Hunter
04/26/24
The state of Iowa is committing nearly $180 million in taxpayer funds for the Republican-passed Private School Tuition Voucher program for the 2024-25 school year, much higher than initially predicted.
Iowa Starting Line reports the Iowa Legislative Service Agency, or LSA, projected Iowa would spend $106.9 million in the first year of Gov. Kim Reynolds’ private school voucher program—called Students First Education Savings Accounts—and $132.3 million in the second year.
However, the first year of the program cost Iowa taxpayers nearly $128 million. The Iowa Legislature allocated $179.2 million to the program for the upcoming fiscal year, according to the state’s recently approved general fund.
The first year restricted access to students with a household income at or below 300% of the federal poverty guideline, but that restriction goes up to 400% this fall, and becomes completely unrestricted in the 2025-26 school year.
Another change this fall that public school districts will directly lose money due to the program. The website reports before the voucher law, districts still received those funds from the state even for students who lived in the district but did not attend a public school. Going forward, districts will no longer receive those dollars.
For every student lost to a voucher, the state will instead provide a school district $1,205 in categorical funding, meaning those dollars can’t be used in the general fund.
KCJJ reported earlier this week that the Iowa City Community School District estimates the voucher program has cost the district $1.3 million. CFO Adam Kurth said the result will be an estimated budget cut of 6.5%.