A priority of Governor Kim Reynolds heading into the Iowa Legislative Session became law in two weeks time, in part, due to support from a local legislator. House District 37 Representative Barb Kniff-McCulla voted yes to expand Educational Savings Accounts equal to a public school student’s per pupil cost to families for K-12 private education.
She pushes back against several criticisms of the legislation — including the cost, which according to the non-partisan Legislative Services Agency, the full implementation of the legislation is expected to be at $879 million over the next four years, which includes scholarships for every private K-12 student by 2025-26 and additional funding for public schools with those individuals living in their district borders.
This comes after a flat tax was passed in the 2022 session, which combined with elimination of retirement taxes, is expected to cost the state $561.4 million in revenue in the next fiscal year, $768 million in 2025, and $1.348 billion by FY 2026 — the same session as when the ESAs will be fully implemented.
Ultimately, Kniff-McCulla is confident in the state budget’s overall direction and is not concerned about the impacts the ESAs could have negatively on state spending, and does not believe it will lead to a cut for K-12 public education, despite worries from school administrators and the many opponents of the bill.
Kniff-McCulla was endorsed by Governor Reynolds, in large part, due to her support of the expansion of this type of legislation in the June 2022 primary against Republican Incumbent Jon Thorup.
The Students First Act also included provisions in which a public school receives approximately 15% of per pupil state supplemental aid for every private school student living in their district’s borders and that are using the ESA program and allows more uses for the teacher leadership fund, including general fund expenses. It also extends operational sharing agreements.
Hear more from Kniff-McCulla and her reasons behind supporting the legislation on Tuesday’s Let’s Talk Pella.