House File 2612 S-5043 Amend House File 2612, as amended, passed, and reprinted by 1 the House, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < DIVISION I 5 DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION 6 Section 1. Section 256.9, subsection 54, Code 2024, is 7 amended by striking the subsection. 8 Sec. 2. Section 256B.3, Code 2024, is amended by adding the 9 following new subsections: 10 NEW SUBSECTION . 15A. Beginning July 1, 2025, oversee the 11 operation of each area education agency to ensure the area 12 education agency complies with all applicable federal and state 13 laws related to special education. 14 NEW SUBSECTION . 15B. Beginning July 1, 2025, provide 15 guidance and standards to area education agencies for federal 16 and state education initiatives which the area education 17 agencies must implement statewide. 18 Sec. 3. DEPARTMENT OF EDUCATION AND AREA EDUCATION AGENCIES 19 —— STAFFING AND TRANSITION PLAN. 20 1. The department of education shall coordinate with 21 each area education agency, and with the division of special 22 education of the department, to develop a plan to transfer 23 employees of the area education agency whose primary job duties 24 involve providing oversight and compliance services to the area 25 education agency to ensure the area education agency complies 26 with all applicable federal and state laws related to special 27 education from employment under the area education agency to 28 employment under the division of special education of the 29 department, as needed. The plan shall include a description of 30 how the area education agency will accommodate any space needed 31 in the area education agency’s facilities for employees of the 32 division of special education. 33 2. The department of education will compile all of the plans 34 created pursuant to subsection 1 and submit the compilation to 35 -1- HF 2612.3393 (1) 90 jda/jh 1/ 26 #1.

the general assembly on or before January 1, 2025. 1 DIVISION II 2 AREA EDUCATION AGENCIES —— GENERAL PROVISIONS 3 Sec. 4. Section 273.1, Code 2024, is amended to read as 4 follows: 5 273.1 Intent. 6 It is the intent of the general assembly to provide an 7 effective, efficient, and economical means of identifying and 8 serving children from under five years of age through grade 9 twelve who require special education and any other children 10 requiring special education as defined in section 256B.2 ; to 11 provide for media services and other programs and services 12 for pupils in grades kindergarten through twelve and children 13 requiring special education as defined in section 256B.2 ; to 14 provide a method of financing the programs and services; and 15 to avoid a duplication of programs and services provided by 16 any other school corporation in the state; and to provide 17 services to school districts under a contract with those school 18 districts ; to improve student achievement; and to close student 19 achievement gaps . 20 Sec. 5. Section 273.2, subsections 1, 3, and 4, Code 2024, 21 are amended to read as follows: 22 1. There are established throughout the state fifteen nine 23 area education agencies, each of which is governed by an area 24 education agency board of directors and, beginning July 1, 25 2025, by the division of special education of the department of 26 education to the extent described in section 256B.3, subsection 27 15A . The boundaries of an area education agency shall not 28 divide a school district. The director of the department of 29 education shall change boundaries of area education agencies 30 to take into account mergers of local school districts and 31 changes in boundaries of local school districts, when necessary 32 to maintain the policy of this chapter that a local school 33 district shall not be a part of more than one area education 34 agency. 35 -2- HF 2612.3393 (1) 90 jda/jh 2/ 26

3. a. (1) The Subject to subparagraph (2), the area 1 education agency board shall furnish educational services and 2 programs as provided in section 273.1 , this section , sections 3 273.3 through 273.8 , and chapter 256B to the pupils enrolled 4 in public or nonpublic schools located within its boundaries 5 which are on the list of accredited schools pursuant to section 6 256.11 . 7 (2) A public school located within an area education 8 agency’s boundaries that wishes to receive educational services 9 and programs from the area education agency must request to 10 receive such educational services and programs by February 1 of 11 the preceding school year, including by providing for a method 12 of payment for such services and programs and entering into an 13 agreement with the area education agency. If a public school 14 located within an area education agency’s boundaries requests 15 to receive such services after February 1 of the preceding 16 school year, the area education agency board may furnish the 17 educational services and programs. 18 (3) The programs and services provided under this 19 subsection shall be at least commensurate with programs and 20 services existing on July 1, 1974. 21 (4) The programs and services provided to pupils enrolled 22 in nonpublic schools shall be comparable to programs and 23 services provided to pupils enrolled in public schools within 24 constitutional guidelines. 25 b. The area education agencies may furnish evidence-based 26 professional development services to public or nonpublic 27 schools located within its boundaries which are on the list of 28 accredited schools pursuant to section 256.11, subject to the 29 approval of the director of the department of education. 30 4. The area education agency board shall provide do all of 31 the following: 32 a. Provide for special education services and media services 33 for the local school districts in the area and shall encourage 34 that request to receive such services by February 1 of the 35 -3- HF 2612.3393 (1) 90 jda/jh 3/ 26

