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HF2736 • 2026

A bill for an act modifying provisions related to area education agency funding, and including effective date and applicability provisions.

A bill for an act modifying provisions related to area education agency funding, and including effective date and applicability provisions.

Education
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
BAGNIEWSKI, OLSON, WICHTENDAHL, LEVIN, MATSON, ZABNER, WILBURN, GOSA, RAMIREZ, EHLERT, MADISON, CROKEN, JACOBY, McBURNEY, B. MEYER, KRESSIG, BROWN-POWERS, GJERDE and WESSEL-KROESCHELL
Last action
2026-03-09
Official status
Introduced, referred to Appropriations. H.J. 606 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act modifying provisions related to area education agency funding, and including effective date and applicability provisions.

A bill for an act modifying provisions related to area education agency funding, and including effective date and applicability provisions.

What This Bill Does

  • A bill for an act modifying provisions related to area education agency funding, and including effective date and applicability provisions.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-09 Iowa Legislature

    Introduced, referred to Appropriations. H.J. 606 .

Official Summary Text

A bill for an act modifying provisions related to area education agency funding, and including effective date and applicability provisions.

Current Bill Text

Read the full stored bill text
House

File

2736

-

Introduced

HOUSE

FILE

2736

BY

BAGNIEWSKI

,

OLSON

,

WICHTENDAHL

,

LEVIN

,

MATSON

,

ZABNER

,

WILBURN

,

GOSA

,

RAMIREZ

,

EHLERT

,

MADISON

,

CROKEN

,

JACOBY

,

McBURNEY

,

B.

MEYER

,

KRESSIG

,

BROWN-POWERS

,

GJERDE

,

and

WESSEL-KROESCHELL

A

BILL

FOR

An

Act

modifying

provisions

related

to

area

education

agency

1

funding,

and

including

effective

date

and

applicability

2

provisions.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

TLSB

5670YH

(2)

91

jda/jh

H.F.

2736

Section

1.

Section

257.1,

subsection

2,

paragraph

b,

Code

1

2026,

is

amended

to

read

as

follows:

2

b.

For

the

budget

year

commencing

July

1,

1999,

and

for

3

each

succeeding

budget

year

beginning

before

July

1,

2022,

4

the

regular

program

foundation

base

per

pupil

is

eighty-seven

5

and

five-tenths

percent

of

the

regular

program

state

cost

per

6

pupil.

For

the

budget

year

commencing

July

1,

2022,

and

for

7

each

succeeding

budget

year,

the

regular

program

foundation

8

base

per

pupil

is

eighty-eight

and

four-tenths

percent

of

the

9

regular

program

state

cost

per

pupil.

For

the

budget

year

10

commencing

July

1,

1991,

and

for

each

succeeding

budget

year

11

the

special

education

support

services

foundation

base

is

12

seventy-nine

percent

of

the

special

education

support

services

13

state

cost

per

pupil.

The

combined

foundation

base

is

the

sum

14

of

the

regular

program

foundation

base,

the

special

education

15

support

services

foundation

base,

the

total

teacher

salary

16

supplement

district

cost,

the

total

professional

development

17

supplement

district

cost,

the

total

early

intervention

18

supplement

district

cost,

the

total

teacher

leadership

19

supplement

district

cost,

and

the

total

area

education

agency

20

teacher

salary

supplement

district

cost

,

and

the

total

area

21

education

agency

professional

development

supplement

district

22

cost

.

23

Sec.

2.

Section

257.1,

subsection

3,

Code

2026,

is

amended

24

to

read

as

follows:

25

3.

Computations

rounded.

In

making

computations

and

26

payments

under

this

chapter

,

except

in

the

case

of

computations

27

relating

to

funding

of

special

education

support

services,

28

media

services,

and

educational

services

under

section

257.37

29

provided

through

the

area

education

agencies

,

and

the

teacher

30

salary

supplement,

the

professional

development

supplement,

31

the

early

intervention

supplement,

and

the

teacher

leadership

32

supplement,

the

department

of

management

shall

round

amounts

to

33

the

nearest

whole

dollar.

34

Sec.

3.

Section

257.1,

Code

2026,

is

amended

by

adding

the

35

-1-

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91

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17

H.F.

2736

following

new

subsection:

1

NEW

SUBSECTION

.

5.

Legislative

intent.

The

general

2

assembly

finds

that

the

general

welfare

of

this

state

and

3

well-being

of

its

citizens

is

directly

related

to

the

quality

4

of

education

provided

to

students

enrolled

in

Iowa’s

schools,

5

and

the

quality

of

education

provided

to

students

enrolled

in

6

Iowa’s

schools

is

directly

related

to

the

funding

available

to

7

those

schools.

Therefore,

the

general

assembly

intends

that

8

Iowa’s

schools

and

area

education

agencies

should

be

fully

9

funded

to

maximize

the

quality

of

the

education

provided

to

10

students.

11

Sec.

4.

