State Auditor Rob Sand has found administrative costs in Iowa public schools accounted for about 8% of new spending over a recent six year period. When spending is calculated on a per pupil basis, administrative costs increased nearly 20%.
Sand reviewed compensation for superintendents, principals, secretaries and staff who manage a district’s finances and human resources issues. “For our K-12 schools, the costs of administration per pupil actually decreased once you account for inflation,” Sand says, “effectively meaning that while it’s grown, it’s grown slower than inflation and has been a smaller cost increase than almost everything else that they pay for.”
Sand reviewed publicly available data from July 1, 2017 through June 30, 2022.. Sand found smaller school districts spend a higher proportion of their budgets on administrative costs. “Service sharing is a good idea,” Sand said. “In fact it’s a recommendation…because if you’ve got somebody who can effectively do it for two locations, you’re going to save on costs.”
Iowa public schools are eligible for state incentives if, for example, one person serves as the superintendent for two districts.
Sand’s report also shows regional differences in administrative costs. Northwest Iowa was the region with the lowest average pay for school administrators and support staff, for example. Sand says the report is part of the Public Innovation and Efficiencies or PIE program he started in 2019 shortly after being elected auditor.
“The entire idea is making sure we are saving taxpayer dollars and have a good idea of how our money is getting spent around this state,” Sand says.
Sand will host a town hall meeting in Perry’s Caboose Park at noon today. It’s one of the stops on his schedule to visit with residents in each Iowa county this year.
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