Kibbie: Education to remain a priority in 2010

Sen. John "Jack" Kibbie told Spencer school board members this week that education will remain a priority in 2010. He also forewarned that state legislators will be looking at the possibility of more school districts sharing in order to save money. Incentives for them to share and discussions about more distance learning occurring will transpire this upcoming legislative session, he said Tuesday evening via a teleconference connection with board members.

As Kibbie outlined Iowa's coffers currently have about a $400 million cash reserve intact, he indicated education stands to glean part of the nearly $150 million in federal stimulus money not spent in 2009.

"But as I see it, we have about a $500 million shortfall," Kibbie told Spencer board members and Superintendent Greg Ebeling.

The Democrat from Emmetsburg then warned that the allowable growth rate generally set by legislators two years in advance will probably not be set for fiscal year 2012 this session.

"As you know, we set a 2 percent allowable growth rate in 2009 for the 2011 school year. That's about a $75 million cost to the state, and it's unlikely that it will be paid in full," Kibbie said of the funding source for Iowa schools.

He then told board members that state legislators he's visited with would like school districts to spend down their cash reserves before levying any new property taxes next year. Kibbie also said he doesn't anticipate there being a movement this upcoming session to curtail school districts' spending authority or per-pupil allocations from the state.

With the allowable growth rate for the 2011-12 school year already tentatively set by legislators at 2 percent, and the distinct possibly of it not being funded to that level, Spencer's superintendent told the state senator that this in addition to the recent 10 percent across-the-board cut mandated this year will more than likely put a lot of districts on a budget guarantee.

"The budget guarantee is funded totally with local property taxes," Ebeling reminded Kibbie. "So, how concerned is the legislature going to be with the property tax issue? It kind of speaks a bit to that cash reserve idea and trying to spend down district cash reserves."

"We're in the situation," he continued, "where we don't have very much cash reserve. So, the $890,000 (that state isn't sending to us this fiscal year because of the mandated 10 percent across-the-board cut) was difficult for us to stomach here in Spencer because we don't have that much cash reserve to cover it."

"Well, if you don't have any, there isn't any to limit," Kibbie replied. "Supposedly there's over $400 million in cash reserves across the state in school districts. But, there is going to be some legislation ... and there's also discussion that that would be flexible.

"I'm sure districts aren't excited about spending down the reserves they've worked to build up. But it's like the state's rainy day fund. It seems like it's raining. So, the cash reserves on local school districts, I think, should be treated the same way."

When Kibbie was informed that Spencer will have to borrow money to make payroll at the end of this fiscal year, he quickly replied, "Well, we're hoping, and I'm hoping in the majority, that cash reserves are not spent down that low that you can't make payroll. The same way with the state's cash reserves. Even though we have $400 million-plus, I think $200 million is about as far down as we ought to spend that because that's, really, our checking account, what school aid is paid out of and what keeps the state running."

Kibbie then told board members that even though there has been some preliminary discussion about using the 1-cent statewide SILO tax money for other designations, he assured that he doesn't see this changing in the near future. He suggested how the PPEL (Physical Plant and Equipment Levy) fund is allocated could be a different story, though.

"There are going to be a couple bills introduced," Kibbie said, "and they all are about using some of that money for technology for more distance learning purposes."

"There will be some discussion on collective bargaining in the House of Representatives," the state senator added. "It's unlikely there will be any change. Whether there will be an expansion in the scope of bargaining, I can't answer that now. But, I'm sure there will be plenty of discussion about that."

As the two parties concluded their conversation, both agreed that communication will be needed between Des Moines and Spencer this upcoming legislative session. Even as Kibbie assured board members, "We're no farther than our phone," in the next sentence he warned, "We're all going to have to do with a little less."

In other discussion:

* Board members scheduled a 5:30 p.m. work session Monday, Jan. 11, 2010, to discuss whether they want Spencer to become involved in the competitive Race to the Top (RTTT) federal grant program, which is designed to improve education and encourage schools to program innovatively. It is believed 10-12 states will eventually be awarded $4.35 billion appropriated from the American Recovery and Reinvestment Act via the RTTT Fund.

If chosen to participate, projections show that Iowa could receive anywhere from $60 to $175 million. While half of the money would be allocated directly to the public school districts that choose to participate voluntarily and sign a memorandum of understanding by mid-January, the other half would go to the state to build an infrastructure to support implementation of RTTT.

Ebeling informed board members that he, Todd Korbitz and Duane Davis are planning to attend a Jan. 6 meeting in which Department of Education representatives will explain what Iowa's grant proposal will be.

"The district will then have to decide whether we want to be a part of the grant and named as a partner school district in the grant. Being a partner school district simply means that if (Iowa) is successful, we'd have some funds available for us to do some things in the district that would help us improve our school," Ebeling said.

* Ruthven-Ayrshire (R-A) Superintendent Erv Rowlands' pending retirement was broached. Ebeling mentioned that neighboring school districts, including Spencer, have been approached and asked to answer 47 questions about the possibility of sharing superintendents, as well as other programs in the future.

"It's not like I'm jumping up and down about the possibility," Ebeling said. "But, at the same time, I think we have to be open to the possibilities."

Ruthven-Ayrshire board members, meanwhile, plan to review district replies during their January 2010 meeting.

* Positively Spencer Youth (PSY) representative Judi Nielsen reported there will be a dance for Spencer High School students from 9 p.m. until midnight Friday, Jan. 15, 2010, at the Clay County Regional Events Center. She also indicated a community service event is planned for the evening of Monday, Jan. 18, 2010, when PSY and Tiger JEL (Just Eliminate Lies) members will clean up cigarette butt litter around town.