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Miscalculation means some school districts will get more money, some will owe

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January 21st, 2015 by Ric Hanson

A miscalculation by the Iowa Department of Revenue will result in more money for infrastructure projects for several southwest Iowa school districts. The Daily NonPareil reports the mistake was traced back to a faulty computer program that could not handle as much sales tax revenue as was collected last summer. Victoria Daniels, the public information officer for the department, said the miscalculations happened in November when a final reconciliation of payments for the Secure an Advanced Vision for Education program, which distributes one cent of state sales taxes on a per-pupil basis to Iowa public schools.

According to Daniels, this year saw an unusually large payment because of strong sales tax growth in the fiscal quarter ending June 30, 2014. She said the computer used to determine the final distribution was not programmed to handle a situation where the actual per student payment exceeded the estimated payment. The results was that most school districts received the wrong amount. Every district in the state was affected by the miscalculation, although the dollar amounts varied dramatically.

Daniels said the miscalculations total to $9,138,855 to be redistributed among the state’s districts, with 234 losing money and 112 receiving funds. Among the districts in southwest Iowa which will be receiving additional funds in the near future, are Underwood, Riverside, Treynor, Tri-Center, Walnut and AHST. Other southwest Iowa districts, including Atlantic, Clarinda, Elk Horn-Kimballton, Glenwood, Griswold and Harlan…to name but a few…will owe a balance to the state. Daniels said those debts will be collected by reducing future monthly payments.