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.TheFor 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.SchoolFor 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