February 3rd voters will be asked to vote on an adjustment to the Instructional Support Levy.
ISL's are one of the few methods available to school districts to increase spending authority for instructional programs (all-day kindergarten, library books and instructional materials, etc.) Spending authority is an amount set by the state. The legislature implemented this concept to help achieve statewide, financially equitable, educational funding.
The district anticipates no increase in its tax levy rate resulting from voter approval of a 10% ISL. The district's levy rate consists of several components one of which may be adjusted downward to achieve a stable rate.
Instructional Support Levy: Frequently-Asked Questions
Q: What IS an ISL?
Answer: An Instructional Support Levy (ISL) is one of the few methods available to Iowa school districts to increase spending authority for instructional programs. ISLs are authorized by Iowa Code 257.18.
Q: What is “spending authority”?
Answer: Spending authority is the amount set by a state formula that effectively limits a school district's spending. The legislature has established this concept to help achieve state-wide financially equitable educational funding, regardless of the district a student attends.
Q: Does our district currently have an ISL?
Answer: Yes, the district currently has a 5% ISL, approved by voters in 2000, that generates $2.4 million of spending authority.
Q: Why does our school district need a 10% ISL?
Answer: Our district is one of the largest school districts in the state. We believe that our educational outcomes are as good as or superior to those of other large districts, most of which have 10% ISLs. Dubuque is currently the only large district (of the eight Urban Education Network school systems) not labeled as a “District in Need of Assistance” under “No Child Left Behind” legislation. Achieving superior educational results requires the investment of significant funding, and these costs have resulted in a reduction of our financial reserves, that is, a depletion of our spending authority. A 10% ISL will provide additional spending authority to help us retain programs that would otherwise need to be reduced or limited.
Q: Do many other Iowa districts have 10% ISLs?
Answer: Currently, 340 (out of 364) Iowa districts have ISLs. 282 of these districts have 10% ISLs.
Q: How much additional spending authority would a 10% levy generate?
Answer: A 10% ISL would generate additional spending authority of approximately $2.4 million per year for a 10-year period from July 1, 2009 through June 30, 2019.
Q: Would a 10% ISL generate additional state funding?
Answer: Yes, a 10% ISL would generate an additional $178,000 of state aid under the state's current model for funding.
Q: How would funds received from a new 10% ISL be allocated?
Answer: Funds may, by law, be used for any general education purpose. However, ever since the passage of the original ISL, the district has directed these funds to support costs of all-day, every-day kindergarten, smaller class sizes at the elementary level, classroom and laboratory equipment and materials, buses and support program equipment, and increased supply budget allocations to schools. The spreadsheet below shows how funds are likely to be allocated to support these priorities if voters approve the 10% levy.
| 2009-2010 Instructional Support Levy Program Priorities and Funding Levels (10% ISL) |
|
Program |
ISL |
ISL |
ISL |
ISL |
Totals |
| |
Class Size |
Kindergarten |
Eqpt. & Mtls. |
Allocations |
|
| |
35% |
35% |
30% |
|
|
| |
1,505,000 |
1,505,000 |
1,290,000 |
500,000 |
$4,800,000 |
|
Maintain kindergarten staffing |
|
$1,450,000.00 |
|
|
$1,450,000.00 |
|
Equipment & materials for kindergarten |
|
$15,000.00 |
|
|
$15,000.00 |
|
Maintain staff for 1-5 class size |
$1,460,000.00 |
|
|
|
$1,460,000.00 |
|
Professional development ** |
|
$15,000.00 |
|
|
$15,000.00 |
|
Classroom & lab equipment & mtls. |
|
|
$750,000.00 |
|
$750,000.00 |
|
Library books & materials |
|
|
$140,000.00 |
|
$140,000.00 |
|
Buses |
|
|
$200,000.00 |
|
$200,000.00 |
|
Support program equipment |
|
|
$200,000.00 |
|
$200,000.00 |
|
Increase school allocations |
|
|
|
$500,000.00 |
$500,000.00 |
|
Substitute teachers |
$25,000.00 |
$25,000.00 |
|
|
$50,000.00 |
|
Associates |
$20,000.00 |
|
|
|
$20,000.00 |
|
Totals |
$1,505,000.00 |
$1,505,000.00 |
$1,290,000.00 |
$500,000.00 |
$4,800,000.00 |
Q: How will a 10% ISL affect my real estate taxes?
