Back to Iowa

SF2329 • 2026

A bill for an act relating to education, including by modifying provisions related to the duties and powers of area education agencies, the department of education, and area education agency funding, and including effective date and applicability provisions.

A bill for an act relating to education, including by modifying provisions related to the duties and powers of area education agencies, the department of education, and 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
TRONE GARRIOTT
Last action
2026-02-16
Official status
Subcommittee: Sinclair, Rozenboom, and Trone Garriott. S.J. 295 .
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 relating to education, including by modifying provisions related to the duties and powers of area education agencies, the department of education, and area education agency funding, and including effective date and applicability provisions.

A bill for an act relating to education, including by modifying provisions related to the duties and powers of area education agencies, the department of education, and area education agency funding, and including effective date and applicability provisions.

What This Bill Does

  • A bill for an act relating to education, including by modifying provisions related to the duties and powers of area education agencies, the department of education, and 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. 2026-02-16 Iowa Legislature

    Subcommittee: Sinclair, Rozenboom, and Trone Garriott. S.J. 295 .

  2. 2026-02-12 Iowa Legislature

    Introduced, referred to Education. S.J. 275 .

Official Summary Text

A bill for an act relating to education, including by modifying provisions related to the duties and powers of area education agencies, the department of education, and area education agency funding, and including effective date and applicability provisions.

Current Bill Text

Read the full stored bill text
Senate

File

2329

-

Introduced

SENATE

FILE

2329

BY

TRONE

GARRIOTT

A

BILL

FOR

An

Act

relating

to

education,

including

by

modifying

provisions

1

related

to

the

duties

and

powers

of

area

education

agencies,

2

the

department

of

education,

and

area

education

agency

3

funding,

and

including

effective

date

and

applicability

4

provisions.

5

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

6

TLSB

5602XS

(3)

91

jda/jh

S.F.

2329

DIVISION

I

1

AREA

EDUCATION

AGENCIES

——

PROGRAMMATIC

CHANGES

2

Section

1.

Section

256B.3,

subsection

16,

Code

2026,

is

3

amended

by

striking

the

subsection.

4

Sec.

2.

Section

273.2,

subsections

1

and

3,

Code

2026,

are

5

amended

to

read

as

follows:

6

1.

There

are

established

throughout

the

state

nine

area

7

education

agencies,

each

of

which

is

under

the

general

8

supervision

of

the

director

of

the

department

of

education,

9

except

as

otherwise

provided

in

this

chapter

governed

by

an

10

area

education

agency

board

of

directors

.

Each

area

education

11

agency

shall

have

an

area

education

agency

board

of

directors

12

that

shall

serve

in

an

advisory

capacity.

The

boundaries

of

an

13

area

education

agency

shall

not

divide

a

school

district.

The

14

director

of

the

department

of

education

shall

change

boundaries

15

of

area

education

agencies

to

take

into

account

mergers

of

16

local

school

districts

and

changes

in

boundaries

of

local

17

school

districts,

when

necessary

to

maintain

the

policy

of

this

18

chapter

that

a

local

school

district

shall

not

be

a

part

of

19

more

than

one

area

education

agency.

20

3.

a.

The

area

education

agency

board

shall

furnish

21

educational

services

and

programs

as

provided

in

section

273.1

,

22

this

section

,

sections

273.3

through

273.8

,

and

chapter

256B

23

to

pupils

enrolled

in

public

or

nonpublic

schools

located

24

within

its

boundaries

which

are

on

the

list

of

accredited

25

schools

pursuant

to

section

256.11

,

which

request

to

receive

26

such

services

.

The

programs

and

services

provided

shall

be

27

at

least

commensurate

with

programs

and

services

existing

on

28

July

1,

1974.

The

programs

and

services

provided

to

pupils

29

enrolled

in

nonpublic

schools

shall

be

comparable

to

programs

30

and

services

provided

to

pupils

enrolled

in

public

schools

31

within

constitutional

guidelines.

32

b.

The

area

education

agency

may

furnish

evidence-based

33

professional

development

services

to

public

or

nonpublic

34

schools

which

are

on

the

list

of

accredited

schools

pursuant

35

-1-

LSB

5602XS

(3)

91

jda/jh

1/

25

S.F.

2329

to

section

256.11

if

any

of

the

following

requirements

are

1

satisfied:

2

(1)

The

professional

development

service

is

included

on

the

3

list

developed

by

the

director

of

the

department

of

education

4

pursuant

to

section

256.9,

subsection

36

.

5

(2)

The

director

of

the

department

of

education

grants

6

approval

to

the

area

education

agency

to

furnish

the

7

evidence-based

professional

development

services.

8

Sec.

3.

Section

273.2,

subsections

5

and

14,

Code

2026,

are

9

amended

by

striking

the

subsections.

10

Sec.

4.

Section

273.3,

subsections

1,

11,

and

12,

Code

2026,

11

are

amended

to

read

as

follows:

12

1.

Advise

and

consult

with

Determine

the

policies

of

the

13

area

education

agency

on

policies

and

procedures

for

providing

14

programs

and

services.

15

11.

Employ

personnel

to

carry

out

the

functions

of

the

16

area

education

agency,

which

shall

include

the

employment

of

17

an

administrator

who

shall

possess

a

license

issued

under

18

chapter

256,

subchapter

VII,

part

3

.

The

administrator

shall

19

be

employed

pursuant

to

section

279.20

and

sections

279.23

,

20

279.24

,

and

279.25

.

The

salary

for

an

area

education

agency

21

administrator

shall

be

established

by

the

board

based

upon

22

the

previous

experience

and

education

of

the

administrator

;

23

provided,

however,

that

the

salary

for

an

area

education

24

agency

administrator

shall

not

exceed

one

hundred

twenty-five

25

percent

of

the

average

salary

of

all

superintendents

of

the

26

school

districts

that

are

located

within

the

boundaries

of

the

27

area

education

agency

at

the

time

the

employment

agreement

is

28

entered

into

or

renewed

between

an

area

education

agency

and

an

29

area

education

agency

administrator

.

Section

279.13

applies

to

30

the

area

education

agency

board

and

to

all

teachers

employed

by

31

the

area

education

agency.

Sections

279.23

,

279.24

,

and

279.25

32

apply

to

the

area

education

board

and

to

all

administrators

33

employed

by

the

area

education

agency.

Section

279.69

applies

34

to

the

area

education

agency

board

and

employees

of

the

board,

35

-2-

LSB

5602XS

(3)

91

jda/jh

2/

25

S.F.

2329

including

part-time,

substitute,

or

contract

employees,

who

1

provide

services

to

a

school

or

school

district.

2

12.

Area

education

agencies

shall

prepare

Prepare

an

annual

3

budget

estimating

income

and

expenditures

for

programs

and

4

services

as

provided

in

sections

273.1

,

273.2

,

this

section

,

5

sections

273.4

through

273.8

,

and

chapter

256B

within

the

6

limits

of

funds

provided

under

section

256B.9

and

chapter

257

.

7

The

board

shall

submit

the

proposed

budget

to

the

director

8

of

the

department

of

education

for

approval

not

later

than

9

March

1

of

each

year,

and

the

director

shall

either

approve

or

10

reject

the

proposed

budget

for

changes

within

ten

days

after

11

submission

post

notice

of

a

public

hearing

on

the

proposed

12

budget

on

the

area

education

agency’s

internet

site

and

by

13

publication

in

the

newspaper

of

general

circulation

in

the

14

territory

of

the

area

education

agency

in

which

the

principal

15

place

of

business

of

a

school

district

that

is

part

of

the

16

area

education

agency

is

located.

