IOWA CITY, Iowa — The Iowa City Community School District is projecting a budget shortfall of as much as $6 million for the 2026-27 school year and is seeking loans to cover ongoing financial gaps after spending more on salaries than anticipated, The Gazette reports.
Superintendent Matt Degner acknowledged at a school board meeting that the district overspent its general fund, which primarily pays staff salaries, leading to a structural cash-flow problem rather than a simple timing mismatch.
Last month, the school board retroactively approved a $10 million interfund loan from the district’s health insurance fund to cover anticipated deficiencies after it was initially made without board knowledge. The loan carries a 4 percent interest rate and must be repaid by Oct. 1, though officials expect to retire it by June 30…