Section

257.4,

subsection

1,

paragraph

a,

Code

2026,

12

is

amended

by

adding

the

following

new

subparagraph:

13

NEW

SUBPARAGRAPH

.

(07)

The

total

area

education

agency

14

professional

development

supplement

district

cost.

15

Sec.

5.

Section

257.9,

Code

2026,

is

amended

by

adding

the

16

following

new

subsection:

17

NEW

SUBSECTION

.

9A.

Area

education

agency

professional

18

development

supplement

state

cost

per

pupil.

For

the

budget

19

year

beginning

July

1,

2026,

for

the

area

education

agency

20

professional

development

supplement

state

cost

per

pupil,

the

21

department

of

management

shall

add

together

the

professional

22

development

allocation

made

to

each

area

education

agency

for

23

the

fiscal

year

beginning

July

1,

2023,

pursuant

to

section

24

257.37A,

subsection

2,

Code

2024,

and

divide

that

sum

by

25

the

statewide

special

education

support

services

weighted

26

enrollment

for

the

fiscal

year

beginning

July

1,

2026.

The

27

area

education

agency

professional

development

supplement

state

28

cost

per

pupil

for

the

budget

year

beginning

July

1,

2027,

29

and

succeeding

budget

years,

shall

be

the

amount

calculated

30

by

the

department

of

management

under

this

subsection

for

the

31

base

year

plus

a

supplemental

state

aid

amount

that

is

equal

32

to

the

professional

development

supplement

categorical

state

33

percent

of

growth,

pursuant

to

section

257.8,

subsection

2,

for

34

the

budget

year,

multiplied

by

the

amount

calculated

by

the

35

-2-

LSB

5670YH

(2)

91

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2/

17

H.F.

2736

department

of

management

under

this

subsection

for

the

base

1

year.

2

Sec.

6.

Section

257.10,

subsection

7,

Code

2026,

is

amended

3

to

read

as

follows:

4

7.

Special

education

support

services

district

cost.

Special

5

education

support

services

district

cost

for

a

school

district

6

for

a

budget

year

is

equal

to

the

special

education

support

7

services

district

cost

per

pupil

for

the

budget

year

multiplied

8

by

the

special

education

support

services

weighted

enrollment

9

for

the

district

for

the

budget

year.

If

the

special

education

10

support

services

district

cost

for

a

school

district

for

11

a

budget

year

is

less

than

the

special

education

support

12

services

district

cost

for

that

district

for

the

base

year,

the

13

department

of

management

shall

adjust

the

special

education

14

support

services

district

cost

for

that

district

for

the

budget

15

year

to

equal

the

special

education

support

services

district

16

cost

for

the

base

year.

Funds

calculated

under

this

subsection

17

and

received

by

a

school

district

shall

be

used

for

special

18

education

support

services.

For

budget

years

beginning

on

19

or

after

July

1,

2025,

not

less

than

ninety

percent

of

funds

20

calculated

under

this

subsection

and

received

by

a

school

21

district

shall

be

used

by

the

school

district

for

special

22

education

support

services

contracted

from

an

area

education

23

agency.

The

contract

between

the

school

district

and

the

area

24

education

agency

shall

not

require

the

school

district

to

25

describe

the

specific

special

education

support

services

the

26

school

district

will

receive

from

the

area

education

agency.

27

The

special

education

services

provided

by

the

area

education

28

agency

to

the

school

district

pursuant

to

the

contract

shall

29

not

be

limited

by

the

amount

of

funding

the

school

district

30

provided

to

the

area

education

agency.

31

Sec.

7.

Section

257.10,

subsection

8,

paragraph

a,

Code

32

2026,

is

amended

to

read

as

follows:

33

a.

Combined

district

cost

is

the

sum

of

the

regular

34

program

district

cost

per

pupil

multiplied

by

the

weighted

35

-3-

LSB

5670YH

(2)

91

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17

H.F.

2736

enrollment,

the

special

education

support

services

district

1

cost,

the

total

teacher

salary

supplement

district

cost,

the

2

total

professional

development

supplement

district

cost,

the

3

total

early

intervention

supplement

district

cost,

and

the

4

total

teacher

leadership

supplement

district

cost,

plus

the

5

sum

of

the

additional

district

cost

allocated

to

the

district

6

to

fund

media

services

and

educational

services

under

section

7

257.37

provided

through

the

area

education

agency

,

and

the

area

8

education

agency

total

teacher

salary

supplement

district

cost

,

9

and

the

area

education

agency

total

professional

development

10

supplement

district

cost

.

11

Sec.

8.

Section

257.16,

subsection

4,

Code

2026,

is

amended

12

to

read

as

follows:

13

4.

