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Marshalltown board hears FY27 budget preview as enrollment decline reduces new money
Summary
Finance staff told the board that a decline of about 83 K–12 students and an assumed 2% state supplemental aid would yield roughly $429,832 of new money but only a 1% effective increase because of the state 'budget guarantee'; board discussed timeline for certified budget and bond issuances for Miller Middle School.
District finance director Randy Denham gave a detailed preview of the FY27 certified budget process, enrollment changes and planned bond activity, warning the board that a drop in certified enrollment will limit next year’s new money even under the governor’s recommended 2% State Supplemental Aid (SSA).
Denham said the district’s K–12 certified enrollment fell by approximately 83.15 students; using the governor’s 2% SSA recommendation and current formulas, that combination produces an estimated $429,832 in new money but results effectively in only a 1% increase because of Iowa’s budget‑guarantee mechanism. As Denham summarized in the presentation, “we are actually only getting 1% new money because of the decline.” He told the board that $246,574 of that new money would be funded through property taxes under the budget guarantee in the assumed scenario.
Denham also reviewed bond financing tied to capital projects. He noted that voters approved a $57 million general‑obligation bond in November 2024 for Miller Middle School, Franklin Field and elementary audiovisual upgrades; the district expects to issue an estimated $66 million in sales‑tax revenue bonds (including refinancing) for the remaining Miller Middle School project costs and described a two‑series issuance plan (series 2026A short‑term, and a larger series 2026B general‑obligation issuance later).
Denham outlined the certified budget calendar: a property‑tax statement and first public hearing in March, a second public hearing in early April and final budget submission to the county auditor and state by April 30. He emphasized the timing constraints that drive the district’s conservative assumptions and the need to monitor the state SSA level and potential property‑tax reform in the legislature, which could affect how the budget guarantee and property tax levies interact.
Board members asked clarifying questions about the budget guarantee mechanics, the relationship between enrollment and SSA, and the timeline for bond issuances; the administration said it will return with more detailed projections and proposed levy language on the March agendas.