Answer: The district anticipates NO increase in its tax levy rate resulting from voter approval of a 10% ISL. The district's levy rate consists of several components, one of which the Board has the ability to adjust downward to achieve a stable rate. The net result is no increase in the property tax rate. The table below illustrates that the net property tax rate for 2009-2010 will stay the same as that for 2008-2009, even if a 10% levy is approved.
|
5% ISL |
|
10% ISL |
|
59,570,363 |
Total Regular Program District Cost |
59,570,363 |
|
.05 |
Maximum Portion (can't exceed .1000) |
.10 |
|
2,978,518 |
Unadjusted Instructional Support Program Dollars |
5,957,036 |
|
744,332 |
Unadjusted Instructional Support State Aid |
1,488,663 |
|
2,234,186 |
Instructional Support Property Tax |
4,468,373 |
|
27,636,136 |
Uniform and Additional Levies |
27,636,136 |
|
8,546,520 |
Cash Reserve Levy |
6,312,330 |
|
38,416,842 |
Total General Fund Levy (including ISL) |
38,416,842 |
| |
|
|
|
15.02092 |
General Fund Levy Rate |
15.02092 |
|
1.00000 |
PPEL Levy Rate |
1.00000 |
|
.86020 |
Management Fund Levy Rate |
.86020 |
|
16.88112 |
Total 2008-09 Levy Rate |
16.88112 |
Q: The above table shows that the district's CASH RESERVE LEVY for 2009-10 would be reduced by over $2 million in comparison with 2008-09 in order to maintain a stable property tax rate. How can the district afford to do this? Isn't this an example of “robbing Peter to pay Paul”? Will doing this levy “shift” reduce or deplete the district's cash reserve?
Answer: School districts across Iowa maintain a general fund “cash reserve” to assist with cash flow stability when state payments are delayed, to assist in maintaining a positive solvency ratio, and to “cover” unanticipated reductions in state aid. The district's current general fund “cash reserve” is approximately $7 million. Reducing the cash reserve portion of the district's levy rate will result in the cash reserve growing at a slower pace, but will not result in an exhaustion of the reserve. The district's goal is to build a cash reserve equivalent to approximately two months of expenditures (approximately $17 million); reducing the cash reserve levy for a period of years means that it will take additional time to reach that desired reserve level.
Q: Why is an election needed?
Answer: ISLs can be implemented by either school board action or an election. In our district's case, only the election method may be used because the present 5% voter-approved levy is still in place through June 30, 2010, and cannot be changed by board action alone.
Q: Does ISL passage require a “super majority”?
Answer: No, only a simple majority of voters (more than 50%) is required for approval.
Q: When is our district's ISL election scheduled?
Answer: The 10% ISL election will be held on February 3, 2009.
Q: Why February 3? Why a date in the middle of an Iowa winter? Why wasn't this issue on the ballot in September, or why can't it wait until spring or next fall?
Answer:
1. During the last legislative session, a new law was passed limiting school elections to four dates each year: the first Tuesday in February, the first Tuesday in April, the last Tuesday in June, and the 2nd Tuesday in September. Clearly, the legislature anticipated that some school issues would be taken to the electorate on dates other than the regular September election date.
2. The district could have included the ISL question on the September ballot. This was not done because the Board had not by last spring reached consensus that we should go to the voters for this funding change. Two positions on the Board were open for election. Furthermore, last spring, when we would have needed to initiate action on the ballot issue, we were engaged in controversies regarding Central Alternative, Jones, and staff reductions. It was a political judgment that this was not the right time for a ballot issue to be presented. A final consideration regarding September was that NICC was running a ballot issue at that time, and we had a concern that the district's message would get mixed up with that issue and result in confusion.
3. As a result of not using the September election date, the only legal date available to the district that would affect the 2009-2010 budget is February 3. To wait until April, June or next September would be too late to impact the 09-10 budget year.
Q: Will voting by absentee ballot be possible?
Answer: According to county election officials, any voter may request an absentee ballot or take the opportunity for early voting in person at the Courthouse. These opportunities should make it possible for any citizen, regardless of age or disability, to voice their support or opposition to the ballot issue without venturing out in whatever weather conditions are present on February 3.
Q: If I have additional questions, how do I get them answered?
Answer: You may contact the superintendent, the business director, or the board secretary by e-mail or phone:
John Burgart, Superintendent 552-3012
Ron Holm, Exec. Director of Finance 552-3024
Joni Lucas, Board Secretary 552-3037 |