Notwithstanding

any

provision

to

the

contrary,

if

14

the

governor

orders

budget

reductions

in

accordance

with

15

section

8.31

,

the

teacher

salary

supplement

district

cost,

16

the

professional

development

supplement

district

cost,

the

17

early

intervention

supplement

district

cost,

and

the

teacher

18

leadership

supplement

district

cost

as

calculated

under

section

19

257.10,

subsections

9,

10,

11,

and

12

,

and

the

area

education

20

agency

teacher

salary

supplement

district

cost

and

the

area

21

education

agency

professional

development

supplement

district

22

cost

as

calculated

under

section

257.37A

,

subsections

1

and

2,

23

shall

be

paid

in

full

as

calculated

and

the

reductions

in

the

24

appropriations

provided

in

accordance

with

this

section

shall

25

be

reduced

from

the

remaining

moneys

appropriated

pursuant

26

to

this

section

and

shall

be

distributed

on

a

per

pupil

27

basis

calculated

with

the

weighted

enrollment

determined

in

28

accordance

with

section

257.6,

subsection

5

.

29

Sec.

9.

Section

257.35,

subsection

1,

paragraph

a,

30

subparagraph

(3),

unnumbered

paragraph

1,

Code

2026,

is

amended

31

to

read

as

follows:

32

For

the

fiscal

year

beginning

July

1,

2025,

and

each

fiscal

33

year

thereafter,

the

department

of

management

shall

deduct

34

the

following

from

the

state

aid

due

to

each

school

district

35

-4-

LSB

5670YH

(2)

91

jda/jh

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17

H.F.

2736

pursuant

to

this

chapter

and

shall

pay

the

amounts

to

the

1

respective

area

education

agencies

on

a

monthly

basis

from

2

September

15

through

June

15

during

each

school

year:

3

Sec.

10.

Section

257.35,

subsection

1,

paragraph

a,

Code

4

2026,

is

amended

by

adding

the

following

new

subparagraph:

5

NEW

SUBPARAGRAPH

.

(4)

For

the

fiscal

year

beginning

July

6

1,

2026,

and

each

fiscal

year

thereafter,

the

department

of

7

management

shall

deduct

the

amounts

calculated

for

special

8

education

support

services,

media

services,

area

education

9

agency

teacher

salary

supplement

district

cost,

area

education

10

agency

professional

development

supplement

district

cost,

and

11

educational

services

for

each

school

district

from

the

state

12

aid

due

to

the

district

pursuant

to

this

chapter

and

shall

13

pay

the

amounts

to

the

respective

area

education

agencies

on

14

a

monthly

basis

from

September

15

through

June

15

during

each

15

school

year.

The

department

of

management

shall

notify

each

16

school

district

of

the

amount

of

state

aid

deducted

for

these

17

purposes

and

the

balance

of

state

aid

shall

be

paid

to

the

18

district.

If

a

district

does

not

qualify

for

state

aid

under

19

this

chapter

in

an

amount

sufficient

to

cover

its

amount

due

20

to

the

area

education

agency

as

calculated

by

the

department

21

of

management,

the

school

district

shall

pay

the

deficiency

to

22

the

area

education

agency

from

other

moneys

received

by

the

23

district,

on

a

quarterly

basis

during

each

school

year.

24

Sec.

11.

Section

257.35,

subsection

2,

Code

2026,

is

amended

25

to

read

as

follows:

26

2.

The

amounts

specified

for

school

districts

in

section

27

257.10,

subsection

7

,

for

the

fiscal

year

beginning

July

1,

28

2025,

and

each

succeeding

fiscal

year,

shall

be

reduced

by

29

the

department

of

management

by

seven

million

five

hundred

30

thousand

dollars.

The

department

of

management

shall

calculate

31

a

state

aid

reduction

such

that

such

amounts

shall

be

reduced

32

proportionally

to

the

amount

that

the

district

would

otherwise

33

have

received

under

section

257.10,

subsection

7

.

34

Sec.

12.

Section

257.36,

subsection

1,

Code

2026,

is

amended

35

-5-

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(2)

91

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17

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2736

to

read

as

follows:

1

1.

Notwithstanding

chapters

256B

and

273

and

sections

2

of

this

chapter

relating

to

the

moneys

available

to

school

3

districts

and

area

education

agencies

for

special

education

4

support

services,

for

each

school

year,

the

department

of

5

education

may

direct

the

department

of

management

to

deduct

6

amounts

from

the

portions

of

school

district

budgets

that

7

fund

special

education

support

services

in

an

area

education

8

agency.

The

total

amount

deducted

for

a

school

district

in

9

an

area

shall

be

based

upon

excess

special

education

support

10

services

unreserved

and

undesignated

fund

balances

in

that

11

school

district

or

paid

by

the

school

district

to

an

area

12

education

agency

for

a

school

year

that

remain

unreserved

and

13

undesignated

as

determined

by

the

department

of

education.

The

14

department

of

management

shall

determine

the

amount

deducted

15

from

each

school

district

in

an

area

education

agency

on

16

a

proportional

basis.

