Senate approves FY2026 school funding package raising state cost per pupil to $7,988

The Iowa Senate on April 7, 2025, voted 32–15 to pass Senate File 167, the FY2026 State Supplemental Aid package, setting the state cost per pupil at $7,988 and including categorical increases, property tax replacement payments and transportation equity funding.

Senate File 167 was considered with a House strike-all amendment and later an amended amendment. Senate amendment 30067 (to Senate amendment 30004) set the regular and categorical state percent of growth for FY2026 at 2% and set a 5% categorical percent of growth for the transportation equity fund; the amendment also adjusted shared operational functions weighting to a 25‑pupil cap and added a one‑time $22,591,274 distribution to districts based on enrollment. The amendment was adopted on the floor before final passage of the bill.

Why this matters: the bill determines school district revenue next year, shapes property tax outcomes for local taxpayers and funds programs intended to support small and rural districts. Sponsors said the package balances state commitments and other budget priorities; critics said the increase is too small and late for districts already finalizing budgets.

Senator Charlie Evans (R‑Cherokee), who presented the amendment, summarized the funding effects: “The state cost per pupil is $7,988 for fiscal year 26 under this bill, an increase of $162 from the last fiscal year.” He outlined a total of roughly $4.2 billion in FY26 general fund state funding for K‑12 and described increases in targeted categorical accounts including teacher salary supplements, transportation equity, property tax replacement payments and charter school appropriations.

Opposition focused on timing and scale. Senator Zachary Peterson (D‑Polk) urged a no vote and criticized the Legislature’s relative investment in private school vouchers compared with public school funding, saying, “I would encourage a no vote on this legislation. It is not enough.” Senator Lynn Stade (D‑Linn) said, “2.25% is not enough,” and argued the increase would not restore purchasing power lost to inflation. Senator Mark Kornbach (D‑Story) encapsulated an often‑repeated critique: “Too little, too late.” Several senators described districts that will face budget guarantees or cuts and said the package arrived after many districts had set budgets.

The bill retains property tax replacement payments tied to increases in State Supplemental Aid (SSA), adds $5 to the state cost per pupil above the SSA increase to help seven districts close gaps between district and state cost per pupil, and raises the cap on shared operational functions from 21 to 25 pupils. The measure also increases the transportation equity fund to buy down high‑transportation‑cost districts toward the statewide average and provides a one‑time enrollment‑based payment of $22,591,274 to districts for general fund use.

Procedure and next steps: Senate amendment 30067 to amendment 30004 was adopted on the floor; the Senate then concurred with the House amendment as amended and placed the bill on its passage. The final roll call recorded 32 ayes and 15 nays; the Senate’s presiding officer ordered the bill immediately messaged as passed.