preceding school year, including by providing for a method of 1 payment for such services and entering into agreements with the 2 area education agency. An area education agency may provide 3 special education services for local school districts in the 4 area that request to receive such services after February 1 of 5 the preceding school year. 6 b. Encourage and assist school districts in the area to 7 establish programs for gifted and talented children. The board 8 shall assist 9 c. Assist in facilitating interlibrary loans of materials 10 between school districts and other libraries. 11 Sec. 6. Section 273.2, Code 2024, is amended by adding the 12 following new subsections: 13 NEW SUBSECTION . 4A. The area education agency board shall 14 provide for media services for the local school districts in 15 the area that request to receive such services by February 1 of 16 the preceding school year, including by providing for a method 17 of payment for such services and entering into agreements 18 with the area education agency. An area education agency may 19 provide media services for local school districts in the area 20 that request to receive such services after February 1 of the 21 preceding school year. 22 NEW SUBSECTION . 12. The area education agency board shall 23 charge reasonable costs that are consistent with current 24 market rates for the educational services, special education 25 services, professional development services, and media services 26 established by the area education agency board. 27 NEW SUBSECTION . 13. The area education agency board 28 shall provide an annual report by October 1 of each year to 29 the general assembly and the department of education that 30 includes a description of the progress the area education 31 agency has made to improve the outcomes achieved by students 32 receiving special education services and a description of how 33 the area education agency is focusing the moneys it receives on 34 providing services in the classroom. 35 -4- HF 2612.3393 (1) 90 jda/jh 4/ 26

Sec. 7. Section 273.3, subsection 11, Code 2024, is amended 1 to read as follows: 2 11. Employ personnel to carry out the functions of the 3 area education agency which shall include the employment of 4 an administrator who shall possess a license issued under 5 chapter 256, subchapter VII, part 3 . The administrator shall 6 be employed pursuant to section 279.20 and sections 279.23 , 7 279.24 , and 279.25 . The salary for an area education agency 8 administrator shall be established by the board based upon 9 the previous experience and education of the administrator ; 10 provided, however, that the salary for an area education agency 11 administrator shall not exceed one hundred twenty-five percent 12 of the average salary of all superintendents of the school 13 districts that are located within the boundaries of the area 14 education agency . Section 279.13 applies to the area education 15 agency board and to all teachers employed by the area education 16 agency. Sections 279.23 , 279.24 , and 279.25 apply to the area 17 education board and to all administrators employed by the area 18 education agency. Section 279.69 applies to the area education 19 agency board and employees of the board, including part-time, 20 substitute, or contract employees, who provide services to a 21 school or school district. 22 Sec. 8. Section 273.3, Code 2024, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 26. Annually, on or before January 1 of 25 each year, prepare and submit to each school district within 26 the boundaries of the area education agency a report that 27 includes all of the following: 28 a. A monetary accounting of payments the area education 29 agency received from the school district, including payments 30 under section 257.35, during the previous fiscal year. 31 b. A description of the services the area education agency 32 provided to the school district during the previous fiscal 33 year, including a calculation of the cost per pupil for each 34 category of service the area education agency provided to the 35 -5- HF 2612.3393 (1) 90 jda/jh 5/ 26

school district. 1 Sec. 9. Section 273.4, unnumbered paragraph 1, Code 2024, 2 is amended to read as follows: 3 Under direction of the board of directors of the area 4 education agency, and, beginning July 1, 2025, the division of 5 special education of the department of education, to the extent 6 described in section 256B.3, subsection 15A, the administrator 7 of the area education agency shall, in addition to other 8 duties: 9 Sec. 10. Section 273.5, unnumbered paragraph 1, Code 2024, 10 is amended to read as follows: 11 There shall be established a division of special education 12 of the area education agency which shall provide for special 13 education programs and services to the local school districts. 14 The division of special education shall be headed by a director 15 of special education who meets certification standards of the 16 department of education. The director of special education 17 shall be an employee of the division of special education of 18 the department of education. The director of special education 19 shall have the responsibility for implementation of state 20 regulations and guidelines relating to special education 21 programs and services. The director of special education shall 22 have the following powers and duties: 23 Sec. 11. Section 273.8, subsection 1, Code 2024, is amended 24 to read as follows: 25 1. Board of directors. 26 a. The board of directors of an area education agency shall 27 consist of not less than five nor more than nine members , 28 each a resident of and elected in the manner provided in this 29 section from a director district that is approximately equal 30 in population to the other director districts in the area 31 education agency . Each director shall serve a four-year term 32 which commences at the organization meeting. 33 b. Five members of the board of directors of an area 34 education agency must be residents of and elected in the 35 -6- HF 2612.3393 (1) 90 jda/jh 6/ 26

