CFO says state will cover $172,693 budget guarantee next year, trimming local property tax

The district’s chief financial officer told the Ames Comm School District board that provisions tied to Senate File 2201 and the 2% supplemental state aid have put the district on a budget guarantee for $172,693 and that, in fiscal 2027, the state will pick up that amount as state aid.

"What it is is it gives our patrons of our district a little bit of property tax relief," the Chief Financial Officer said, adding that the change will reduce local property taxes by about "4 cents on a thousand" for district taxpayers.

Why it matters: The CFO said the technical change means the district will receive the $172,693 in state aid instead of collecting it from local property taxes, but warned that receiving the amount as state aid could lower total funding for the district if supplemental state aid is set lower in future years.

A board member asked whether there is a point in setting a supplemental state aid amount if the state will cover the gap, and whether the state controlling the gap amount raises long-term concerns about local funding levels. The CFO responded that, if the state continues to cover the gap, it could effectively result in lower overall state funding because the supplemental state aid percentage could be set lower while the state covers the difference.

The discussion did not result in a recorded formal vote specifically on the budget-guarantee matter during the portion of the meeting covered in the transcript. The CFO framed the proposal as a mechanism that provides short-term property tax relief but carries implications for future state funding formulas.

Board members asked follow-up questions about the mechanics and long-term implications for district revenue; the CFO confirmed the district will accept the state aid in FY27 rather than collecting the $172,693 from local taxpayers.

The board then moved on to other agenda items and reconvened for a work session.