The largest portion of funding from state government each year is dedicated to education, and despite statute that requires a resolution to supplemental aid to be completed within 30 days of the first gavel, it remains unresolved for the upcoming fiscal year.

State Senator Ken Rozenboom says differences remain between proposals in the Iowa Senate and House, which includes the overall percentage increase and other supplemental funding pieces related to transportation and district-to-district funding equity.

Rozenboom says school districts have been told to plan on a 2% increase to their general funds, and if the House proposal of 2.25% is passed, it could be used for property tax offsets or in other areas moving forward.

“Obviously, we’ve gone past our deadline that we hope to reach of having that bill passed. There are fairly minor differences; the Senate and the governor are holding out for what would be a 2% increase in supplemental state aid, and the house is looking at 2.25%, which isn’t a big difference over time, but since this is always cumulative, what seems to be a small number now tends to grow over time. “hat we’ve been telling schools is that you can be guaranteed and can be sure that we’re going to have at least a two percent increase.”

Hear more about the 2025 Iowa Legislative Session on today’s Let’s Talk Pella.