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School Funding in Iowa
School funding in Iowa is based on a formula referenced in Iowa Code section 257.31(10). The funding formula was developed in the 1960's to equalize the allocation of state funds for aid to schools. This time period is also when the Legislature established agricultural land tax credits, personal property tax credits, and an additional homestead tax credit. Then in the early 1970's, the law was modified to the current funding formula.
The essential features of the funding formula include a uniform levy requirement (property tax), a state foundation base and maximum on each school's budget, minimum state aid to each school district, and a budget based on the number of resident students enrolled. The state's funding formula establishes a minimum and maximum cost per pupil.
The three primary funding components for all of Iowa's public schools include a uniform levy of $5.40 per thousand of valuation (property tax), state foundation aid, and additional levy (property tax). However, the state only partially funds all student education costs. The state's funding is approximately $7,400 per student; however, the actual cost is $12,000 (or more for some schools). Benton's costs for educating each student are roughly $12,200 per student.
What is the most significant expenditure for educating students? Approximately 80% of our budget expenses are employees' salaries and wages. The district's 300+ employees are essential to educating our students and providing support, transportation, and all other student services.
How does Benton Community's property tax rate compare to other school districts? Our property tax rate of $9.70 / thousand assessed valuation is low compared to most schools around us and across Iowa. With a bond issue of $4.05, the estimated property rate of $13.75 will remain lower than many other schools.