The Iowa Department of Education (DE) issued its declaratory order regarding the 10 percent across-the-board cut and the cut's impact on Teacher Salary Supplement (TSS) funds (often referred to as Teacher Quality funds). TSS funds include salary funds and Phase II for K-12 and area education agencies.
"Accordingly, for the foregoing reasons, it is ordered that TSS funds are subject to the 10% across-the-board budget reduction. However, whether school districts are obligated to pay to their teachers the calculated TSS amount, which is 10% higher than the amount the school districts received in TSS monies, is dependent on the locally bargained agreements of each school district. This agency has no authority to supersede local contract language regarding amount of funding paid and method of disbursement. We urge school districts that have not already done so to consult with their local school board attorneys as to the effect of local contract language. If a local contract obligates a school district to pay teacher salaries in excess of what the district received in its allocation from the State, the district may, as discussed earlier, use cash on hand, tax its property owners, or borrow funds to make up the difference."