The

notice

shall

specify

17

the

date,

which

shall

not

be

later

than

March

1

of

each

18

year,

the

time,

and

the

location

of

the

public

hearing

.

The

19

proposed

budget

as

approved

by

the

director

of

the

department

20

of

education

board

shall

then

be

submitted

to

the

state

board

21

of

education,

on

forms

provided

by

the

department,

no

later

22

than

March

15

preceding

the

next

fiscal

year

for

approval.

23

The

state

board

shall

review

the

proposed

budget

of

each

24

area

education

agency

and

shall

before

May

1,

either

grant

25

approval

or

return

the

budget

without

approval

with

comments

26

of

the

state

board

included.

An

unapproved

budget

shall

be

27

resubmitted

to

the

state

board

for

final

approval

not

later

28

than

May

15.

The

state

board

shall

give

final

approval

only

to

29

budgets

submitted

by

area

education

agencies

accredited

by

the

30

state

board

or

that

have

been

given

conditional

accreditation

31

by

the

state

board.

32

Sec.

5.

Section

273.3,

subsection

26,

Code

2026,

is

amended

33

by

striking

the

subsection.

34

Sec.

6.

Section

273.5,

unnumbered

paragraph

1,

Code

2026,

35

-3-

LSB

5602XS

(3)

91

jda/jh

3/

25

S.F.

2329

is

amended

to

read

as

follows:

1

There

shall

be

established

a

division

of

special

education

2

of

the

area

education

agency

which

shall

provide

for

special

3

education

programs

and

services

to

the

local

school

districts.

4

The

division

of

special

education

shall

be

headed

by

a

director

5

of

special

education

who

meets

certification

standards

of

the

6

department

of

education.

The

director

of

special

education

7

shall

be

an

employee

of

the

division

of

special

education

of

8

the

department

of

education.

The

director

of

special

education

9

shall

not

be

an

employee

of

the

area

education

agency,

shall

10

not

receive

compensation

from

the

area

education

agency,

shall

11

not

supervise

or

manage

employees

of

the

area

education

agency,

12

and

shall

not

directly

provide

special

education

services

for

13

the

agency.

The

director

of

special

education’s

primary

job

14

duties

and

responsibilities

to

the

area

education

agency

are

15

to

provide

oversight

of

the

area

education

agency’s

special

16

education

services.

The

director

of

special

education

shall

17

also

have

the

responsibility

for

implementation

of

state

18

regulations

and

guidelines

relating

to

special

education

19

programs

and

services.

The

director

of

special

education

shall

20

have

the

following

powers

and

duties:

21

Sec.

7.

Section

273.8,

subsection

1,

Code

2026,

is

amended

22

by

striking

the

subsection

and

inserting

in

lieu

thereof

the

23

following:

24

1.

Board

of

directors.

The

board

of

directors

of

an

area

25

education

agency

shall

consist

of

not

less

than

five

nor

more

26

than

nine

members,

each

a

resident

of

and

elected

in

the

27

manner

provided

in

this

section

from

a

director

district

that

28

is

approximately

equal

in

population

to

the

other

director

29

districts

in

the

area

education

agency.

Each

director

shall

30

serve

a

four-year

term

which

commences

at

the

organization

31

meeting.

32

Sec.

8.

Section

273.8,

subsection

2,

paragraphs

c

and

d,

33

Code

2026,

are

amended

to

read

as

follows:

34

c.

The

board

of

each

separate

school

district

that

is

35

-4-

LSB

5602XS

(3)

91

jda/jh

4/

25

S.F.

2329

located

entirely

or

partially

inside

an

area

education

agency

1

director

district

shall

cast

a

vote

for

director

of

the

area

2

education

agency

board

described

in

subsection

1

,

paragraph

3

“b”

,

based

upon

the

ratio

that

the

population

of

the

school

4

district,

or

portion

of

the

school

district,

in

the

director

5

district

bears

to

the

total

population

in

the

director

6

district.

The

population

of

each

school

district

or

portion

7

shall

be

determined

by

the

department

of

education.

The

member

8

of

the

area

education

agency

board

described

in

subsection

1

,

9

paragraph

“b”

,

to

be

elected

may

be

a

member

of

a

local

school

10

district

board

of

directors

and

shall

be

an

elector

and

a

11

resident

of

the

director

district,

but

shall

not

be

a

school

12

district

employee.

13

d.

(1)

A

vacancy

Vacancies

,

as

defined

in

section

277.29

,

14

in

a

the

membership

position

of

the

area

education

agency

board

15

described

in

subsection

1

,

paragraph

“b”

,

shall

be

filled

16

for

the

unexpired

portion

of

the

term

at

a

director

district

17

convention

called

and

conducted

in

the

manner

provided

in

18

subsection

3

.

19

(2)

A

vacancy,

as

defined

in

section

277.29

,

in

a

membership

20

position

of

the

area

education

agency

board

described

in

21

subsection

1

,

paragraph

“c”

,

shall

be

filled

for

the

unexpired

22

portion

of

the

term

by

an

individual

who

is

appointed

by

23

the

majority

vote

of

the

superintendents

of

school

districts

24

located

within

the

boundaries

of

the

area

education

agency.

25

Sec.

9.

Section

273.8,

subsection

3,

Code

2026,

is

amended

26

to

read

as

follows:

27

3.

Director

district

convention.

If

no

candidate

files

with

28

the

area

education

agency

secretary

by

the

deadline

specified

29

in

subsection

2

,

or

a

vacancy

occurs,

or

if

otherwise

required

30

as

provided

in

section

273.23,

subsection

3

,

a

director

31

district

convention,

attended

by

members

of

the

boards

of

32

directors

of

the

local

school

districts

located

within

the

33

director

district,

shall

be

called

to

elect

a

board

member

34

described

in

subsection

1

,

paragraph

“b”

,

for

that

director

35

-5-

LSB

5602XS

(3)

91

jda/jh

5/

25

S.F.

2329

district.

The

convention

location

shall

be

determined

by

the

1

area

education

agency

administrator.

Notice

of

the

time,

date,

2

and

place

of

a

director

district

convention

shall

be

published

3

by

the

area

education

agency

administrator

in

at

least

one

4

newspaper

of

general

circulation

in

the

director

district

at

5

least

thirty

days

prior

to

the

day

of

the

convention.

The

cost

6

of

publication

shall

be

paid

by

the

area

education

agency.

A

7

candidate

for

election

to

the

area

education

agency

board

shall

8

file

a

statement

of

candidacy

with

the

area

education

agency

9

secretary

at

least

ten

days

prior

to

the

date

of

the

director

10

district

convention

on

forms

prescribed

by

the

department

of

11

education,

or

nominations

may

be

made

at

the

convention

by

a

12

delegate

from

a

board

of

directors

of

a

school

district

located

13

within

the

director

district.

A

statement

of

candidacy

shall

14

include

the

candidate’s

name,

address,

and

school

district.

15

Delegates

to

director

district

conventions

shall

not

be

bound

16

by

a

school

board

or

any

school

board

member

to

pledge

their

17

votes

to

any

candidate

prior

to

the

date

of

the

convention.

18

Sec.

10.

Section

273.10,

subsection

6,

Code

2026,

is

amended

19

to

read

as

follows:

20

6.

a.

