Gov. Chet Culver has been telling anyone who will listen that he intends for this budget crisis to be solved without a tax increase, but Rob Boshart at the Cedar Rapids Gazette has found one area where the governor’s actions may not match his words.
Under the budget proposal announced Monday, school aid would go up only 2 percent instead of 4 percent. However, Boshart reports halfway through his story this morning that the governor is still allowing school districts to increase spending authority by 4 percent for the 2009-10 school year. What could that mean?
Instead, the governor proposes to include a 2 percent boost in state funding and provide Iowa’s 364 school districts with spending authority to make up the difference from cash reserves, property tax levies or other sources.
So at the end of the day, there is a chance Culver’s plan could result in an increase in property taxes.