- Today
- Holidays
- Birthdays
- Reminders
- Cities
- Atlanta
- Austin
- Baltimore
- Berwyn
- Beverly Hills
- Birmingham
- Boston
- Brooklyn
- Buffalo
- Charlotte
- Chicago
- Cincinnati
- Cleveland
- Columbus
- Dallas
- Denver
- Detroit
- Fort Worth
- Houston
- Indianapolis
- Knoxville
- Las Vegas
- Los Angeles
- Louisville
- Madison
- Memphis
- Miami
- Milwaukee
- Minneapolis
- Nashville
- New Orleans
- New York
- Omaha
- Orlando
- Philadelphia
- Phoenix
- Pittsburgh
- Portland
- Raleigh
- Richmond
- Rutherford
- Sacramento
- Salt Lake City
- San Antonio
- San Diego
- San Francisco
- San Jose
- Seattle
- Tampa
- Tucson
- Washington
Iowa City Schools Advised to Consider Closing Campuses Amid Budget Woes
Financial advisors say the district should prioritize shuttering schools to address fiscal shortfalls.
Apr. 8, 2026 at 4:15pm
Got story updates? Submit your updates here. ›
The Iowa City Community School District has been advised by financial consultants to consider closing schools as a top priority to reduce costs and address a growing budget deficit. The district is facing a multi-million dollar shortfall after failing to properly track spending and revenue for several years, leading to plans to borrow heavily and halt a major facilities expansion project.
Why it matters
As school districts nationwide grapple with pandemic-era budget challenges, the Iowa City Community School District's situation highlights the difficult decisions administrators may have to make to maintain financial stability, including potentially closing campuses that could disrupt communities and student learning.
The details
According to a presentation from PPM Financial Advisors, the Iowa City district was surprised to learn it has three high schools, which the consultants said is unusual for a district of its size. PPM, which specializes in working with fiscally distressed school systems, recommended closing schools as a top priority to investigate cost savings. The district is planning to borrow $35 million over the next two years to cover payroll, repay debt, and address a $10 million interfund loan, after officials failed to properly track monthly spending and revenue for three years. The district has also halted a $100 million plan to build new extracurricular facilities that was approved in 2025, with the consultants noting no one from the district had consulted them on the projects.
- The Iowa City Community School District's financial issues came to light in recent weeks.
- The district announced the selection of a new chief financial officer, Pat Moore, who will start on July 1 pending board approval.
The players
PPM Financial Advisors
A firm that specializes in working with fiscally distressed school districts nationwide and provided recommendations to the Iowa City Community School District.
Susanne Gerlach
A representative from PPM Financial Advisors who addressed the Iowa City school board about the district's financial challenges.
Iowa City Community School District
The public school district serving the Iowa City, Iowa area that is facing budget shortfalls and considering cost-cutting measures like school closures.
Pat Moore
The selected new chief financial officer for the Iowa City Community School District, who will start on July 1 pending board approval.
What they’re saying
“We were surprised a school district of this size has three high schools.”
— Susanne Gerlach, Representative, PPM Financial Advisors
What’s next
The Iowa City school board will consider the recommendations from PPM Financial Advisors as they work to address the district's budget shortfall, including the possibility of closing schools to reduce costs.
The takeaway
The financial challenges facing the Iowa City Community School District underscore the difficult decisions administrators nationwide may have to make, such as closing campuses, in order to maintain fiscal stability in the face of budget deficits exacerbated by the pandemic and other factors.