If

the

deficiencies

in

an

area

education

program

have

21

not

been

corrected,

the

director

of

the

department

of

education

22

agency

board

shall

take

one

of

the

following

actions

within

23

sixty

days

from

removal

of

accreditation:

24

(1)

Merge

the

deficient

program

with

a

program

from

another

25

accredited

area

education

agency.

26

(2)

Contract

with

another

area

education

agency

or

other

27

public

educational

institution

for

purposes

of

program

28

delivery.

29

b.

The

rules

developed

by

the

state

board

of

education

for

30

the

accreditation

process

shall

include

provisions

for

removal

31

of

accreditation,

including

provisions

for

proper

notice

to

the

32

administrator

of

the

area

education

agency,

each

member

of

the

33

board

of

directors

of

the

area

education

agency,

the

department

34

of

education,

and

the

superintendents

and

administrators

of

the

35

-6-

LSB

5602XS

(3)

91

jda/jh

6/

25

S.F.

2329

schools

of

the

districts

served

by

the

area

education

agency.

1

Sec.

11.

APPLICABILITY.

The

following

applies

to

2

employment

agreements

entered

into

or

renewed

between

an

area

3

education

agency

and

an

area

education

agency

administrator

on

4

or

after

July

1,

2026:

5

The

section

of

this

division

of

this

Act

amending

section

6

273.3,

subsection

11.

7

Sec.

12.

APPLICABILITY.

The

following

applies

to

the

8

election

of

directors

and

vacancies

occurring

under

section

9

273.8,

as

amended

in

this

division

of

this

Act,

on

or

after

10

July

1,

2026:

11

The

section

of

this

division

of

this

Act

amending

section

12

273.8.

13

DIVISION

II

14

AREA

EDUCATION

AGENCIES

——

FUNDING

15

Sec.

13.

Section

257.1,

subsection

2,

paragraph

b,

Code

16

2026,

is

amended

to

read

as

follows:

17

b.

For

the

budget

year

commencing

July

1,

1999,

and

for

18

each

succeeding

budget

year

beginning

before

July

1,

2022,

19

the

regular

program

foundation

base

per

pupil

is

eighty-seven

20

and

five-tenths

percent

of

the

regular

program

state

cost

per

21

pupil.

For

the

budget

year

commencing

July

1,

2022,

and

for

22

each

succeeding

budget

year,

the

regular

program

foundation

23

base

per

pupil

is

eighty-eight

and

four-tenths

percent

of

the

24

regular

program

state

cost

per

pupil.

For

the

budget

year

25

commencing

July

1,

1991,

and

for

each

succeeding

budget

year

26

the

special

education

support

services

foundation

base

is

27

seventy-nine

percent

of

the

special

education

support

services

28

state

cost

per

pupil.

The

combined

foundation

base

is

the

sum

29

of

the

regular

program

foundation

base,

the

special

education

30

support

services

foundation

base,

the

total

teacher

salary

31

supplement

district

cost,

the

total

professional

development

32

supplement

district

cost,

the

total

early

intervention

33

supplement

district

cost,

the

total

teacher

leadership

34

supplement

district

cost,

and

the

total

area

education

agency

35

-7-

LSB

5602XS

(3)

91

jda/jh

7/

25

S.F.

2329

teacher

salary

supplement

district

cost

,

and

the

total

area

1

education

agency

professional

development

supplement

district

2

cost

.

3

Sec.

14.

Section

257.1,

subsection

3,

Code

2026,

is

amended

4

to

read

as

follows:

5

3.

Computations

rounded.

In

making

computations

and

6

payments

under

this

chapter

,

except

in

the

case

of

computations

7

relating

to

funding

of

special

education

support

services,

8

media

services,

and

educational

services

under

section

257.37

9

provided

through

the

area

education

agencies

,

and

the

teacher

10

salary

supplement,

the

professional

development

supplement,

11

the

early

intervention

supplement,

and

the

teacher

leadership

12

supplement,

the

department

of

management

shall

round

amounts

to

13

the

nearest

whole

dollar.

14

Sec.

15.

Section

257.1,

Code

2026,

is

amended

by

adding

the

15

following

new

subsection:

16

NEW

SUBSECTION

.

5.

Legislative

intent.

The

general

17

assembly

finds

that

the

general

welfare

of

this

state

and

18

well-being

of

its

citizens

is

directly

related

to

the

quality

19

of

education

provided

to

students

enrolled

in

Iowa’s

schools,

20

and

the

quality

of

education

provided

to

students

enrolled

in

21

Iowa’s

schools

is

directly

related

to

the

funding

available

to

22

those

schools.

Therefore,

the

general

assembly

intends

that

23

Iowa’s

schools

and

area

education

agencies

should

be

fully

24

funded

to

maximize

the

quality

of

the

education

provided

to

25

students.

26

Sec.

16.

Section

257.4,

subsection

1,

paragraph

a,

Code

27

2026,

is

amended

by

adding

the

following

new

subparagraph:

28

NEW

SUBPARAGRAPH

.

(07)

The

total

area

education

agency

29

professional

development

supplement

district

cost.

30

Sec.

17.

Section

257.9,

Code

2026,

is

amended

by

adding

the

31

following

new

subsection:

32

NEW

SUBSECTION

.

9A.

Area

education

agency

professional

33

development

supplement

state

cost

per

pupil.

For

the

budget

34

year

beginning

July

1,

2026,

for

the

area

education

agency

35

-8-

LSB

5602XS

(3)

91

jda/jh

8/

25

S.F.

2329

professional

development

supplement

state

cost

per

pupil,

the

1

department

of

management

shall

add

together

the

professional

2

development

allocation

made

to

each

area

education

agency

for

3

the

fiscal

year

beginning

July

1,

2023,

pursuant

to

section

4

257.37A,

subsection

2,

Code

2024,

and

divide

that

sum

by

5

the

statewide

special

education

support

services

weighted

6

enrollment

for

the

fiscal

year

beginning

July

1,

2026.

The

7

area

education

agency

professional

development

supplement

state

8

cost

per

pupil

for

the

budget

year

beginning

July

1,

2027,

9

and

succeeding

budget

years,

shall

be

the

amount

calculated

10

by

the

department

of

management

under

this

subsection

for

the

11

base

year

plus

a

supplemental

state

aid

amount

that

is

equal

12

to

the

professional

development

supplement

categorical

state

13

percent

of

growth,

pursuant

to

section

257.8,

subsection

2,

for

14

the

budget

year,

multiplied

by

the

amount

calculated

by

the

15

department

of

management

under

this

subsection

for

the

base

16

year.

17

Sec.

18.

Section

257.10,

subsection

7,

Code

2026,

is

amended

18

to

read

as

follows:

19

7.

Special

education

support

services

district

cost.

Special

20

education

support

services

district

cost

for

a

school

district

21

for

a

budget

year

is

equal

to

the

special

education

support

22

services

district

cost

per

pupil

for

the

budget

year

multiplied

23

by

the

special

education

support

services

weighted

enrollment

24

for

the

district

for

the

budget

year.

If

the

special

education

25

support

services

district

cost

for

a

school

district

for

26

a

budget

year

is

less

than

the

special

education

support

27

services

district

cost

for

that

district

for

the

base

year,

the

28

department

of

management

shall

adjust

the

special

education

29

support

services

district

cost

for

that

district

for

the

budget

30

year

to

equal

the

special

education

support

services

district

31

cost

for

the

base

year.