The

department

of

management

shall

17

determine

from

the

amounts

deducted

from

the

portions

of

school

18

district

budgets

that

fund

area

education

agency

special

19

education

support

services

the

amount

that

would

have

been

20

local

property

taxes

and

the

amount

that

would

have

been

state

21

aid

and

for

the

next

following

budget

year

shall

increase

the

22

district’s

total

state

school

aid

available

under

this

chapter

23

for

area

education

agency

special

education

support

services

24

and

reduce

the

district’s

property

tax

levy

for

area

education

25

agency

special

education

support

services

by

the

amount

26

necessary

for

the

property

tax

portion

of

the

deductions

made

27

under

this

section

during

the

budget

year.

28

Sec.

13.

Section

257.37,

Code

2026,

is

amended

to

read

as

29

follows:

30

257.37

Funding

media

and

educational

services.

31

Media

services

and

educational

services

provided

by

a

school

32

district

or

through

the

area

education

agency

agencies

shall

be

33

funded,

to

the

extent

provided,

by

an

addition

to

the

combined

34

district

cost

of

each

school

district,

determined

as

follows:

35

-6-

LSB

5670YH

(2)

91

jda/jh

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17

H.F.

2736

1.

For

the

budget

year

beginning

July

1,

1991,

and

1

succeeding

budget

years,

the

total

amount

funded

in

each

area

2

for

media

services

shall

be

computed

as

provided

in

this

3

subsection

.

For

the

budget

year

beginning

July

1,

1991,

the

4

total

amount

funded

in

each

area

for

media

services

in

the

5

base

year

shall

be

divided

by

the

enrollment

served

in

the

6

base

year

to

provide

an

area

media

services

cost

per

pupil

in

7

the

base

year,

and

the

department

of

management

shall

compute

8

the

state

media

services

cost

per

pupil

in

the

base

year

which

9

is

equal

to

the

average

of

the

area

media

services

costs

per

10

pupil

in

the

base

year.

For

the

budget

year

beginning

July

1,

11

1991,

and

succeeding

budget

years,

the

department

of

management

12

shall

compute

the

supplemental

state

aid

for

media

services

13

in

the

budget

year

by

multiplying

the

state

media

services

14

cost

per

pupil

in

the

base

year

times

the

state

percent

of

15

growth

for

the

budget

year,

and

the

total

amount

funded

in

each

16

area

for

media

services

cost

in

the

budget

year

equals

the

17

area

media

services

cost

per

pupil

in

the

base

year

plus

the

18

supplemental

state

aid

for

media

services

in

the

budget

year

19

times

the

enrollment

served

in

the

budget

year.

For

fiscal

20

years

beginning

before

July

1,

2025,

funds

Funds

shall

be

paid

21

to

area

education

agencies

as

provided

in

section

257.35

.

For

22

fiscal

years

beginning

on

or

after

July

1,

2024,

funds

not

23

required

to

be

paid

to

an

area

education

agency

may

be

used

24

by

the

school

district

for

any

school

district

general

fund

25

purpose.

26

2.

Up

to

thirty

percent

of

the

budget

of

an

area

for

media

27

services

may

be

expended

for

media

resource

material

including

28

the

purchase

or

replacement

of

material

required

in

section

29

273.6,

subsection

1

.

Funds

shall

be

paid

to

area

education

30

agencies

as

provided

in

section

257.35.

31

3.

For

the

budget

year

beginning

July

1,

1991,

and

32

succeeding

budget

years,

the

total

amount

funded

in

each

area

33

for

educational

services

shall

be

computed

as

provided

in

this

34

subsection

.

For

the

budget

year

beginning

July

1,

1991,

the

35

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total

amount

funded

in

each

area

for

educational

services

1

in

the

base

year

shall

be

divided

by

the

enrollment

served

2

in

the

area

in

the

base

year

to

provide

an

area

educational

3

services

cost

per

pupil

in

the

base

year,

and

the

department

of

4

management

shall

compute

the

state

educational

services

cost

5

per

pupil

in

the

base

year,

which

is

equal

to

the

average

of

6

the

area

educational

services

costs

per

pupil

in

the

base

year.

7

For

the

budget

year

beginning

July

1,

1991,

and

succeeding

8

budget

years,

the

department

of

management

shall

compute

the

9

supplemental

state

aid

for

educational

services

by

multiplying

10

the

state

educational

services

cost

per

pupil

in

the

base

year

11

times

the

state

percent

of

growth

for

the

budget

year,

and

the

12

total

amount

funded

in

each

area

for

educational

services

for

13

the

budget

year

equals

the

area

educational

services

cost

per

14

pupil

for

the

base

year

plus

the

supplemental

state

aid

for

15

educational

services

in

the

budget

year

times

the

enrollment

16

served

in

the

area

in

the

budget

year.

For

fiscal

years

17

beginning

before

July

1,

2025,

funds

Funds

shall

be

paid

to

18

area

education

agencies

as

provided

in

section

257.35

.

For

19

fiscal

years

beginning

on

or

after

July

1,

2024,

funds

not

20

required

to

be

paid

to

an

area

education

agency

may

be

used

21

by

the

school

district

for

any

school

district

general

fund

22

purpose.

