Van Buren County Community School District Superintendent Jeremy Hissem sent a letter to district stakeholders on March 24th outlining the potential impact of proposed state legislation that could significantly reduce school infrastructure funding over the coming years.
The legislation in question, House Study Bill 596, proposes changes to how revenue from Iowa’s statewide one-cent sales tax is distributed. That tax currently supports both school infrastructure and property tax relief through a fund known as SAVE — Secure an Advanced Vision for Education. Under the existing formula, a school district’s SAVE revenue is determined by multiplying a per-pupil amount by the district’s budget enrollment, with 7.1% of total SAVE revenue directed to the Property Tax Equity Relief Fund. That percentage already increases by 1% in years when statewide sales tax growth exceeds a specified threshold.
HSB 596 would accelerate that shift significantly. As amended by the House Ways and Means Committee, the bill proposes increasing the share going to property tax relief by 2.9% in the first year of implementation, followed by annual increases of 2.5%, continuing until that share reaches a cap of 30% in fiscal year 2035. The result would be a shrinking portion of SAVE revenue available to school districts for infrastructure needs.
For Van Buren County, Hissem projects the reduction would total nearly $1.5 million over that period beginning in fiscal year 2027. He said the cuts would affect the district’s ability to fund physical repairs and improvements, bus purchases — the district currently buys two buses per year — annual technology upgrades, and other infrastructure needs.
Hissem said his letter was intended to be factual rather than political, acknowledging that stakeholders hold differing views on the legislation. He encouraged community members to review the bill themselves, consider its impact on both school funding and property tax distribution, and advocate as they see fit. Those who wish to discuss the matter further are welcome to reach out to the district directly.
Photo courtesy of the Van Buren County Community School District.
