Senate File 242 - Introduced





                                       SENATE FILE       
                                       BY  KETTERING and McKINLEY


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act directing state aid funding for special education support
  2    services, media services, educational services, area education
  3    agency professional development supplement, and area education
  4    agency teacher salary supplement to the applicable school
  5    districts, allowing area education agencies and other
  6    organizations to bid to provide the services the funding
  7    supports, and providing an applicability date.
  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  9 TLSB 1595XS 83
 10 ak/sc:mg/8

PAG LIN



  1  1    Section 1.  Section 257.35, subsection 1, Code 2009, is
  1  2 amended to read as follows:
  1  3    1.  The For school budget years beginning prior to July 1,
  1  4 2010, the department of management shall deduct the amounts
  1  5 calculated for special education support services, media
  1  6 services, area education agency teacher salary supplement
  1  7 district cost, area education agency professional development
  1  8 supplement district cost, and educational services for each
  1  9 school district from the state aid due to the district
  1 10 pursuant to this chapter and shall pay the amounts to the
  1 11 respective area education agencies on a monthly basis from
  1 12 September 15 through June 15 during each school year.  The
  1 13 department of management shall notify each school district of
  1 14 the amount of state aid deducted for these purposes and the
  1 15 balance of state aid shall be paid to the district.  If a
  1 16 district does not qualify for state aid under this chapter in
  1 17 an amount sufficient to cover its amount due to the area
  1 18 education agency as calculated by the department of
  1 19 management, the school district shall pay the deficiency to
  1 20 the area education agency from other moneys received by the
  1 21 district, on a quarterly basis during each school year.
  1 22    Sec. 2.  NEW SECTION.  257.35A  AREA EDUCATION AGENCIES ==
  1 23 STATE FUNDING REDIRECTED.
  1 24    1.  Notwithstanding any provision of this chapter to the
  1 25 contrary, for school budget years beginning after July 1,
  1 26 2010, the state aid funding for special education support
  1 27 services, media services, and educational services, as
  1 28 calculated by this chapter, shall be paid directly to the
  1 29 applicable school district.
  1 30    2.  A school district receiving funding under subsection 1
  1 31 shall choose one of the following options:
  1 32    a.  A school district may provide its own special education
  1 33 services, media services, and educational services, as those
  1 34 services are described in chapter 273.  However, the school
  1 35 district shall not receive funding for its costs that exceeds
  2  1 the amount determined under subsection 1, except for funds
  2  2 received from another school district for providing special
  2  3 education services, media services, or educational services to
  2  4 such other school district.
  2  5    b.  A school district may solicit bids from organizations,
  2  6 including other school districts and area education agencies,
  2  7 to provide special education services, media services, and
  2  8 educational services, as those services are described in
  2  9 chapter 273.  However, the school district soliciting bids
  2 10 shall not receive funding for its costs that exceeds the
  2 11 amount determined under subsection 1.
  2 12    3.  The department of education shall distribute the
  2 13 appropriate amount of area education agency professional
  2 14 development supplement and area education agency teacher
  2 15 salary supplement funding to a school district if an area
  2 16 education agency successfully bids to provide the services.
  2 17    Sec. 3.  Section 273.9, subsection 1, Code 2009, is amended
  2 18 to read as follows:
  2 19    1.  School For school budget years beginning prior to July
  2 20 1, 2010, school districts shall pay for the programs and
  2 21 services provided through the area education agency and shall
  2 22 include expenditures for the programs and services in their
  2 23 budgets, in accordance with this section.
  2 24    Sec. 4.  NEW SECTION.  273.9A  FUNDING FROM SCHOOL
  2 25 DISTRICTS == STATE AND LOCAL FUNDS.
  2 26    Notwithstanding any provision of this chapter to the
  2 27 contrary, for school budget years beginning after July 1,
  2 28 2010, an area education agency or other organization shall
  2 29 receive state aid funding for providing special education
  2 30 support services, media services, and educational services
  2 31 from the applicable school district.  Area education agencies
  2 32 and other organizations may submit bids for providing special
  2 33 education support services, media services, and educational
  2 34 services in a process to be determined by the department of
  2 35 education by rule under chapter 17A.
  3  1    Sec. 5.  APPLICABILITY DATE.  This Act applies to school
  3  2 budget years beginning on and after July 1, 2010.
  3  3                           EXPLANATION
  3  4    This bill enacts new Code section 257.35A, which directs
  3  5 state aid funding for special education support services,
  3  6 media services, educational services, area education agency
  3  7 professional development supplement, and area education agency
  3  8 teacher salary supplement to the applicable school districts.
  3  9    The bill allows a school district to provide its own
  3 10 services.  A school district may also bid to provide services
  3 11 to other school districts.  A school district may also solicit
  3 12 bids from organizations to receive these services.  If a
  3 13 school district provides its own special education support
  3 14 services, media services, or educational services, it shall
  3 15 not receive funding that exceeds the amount determined under
  3 16 new Code section 257.35A.  The bill requires area education
  3 17 agencies (AEAs) and other organizations to bid to provide
  3 18 special education support services, media services, and
  3 19 educational services.  An AEA or organization that
  3 20 successfully bids to provide these services to a school
  3 21 district will receive the appropriate amount of funding.  The
  3 22 department of education is tasked with developing the bid
  3 23 process by rule.
  3 24    Currently, area education agency funding operates pursuant
  3 25 to a "flow=through" concept.  With no direct taxing authority,
  3 26 AEAs rely on local school districts to generate funds for
  3 27 their operation.  While AEA funding is included within a
  3 28 school district's budget, the district does not actually
  3 29 receive AEA=related state aid payments.  Instead, funds
  3 30 generated by the districts through the operation of the school
  3 31 finance formula and earmarked for AEAs are subtracted by the
  3 32 department of management from the state aid otherwise due to
  3 33 the district and are paid directly to each AEA.
  3 34    The bill applies to school budget years beginning on and
  3 35 after July 1, 2010.
  4  1 LSB 1595XS 83
  4  2 ak/sc:mg/8.3