manner provided in this section from a director district that 1 is approximately equal in population to the other director 2 districts in the area education agency. 3 c. Four members of the board of directors of an area 4 education agency must be appointed by the majority vote of 5 the superintendents of school districts located within the 6 boundaries of the area education agency. A member appointed 7 pursuant to this paragraph must be a superintendent of a school 8 district located within the boundaries of the area education 9 agency; provided, however, that a superintendent appointed 10 pursuant to this paragraph may designate any individual to 11 serve for all, or the remainder of, the superintendent’s term. 12 Sec. 12. Section 273.8, subsection 2, paragraphs c and d, 13 Code 2024, are amended to read as follows: 14 c. The board of each separate school district that is 15 located entirely or partially inside an area education agency 16 director district shall cast a vote for director of the area 17 education agency board described in subsection 1, paragraph 18 “b” , based upon the ratio that the population of the school 19 district, or portion of the school district, in the director 20 district bears to the total population in the director 21 district. The population of each school district or portion 22 shall be determined by the department of education. The member 23 of the area education agency board described in subsection 1, 24 paragraph “b” , to be elected may be a member of a local school 25 district board of directors and shall be an elector and a 26 resident of the director district, but shall not be a school 27 district employee. 28 d. (1) Vacancies A vacancy , as defined in section 277.29 , 29 in the a membership position of the area education agency board 30 described in subsection 1, paragraph “b” , shall be filled 31 for the unexpired portion of the term at a director district 32 convention called and conducted in the manner provided in 33 subsection 3 . 34 (2) A vacancy, as defined in section 277.29, in a membership 35 -7- HF 2612.3393 (1) 90 jda/jh 7/ 26

position of the area education agency board described in 1 subsection 1, paragraph “c” , shall be filled for the unexpired 2 portion of the term by an individual who is appointed by 3 the majority vote of the superintendents of school districts 4 located within the boundaries of the area education agency. 5 Sec. 13. Section 273.8, subsection 3, Code 2024, is amended 6 to read as follows: 7 3. Director district convention. If no candidate files with 8 the area education agency secretary by the deadline specified 9 in subsection 2 , or a vacancy occurs, or if otherwise required 10 as provided in section 273.23, subsection 3 , a director 11 district convention, attended by members of the boards of 12 directors of the local school districts located within the 13 director district, shall be called to elect a board member 14 described in subsection 1, paragraph “b” , for that director 15 district. The convention location shall be determined by the 16 area education agency administrator. Notice of the time, date, 17 and place of a director district convention shall be published 18 by the area education agency administrator in at least one 19 newspaper of general circulation in the director district at 20 least thirty days prior to the day of the convention. The cost 21 of publication shall be paid by the area education agency. A 22 candidate for election to the area education agency board shall 23 file a statement of candidacy with the area education agency 24 secretary at least ten days prior to the date of the director 25 district convention on forms prescribed by the department of 26 education, or nominations may be made at the convention by a 27 delegate from a board of directors of a school district located 28 within the director district. A statement of candidacy shall 29 include the candidate’s name, address, and school district. 30 Delegates to director district conventions shall not be bound 31 by a school board or any school board member to pledge their 32 votes to any candidate prior to the date of the convention. 33 Sec. 14. Section 273.10, Code 2024, is amended to read as 34 follows: 35 -8- HF 2612.3393 (1) 90 jda/jh 8/ 26

