While school districts wait for the legislature to decide on the school funding rate, there is a bill before the Senate that creates a great revenue stream for Iowa school districts. The one cent sales tax is a valuable tool for school districts to manage infrastructure improvements and repairs. This penny sales tax for school infrastructure is currently set to expire in 2029. The bill SF 477 would extend the one cent sales tax until Jan. 1, 2050.
Districts have utilized SAVE funds by issuing bonds secured by the ongoing revenue stream the fund produces. This enables districts to make facility updates that could not otherwise have been accomplished by minimizing interest costs. Benton Community was able to finance the Atkins Center Project as well as the Bobcat Stadium, Fine Arts Wing, and Gym renovation projects as a result of the penny sales tax.
The bonds issued are repayable over a 15 year amortization period. With the sunset now within 15 years, the utility of the SAVE Fund diminishes with each passing year. Please consider being an advocate for this important legislation for Iowa schools!
