Newton’s declining enrollment is greater than state’s 2.5% SSA allocation

Although the Iowa Legislature passed a 2.5 percent increase in Supplemental State Aid for all public schools in the state, Newton Community School District’s decline in enrollment is greater than the new SSA allocation and therefore the district will only be receiving a 1 percent increase in new money.

Tim Bloom, director of business services for the Newton schools, told school board members during a work session on April 8 that if enrollment had not decreased it was likely Newton would get the 2.5 percent SSA. However, the certified enrollment count went down 45.9 students, totaling 2,911.7 students.

According to data provided by the Newton school district, the 1 percent accounts for $225,813 in new money. Since the 2019-2020 school year, Newton has only met or exceeded the state’s SSA one time; in the 2023-2024 school year, the district received 3.61 percent in new money when the SSA was at 3 percent.

Here is how much new money the Newton school district received when compared to the SSA increases from Iowa legislators:

• FY20 (2019-2020): 1% new money, or $207,179, at 2.06% SSA.

• FY21 (2020-2021): 0.93% new money, or $194,238, at 2.3% SSA.

• FY22 (2021-2022): 1% new money, or $211,193, at 2.4% SSA.

• FY23 (2022-2023): 2.17% new money, or $462,954, at 2.5% SSA.

• FY24 (2023-2024): 3.61% new money, or $787,797, at 3% SSA.

• Estimated FY25 (2024-2025): 1% new money, or $225,813, at 2.5% SSA.

Other school districts in Iowa are struggling financially, too. The Gazette’s Grace King reported in March that Linn-Mar Community School District is reducing 50 staff members as part of $2.5 million in budget cuts, which have been contributed to “sustained underfunding” in per-pupil state aid and decreased enrollment.

The Newton school district was already planning on making reductions to staff following the upcoming downsize and reconfiguration of elementary buildings. Administrators and school board members are also well aware that enrollment has been on a downward trend for some time.

Bloom said the district is hopeful it can move forward by the reductions it makes, but he is worried more reductions may follow.

“The funding received does not keep up with inflationary cost increases,” he said. “Reductions may be needed again in the future. We are hopeful the enrollment decline outlook will improve but we are realistic that we will need to evaluate every job that comes open whether we replace the position or reduce it.”

In addition to Newton not meeting SSA amounts, it is also facing challenges with the Teacher Salary Supplement funds. Included in House File 2612 was an increase in the base wages for all Iowa teachers. First-time teachers are paid $47,500, and teachers with 12 years experience are paid a minimum of $60,000.

The bill, which was signed into law this past month by Iowa Gov. Kim Reynolds, was anticipated to provide $22 million in state funds to help supplement the pay of experienced teachers. But Newton Superintendent Tom Messinger and Bloom both claim it was never included in the bill.

In a followup with Newton News, administrators said they were led to believe by their representative in the Iowa Legislature that $22 million would be in the bill to supplement the wages for teachers with 12 years experience. But upon seeing the bill was approved, the $22 million was not there.

“So now we get funds to raise the base wage for teachers,” Bloom said. “That is all. Not any other increases and that is what the 2.5 (percent) SSA is for.

“Or in, our case, 1 percent.”

Funds were also available to school districts to use to supplement the wages of support staff, allowing them to meet the $15 per hour wage requirement.

But Newton was already paying its support staff above the minimum.

“Our paraeducators, our associates are actually above the $15 per hour, so there is no additional money for us on that also,” Bloom said.

Messinger said school districts who are already paying above the $47,500 minimum are still receiving funds from the state to supplement the wages. But when it comes to supplementing support staff pay he claimed the funding is only going to schools that need to increase their support staff wages.

“So, yeah. That’s all good,” Bloom said sarcastically. “Something to work on.”