IOWA STATE EDUCATION ASSOCIATION
Contact: Lana Oppenheim Schlapkohl, 515-471-8026; LOppenheim@isea.org

STATEMENT BY ISEA PRESIDENT LINDA NELSON ON HF 2066

The ISEA supports a one-cent statewide sales tax to replace the current local option tax as long as the use of the tax is expanded to include education programs. We also support the creation of a statewide panel, similar to the Vision Iowa Program, to oversee the distribution of the funds for infrastructure needs to local school districts.

While we certainly understand the importance of having safe and modern school buildings, we are strongly opposed to the current version of HF 2066 being considered because it does not address the need for greater educational opportunities for Iowa students. What's more it's just bad tax policy. That's why we are working to make significant changes in this bill.

A recent Des Moines Register poll indicated that 81 percent of Iowans surveyed want the Legislature to address improving education, yet this legislation does nothing to provide school districts the option of enhancing educational programs once local school building needs are met. It instead provides the opportunity to shift the additional funds into property tax relief under the guise of improving tax equity. Upon closer analysis, it may actually increase the inequities already existing among Iowa school districts. 

Everyone can agree there will come a time when infrastructure needs will be met by many school districts in Iowa. Two-thirds of our districts are experiencing declining enrollment and will have no need for expanding facilities.

Many of our districts, on the other hand, will have the need to expand educational opportunities if we are to meet higher standards and incorporate the rigor and relevance required to provide a 21st century education. Providing universal early childhood education, implementing foreign language instruction at the elementary level, expanding the math and science curriculum, and improving technology are just a few of the needs that come to mind.

Last year in the legislative session, school district administrators and school board members argued a mandate for guidance counselors and nurses was an unfunded mandate they couldn't afford. They also argued a 4 percent allowable growth was not sufficient to improve the quality of education and campaigned for 6 percent. Now, suddenly, they don't see an additional need for money anytime in the future to enhance educational programming. It doesn't make sense to preclude a major source of state revenue from ever being spent on student needs.

One of the greatest inequities we have in Iowa education lies in the opportunities for student learning. Our per-pupil spending is equitable from school district to school district, but the same dollars buy very different programming. Students in our largest districts have twice as many curriculum units available to them as students in our very smallest districts.
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The current legislation is also bad tax policy. It allows the funds to be easily diverted away from meeting building needs to providing property tax relief. This is most likely to happen in districts where bond issues have been easier to pass because of a high taxable valuation per pupil and building needs are current. These same districts also raise more money from PPEL. They will be able to provide property tax relief sooner and at a greater value than less wealthy districts. This will be particularly true in districts with declining enrollment and a lot of property wealth. Property tax rate inequities are likely to increase over time given the provisions in the current legislation. 

We believe that a state sales tax, which hits lower-income Iowans harder than the more affluent, should not under any circumstances be used to reduce property taxes. HF 2066 as it is currently written could easily be turned into a $400 million property tax relief measure. This does nothing to improve education for students. This is bad public tax policy being sold under the guise of what's good for Iowa's students.

The bottom line is if we're going to market this legislation as doing something good for kids, then it had better do more than provide property tax relief. Let's allow the funds to be used to improve educational programming for our students.

02/27/08
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The ISEA is a professional organization made up more than 32,000 educators who are dedicated to supporting and protecting a quality public education for all Iowa students. Great Education. It's an Iowa Basic!