The expected loss of hundreds students is contributing to Des Moines Public Schools estimated $16.2 million general fund budget gap ahead of the 2026-27 school year, district officials say.
Between now and 2031, officials project that Iowa’s largest school district will lose 550 students each year, said Shashank Aurora, the district’s chief financial officer, in an interview. This means the district could lose $4.5 million in state aid each school year.
The budget shortfall was estimated using enrollment projections and the possibility lawmakers will set state supplemental aid for schools at 1% or zero, Aurora said. The state’s education savings accounts that divert state funding to pay for private school is also playing a roll.
“The enrollment decline I would attribute to the ESAs (education savings accounts) or the voucher programs that have happened,” he said. “And the second thing is low SSA (supplemental state aid) that is coming through year after year after year.”
Aurora presented the preliminary general fund budget numbers to the Des Moines School Board during its Tuesday, Jan. 20, regular meeting.
Des Moines Public Schools joins school districts around the state struggling with budget shortfalls. Ahead of the 2026-27 school year, Boone Community School District approved $665,000 in budget cuts and Cedar Rapids Community School District is moving forward with roughly $12.9 million in reductions.
Both school districts have cited declining enrollment as part of the reason behind the cuts. Boone officials also said a decrease in state aid has played a role.
At the Jan. 13 Boone School Board meeting, Elijah Stines, Boone’s former mayor, pointed to the fact that the state has given private schools hundreds of millions of dollars through ESAs — money that otherwise would have gone to public schools — but private schools are not held to the same state mandates.
“The state of Iowa has consistently refused to increase the amount of state supplemental aid to all school districts to match inflation for the past nine-plus years, a principal source of funding for school districts,” Stines said to the board. “… School districts across the state are suffering, and they will continue to suffer further if correct action is not taken at its source. Only the legislature can do this. Not the school board, not the school administration.”
Previously, interim Superintendent Matt Smith said DMPS was facing a $13.5 million budget shortfall. That number was dependent on lawmakers setting state aid at 2%.
Staff attrition and early retirement are expected to help decrease DMPS’ general fund deficit by $11.3 million ahead of the new school year. Additional help will come from the sale of the district’s central office building for $3.3 million.
Even with these and other savings, officials are still left with a $1.6 million general fund deficit. In the coming weeks, officials will work to winnow down this amount.
“This is a work in progress,” Aurora told the Des Moines Register of setting the district’s budget, “and the number will keep changing as we learn more and we keep fine tuning it.”
Here are some of the key takeaways from Aurora’s budget presentation:
How much has the governor proposed for SSA?
Gov. Kim Reynolds has proposed state supplemental aid be set at 2%. Lawmakers will ultimately set the final amount during their legislative session that is in its second week.
How does Reimagining Education fit into next year’s budget?
The construction costs for Reimagining Education will be covered by a 20-year, $265 million general obligation bond that voters approved Nov. 4.
Money from the bond will be issued as needed over five years — the duration of the project.
Not all of the plan’s costs will be covered by the bond.
Currently, officials want to budget $500,000 to cover the cost of busing Moulton Elementary School students from their neighborhood to the Kurtz Opportunity Center.
Students will be at the alternative location for about two years while the new Moulton Arts Academy is built.
What new expenses are officials anticipating?
Officials estimate that new expenses including new curriculum and implementing the district’s 5-year strategic plan could total about $8.6 million.
Ames Tribune reporter Celia Brocker contributed to this report.
Samantha Hernandez covers education for the Register. Reach her at (515) 851-0982 or svhernandez@gannett.com.
This article originally appeared on Des Moines Register: Enrollment drop contributes to Iowa school district budget deficits
Reporting by Samantha Hernandez, Des Moines Register / Des Moines Register
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