A message from Cedar Rapids Community School District Superintendent Dr. Tawana Lannin and Board President Jennifer Neumann: We want to share an important update about a recent Iowa School Budget Review Committee (SBRC) decision affecting CRCSD’s budget authority for fiscal years 2024 through 2026. This decision pertains to the funding known as Modified Supplemental Amount (MSA), which is used for vital programs including students in at-risk, alternative education, and dropout prevention (ARDOP).
On March 10, the SBRC voted 3–2 to reduce the district’s spending authority for these programs by about $18 million over the 2026 and 2027 fiscal years. Spending authority is the legal limit on what a district can spend. It is not the same as cash on hand. CRCSD is not required to repay any funds. The decision, however, means CRCSD will be less able to absorb unpredictable cost increases and revenue cuts.
It is important to note that the DOE and SBRC have never suggested that CRCSD inappropriately coded or misspent any funds tied to our At-Risk/Dropout prevention spending authority. Furthermore, we assure you that this decision will NOT result in any new staff or program cuts for the next year
This issue centers around a disagreement over a state approval requirement for past MSA requests. In 2022, the CRCSD Board approved a multi-year At-Risk, Alternative Education, and Dropout Prevention Plan (ARDOP Plan), along with the related MSA funding request. In fiscal years 2024 through 2026, the Board also approved annual MSA requests tied to its ARDOP Plan. CRCSD believed it had met the state’s procedural requirements, and other districts had followed a similar process, believing the same.
In 2025, the Iowa Department of Education (DOE) reviewed CRCSD’s past MSA requests and took the position that CRCSD should have received separate Board approval of a full ARDOP Plan each year. Prior to this review, the written guidance on MSA had not included a requirement for annual approval of ARDOP Plans. Then, in December 2025, DOE issued guidance requiring annual Board approval of the plan, and CRCSD updated its process for fiscal year 2027. “After seeing DOE’s December 2025 written guidance, we immediately updated our procedures to align with it, and for fiscal year 2027, we have met all requirements to submit MSA requests. We will certainly continue to work collaboratively with the state to ensure strong compliance going forward,” Superintendent Dr. Tawana Lannin said.
On March 3, 2026, DOE informed CRCSD that, based on its 2025 review, it would recommend an approximately $18 million reduction in previously awarded spending authority, to be adjusted over the 2026 and 2027 fiscal years. CRCSD requested an opportunity to address the SBRC and explain its understanding of the law’s requirements. At the March 10 hearing, both DOE and CRCSD addressed the SBRC. After discussion, the SBRC voted 3–2 to adopt DOE’s recommended reduction.
“While we are disappointed in the decision, our focus remains on students,” Board President Jennifer Neumann said. “Funding for all public community schools across Iowa is critical right now, and we will continue working to protect the services and supports on which our students rely.” The district is reviewing its options to restore the availability of MSA spending authority that was reduced by SBRC, as well as other avenues for appeal.
School finance can be complicated, but the district and the Board have acted in good faith for years, following standard practices used by many other districts across Iowa. Our commitment is straightforward: to remain transparent with our community, follow state guidance, and continue supporting each and every student through strong public community schools.