(Villisca) The majority of Iowa school districts are facing budget challenges. About 208 Iowa school districts are expected to rely on the state budget guarantee for the 2026-2027 school year due to declining enrollment and tight state funding. Of Iowa’s 24 largest school districts, 19 will be on the budget guarantee. The Iowa School Finance Information Services says the number of qualifying districts is unprecedented.
Meanwhile, cities in rural Iowa are feeling a budget pinch due to a proposed Iowa legislative bill that would cap local government revenue growth at 2% plus new construction for all taxing authorities, except debt service and school funding.
Villisca City Councilman Tripp Narup says the 2027 fiscal year’s budget is about $1.8 million, about $20,000 more than the previous year.
Tripp says out of the $1.8 million, a good chunk is not necessarily the city’s money, and the city is not able to do whatever it wants with it. The other portion of the budget is city utilities, such as water and sewer.
Narup says there are a couple of things affecting Villisca’s city budget strains. He says it is not a secret to anyone that southwest Iowa, and small-town rural Iowa, is barely on the state legislators’ radar screens.
Narup says another factor is that rural America is losing population. Based on recent census data, he notes that towns like Villisca are shrinking. He adds that it is no coincidence the city demolishes houses annually, pointing to a mismatch between the existing housing supply and the push to construct new homes.
