At the ICCSD school board meeting on Tuesday, Feb. 24, the district proposed $8 million in budget cuts to reduce spending for fiscal year 2027.

The plan examines adjusting class sizes at the district’s 21 elementary schools and gradually reducing overall staffing through attrition. The plan does not include specific layoffs, though they could be considered if more cuts are needed to fix the budget.

“If there’s something we think where we could go beyond that, I think we know this is probably not a one-year challenge…,” said superintendent Matt Degner. “We know we have our own unique challenge, but we can also anticipate enrollment continuing to be challenging, and the ongoing challenge of funding.”

The district must approve its budget by the end of April.

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How does Iowa City CSD plan to cut $8M from its budget?

The district projects $500,000 in administrative savings by moving some administrators into school-based roles and reducing administrative contracts. Executive cabinet members have already agreed to a pay freeze.

The district plans to cut $1.8 million by eliminating 20 positions, reassigning staff to schools, reducing special education roles and moving them into teaching positions, and not filling vacant positions. The district also plans not to renew probationary teacher contracts to save $1 million.

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At the district’s high schools and middle schools, 12 teaching positions can be left unfilled through “attrition-based staffing reductions,” saving an estimated $600,000 and $500,000, respectively.

Elementary savings are estimated at $900,000 by reducing 10 classroom positions through natural turnover.

“We have to generate enough attrition or enough people out of the system for those reassignments to help us,” Degner said. “We’re not back-filling the position that they’re leaving. So if they’re reassigned to a building-based role, we’re not back-filling the position there; they would be vacating from a district position.”

Other staffing adjustments, like reducing support staff, substitute positions, stipends, and special education staff, along with suspending administrator conference travel, could save another $950,000.

The district will consider cutting buses that pick up students outside of normal routes, i.e., discretionary busing, eliminating “redundant” software, delaying curriculum purchases, and ending consulting contracts, totaling $2 million in potential savings.

The plan estimates that the district could save $700,000 to $1 million by eliminating discretionary busing.

Degner said they plan to look at the link between attendance and bus transportation before making a decision.

“Maybe they’re not attending if the bus isn’t there,” Degner said Tuesday. “I do think some of that data analysis would be important to consider.” 

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The ICCSD’s cash reserve levy for fiscal year 2027 is $30.3 million. The levy maintains cash flow, does not create new spending authority, and allows the district to pay for previously approved expenses.

ICCSD board members ask to look at systematic solutions

ICCSD board director Jennifer Horn-Frasier applauded the district’s urgency of action and its plan to limit spending through the end of fiscal year 2026, though she encourages leadership to look at things more “systemically.” Horn-Frasier referenced educational devices and technology in elementary schools, noting that it’s not only a budget issue but a community concern.

Director Jayne Finch argued pay freezes are a must, though the district must go further by taking “a fresh look at every contract.”

“Students and personnel should not bear the brunt of the mistakes that have been made by central administration,” Finch said.

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The Iowa City CSD budget has fluctuated in recent years due to declining enrollment, notable building projects, and closures, as well as limited State Supplemental Aid funding.

In April 2025, the board of directors unanimously approved a $279 million budget, $40 million less than the year prior, due to the closure of Hills Elementary School in 2024 and several completed building projects. Later in 2025, in a 5-1 vote in June, the board greenlit a $104.6M five-year facility master plan.

Former ICCSD Chief Financial Officer, Adam Kurth, who left in November 2025, said last February that the district was in “a reasonably healthy position.”

In January, board members learned about a $10 million interfund loan taken out in August 2025 that was later retroactively approved. The ICCSD says its “expenses outpaced their projections,” and saw a 9 percent average payroll cash increase and a total of $15.7 million in compensation packages, according to board documents.

The district spends about 86 percent of its general fund on salaries and benefits.

Kim Michael-Lee is serving as the district’s CFO until the position is filled in July.

Jessica Rish is an entertainment, dining and education reporter for the Iowa City Press-Citizen. She can be reached atJRish@press-citizen.com or on X, formerly known as Twitter, at @rishjessica_