273.10 Accreditation of area education programs. 1 1. The division of special education of the department 2 of education shall develop, in consultation with the area 3 education agencies, and establish an accreditation process for 4 area education agencies by July 1, 1997 . At a minimum, the 5 accreditation process shall consist of the following: 6 a. The timely submission by an area education agency of 7 information required by the division of special education of 8 the department on forms provided by the department division of 9 special education . 10 b. The use of an accreditation team appointed by the 11 director division of special education of the department of 12 education to conduct an evaluation, including an on-site visit 13 of each area education agency. The team shall include, but 14 is not limited to, department staff members, representatives 15 from the school districts served by the area education agency 16 being evaluated, area education agency staff members from area 17 education agencies other than the area education agency that 18 conducts the programs being evaluated for accreditation, and 19 other team members with expertise as deemed appropriate by the 20 director division of special education . 21 2. Prior to a visit to an area education agency, the 22 accreditation team shall have access to that area education 23 agency’s program audit report filed with the department 24 division of special education of the department of education . 25 After a visit to an area education agency, the accreditation 26 team shall determine whether the accreditation standards for 27 a program, including but not limited to standards established 28 pursuant to section 256.9, subsection 54 section 256B.3, 29 subsection 15B , have been met and shall make a report to the 30 director and the state board division of special education , 31 together with a recommendation as to whether the programs of 32 the area education agency should receive initial accreditation 33 or remain accredited. The accreditation team shall report 34 strengths and weaknesses, if any, for each accreditation 35 -9- HF 2612.3393 (1) 90 jda/jh 9/ 26

standard and shall advise the area education agency of 1 available resources and technical assistance to further enhance 2 the strengths and improve areas of weakness. An area education 3 agency may respond to the accreditation team’s report. 4 3. The state board of education division of special 5 education of the department of education shall determine 6 whether a program of an area education agency shall receive 7 initial accreditation or shall remain accredited. 8 a. Approval of area education agency programs by the state 9 board division of special education shall be based upon the 10 recommendation of the director of the department of education 11 after a study of the factual and evaluative evidence on record 12 about each area education agency program in terms of the 13 accreditation standards adopted by the state board. 14 b. Approval, if granted, shall be for a term of five years. 15 However, the state board division of special education may 16 grant conditional approval for a term of less than five years 17 if conditions warrant. 18 4. If the state board of education division of special 19 education of the department of education determines that an 20 area education agency’s program does not meet accreditation 21 standards, the director of the department of education 22 division of special education , in cooperation with the board 23 of directors of the area education agency, shall establish a 24 remediation plan prescribing the procedures that must be taken 25 to correct deficiencies in meeting the program standards, 26 and shall establish a deadline date for correction of the 27 deficiencies. The remediation plan is subject to the approval 28 of the state board. 29 5. The division of special education of the department 30 of education may suspend the accreditation of the area 31 education agency program shall remain accredited during the 32 implementation of the remediation plan. The accreditation 33 team shall visit the area education agency and shall determine 34 whether the deficiencies in the standards for the program have 35 -10- HF 2612.3393 (1) 90 jda/jh 10/ 26

been corrected and shall make a report and recommendation 1 to the director and the state board of education division 2 of special education . The state board division of special 3 education shall review the report and recommendation and shall 4 determine whether the deficiencies in the program have been 5 corrected. If the division of special education determines 6 that the deficiencies in the program have been corrected, the 7 division of special education shall reinstate the accreditation 8 of the area education agency program if such accreditation was 9 suspended pursuant to this subsection. 10 6. a. If the deficiencies in an area education program 11 have not been corrected, the agency board division of special 12 education of the department of education shall take one 13 of the following actions within sixty days from removal of 14 accreditation: 15 (1) Merge the deficient program with a program from another 16 accredited area education agency. 17 (2) Contract with another area education agency or other 18 public educational institution for purposes of program 19 delivery. 20 b. The rules developed by the state board of education for 21 the accreditation process shall include provisions for removal 22 of accreditation, including provisions for proper notice to the 23 administrator of the area education agency, each member of the 24 board of directors of the area education agency, the department 25 of education, and the superintendents and administrators of the 26 schools of the districts served by the area education agency. 27 Sec. 15. Section 273.11, Code 2024, is amended to read as 28 follows: 29 273.11 Standards for accrediting area education programs. 30 1. The state board of education , in consultation with the 31 division of special education of the department of education, 32 shall develop standards and rules for the accreditation of area 33 education agencies. Standards shall be general in nature, 34 but at a minimum shall identify requirements addressing the 35 -11- HF 2612.3393 (1) 90 jda/jh 11/ 26

