Des Moines Public Schools could cut $33M from budget if Iowa Senate bill passes, officials warn
Des Moines Public Schools officials may need to cut $33 million from the budget if a legislative bill that changes what counts as an administrative expense becomes law.
The Des Moines School Board discussed the potential impact of Senate File 251 as part of a discussion on the 2023-24 school year budget during a special session meeting Tuesday.
The Republican-backed bill would change what counts as an administrative expenditure from “executive administration” to any “school district purposes or activities that do not directly relate to student instruction or to the activity of students."
By law, a district's administrative budget can only comprise 5% of its general fund, Shashank Aurora, Des Moines schools' chief financial officer, said after the meeting. Under the bill, the district's administrative costs would rise from less than 5% to approximately 12%.
Employees who previously would have fallen under different sections of the overall budget would now be under the administrative budget, including bus drivers, custodians and school safety employees, Aurora said.
“For our district, if we have to follow the new definition of administration, that means I have to shave $33 million" from administrative costs, Aurora said.
Which positions might be impacted by the cuts wasn't discussed at the meeting.
Related:'It's what no ... (Iowans) want to hear': 30 schools locked down over fake shooting reports
Which school year would be impacted would depend on the proposed law's rollout, Aurora said.
The Senate bill states it would go into effect "July 1, 2024, for school budget years beginning on or after that date."
If it passed as is, the bill would not affect schools with fewer than 1,000 students. Des Moines Public Schools, Iowa's largest school district, has roughly 30,000 students.
"It requires more than just teachers to run a school," Aurora said.
The news comes as district officials are looking to cut $12.2 million from next year's budget, in part because of declining enrollment.
Related:Des Moines Public Schools seeks to nearly double security budget after student shootings
Senate File 251 is one of several bills introduced this legislative session aimed at Iowa public schools. Earlier this year, Gov. Kim Reynolds signed into law a bill that creates education savings accounts using taxpayer money that would normally go to public schools.
Families who apply can use the approximately $7,600 in per-pupil state funding to cover private school tuition and fees. The education savings account bill is part of Reynolds' "parental choice" agenda that aims to give parents and guardians more control over their children's education.
Additionally, district officials are watching several bills, including one that would eliminate the Public Education and Recreation or PERL levy. School districts can use the funds to maintain or create recreation and playground spaces on district property.
Des Moines schools would lose about $1.1 million in funds, officials said during the meeting.
Samantha Hernandez covers education for the Register. Reach her at (515) 851-0982 or svhernandez@gannett.com. Follow her on Twitter at @svhernandez or Facebook at facebook.com/svhernandezreporter.
This article originally appeared on Des Moines Register: DMPS could cut $33M from budget if Senate bill passes, officials warn
