decision coming so late into the summer, and the lack of a two-year budget.

"We need to be in a position where we can be planful about how we mitigate inadequate funding," he said.

Throughout the session, Democrats in the House and Senate pressed for increasing state aid to schools by more than 2 percent, while Republicans insisted on 1.25 percent. They compromised by passing the 1.25 percent increase alongside a one-time payment of $55.7 million.

Documents released along with the governor's veto message on Thursday show that total state appropriations for K-12 education exceeded $3 billion, of which $2.95 billion is state aid for school districts.

Within moments of the veto's announcement, House Democrats released a statement criticizing it.

"With Governor Branstad's veto today, Republicans have made clear our K-12 public schools are no longer a priority for them," House Minority Leader Mark Smith, D-Marshalltown, said in the statement. "We already know the result of the Republican school funding crisis: fewer educators, larger class sizes, and higher property taxes."

Undeterred in Davenport

The governor's veto has not deterred Art Tate, superintendent of the Davenport Community School District, from moving forward with his plans to spend more money than legally allowed.

Because Iowa education funding is based on both state and local property taxes, the state sets spending limits. Tate made headlines this spring when he announced he would tap into reserves to spend $5 million more than the state law allows.

Davenport is among 165 districts that receive a lower per-student amount than other districts, he said.

"I intend to spend up to $175 per pupil over the state allowed amount in order to recognize that students in Davenport have the same value as all other students in Iowa." Tate said.

Branstad vetoes one-time money for colleges

Gov. Terry Branstad vetoed several budget line items on Thursday as well, including $2.5 million for community colleges, $2.9 million for the University of Iowa, $2.3 million for Iowa State University and $1.1 million for the University of Northern Iowa.

In his veto message, Branstad wrote that "funding ongoing expenses with one-time money is unsustainable" and said he's received assurances from the Iowa Board of Regents that the vetoes will not result in a tuition increase next fall.

In a terse statement, the Iowa State Education Association teachers' union called the vetoed community college funding along with the $55.7 million K-12 veto an "illustration of (Branstad's) lack of commitment to public education."

CLASSIFICATION OF JUDGES: The governor turned down a move by the Legislature to designate state administrative law judges appointed or employed by the public employees relations board as merit employees. The judges are currently at-will employees, a designation that provides less job security.

"The at-will designation allows for greater accountability for these managers. Subjecting administrators to the merit system would decrease accountability to taxpayers and hinder the effective management of important government functions," Branstad wrote in a veto note.

EMINENT DOMAIN: Branstad declined to veto language limiting the use of eminent domain on a reservoir project near Osceola in southern Iowa.

The measure, which requires the commission overseeing the reservoir to consider additional options for obtaining drinking water, is now law. It still permits the use of eminent domain, but limits land acquisition to only what is needed for drinking water, sponsors have said.

House Speaker Kraig Paulsen cheered Branstad's decision to approve the measure.

"These new defenses are the firmest stand the Legislature has taken to date," Paulsen, R-Hiawatha, said in a statement. "I am pleased we could come together and protect one of the most fundamental rights of Iowans — the right to keep their own property in the face of government overreach."

— Jason Noble

One-time funding nixed

Here's what one-time funding of $55.7 million would have meant for Des Moines area school districts, if the governor had not vetoed it:

• Ankeny: $1.2 million.
• Bondurant-Farrar: $189,266.
• Carlisle: $210,589.
• Dallas Center-Grimes: $262,247.
• Des Moines: $3.6 million.
• Indianola: $382,558.
• Johnston: $737,960.
• Norwalk: $285,377.
• Saydel: $131,341.
• Southeast Polk: $739,889.
• Urbandale: $373,625.
• Waukee: $978,426.
• West Des Moines: $1 million.

Source: Legislative Services agency