The Ames School Board reviewed new state legislation affecting district funding at its Monday meeting.

Iowa Gov. Kim Reynolds signed a bill on Feb. 26 that shifts responsibility for the state’s budget guarantee — a state law that requires school district budgets to increase by at least 1% each year — from local property taxes to state funding.

Previously, if a district fell short of that 1% growth, districts made up the difference through additional property taxes. Under the new legislation, the state will cover that gap instead.

Because state school funding is on a per-pupil basis, drops in enrollment or small increases in state school spending can lead to decreases in district budgets.

This year, lawmakers approved and Reynolds signed a 2% increase in state school spending.

That’s not enough for the Ames district to avoid the budget guarantee. Ames schools would need state school spending to grow by 2.49% to avoid the guarantee, Sherri Ruzek, the district’s school business official, told the school board in January.

The school board took no action on the budget guarantee. To utilize the budget guarantee, the district must adopt a resolution and file with the state’s Department of Management by April 30.

What’s next: The next meeting will be at 5:30 p.m., April 20 at the ACSD office.