May 09 2009
Iowa schools struggle to cover state funding cuts
After the Iowa state legislature unexpectedly voted last week to stop funding all Phase One payments for districts across the state, several Iowa schools stand to lose substantial funding and face the possibility of being forced to renegotiate teacher contracts for next year.
Phase One money is a state funded program that helps districts supplement teacher salaries to increase teacher retention and help districts offer competitive salaries to beginning teachers. Some of the districts build the funding into the master contract salary scale and others pay out the salaries separately. Either way, area districts are looking at options for making up for the funding losses.
Established in 1988, Phase I funding was designed to help equalize teacher salaries among school districts, with smaller districts receiving a larger share of the funds.
On April 26, lawmakers voted to eliminate the program for fiscal year 2010, which begins July 1. Funding Phase I would have cost the state approximately $14 million.
Many teacher contracts stipulate that if Phase I funding became unavailable salaries could be reduced, resulting in immediate pay cuts for many Iowa teachers.
