Southeast Polk board sets maximum budget notice amid state aid uncertainty

The Southeast Polk Community School District Board of Education on June 3 approved a motion to set a public hearing date for the district budget and directed staff to publish the tax notice that accompanies that hearing.

Mr. Morris, speaking for district finance staff, told the board the tax notice being published assumes a 3% state supplemental aid (SSA) figure for fiscal year 2026 and stressed that final state funding was unresolved. "No decision has been made yet," he said, adding that the House proposal includes "a 2.25 with the plus money" while the Senate proposal is set at 2 percent.

That difference matters, Morris said, because the often-cited 3.93 percent increase in state aid cited by some legislators combines multiple items — including teacher salary supplement (TSS) dollars, property-tax replacement dollars and a potential hold on a $25 million reduction to Area Education Agency (AEA) funding. Morris said some components of that 3.93 percent are unlikely to benefit Southeast Polk because of how TSS and budget guarantee dollars are distributed statewide.

Why it matters: the published tax notice sets a districts maximum property-tax dollars for the year; the board may lower the published amount later but cannot increase it once published. Morris told the board the district plans to manage the tax rate to remain at this year's level while adjusting spending if final state figures differ.

Board members pressed for detail. A board member asked whether Southeast Polk would receive only "the 1.36 percent" district program increase within a 2 percent SSA; Morris confirmed that the districts regular program increase would be the primary component they receive and explained how budget guarantee and TSS distributions affect other districts differently.

Morris also noted outstanding variables the district is tracking: collective bargaining settlements pending a final SSA number, medical and dental premium increases that remain to be finalized, and a likely AEA funding reduction if state action changes. The board's timeline noted a separate public hearing on March 27 (to precede a regular meeting) and a second hearing and adoption on April 10 as part of the district's FY25-26 budget process.

Action taken: the board voted to set the date for the public hearing and to publish the tax notice reflecting the district's maximum levy and the 3% SSA assumption. The motion to set the hearing was moved by Brett and seconded by Rick and passed in roll-call votes recorded as unanimous in the meeting transcript.

Looking ahead: Morris told the board that when citizens receive the tax notice the district expects more questions at future meetings and that staff would return with final figures after the Legislature and insurance committees complete their work.