This property tax generates hundreds of millions of dollars each year and is used by almost all school districts to supplement their general fund.

The Instructional Support Levy (ISL) is one of the main tools available to Iowa school districts to supplement state funding for educational programs. While the state sets limits on how much can be spent per student, the ISL provides districts with a way to go beyond that cap—funding additional staff, classroom resources, and other instructional needs. Because the levy can significantly affect local property taxes and school budgets, it is important for school board members, parents, and community members to understand how it works and how it is implemented.

How the ISL Works

In Iowa, school funding is divided into separate categories: one for infrastructure (such as buildings and equipment) and another for educational programs (staff and classroom materials). The state sets a maximum per-student spending amount that districts generally cannot exceed.

The ISL is one of the few exceptions. It allows districts to increase their general fund budgets by up to 10% through local property taxes, income surtaxes, or a combination of both. All revenue generated through the ISL flows into a district’s General Fund.

Background

The Instructional Support Program was created during the 1989 Legislative Session with the passage of House File 535 (the School and Area Education Agency Financing Act) and took effect in Fiscal Year 1992.

• Duration: Districts may adopt the levy for up to five years with school board approval or ten years with voter approval.
• Repeal Option: If a board enacts the levy without a public vote, citizens may petition to require an election to repeal it.

When the program was first established, it included state aid as part of the funding. In Fiscal Year 1993, that aid was capped, and beginning in FY2004 it was gradually reduced until it was fully eliminated in FY2012. Since then, the ISL has been funded entirely at the local level.

District Use of the ISL

• Participation: As of FY2026, 324 out of Iowa’s 325 school districts use the Instructional Support Levy. The only district not participating is Allamakee.
• Total Revenue: Districts collected $275.3 million through ISLs in FY2026. Of that, $180.4 million came from property taxes and $94.9 million from income surtaxes.
• Levy Rates: Nearly all districts have adopted the maximum 10% rate, with only two districts choosing 7%.
• Use of Surtaxes: About 70% of districts (227) use an income surtax to reduce reliance on property taxes, with surtax rates ranging from 1% to 17%.
• Approval Method: Only 16 districts (5%) submitted the ISL to voters. The rest adopted it through a school board vote.

District-Specific Information

The Iowa Department of Management published annual reports on school district finances, including ISL data. Below is a table showing FY2026 Instructional Support Levy details for each district, including the year established, year of expiration, property taxes collected, and income surtax percentages.