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SF 167

A bill for an act relating to school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2025, modifying provisions relating to the property tax replacement payments, modifying provisions relating to the regular program state cost per pupil and funding for shared operational functions, and including effective date provisions.

2025-2026 Regular Session

Iowa law sets school funding growth percentages and per-pupil costs for fiscal year 2025-2026, now signed into law.

Signed by Governor.
#budgets #fiscalyear #propertytaxes #schoolbudgets #schooldistricts #schoolfinance #schools #stateaid
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Bill Summary · SF 167

Legislative bill overview

SF 167 establishes Iowa's school funding growth rates and cost-per-pupil amounts for the 2025-2026 school year, while modifying property tax replacement payments and operational funding mechanisms. The bill has already passed both chambers and been signed into law by the Governor as of May 19, 2025.

Why is this important

School funding formulas directly determine how much money individual districts receive for teacher salaries, facilities, and programs. These growth percentages affect whether districts can maintain current service levels, expand programs, or must reduce spending in the coming fiscal year.

Potential points of contention

  • Adequacy of growth rates: Whether the established percent of growth meets actual inflation and operational cost increases schools face
  • Property tax replacement equity: Changes to property tax replacement payments may benefit some districts while disadvantaging others depending on local property wealth
  • Categorical versus regular funding split: The balance between designated categorical funding and flexible regular program funding affects district spending flexibility and program priorities

Compiled from official sources — confirm details with the bill’s official record.

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