Funds

calculated

under

this

subsection

32

and

received

by

a

school

district

shall

be

used

for

special

33

education

support

services.

For

budget

years

beginning

on

34

or

after

July

1,

2025,

not

less

than

ninety

percent

of

funds

35

-9-

LSB

5602XS

(3)

91

jda/jh

9/

25

S.F.

2329

calculated

under

this

subsection

and

received

by

a

school

1

district

shall

be

used

by

the

school

district

for

special

2

education

support

services

contracted

from

an

area

education

3

agency.

The

contract

between

the

school

district

and

the

area

4

education

agency

shall

not

require

the

school

district

to

5

describe

the

specific

special

education

support

services

the

6

school

district

will

receive

from

the

area

education

agency.

7

The

special

education

services

provided

by

the

area

education

8

agency

to

the

school

district

pursuant

to

the

contract

shall

9

not

be

limited

by

the

amount

of

funding

the

school

district

10

provided

to

the

area

education

agency.

11

Sec.

19.

Section

257.10,

subsection

8,

paragraph

a,

Code

12

2026,

is

amended

to

read

as

follows:

13

a.

Combined

district

cost

is

the

sum

of

the

regular

14

program

district

cost

per

pupil

multiplied

by

the

weighted

15

enrollment,

the

special

education

support

services

district

16

cost,

the

total

teacher

salary

supplement

district

cost,

the

17

total

professional

development

supplement

district

cost,

the

18

total

early

intervention

supplement

district

cost,

and

the

19

total

teacher

leadership

supplement

district

cost,

plus

the

20

sum

of

the

additional

district

cost

allocated

to

the

district

21

to

fund

media

services

and

educational

services

under

section

22

257.37

provided

through

the

area

education

agency

,

and

the

area

23

education

agency

total

teacher

salary

supplement

district

cost

,

24

and

the

area

education

agency

total

professional

development

25

supplement

district

cost

.

26

Sec.

20.

Section

257.16,

subsection

4,

Code

2026,

is

amended

27

to

read

as

follows:

28

4.

Notwithstanding

any

provision

to

the

contrary,

if

29

the

governor

orders

budget

reductions

in

accordance

with

30

section

8.31

,

the

teacher

salary

supplement

district

cost,

31

the

professional

development

supplement

district

cost,

the

32

early

intervention

supplement

district

cost,

and

the

teacher

33

leadership

supplement

district

cost

as

calculated

under

section

34

257.10,

subsections

9,

10,

11,

and

12

,

and

the

area

education

35

-10-

LSB

5602XS

(3)

91

jda/jh

10/

25

S.F.

2329

agency

teacher

salary

supplement

district

cost

and

the

area

1

education

agency

professional

development

supplement

district

2

cost

as

calculated

under

section

257.37A

,

subsections

1

and

2,

3

shall

be

paid

in

full

as

calculated

and

the

reductions

in

the

4

appropriations

provided

in

accordance

with

this

section

shall

5

be

reduced

from

the

remaining

moneys

appropriated

pursuant

6

to

this

section

and

shall

be

distributed

on

a

per

pupil

7

basis

calculated

with

the

weighted

enrollment

determined

in

8

accordance

with

section

257.6,

subsection

5

.

9

Sec.

21.

Section

257.35,

subsection

1,

paragraph

a,

10

subparagraph

(3),

unnumbered

paragraph

1,

Code

2026,

is

amended

11

to

read

as

follows:

12

For

the

fiscal

year

beginning

July

1,

2025,

and

each

fiscal

13

year

thereafter,

the

department

of

management

shall

deduct

14

the

following

from

the

state

aid

due

to

each

school

district

15

pursuant

to

this

chapter

and

shall

pay

the

amounts

to

the

16

respective

area

education

agencies

on

a

monthly

basis

from

17

September

15

through

June

15

during

each

school

year:

18

Sec.

22.

Section

257.35,

subsection

1,

paragraph

a,

Code

19

2026,

is

amended

by

adding

the

following

new

subparagraph:

20

NEW

SUBPARAGRAPH

.

(4)

For

the

fiscal

year

beginning

July

21

1,

2026,

and

each

fiscal

year

thereafter,

the

department

of

22

management

shall

deduct

the

amounts

calculated

for

special

23

education

support

services,

media

services,

area

education

24

agency

teacher

salary

supplement

district

cost,

area

education

25

agency

professional

development

supplement

district

cost,

and

26

educational

services

for

each

school

district

from

the

state

27

aid

due

to

the

district

pursuant

to

this

chapter

and

shall

28

pay

the

amounts

to

the

respective

area

education

agencies

on

29

a

monthly

basis

from

September

15

through

June

15

during

each

30

school

year.

The

department

of

management

shall

notify

each

31

school

district

of

the

amount

of

state

aid

deducted

for

these

32

purposes

and

the

balance

of

state

aid

shall

be

paid

to

the

33

district.

If

a

district

does

not

qualify

for

state

aid

under

34

this

chapter

in

an

amount

sufficient

to

cover

its

amount

due

35

-11-

LSB

5602XS

(3)

91

jda/jh

11/

25

S.F.

2329

to

the

area

education

agency

as

calculated

by

the

department

1

of

management,

the

school

district

shall

pay

the

deficiency

to

2

the

area

education

agency

from

other

moneys

received

by

the

3

district,

on

a

quarterly

basis

during

each

school

year.

4

Sec.

23.

Section

257.35,

subsection

2,

Code

2026,

is

amended

5

to

read

as

follows:

6

2.

The

amounts

specified

for

school

districts

in

section

7

257.10,

subsection

7

,

for

the

fiscal

year

beginning

July

1,

8

2025,

and

each

succeeding

fiscal

year,

shall

be

reduced

by

9

the

department

of

management

by

seven

million

five

hundred

10

thousand

dollars.

The

department

of

management

shall

calculate

11

a

state

aid

reduction

such

that

such

amounts

shall

be

reduced

12

proportionally

to

the

amount

that

the

district

would

otherwise

13

have

received

under

section

257.10,

subsection

7

.

14

Sec.

24.

Section

257.36,

subsection

1,

Code

2026,

is

amended

15

to

read

as

follows:

16

1.

Notwithstanding

chapters

256B

and

273

and

sections

17

of

this

chapter

relating

to

the

moneys

available

to

school

18

districts

and

area

education

agencies

for

special

education

19

support

services,

for

each

school

year,

the

department

of

20

education

may

direct

the

department

of

management

to

deduct

21

amounts

from

the

portions

of

school

district

budgets

that

22

fund

special

education

support

services

in

an

area

education

23

agency.

The

total

amount

deducted

for

a

school

district

in

24

an

area

shall

be

based

upon

excess

special

education

support

25

services

unreserved

and

undesignated

fund

balances

in

that

26

school

district

or

paid

by

the

school

district

to

an

area

27

education

agency

for

a

school

year

that

remain

unreserved

and

28

undesignated

as

determined

by

the

department

of

education.

The

29

department

of

management

shall

determine

the

amount

deducted

30

from

each

school

district

in

an

area

education

agency

on

31

a

proportional

basis.

The

department

of

management

shall

32

determine

from

the

amounts

deducted

from

the

portions

of

school

33

district

budgets

that

fund

area

education

agency

special

34

education

support

services

the

amount

that

would

have

been

35

-12-

LSB

5602XS

(3)

91

jda/jh

12/

25

S.F.