23

4.

“Enrollment

served”

means

the

basic

enrollment

of

all

24

school

districts

within

the

boundaries

of

the

area

education

25

agency

plus

the

number

of

nonpublic

school

pupils

served

by

26

the

area

education

agency

with

media

services

or

educational

27

services,

as

applicable,

except

that

if

a

nonpublic

school

28

pupil

or

a

pupil

attending

another

district

under

a

whole

grade

29

sharing

agreement

or

open

enrollment

receives

services

through

30

an

area

other

than

the

area

of

the

pupil’s

residence,

the

31

pupil

shall

be

deemed

to

be

served

by

the

area

of

the

pupil’s

32

residence,

which

shall

by

contractual

arrangement

reimburse

33

the

area

through

which

the

pupil

actually

receives

services.

34

Each

school

district

shall

include

in

the

enrollment

report

35

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submitted

pursuant

to

section

257.6,

subsection

1

,

the

number

1

of

nonpublic

school

pupils

within

each

school

district

for

2

media

and

educational

services

served

by

the

area.

However,

3

the

school

district

shall

not

include

in

the

enrollment

report

4

nonpublic

school

pupils

receiving

classes

or

services

funded

5

entirely

by

federal

grants

or

allocations.

6

5.

a.

If

an

area

education

agency

does

not

serve

nonpublic

7

school

pupils

in

a

manner

comparable

to

services

provided

8

public

school

pupils

for

media

and

educational

services,

as

9

determined

by

the

state

board

of

education,

the

state

board

10

shall

instruct

the

department

of

management

to

reduce

the

funds

11

for

media

services

and

educational

services

within

the

area

one

12

time

by

an

amount

to

compensate

for

such

reduced

services.

The

13

media

services

budget

shall

be

reduced

by

an

amount

equal

to

14

the

product

of

the

cost

per

pupil

in

basic

enrollment

for

the

15

budget

year

for

media

services

times

the

difference

between

16

the

enrollment

served

and

the

basic

enrollment

recorded

for

17

the

area.

The

educational

services

budget

shall

be

reduced

by

18

an

amount

equal

to

the

product

of

the

cost

per

pupil

in

basic

19

enrollment

for

the

budget

year

for

educational

services

times

20

the

difference

between

the

enrollment

served

and

the

basic

21

enrollment

recorded

for

the

area.

22

b.

This

subsection

applies

only

to

media

and

educational

23

services

which

cannot

be

diverted

for

religious

purposes.

24

c.

Notwithstanding

this

subsection

,

an

area

education

agency

25

shall

distribute

to

nonpublic

schools

media

materials

purchased

26

wholly

or

partially

with

federal

funds

in

a

manner

comparable

27

to

the

distribution

of

such

media

materials

to

public

schools

28

as

determined

by

the

director

of

the

department

of

education.

29

6.

For

the

budget

year

beginning

July

1,

2002,

and

each

30

succeeding

budget

year,

notwithstanding

the

requirements

of

31

this

section

for

determining

the

budgets

and

funding

of

media

32

services

and

education

services,

an

area

education

agency

or

33

school

district

may

,

within

the

limits

of

the

total

of

the

34

funds

provided

for

the

budget

years

pursuant

to

section

257.35,

35

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expend

for

special

education

support

services

an

amount

that

1

exceeds

the

payment

for

special

education

support

services

2

pursuant

to

section

257.35

in

order

to

maintain

the

level

3

of

required

special

education

support

services

in

the

area

4

education

agency

or

the

school

district,

as

applicable

.

5

Sec.

14.

Section

257.37A,

Code

2026,

is

amended

to

read

as

6

follows:

7

257.37A

Area

education

agency

salary

supplement

funding.

8

1.

Area

education

agency

teacher

salary

supplement

cost

per

9

pupil

and

district

cost.

10

1.

a.

For

the

budget

year

beginning

July

1,

2009,

the

11

department

of

management

shall

add

together

the

teacher

12

compensation

allocation

made

to

each

area

education

agency

for

13

the

fiscal

year

beginning

July

1,

2008,

pursuant

to

section

14

284.13,

subsection

1

,

paragraph

“i”

,

Code

2009,

and

the

phase

II

15

allocation

made

to

each

area

education

agency

for

the

fiscal

16

year

beginning

July

1,

2008,

pursuant

to

section

294A.9,

Code

17

2009

,

and

divide

that

sum

by

the

special

education

support

18

services

weighted

enrollment

in

the

fiscal

year

beginning

July

19

1,

2009,

to

determine

the

area

education

agency

teacher

salary

20

supplement

cost

per

pupil.

For

the

budget

year

beginning

July

21

1,

2010,

and

succeeding

budget

years,

the

area

education

agency

22

teacher

salary

supplement

district

cost

per

pupil

for

each

area

23

education

agency

for

a

budget

year

is

the

area

education

agency

24

teacher

salary

supplement

district

cost

per

pupil

for

the

base

25

year

plus

the

area

education

agency

teacher

salary

supplement

26

supplemental

state

aid

amount

for

the

budget

year.