services provided by each division, as well as identifying 1 indicators of quality that will permit area education agencies, 2 school districts, the division of special education of the 3 department of education, and the general public to judge 4 accurately the effectiveness of area education agency services. 5 2. Standards developed shall include, but are not limited 6 to, the following: 7 a. Support for school-community planning, including a means 8 of assessing needs, developing collaborative relationships 9 among community agencies, establishing shared direction , and 10 implementing program plans and reporting progress toward goals 11 for all students, including students with disabilities . 12 b. Professional Evidence-based professional development 13 programs that respond to current needs. 14 c. Support for curriculum development, instruction, and 15 assessment for services that address the areas of reading, 16 language arts, math , and science, using research-based 17 methodologies , for all students, including students with 18 disabilities . 19 d. Special education compliance and support. 20 e. Management services, including financial reporting and 21 purchasing as requested and funded by local districts. 22 f. Support for instructional media services that supplement 23 and support local district media centers and services. 24 g. Support for school technology planning and staff 25 development for implementing instructional technologies. 26 h. A program and services evaluation and reporting system 27 that includes information related to special education . 28 i. Support for school district libraries in accordance with 29 section 273.2, subsection 4 . 30 j. Support for early childhood service coordination for 31 families and children , age birth through three years, to 32 meet health, safety, and learning needs , including service 33 coordination . 34 k. Timely submission of required reports and documents to 35 -12- HF 2612.3393 (1) 90 jda/jh 12/ 26

the state board of education, the department of education, 1 and the division of special education of the department of 2 education. 3 l. Support for schools and school districts in analyzing 4 student achievement data related to the learning environment, 5 comparing data to the external knowledge base, and using that 6 information to guide schools and school districts in setting 7 goals and implementing actions to improve student learning for 8 all students, including students with disabilities. 9 m. Support for addressing the diverse learning needs of 10 all children and youths, including children and youths who are 11 eligible for special education through services that include 12 direct services to students with disabilities. 13 n. Support for schools and school districts to ensure 14 compliance with rules adopted by the state board of education 15 related to special education. 16 o. Support necessary to implement effective instruction for 17 all students, including students with disabilities, through 18 school technology services. 19 p. Support for students using educational programs and 20 services in a manner that is consistent with the educational 21 standards established pursuant to section 256.11. 22 q. Support for staff development and adult learners 23 utilizing evidence-based professional development in a manner 24 that meets the professional needs of staff and adult learners 25 consistent with standards adopted by the state board of 26 education. 27 r. Compliance with all relevant federal and state laws 28 in the provision of services and supports to students with 29 disabilities. 30 Sec. 16. TRANSITION PROVISIONS. 31 1. An area education agency that was accredited pursuant to 32 section 273.10 on or before the effective date of the section 33 of this division of this Act amending section 273.10 shall 34 remain accredited unless and until the division of special 35 -13- HF 2612.3393 (1) 90 jda/jh 13/ 26

education of the department of education takes action to remove 1 accreditation from the area education agency pursuant to 2 section 273.10, as amended in this division of this Act. 3 2. a. As of July 1, 2024, each area education agency shall 4 terminate the employment of all directors of special education 5 employed by the area education agency pursuant to section 6 273.5, as amended in this division of this Act. 7 b. Within a reasonable time after July 1, 2024, the 8 division of special education of the department of education 9 shall employ at least one individual to serve as a director 10 of special education in each area education agency. During 11 the hiring process associated with employing an individual to 12 serve as director of special education in an area education 13 agency, the division of special education shall give preference 14 to individuals whose employment was terminated pursuant to 15 paragraph “a”. 16 Sec. 17. EFFECTIVE DATE. The following take effect July 1, 17 2025: 18 1. The section of this division of this Act amending section 19 273.10. 20 2. The section of this division of this Act amending section 21 273.11. 22 Sec. 18. APPLICABILITY. The following applies to 23 employment agreements entered into or renewed between an area 24 education agency and an area education agency administrator on 25 or after July 1, 2024: 26 The section of this division of this Act amending section 27 273.3, subsection 11. 28 Sec. 19. APPLICABILITY. The following applies to the 29 election of directors and vacancies occurring under section 30 273.8, as amended in this division of this Act, on or after 31 July 1, 2024: 32 The sections of this division of this Act amending section 33 273.8. 34 Sec. 20. APPLICABILITY. The following apply to school years 35 -14- HF 2612.3393 (1) 90 jda/jh 14/ 26