2329

local

property

taxes

and

the

amount

that

would

have

been

state

1

aid

and

for

the

next

following

budget

year

shall

increase

the

2

district’s

total

state

school

aid

available

under

this

chapter

3

for

area

education

agency

special

education

support

services

4

and

reduce

the

district’s

property

tax

levy

for

area

education

5

agency

special

education

support

services

by

the

amount

6

necessary

for

the

property

tax

portion

of

the

deductions

made

7

under

this

section

during

the

budget

year.

8

Sec.

25.

Section

257.37,

Code

2026,

is

amended

to

read

as

9

follows:

10

257.37

Funding

media

and

educational

services.

11

Media

services

and

educational

services

provided

by

a

school

12

district

or

through

the

area

education

agency

agencies

shall

be

13

funded,

to

the

extent

provided,

by

an

addition

to

the

combined

14

district

cost

of

each

school

district,

determined

as

follows:

15

1.

For

the

budget

year

beginning

July

1,

1991,

and

16

succeeding

budget

years,

the

total

amount

funded

in

each

area

17

for

media

services

shall

be

computed

as

provided

in

this

18

subsection

.

For

the

budget

year

beginning

July

1,

1991,

the

19

total

amount

funded

in

each

area

for

media

services

in

the

20

base

year

shall

be

divided

by

the

enrollment

served

in

the

21

base

year

to

provide

an

area

media

services

cost

per

pupil

in

22

the

base

year,

and

the

department

of

management

shall

compute

23

the

state

media

services

cost

per

pupil

in

the

base

year

which

24

is

equal

to

the

average

of

the

area

media

services

costs

per

25

pupil

in

the

base

year.

For

the

budget

year

beginning

July

1,

26

1991,

and

succeeding

budget

years,

the

department

of

management

27

shall

compute

the

supplemental

state

aid

for

media

services

28

in

the

budget

year

by

multiplying

the

state

media

services

29

cost

per

pupil

in

the

base

year

times

the

state

percent

of

30

growth

for

the

budget

year,

and

the

total

amount

funded

in

each

31

area

for

media

services

cost

in

the

budget

year

equals

the

32

area

media

services

cost

per

pupil

in

the

base

year

plus

the

33

supplemental

state

aid

for

media

services

in

the

budget

year

34

times

the

enrollment

served

in

the

budget

year.

For

fiscal

35

-13-

LSB

5602XS

(3)

91

jda/jh

13/

25

S.F.

2329

years

beginning

before

July

1,

2025,

funds

Funds

shall

be

paid

1

to

area

education

agencies

as

provided

in

section

257.35

.

For

2

fiscal

years

beginning

on

or

after

July

1,

2024,

funds

not

3

required

to

be

paid

to

an

area

education

agency

may

be

used

4

by

the

school

district

for

any

school

district

general

fund

5

purpose.

6

2.

Up

to

thirty

percent

of

the

budget

of

an

area

for

media

7

services

may

be

expended

for

media

resource

material

including

8

the

purchase

or

replacement

of

material

required

in

section

9

273.6,

subsection

1

.

Funds

shall

be

paid

to

area

education

10

agencies

as

provided

in

section

257.35.

11

3.

For

the

budget

year

beginning

July

1,

1991,

and

12

succeeding

budget

years,

the

total

amount

funded

in

each

area

13

for

educational

services

shall

be

computed

as

provided

in

this

14

subsection

.

For

the

budget

year

beginning

July

1,

1991,

the

15

total

amount

funded

in

each

area

for

educational

services

16

in

the

base

year

shall

be

divided

by

the

enrollment

served

17

in

the

area

in

the

base

year

to

provide

an

area

educational

18

services

cost

per

pupil

in

the

base

year,

and

the

department

of

19

management

shall

compute

the

state

educational

services

cost

20

per

pupil

in

the

base

year,

which

is

equal

to

the

average

of

21

the

area

educational

services

costs

per

pupil

in

the

base

year.

22

For

the

budget

year

beginning

July

1,

1991,

and

succeeding

23

budget

years,

the

department

of

management

shall

compute

the

24

supplemental

state

aid

for

educational

services

by

multiplying

25

the

state

educational

services

cost

per

pupil

in

the

base

year

26

times

the

state

percent

of

growth

for

the

budget

year,

and

the

27

total

amount

funded

in

each

area

for

educational

services

for

28

the

budget

year

equals

the

area

educational

services

cost

per

29

pupil

for

the

base

year

plus

the

supplemental

state

aid

for

30

educational

services

in

the

budget

year

times

the

enrollment

31

served

in

the

area

in

the

budget

year.

For

fiscal

years

32

beginning

before

July

1,

2025,

funds

Funds

shall

be

paid

to

33

area

education

agencies

as

provided

in

section

257.35

.

For

34

fiscal

years

beginning

on

or

after

July

1,

2024,

funds

not

35

-14-

LSB

5602XS

(3)

91

jda/jh

14/

25

S.F.

2329

required

to

be

paid

to

an

area

education

agency

may

be

used

1

by

the

school

district

for

any

school

district

general

fund

2

purpose.

3

4.

“Enrollment

served”

means

the

basic

enrollment

of

all

4

school

districts

within

the

boundaries

of

the

area

education

5

agency

plus

the

number

of

nonpublic

school

pupils

served

by

6

the

area

education

agency

with

media

services

or

educational

7

services,

as

applicable,

except

that

if

a

nonpublic

school

8

pupil

or

a

pupil

attending

another

district

under

a

whole

grade

9

sharing

agreement

or

open

enrollment

receives

services

through

10

an

area

other

than

the

area

of

the

pupil’s

residence,

the

11

pupil

shall

be

deemed

to

be

served

by

the

area

of

the

pupil’s

12

residence,

which

shall

by

contractual

arrangement

reimburse

13

the

area

through

which

the

pupil

actually

receives

services.

14

Each

school

district

shall

include

in

the

enrollment

report

15

submitted

pursuant

to

section

257.6,

subsection

1

,

the

number

16

of

nonpublic

school

pupils

within

each

school

district

for

17

media

and

educational

services

served

by

the

area.

However,

18

the

school

district

shall

not

include

in

the

enrollment

report

19

nonpublic

school

pupils

receiving

classes

or

services

funded

20

entirely

by

federal

grants

or

allocations.

21

5.

a.

If

an

area

education

agency

does

not

serve

nonpublic

22

school

pupils

in

a

manner

comparable

to

services

provided

23

public

school

pupils

for

media

and

educational

services,

as

24

determined

by

the

state

board

of

education,

the

state

board

25

shall

instruct

the

department

of

management

to

reduce

the

funds

26

for

media

services

and

educational

services

within

the

area

one

27

time

by

an

amount

to

compensate

for

such

reduced

services.

The

28

media

services

budget

shall

be

reduced

by

an

amount

equal

to

29

the

product

of

the

cost

per

pupil

in

basic

enrollment

for

the

30

budget

year

for

media

services

times

the

difference

between

31

the

enrollment

served

and

the

basic

enrollment

recorded

for

32

the

area.

The

educational

services

budget

shall

be

reduced

by

33

an

amount

equal

to

the

product

of

the

cost

per

pupil

in

basic

34

enrollment

for

the

budget

year

for

educational

services

times

35

-15-

LSB

5602XS

(3)

91

jda/jh

15/

25

S.F.

2329

the

difference

between

the

enrollment

served

and

the

basic

1

enrollment

recorded

for

the

area.

2

b.

This

subsection

applies

only

to

media

and

educational

3

services

which

cannot

be

diverted

for

religious

purposes.