27

2.

b.

For

the

budget

year

beginning

July

1,

2010,

and

28

succeeding

budget

years,

if

the

department

of

management

29

determines

that

the

unadjusted

area

education

agency

teacher

30

salary

supplement

district

cost

of

an

area

education

agency

31

for

a

budget

year

is

less

than

one

hundred

percent

of

the

32

unadjusted

area

education

agency

teacher

salary

supplement

33

district

cost

for

the

base

year

for

the

area

education

agency,

34

the

area

education

agency

shall

receive

a

budget

adjustment

for

35

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that

budget

year

equal

to

the

difference.

1

3.

a.

c.

(1)

The

unadjusted

area

education

agency

teacher

2

salary

supplement

district

cost

is

the

area

education

agency

3

teacher

salary

supplement

district

cost

per

pupil

for

each

area

4

education

agency

for

a

budget

year

multiplied

by

the

special

5

education

support

services

weighted

enrollment

for

that

area

6

education

agency.

7

b.

(2)

The

total

area

education

agency

teacher

salary

8

supplement

district

cost

is

the

sum

of

the

unadjusted

area

9

education

agency

teacher

salary

supplement

district

cost

plus

10

the

budget

adjustment

for

that

budget

year.

11

4.

d.

For

the

budget

year

beginning

July

1,

2009,

the

12

use

of

the

funds

calculated

under

this

section

subsection

13

shall

comply

with

requirements

of

chapter

284

and

shall

be

14

distributed

to

teachers

pursuant

to

section

284.3A

.

For

the

15

budget

year

beginning

July

1,

2010,

and

succeeding

budget

16

years,

the

use

of

the

funds

calculated

under

this

section

17

subsection

shall

comply

with

the

requirements

of

chapter

284

18

and

shall

be

distributed

to

teachers

pursuant

to

section

19

284.3A

.

20

2.

Area

education

agency

professional

development

supplement

21

cost

per

pupil

and

district

cost.

22

a.

For

the

budget

year

beginning

July

1,

2026,

the

23

department

of

management

shall

divide

the

area

education

agency

24

professional

development

supplement

made

to

each

area

education

25

agency

for

the

fiscal

year

beginning

July

1,

2023,

pursuant

26

to

section

257.37A,

subsection

2,

Code

2024,

by

the

special

27

education

support

services

weighted

enrollment

in

the

fiscal

28

year

beginning

July

1,

2026,

to

determine

the

professional

29

development

supplement

cost

per

pupil.

For

the

budget

year

30

beginning

July

1,

2027,

and

succeeding

budget

years,

the

area

31

education

agency

professional

development

supplement

district

32

cost

per

pupil

for

each

area

education

agency

for

a

budget

33

year

is

the

area

education

agency

professional

development

34

supplement

district

cost

per

pupil

for

the

base

year

plus

the

35

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area

education

agency

professional

amount

for

the

budget

year.

1

b.

For

the

budget

year

beginning

July

1,

2027,

and

2

succeeding

budget

years,

if

the

department

of

management

3

determines

that

the

unadjusted

area

education

agency

4

professional

development

supplement

district

cost

of

an

area

5

education

agency

for

a

budget

year

is

less

than

one

hundred

6

percent

of

the

unadjusted

area

education

agency

professional

7

development

supplement

district

cost

for

the

base

year

for

8

the

area

education

agency,

the

area

education

agency

shall

9

receive

a

budget

adjustment

for

that

budget

year

equal

to

the

10

difference.

11

c.

(1)

The

unadjusted

area

education

agency

professional

12

development

supplement

district

cost

is

the

area

education

13

agency

professional

development

supplement

district

cost

14

per

pupil

for

each

area

education

agency

for

a

budget

year

15

multiplied

by

the

special

education

support

services

weighted

16

enrollment

for

that

area

education

agency.

17

(2)

The

total

area

education

agency

professional

18

development

supplement

district

cost

is

the

sum

of

the

19

unadjusted

area

education

agency

professional

development

20

supplement

district

cost

plus

the

budget

adjustment

for

that

21

budget

year.

22

d.

The

use

of

the

funds

calculated

under

this

subsection

23

shall

comply

with

the

requirements

of

chapter

284.

24

Sec.

15.

Section

284.3A,

subsection

4,

Code

2026,

is

amended

25

to

read

as

follows:

26

4.

The

teacher

salary

supplement

district

cost

as

27

calculated

under

section

257.10,

subsection

9

,

and

the

area

28

education

agency

teacher

salary

supplement

district

cost

as

29

calculated

under

section

257.37A

,

subsection

1,

are

not

subject

30

to

a

uniform

reduction

in

accordance

with

section

8.31

.

31

Sec.

16.

