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Senate Defeats Amendment Seeking to Remove IFA Loan Guarantees for Charters
Summary
Senate Amendment 52‑21 would have struck a revolving loan fund and language allowing the IFA to provide credit enhancement for charter school debt; supporters warned taxpayers could be left liable. The amendment failed on a 16–30 roll call.
Senator Blake (Senator from Polk) urged adoption of Amendment 52‑21 to delete the bill's revolving loan fund and provisions that could let the Iowa Finance Authority back charter school borrowing, saying the state should not be in the business of insuring failed schools. He compared the proposed backstop to parents cosigning loans: "this is kind of like mom and dad signing the loan for student loans or a house loan. If they default, we have to be left on the hook."
Senator Green (Senator from Boone) opposed striking the section, noting statutory due‑diligence obligations for the IFA and arguing IFA involvement is discretionary and common in other states. After debate the motion to adopt Amendment 52‑21 failed on a roll call recorded 16 aye, 30 nay.