4

c.

Notwithstanding

this

subsection

,

an

area

education

agency

5

shall

distribute

to

nonpublic

schools

media

materials

purchased

6

wholly

or

partially

with

federal

funds

in

a

manner

comparable

7

to

the

distribution

of

such

media

materials

to

public

schools

8

as

determined

by

the

director

of

the

department

of

education.

9

6.

For

the

budget

year

beginning

July

1,

2002,

and

each

10

succeeding

budget

year,

notwithstanding

the

requirements

of

11

this

section

for

determining

the

budgets

and

funding

of

media

12

services

and

education

services,

an

area

education

agency

or

13

school

district

may

,

within

the

limits

of

the

total

of

the

14

funds

provided

for

the

budget

years

pursuant

to

section

257.35,

15

expend

for

special

education

support

services

an

amount

that

16

exceeds

the

payment

for

special

education

support

services

17

pursuant

to

section

257.35

in

order

to

maintain

the

level

18

of

required

special

education

support

services

in

the

area

19

education

agency

or

the

school

district,

as

applicable

.

20

Sec.

26.

Section

257.37A,

Code

2026,

is

amended

to

read

as

21

follows:

22

257.37A

Area

education

agency

salary

supplement

funding.

23

1.

Area

education

agency

teacher

salary

supplement

cost

per

24

pupil

and

district

cost.

25

1.

a.

For

the

budget

year

beginning

July

1,

2009,

the

26

department

of

management

shall

add

together

the

teacher

27

compensation

allocation

made

to

each

area

education

agency

for

28

the

fiscal

year

beginning

July

1,

2008,

pursuant

to

section

29

284.13,

subsection

1

,

paragraph

“i”

,

Code

2009,

and

the

phase

II

30

allocation

made

to

each

area

education

agency

for

the

fiscal

31

year

beginning

July

1,

2008,

pursuant

to

section

294A.9,

Code

32

2009

,

and

divide

that

sum

by

the

special

education

support

33

services

weighted

enrollment

in

the

fiscal

year

beginning

July

34

1,

2009,

to

determine

the

area

education

agency

teacher

salary

35

-16-

LSB

5602XS

(3)

91

jda/jh

16/

25

S.F.

2329

supplement

cost

per

pupil.

For

the

budget

year

beginning

July

1

1,

2010,

and

succeeding

budget

years,

the

area

education

agency

2

teacher

salary

supplement

district

cost

per

pupil

for

each

area

3

education

agency

for

a

budget

year

is

the

area

education

agency

4

teacher

salary

supplement

district

cost

per

pupil

for

the

base

5

year

plus

the

area

education

agency

teacher

salary

supplement

6

supplemental

state

aid

amount

for

the

budget

year.

7

2.

b.

For

the

budget

year

beginning

July

1,

2010,

and

8

succeeding

budget

years,

if

the

department

of

management

9

determines

that

the

unadjusted

area

education

agency

teacher

10

salary

supplement

district

cost

of

an

area

education

agency

11

for

a

budget

year

is

less

than

one

hundred

percent

of

the

12

unadjusted

area

education

agency

teacher

salary

supplement

13

district

cost

for

the

base

year

for

the

area

education

agency,

14

the

area

education

agency

shall

receive

a

budget

adjustment

for

15

that

budget

year

equal

to

the

difference.

16

3.

a.

c.

(1)

The

unadjusted

area

education

agency

teacher

17

salary

supplement

district

cost

is

the

area

education

agency

18

teacher

salary

supplement

district

cost

per

pupil

for

each

area

19

education

agency

for

a

budget

year

multiplied

by

the

special

20

education

support

services

weighted

enrollment

for

that

area

21

education

agency.

22

b.

(2)

The

total

area

education

agency

teacher

salary

23

supplement

district

cost

is

the

sum

of

the

unadjusted

area

24

education

agency

teacher

salary

supplement

district

cost

plus

25

the

budget

adjustment

for

that

budget

year.

26

4.

d.

For

the

budget

year

beginning

July

1,

2009,

the

27

use

of

the

funds

calculated

under

this

section

subsection

28

shall

comply

with

requirements

of

chapter

284

and

shall

be

29

distributed

to

teachers

pursuant

to

section

284.3A

.

For

the

30

budget

year

beginning

July

1,

2010,

and

succeeding

budget

31

years,

the

use

of

the

funds

calculated

under

this

section

32

subsection

shall

comply

with

the

requirements

of

chapter

284

33

and

shall

be

distributed

to

teachers

pursuant

to

section

34

284.3A

.

35

-17-

LSB

5602XS

(3)

91

jda/jh

17/

25

S.F.

2329

2.

Area

education

agency

professional

development

supplement

1

cost

per

pupil

and

district

cost.

2

a.

For

the

budget

year

beginning

July

1,

2026,

the

3

department

of

management

shall

divide

the

area

education

agency

4

professional

development

supplement

made

to

each

area

education

5

agency

for

the

fiscal

year

beginning

July

1,

2023,

pursuant

6

to

section

257.37A,

subsection

2,

Code

2024,

by

the

special

7

education

support

services

weighted

enrollment

in

the

fiscal

8

year

beginning

July

1,

2026,

to

determine

the

professional

9

development

supplement

cost

per

pupil.

For

the

budget

year

10

beginning

July

1,

2027,

and

succeeding

budget

years,

the

area

11

education

agency

professional

development

supplement

district

12

cost

per

pupil

for

each

area

education

agency

for

a

budget

13

year

is

the

area

education

agency

professional

development

14

supplement

district

cost

per

pupil

for

the

base

year

plus

the

15

area

education

agency

professional

amount

for

the

budget

year.

16

b.

For

the

budget

year

beginning

July

1,

2027,

and

17

succeeding

budget

years,

if

the

department

of

management

18

determines

that

the

unadjusted

area

education

agency

19

professional

development

supplement

district

cost

of

an

area

20

education

agency

for

a

budget

year

is

less

than

one

hundred

21

percent

of

the

unadjusted

area

education

agency

professional

22

development

supplement

district

cost

for

the

base

year

for

23

the

area

education

agency,

the

area

education

agency

shall

24

receive

a

budget

adjustment

for

that

budget

year

equal

to

the

25

difference.

26

c.

(1)

The

unadjusted

area

education

agency

professional

27

development

supplement

district

cost

is

the

area

education

28

agency

professional

development

supplement

district

cost

29

per

pupil

for

each

area

education

agency

for

a

budget

year

30

multiplied

by

the

special

education

support

services

weighted

31

enrollment

for

that

area

education

agency.

32

(2)

The

total

area

education

agency

professional

33

development

supplement

district

cost

is

the

sum

of

the

34

unadjusted

area

education

agency

professional

development

35

-18-

LSB

5602XS

(3)

91

jda/jh

18/

25

S.F.

2329

supplement

district

cost

plus

the

budget

adjustment

for

that

1

budget

year.

2

d.

The

use

of

the

funds

calculated

under

this

subsection

3

shall

comply

with

the

requirements

of

chapter

284.

4

Sec.

27.

Section

284.3A,

subsection

4,

Code

2026,

is

amended

5

to

read

as

follows:

6

4.

The

teacher

salary

supplement

district

cost

as

7

calculated

under

section

257.10,

subsection

9

,

and

the

area

8

education

agency

teacher

salary

supplement

district

cost

as

9

calculated

under

section

257.37A

,

subsection

1,

are

not

subject

10

to

a

uniform

reduction

in

accordance

with

section

8.31

.

