The Iowa Senate has approved a 2% increase in state aid to schools for the 2010-11 school year.  Senate File 218, which sets the allowable growth rate, will give Iowa schools an additional $58.3 million in  state aid.

Under Iowa's school finance laws, school districts receive a defined budget that is a combination of state aid and local property tax revenues.  The school aid formula distributes funding on a per pupil basis.  Schools receive an annual increase in that per pupil allocation, which is referred to as allowable growth.

School districts will receive a 2% increase per pupil funding for Fiscal Year 2011 (the 2010-11 school year).  This is an increase of $115 per pupil over Fiscal Year 2010.

In addition to increasing per pupil funds to local school districts, the Senate approved a second bill, Senate File 217, which increases funding for teacher quality, professional development and class-size reduction by 2% beginning with the 2010 school year.

Iowa law states that the allowable growth must be passed and to the Governor 30 days after the Governor's budget recommendations are released.  The Legislature is keeping that commitment to Iowa's schools to ensure districts have appropriate time to plan their budgets.

The House is expected to approve both bills later this week.