The Ames Community School District will need about $366,000 in Supplemental State Aid to avoid an increase in property taxes.

ACSD Chief Finance Officer Sherri Ruzek presented the financial changes to its budget for the upcoming fiscal year to the Ames School Board on Monday. The updates include adjustments to property tax valuations and state supplemental assistance funding.

Supplemental State Aid (SSA) is funding school districts receive from the state government. The percentage increase, which is often recommended by the governor, is ultimately determined each year by state legislators.

To qualify for a budget guarantee, a school district must receive at least 101% of the previous year’s funding. The first 100% is funded entirely through local property taxes, while the additional 1% — considered new funding — is supported through SSA.

This year, Gov. Kim Reynolds recommended 2% SSA, resulting in 1% new money, $364,443. The district will be on a budget guarantee, which is funded by property tax dollars. For Ames, it’s $172,693 in property taxes.

Ruzek said 2% SSA isn’t enough.

“Our district needs 2.49% percent — that’s our break even point where we would not have to tax our property taxpayers back for the budget guarantee portion,” Ruzek said during the board meeting.

Board President Kelly Winfrey, who participated in the “Day on the Hill” school advocacy program, said the SSA will likely not be enough for most districts.

“It doesn’t look great so I encourage you to talk to your legislatures as well as legislators that represent the district, even if you’re not in that district,” Winfrey said. “I would look up who’s on the education committees, contact those folks. We’re all here because we value public education.”

A break even-point means the district exceeds the previous year’s budget. In ACSD’s case, it needs 2.49% of state supplementary assistance, which results in 1% new money, $366,037 — which allows the district to break even in its upcoming budget.

“If you’re out talking to your legislators, 1% or 2% is not enough,” Ruzek said. “At 2% there’s 199 schools in the state of Iowa in budget guarantee, that’s just not enough to keep us afloat.”

An increase in property tax valuations

The school board also discussed the significant increase in property tax valuations in Story County, which is the basis for the fiscal year 2027 budget.

Property valuations for utilities without gas and electricity increased by 2.7% for residential properties, 11% for commercial and 29.5% for industrial. Tax increment financing valuations increased by 0.4%, which resulted in a total property increase of 6.53%.

This year is a little different because of the first assessment for a new state law that affects the taxable value for centrally assessed pipeline and utility properties — Senate File 614.

In other business

• Mitchell Elementary student Theo Traxel and Fellows Elementary student Arthur Wang were invited to join the Pathfinder Stars Program, which is part of the National Math Stars program. The third graders scored in the top 2% in mathematics on the Iowa Statewide Assessment of Student Progress.
• The board discussed and approved 19 policies. One was new – a policy about transporting nonresident and nonpublic students. The policy requires such students to obtain permission from the superintendent before they can be transported by the school district.
• A timeline to discuss the school district’s budget was set, the first meeting will be Feb. 23.
• The board will have a joint work session with the United Community School District at 5 p.m. Feb. 2 at the AMES Center.
• Next time: The next Ames School Board meeting is at 5:30 p.m. Feb. 9.