11

Sec.

28.

Section

284.4,

subsection

1,

paragraph

b,

12

subparagraph

(3),

Code

2026,

is

amended

to

read

as

follows:

13

(3)

Determine,

following

the

adoption

of

the

Iowa

14

professional

development

model

by

the

state

board

of

education,

15

the

use

and

distribution

of

the

professional

development

16

funds

calculated

and

paid

to

the

school

district

or

agency

as

17

provided

in

section

257.9,

subsection

9A,

or

section

257.10,

18

subsection

10

,

based

upon

school

district

or

agency

,

attendance

19

center,

and

individual

teacher

and

professional

development

20

plans.

21

Sec.

29.

Section

284.6,

subsections

8,

9,

and

10,

Code

2026,

22

are

amended

to

read

as

follows:

23

8.

For

each

year

in

which

a

school

district

receives

funds

24

calculated

and

paid

to

school

districts

for

professional

25

development

pursuant

to

section

257.10,

subsection

10

,

or

26

section

257.37A,

subsection

2,

the

school

district

shall

create

27

quality

professional

development

opportunities.

Not

less

than

28

thirty-six

hours

in

the

school

calendar,

held

outside

of

the

29

minimum

school

day,

shall

be

set

aside

during

nonpreparation

30

time

or

designated

professional

development

time

to

allow

31

practitioners

to

collaborate

with

each

other

to

deliver

32

educational

programs

and

assess

student

learning,

or

to

engage

33

in

peer

review

pursuant

to

section

284.8,

subsection

1

.

The

34

funds

may

be

used

to

implement

the

professional

development

35

-19-

LSB

5602XS

(3)

91

jda/jh

19/

25

S.F.

2329

provisions

of

the

teacher

career

paths

and

leadership

roles

1

specified

in

section

284.15

,

including

but

not

limited

to

2

providing

professional

development

to

teachers,

including

3

additional

salaries

for

time

beyond

the

normal

negotiated

4

agreement;

activities

and

pay

to

support

a

beginning

teacher

5

mentoring

and

induction

program

that

meets

the

requirements

6

of

section

284.5

;

pay

for

substitute

teachers,

professional

7

development

materials,

speakers,

and

professional

development

8

content;

textbooks

and

curriculum

materials

used

for

classroom

9

purposes

if

such

textbooks

and

curriculum

materials

include

10

professional

development;

administering

assessments

pursuant

to

11

section

256.7,

subsection

21

,

paragraph

“b”

,

subparagraphs

(1)

12

and

(2),

if

such

assessments

include

professional

development;

13

and

costs

associated

with

implementing

the

individual

14

professional

development

plans.

The

use

of

the

funds

shall

15

be

balanced

between

school

district,

attendance

center,

16

and

individual

professional

development

plans,

making

every

17

reasonable

effort

to

provide

equal

access

to

all

teachers.

18

9.

Moneys

received

pursuant

to

section

257.10,

subsection

19

10

,

or

section

257.37A,

subsection

2,

shall

be

maintained

20

as

a

separate

listing

within

a

school

district’s

or

area

21

education

agency’s

budget

for

funds

received

and

expenditures

22

made

pursuant

to

this

subsection

.

The

department

shall

not

23

require

a

school

district

or

area

education

agency

to

allocate

24

a

specific

amount

or

percentage

of

moneys

received

pursuant

to

25

section

257.10,

subsection

10

,

or

section

257.37A,

subsection

26

2,

for

professional

development

related

to

implementation

of

27

the

core

curriculum

under

section

256.7,

subsection

26

.

A

28

school

district

shall

certify

to

the

department

how

the

school

29

district

allocated

the

funds

and

that

moneys

received

under

30

this

subsection

were

used

to

supplement,

not

supplant,

the

31

professional

development

opportunities

the

school

district

32

would

otherwise

make

available.

For

budget

years

beginning

33

on

or

after

July

1,

2017,

all

or

a

portion

of

the

moneys

34

received

pursuant

to

section

257.10,

subsection

10

,

that

remain

35

-20-

LSB

5602XS

(3)

91

jda/jh

20/

25

S.F.

2329

unexpended

and

unobligated

at

the

end

of

a

fiscal

year

may,

1

pursuant

to

section

257.10,

subsection

10

,

paragraph

“d”

,

be

2

transferred

for

deposit

in

the

school

district’s

flexibility

3

account

established

under

section

298A.2,

subsection

2

.

4

10.

If

funds

are

allocated

for

purposes

of

professional

5

development

pursuant

to

section

284.13,

subsection

1

,

paragraph

6

“c”

,

the

department

shall

,

in

collaboration

with

the

area

7

education

agencies,

establish

teacher

development

academies

8

for

public

and

nonpublic

school-based

teams

of

teachers

and

9

instructional

leaders.

Each

academy

shall

include

an

institute

10

and

shall

provide

follow-up

training

and

coaching.

11

Sec.

30.

EFFECTIVE

DATE.

This

division

of

this

Act,

being

12

deemed

of

immediate

importance,

takes

effect

upon

enactment.

13

Sec.

31.

APPLICABILITY.

This

division

of

this

Act

applies

14

July

1,

2026,

for

school

budget

years

beginning

on

or

after

15

that

date.

16

EXPLANATION

17

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

18

the

explanation’s

substance

by

the

members

of

the

general

assembly.

19

This

bill

relates

to

education,

including

by

modifying

20

provisions

related

to

the

duties

and

powers

of

area

education

21

agencies,

the

department

of

education,

and

area

education

22

agency

funding.

23

DIVISION

I

——

AREA

EDUCATION

AGENCIES

——

PROGRAMMATIC

24

CHANGES.

Current

law

requires

the

division

of

special

25

education

within

the

department

of

education

to

oversee

the

26

operation

of

each

area

education

agency

to

ensure

the

area

27

education

agency

complies

with

all

applicable

federal

and

28

state

laws

related

to

special

education.

The

bill

strikes

29

this

provision.

Current

law

provides

that

each

area

education

30

agency

is

under

the

general

supervision

of

the

director

of

the

31

department

of

education

and

that

the

area

education

agency

32

board

of

directors

serves

in

an

advisory

capacity.

The

bill

33

provides

that

each

area

education

agency

is

governed

by

a

board

34

of

directors.

The

bill

makes

conforming

changes.

35

-21-

LSB

5602XS

(3)

91

jda/jh

21/

25

S.F.

2329

The

bill

modifies

provisions

related

to

students

that

1

an

area

education

agency

may

provide

services

to.

Current

2

law

provides

that

an

area

education

agency

may

furnish

3

evidence-based

professional

development

services

to

public

or

4

nonpublic

schools

which

are

on

the

list

of

accredited

schools

5

if

certain

specified

requirements

are

satisfied.

The

bill

6

strikes

this

provision.

7

Current

law

requires

area

education

agencies

to

prepare

a

8

proposed

annual

budget

and

submit

the

proposed

budget

to

the

9

director

of

the

department

of

education

for

approval

not

later

10

than

March

1

of

each

year.

Under

current

law,

the

director

is

11

required

to

either

approve

or

reject

the

proposed

budget

for

12

changes

within

10

days

after

submission.

The

bill

modifies

13

this

provision

to

require

area

education

agencies

to

prepare

14

a

proposed

annual

budget

and

post

notice

of

a

public

hearing

15

on

the

proposed

budget

on

the

area

education

agency’s

internet

16

site

and

by

publication

in

the

newspaper

of

general

circulation

17

in

the

territory

of

the

area

education

agency

in

which

the

18

principal

place

of

business

of

a

school

district

that

is

part

19

of

the

area

education

agency

is

located.