Section

284.4,

subsection

1,

paragraph

b,

32

subparagraph

(3),

Code

2026,

is

amended

to

read

as

follows:

33

(3)

Determine,

following

the

adoption

of

the

Iowa

34

professional

development

model

by

the

state

board

of

education,

35

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the

use

and

distribution

of

the

professional

development

1

funds

calculated

and

paid

to

the

school

district

or

agency

as

2

provided

in

section

257.9,

subsection

9A,

or

section

257.10,

3

subsection

10

,

based

upon

school

district

or

agency

,

attendance

4

center,

and

individual

teacher

and

professional

development

5

plans.

6

Sec.

17.

Section

284.6,

subsections

8,

9,

and

10,

Code

2026,

7

are

amended

to

read

as

follows:

8

8.

For

each

year

in

which

a

school

district

receives

funds

9

calculated

and

paid

to

school

districts

for

professional

10

development

pursuant

to

section

257.10,

subsection

10

,

or

11

section

257.37A,

subsection

2,

the

school

district

shall

create

12

quality

professional

development

opportunities.

Not

less

than

13

thirty-six

hours

in

the

school

calendar,

held

outside

of

the

14

minimum

school

day,

shall

be

set

aside

during

nonpreparation

15

time

or

designated

professional

development

time

to

allow

16

practitioners

to

collaborate

with

each

other

to

deliver

17

educational

programs

and

assess

student

learning,

or

to

engage

18

in

peer

review

pursuant

to

section

284.8,

subsection

1

.

The

19

funds

may

be

used

to

implement

the

professional

development

20

provisions

of

the

teacher

career

paths

and

leadership

roles

21

specified

in

section

284.15

,

including

but

not

limited

to

22

providing

professional

development

to

teachers,

including

23

additional

salaries

for

time

beyond

the

normal

negotiated

24

agreement;

activities

and

pay

to

support

a

beginning

teacher

25

mentoring

and

induction

program

that

meets

the

requirements

26

of

section

284.5

;

pay

for

substitute

teachers,

professional

27

development

materials,

speakers,

and

professional

development

28

content;

textbooks

and

curriculum

materials

used

for

classroom

29

purposes

if

such

textbooks

and

curriculum

materials

include

30

professional

development;

administering

assessments

pursuant

to

31

section

256.7,

subsection

21

,

paragraph

“b”

,

subparagraphs

(1)

32

and

(2),

if

such

assessments

include

professional

development;

33

and

costs

associated

with

implementing

the

individual

34

professional

development

plans.

The

use

of

the

funds

shall

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be

balanced

between

school

district,

attendance

center,

1

and

individual

professional

development

plans,

making

every

2

reasonable

effort

to

provide

equal

access

to

all

teachers.

3

9.

Moneys

received

pursuant

to

section

257.10,

subsection

4

10

,

or

section

257.37A,

subsection

2,

shall

be

maintained

5

as

a

separate

listing

within

a

school

district’s

or

area

6

education

agency’s

budget

for

funds

received

and

expenditures

7

made

pursuant

to

this

subsection

.

The

department

shall

not

8

require

a

school

district

or

area

education

agency

to

allocate

9

a

specific

amount

or

percentage

of

moneys

received

pursuant

to

10

section

257.10,

subsection

10

,

or

section

257.37A,

subsection

11

2,

for

professional

development

related

to

implementation

of

12

the

core

curriculum

under

section

256.7,

subsection

26

.

A

13

school

district

shall

certify

to

the

department

how

the

school

14

district

allocated

the

funds

and

that

moneys

received

under

15

this

subsection

were

used

to

supplement,

not

supplant,

the

16

professional

development

opportunities

the

school

district

17

would

otherwise

make

available.

For

budget

years

beginning

18

on

or

after

July

1,

2017,

all

or

a

portion

of

the

moneys

19

received

pursuant

to

section

257.10,

subsection

10

,

that

remain

20

unexpended

and

unobligated

at

the

end

of

a

fiscal

year

may,

21

pursuant

to

section

257.10,

subsection

10

,

paragraph

“d”

,

be

22

transferred

for

deposit

in

the

school

district’s

flexibility

23

account

established

under

section

298A.2,

subsection

2

.

24

10.

If

funds

are

allocated

for

purposes

of

professional

25

development

pursuant

to

section

284.13,

subsection

1

,

paragraph

26

“c”

,

the

department

shall

,

in

collaboration

with

the

area

27

education

agencies,

establish

teacher

development

academies

28

for

public

and

nonpublic

school-based

teams

of

teachers

and

29

instructional

leaders.

Each

academy

shall

include

an

institute

30

and

shall

provide

follow-up

training

and

coaching.

31

Sec.

18.

EFFECTIVE

DATE.

This

Act,

being

deemed

of

32

immediate

importance,

takes

effect

upon

enactment.

33

Sec.

19.

APPLICABILITY.

This

Act

applies

July

1,

2026,

for

34

school

budget

years

beginning

on

or

after

that

date.

