Table of Contents

We are asking the Iowa City Community School District and Board of Directors to make school closures a true last resort by committing to taking school closures off the table until all other options for revenue and savings have been explored, with robust community input.

Specifically, we call on the ICCSD Board of Directors to:

1. Redefine the Current Community Committee Scope and Process: Remove RSP as facilitator. Transparently re-establish a community-led committee with the goal of looking at EVERY potential, including administrative, non-instructional  buildings like the CFI, and other cost saving measures.

2. Present a Full Comparative Analysis of All Non-Instructional & Instructional Budget Options Through a Public Forum. Receive feedback through a participatory budget session.

Note on why RSP won't work for us: RSP is a consultant group that recently led school closures in Cedar Rapids and Des Moines. Their work with another community committee in Kansas City was recently paused due at least in part to the community’s concerns about accurate data. The CEO of RSP, Rob Schwarz, who led the first meeting, said, “I see what’s going on in this community. I read your newspaper, I look at social media, and nobody wants any of the elementary buildings to be closed.” Schwarz continued, “… If your objective is to try not to close any buildings, I would politely say this is not the right committee for you. I’m saying this as a facilitator that I need some information from you because we have been told by the (school) board that there’s inefficiencies in the buildings.” In short: RSP has made clear that they are here to decide which schools to close, not whether we absolutely must. 

• Little Village | Letter to the editor: Before moving to close schools, the ICCSD Board owes us due diligence (Caitlin Owens, Mann Parent)

• CBS2 | Iowa City Parents Urge District to Find Savings Elsewhere As School Closures Loom

• The Gazette | Iowa City schools to plan $32.5 million in spending cuts over four years

• 2023: ICCSD announces major budget reductions: The district implemented approximately $24.7 million in reductions over two years as it responded to financial pressures, including enrollment and funding challenges. 

• October 2024: ICCSD loses Moody's bond rating. Moody's Investors Service revoked the district's bond rating because of incomplete audits, creating long-term challenges for borrowing and financial flexibility. 

• August 2025: $10 million interfund loan made without board approval. ICCSD administration transferred $10 million from the health insurance fund to the general fund to cover operating expenses. The transfer was made without prior board approval, which is required under district policy and state law. 

• January 2026: Board learns of previously undisclosed transfer. School board members were informed of the $10 million interfund loan months after it occurred. The board was asked to retroactively approve the transfer. Public concerns emerged regarding the district's cash position and financial reporting. 

• February-March 2026: Financial crisis becomes public. District leaders begin to acknowledge significant financial challenges. An interim chief financial officer was brought in to help stabilize finances. The district approved approximately $7.5 million in budget reductions.

• Spring 2026: Efforts to obtain additional financing begin. The district explored substantial short-term borrowing options, including a proposed $25 million loan, amid growing cash-flow concerns. 

• May 2026: Leadership changes. Superintendent Matt Degner announced plans to step down from the superintendent role but remain in another high-level, ICCSD admin position. Additional administrative departures occurred during the district's financial recovery efforts. 

• June 2026: State scrutiny intensifies. The School Budget Review Committee (SBRC) held hearings regarding the district's finances. Committee members questioned the reliability of the financial information that had been provided to district leadership and the board. The SBRC required regular financial reporting moving forward. 

• June 2026: Audit findings released. The FY2024 audit identified approximately $38 million in interfund receivables and payables and cited weaknesses in financial oversight and internal controls. Auditors reported transfers that had not received board approval and were not repaid according to state requirements. 

• June 2026: Superintendent resignation approved. The school board formally accepted the resignation of Matt Degner as superintendent and approve his demotion. District officials confirmed that audits were years behind and that financial records had not been accurately maintained for an extended period. 

• July 2026: Independent financial review completed. Interim CFO Kim Michael-Lee states she has found no evidence of fraud or an intentional cover-up. However, the review found years of inaccurate accounting, unreconciled records, weak controls, and incomplete state-required financial reporting. 

• August-September 2026: Recovery efforts continue. The district secured authorization to borrow up to $8 million for operating expenses. District leadership began discussing long-term reductions needed to restore financial stability. 

• Fall 2026: School closure and new boundry discussions begin. As district leaders project the need for major budget reductions over the coming years, community members organized and voiced concerns about elementary school closures and their impact on students, families, and neighborhoods.