The

notice

shall

20

specify

the

date,

which

shall

be

not

later

than

March

1

of

each

21

year,

the

time,

and

the

location

of

the

public

hearing.

22

Current

law

requires

an

area

education

agency

to,

on

a

23

quarterly

basis,

prepare

and

submit

to

each

school

district

24

that

receives

services

from

the

area

education

agency

a

report

25

that

includes

certain

specified

financial

and

programmatic

26

information.

The

bill

strikes

this

provision.

27

Current

law

requires

that

the

director

of

special

education

28

within

each

area

education

agency

be

an

employee

of

the

29

division

of

special

education

of

the

department

of

education

30

and

not

be

an

employee

of

the

area

education

agency,

receive

31

compensation

from

the

area

education

agency,

supervise

or

32

manage

employees

of

the

area

education

agency,

or

directly

33

provide

special

education

services

for

the

agency.

Current

law

34

also

provides

that

the

director

of

special

education’s

primary

35

-22-

LSB

5602XS

(3)

91

jda/jh

22/

25

S.F.

2329

job

duties

and

responsibilities

to

the

area

education

agency

1

are

to

provide

oversight

of

the

area

education

agency’s

special

2

education

services.

The

bill

strikes

these

provisions.

3

Current

law

provides

that

the

board

of

directors

shall

4

consist

of

nine

members,

with

five

members

being

elected

in

5

director

district

conventions

and

four

members

being

appointed

6

by

the

majority

vote

of

the

superintendents

of

school

districts

7

located

within

the

boundaries

of

the

area

education

agency.

8

The

bill

modifies

this

provision

to

provide

that

the

board

of

9

directors

of

an

area

education

agency

shall

consist

of

not

10

less

than

five

nor

more

than

nine

members,

each

a

resident

of

11

and

elected

in

the

manner

provided

in

this

Code

section

from

a

12

director

district

that

is

approximately

equal

in

population

to

13

the

other

director

districts

in

the

area

education

agency.

The

14

bill

makes

conforming

changes.

This

provision

applies

to

the

15

election

of

directors

and

vacancies

occurring

on

or

after

July

16

1,

2026.

17

DIVISION

II

——

AREA

EDUCATION

AGENCIES

——

FUNDING.

The

bill

18

modifies

provisions

related

to

the

calculation

of

the

combined

19

foundation

base,

the

area

education

agency

professional

20

development

supplement

state

cost

per

pupil,

and

the

combined

21

district

cost.

The

bill

also

modifies

provisions

related

22

to

the

computation

of

the

additional

property

tax

levied

by

23

school

districts

to

include

the

total

area

education

agency

24

professional

development

supplement

district

cost.

25

Current

law

provides

that

funds

calculated

under

Code

26

section

257.10(7)

(special

education

support

services

district

27

cost)

and

received

by

a

school

district

are

required

to

be

28

used

for

special

education

support

services.

Current

law

29

also

provides

that

for

budget

years

beginning

on

or

after

30

July

1,

2025,

not

less

than

90

percent

of

funds

calculated

31

under

Code

section

257.10(7)

and

received

by

a

school

district

32

are

required

to

be

used

by

the

school

district

for

special

33

education

support

services

contracted

from

an

area

education

34

agency.

The

contract

between

the

school

district

and

the

area

35

-23-

LSB

5602XS

(3)

91

jda/jh

23/

25

S.F.

2329

education

agency

shall

not

require

the

school

district

to

1

describe

the

specific

special

education

support

services

the

2

school

district

will

receive

from

the

area

education

agency.

3

The

special

education

services

provided

by

the

area

education

4

agency

to

the

school

district

pursuant

to

the

contract

shall

5

not

be

limited

by

the

amount

of

funding

the

school

district

6

provided

to

the

area

education

agency.

The

bill

strikes

these

7

provisions.

8

The

bill

provides

that

for

the

fiscal

year

beginning

July

9

1,

2026,

and

each

fiscal

year

thereafter,

the

department

of

10

management

is

required

to

deduct

the

amounts

calculated

for

11

special

education

support

services,

media

services,

area

12

education

agency

teacher

salary

supplement

district

cost,

area

13

education

agency

professional

development

supplement

district

14

costs,

and

educational

services

for

each

school

district

from

15

the

state

aid

due

to

the

district

pursuant

to

Code

chapter

16

257

and

pay

the

amounts

to

the

respective

area

education

17

agencies

on

a

monthly

basis

from

September

15

through

June

15

18

during

each

school

year.

The

bill

requires

the

department

of

19

management

to

notify

each

school

district

of

the

amount

of

20

state

aid

deducted

for

these

purposes

and

the

balance

of

state

21

aid

is

required

to

be

paid

to

the

district.

If

a

district

22

does

not

qualify

for

state

aid

under

Code

chapter

257

in

an

23

amount

sufficient

to

cover

its

amount

due

to

the

area

education

24

agency

as

calculated

by

the

department

of

management,

the

25

school

district

is

required

to

pay

the

deficiency

to

the

area

26

education

agency

from

other

moneys

received

by

the

district,

on

27

a

quarterly

basis

during

each

school

year.

28

Current

law

provides

that,

notwithstanding

the

deduction

and

29

payment

called

for

under

Code

section

257.35(1),

the

amounts

30

specified

for

school

districts

and

area

education

agencies

in

31

Code

section

257.35(1)(a)

for

the

fiscal

year

beginning

July

1,

32

2025,

and

each

succeeding

fiscal

year,

shall

be

reduced

by

the

33

department

of

management

by

$7.5

million.

The

bill

provides

34

that

this

reduction

does

not

apply

to

fiscal

years

after

the

35

-24-

LSB

5602XS

(3)

91

jda/jh

24/

25

S.F.

2329

fiscal

year

beginning

July

1,

2025.

1

The

bill

modifies

provisions

related

to

moneys

available

2

to

school

districts

and

area

education

agencies

for

special

3

education

support

services

and

the

funding

and

provisions

4

related

to

the

media

and

educational

services

provided

by

5

school

districts

or

through

area

education

agencies,

including

6

by

modifying

Code

section

257.37

(funding

media

and

educational

7

services)

to

strike

a

provision

that

state

funds

that

are

not

8

required

to

be

paid

to

an

area

education

agency

may

be

used

9

by

the

school

district

for

any

school

district

general

fund

10

purpose

and

by

modifying

the

definition

of

“enrollment

served”

11

in

Code

section

257.37.

12

The

bill

modifies

Code

section

257.37A

(area

education

13

agency

salary

supplement

funding),

including

by

providing

that,

14

if

the

department

of

management

determines

that

the

unadjusted

15

area

education

agency

professional

development

supplement

16

district

cost

of

an

area

education

agency

for

a

budget

year

is

17

less

than

100

percent

of

the

unadjusted

area

education

agency

18

professional

development

supplement

district

cost

for

the

base

19

year

for

the

area

education

agency,

the

area

education

agency

20

shall

receive

a

budget

adjustment

for

that

budget

year

equal

21

to

the

difference.

22

The

division

takes

effect

upon

enactment

and

applies

July

1,

23

2026,

for

school

budget

years

beginning

on

or

after

that

date.

24

-25-

LSB

5602XS

(3)

91

jda/jh

25/

25