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EXPLANATION

1

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

2

the

explanation’s

substance

by

the

members

of

the

general

assembly.

3

This

bill

modifies

provisions

related

to

area

education

4

agency

funding.

5

The

bill

modifies

provisions

related

to

the

calculation

6

of

the

combined

foundation

base,

the

area

education

agency

7

professional

development

supplement

state

cost

per

pupil,

and

8

the

combined

district

cost.

The

bill

also

modifies

provisions

9

related

to

the

computation

of

the

additional

property

tax

10

levied

by

school

districts

to

include

the

total

area

education

11

agency

professional

development

supplement

district

cost.

12

Current

law

provides

that

funds

calculated

under

Code

13

section

257.10(7)

(special

education

support

services

district

14

cost)

and

received

by

a

school

district

are

required

to

be

15

used

for

special

education

support

services.

Current

law

16

also

provides

that

for

budget

years

beginning

on

or

after

17

July

1,

2025,

not

less

than

90

percent

of

funds

calculated

18

under

Code

section

257.10(7)

and

received

by

a

school

district

19

are

required

to

be

used

by

the

school

district

for

special

20

education

support

services

contracted

from

an

area

education

21

agency.

The

contract

between

the

school

district

and

the

area

22

education

agency

shall

not

require

the

school

district

to

23

describe

the

specific

special

education

support

services

the

24

school

district

will

receive

from

the

area

education

agency.

25

The

special

education

services

provided

by

the

area

education

26

agency

to

the

school

district

pursuant

to

the

contract

shall

27

not

be

limited

by

the

amount

of

funding

the

school

district

28

provided

to

the

area

education

agency.

The

bill

strikes

these

29

provisions.

30

The

bill

provides

that

for

the

fiscal

year

beginning

July

31

1,

2026,

and

each

fiscal

year

thereafter,

the

department

of

32

management

is

required

to

deduct

the

amounts

calculated

for

33

special

education

support

services,

media

services,

area

34

education

agency

teacher

salary

supplement

district

cost,

area

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education

agency

professional

development

supplement

district

1

costs,

and

educational

services

for

each

school

district

from

2

the

state

aid

due

to

the

district

pursuant

to

Code

chapter

3

257

and

pay

the

amounts

to

the

respective

area

education

4

agencies

on

a

monthly

basis

from

September

15

through

June

15

5

during

each

school

year.

The

bill

requires

the

department

of

6

management

to

notify

each

school

district

of

the

amount

of

7

state

aid

deducted

for

these

purposes

and

the

balance

of

state

8

aid

is

required

to

be

paid

to

the

district.

If

a

district

9

does

not

qualify

for

state

aid

under

Code

chapter

257

in

an

10

amount

sufficient

to

cover

its

amount

due

to

the

area

education

11

agency

as

calculated

by

the

department

of

management,

the

12

school

district

is

required

to

pay

the

deficiency

to

the

area

13

education

agency

from

other

moneys

received

by

the

district,

on

14

a

quarterly

basis

during

each

school

year.

15

Current

law

provides

that,

notwithstanding

the

deduction

and

16

payment

called

for

under

Code

section

257.35(1),

the

amounts

17

specified

for

school

districts

and

area

education

agencies

in

18

Code

section

257.35(1)(a)

for

the

fiscal

year

beginning

July

1,

19

2025,

and

each

succeeding

fiscal

year,

shall

be

reduced

by

the

20

department

of

management

by

$7.5

million.

The

bill

provides

21

that

this

reduction

does

not

apply

to

fiscal

years

after

the

22

fiscal

year

beginning

July

1,

2025.

23

The

bill

modifies

provisions

related

to

moneys

available

24

to

school

districts

and

area

education

agencies

for

special

25

education

support

services

and

the

funding

and

provisions

26

related

to

the

media

and

educational

services

provided

by

27

school

districts

or

through

area

education

agencies,

including

28

by

modifying

Code

section

257.37

(funding

media

and

educational

29

services)

to

strike

a

provision

that

state

funds

that

are

not

30

required

to

be

paid

to

an

area

education

agency

may

be

used

31

by

the

school

district

for

any

school

district

general

fund

32

purpose

and

by

modifying

the

definition

of

“enrollment

served”

33

in

Code

section

257.37.

34

The

bill

modifies

Code

section

257.37A

(area

education

35

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agency

salary

supplement

funding),

including

by

providing

that,

1

if

the

department

of

management

determines

that

the

unadjusted

2

area

education

agency

professional

development

supplement

3

district

cost

of

an

area

education

agency

for

a

budget

year

is

4

less

than

100

percent

of

the

unadjusted

area

education

agency

5

professional

development

supplement

district

cost

for

the

base

6

year

for

the

area

education

agency,

the

area

education

agency

7

shall

receive

a

budget

adjustment

for

that

budget

year

equal

8

to

the

difference.

9

The

bill

takes

effect

upon

enactment

and

applies

July

1,

10

2026,

for

school

budget

years

beginning

on

or

after

that

date.

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