beginning on or after July 1, 2025: 1 1. The portion of the section of this division of this Act 2 amending section 273.2, subsection 3. 3 2. The portion of the section of this division of this Act 4 amending section 273.2, subsection 4. 5 3. The portion of the section of this division of this Act 6 enacting section 273.2, subsection 4A. 7 DIVISION III 8 AREA EDUCATION AGENCIES —— FUNDING 9 Sec. 21. Section 257.1, subsection 3, Code 2024, is amended 10 to read as follows: 11 3. Computations rounded. In making computations and 12 payments under this chapter , except in the case of computations 13 relating to funding of special education support services, 14 media services, and educational services provided through the 15 area education agencies under section 257.37 , and the teacher 16 salary supplement, the professional development supplement, 17 the early intervention supplement, and the teacher leadership 18 supplement, the department of management shall round amounts to 19 the nearest whole dollar. 20 Sec. 22. Section 257.10, subsection 7, Code 2024, is amended 21 to read as follows: 22 7. Special education support services district cost. Special 23 education support services district cost for a school district 24 for a budget year is equal to the special education support 25 services district cost per pupil for the budget year multiplied 26 by the special education support services weighted enrollment 27 for the district for the budget year. If the special education 28 support services district cost for a school district for 29 a budget year is less than the special education support 30 services district cost for that district for the base year, the 31 department of management shall adjust the special education 32 support services district cost for that district for the budget 33 year to equal the special education support services district 34 cost for the base year. Funds calculated under this subsection 35 -15- HF 2612.3393 (1) 90 jda/jh 15/ 26

and received by a school district or an area education agency, 1 as applicable, shall be used for special education support 2 services. 3 Sec. 23. Section 257.10, subsection 8, paragraph a, Code 4 2024, is amended to read as follows: 5 a. Combined district cost is the sum of the regular program 6 district cost per pupil multiplied by the weighted enrollment, 7 the special education support services district cost, the 8 total teacher salary supplement district cost, the total 9 professional development supplement district cost, the total 10 early intervention supplement district cost, and the total 11 teacher leadership supplement district cost, plus the sum of 12 the additional district cost allocated to the district to fund 13 media services and educational services provided through the 14 area education agency under section 257.37 , the area education 15 agency total teacher salary supplement district cost and the 16 area education agency total professional development supplement 17 district cost. 18 Sec. 24. Section 257.35, subsection 1, Code 2024, is amended 19 to read as follows: 20 1. a. (1) The For fiscal years beginning before July 1, 21 2024, the department of management shall deduct the amounts 22 calculated for special education support services, media 23 services, area education agency teacher salary supplement 24 district cost, area education agency professional development 25 supplement district cost, and educational services for each 26 school district from the state aid due to the district pursuant 27 to this chapter and shall pay the amounts to the respective 28 area education agencies on a monthly basis from September 15 29 through June 15 during each school year. 30 (2) For the fiscal year beginning July 1, 2024, the 31 department of management shall deduct the following amounts 32 from the state aid due to each school district pursuant to 33 this chapter and shall pay the amounts to the respective area 34 education agencies on a monthly basis from September 15 through 35 -16- HF 2612.3393 (1) 90 jda/jh 16/ 26

June 15 during each school year: 1 (a) The amount calculated for special education support 2 services for the school district. 3 (b) Forty percent of the amount calculated for media 4 services for the school district. 5 (c) The area education agency teacher salary supplement 6 district cost. 7 (d) The area education agency professional development 8 supplement district cost. 9 (e) Forty percent of the amount calculated in section 257.37 10 for educational services for the school district. 11 (3) For the fiscal year beginning July 1, 2025, and each 12 fiscal year thereafter, the department of management shall 13 deduct the following from the state aid due to each school 14 district pursuant to this chapter and shall pay the amounts to 15 the respective area education agencies on a monthly basis from 16 September 15 through June 15 during each school year: 17 (a) Ten percent of the amount calculated for special 18 education support services for the school district. 19 (b) The area education agency teacher salary supplement 20 district cost. 21 (c) The area education agency professional development 22 supplement district cost. 23 b. The department of management shall notify each school 24 district of the amount of state aid deducted for these purposes 25 and the balance of state aid shall be paid to the district. If 26 a district does not qualify for state aid under this chapter 27 in an amount sufficient to cover its amount due to the area 28 education agency as calculated by the department of management, 29 the school district shall pay the deficiency to the area 30 education agency from other moneys received by the district, on 31 a quarterly basis during each school year. 32 Sec. 25. Section 257.37, Code 2024, is amended to read as 33 follows: 34 257.37 Funding media and educational services. 35 -17- HF 2612.3393 (1) 90 jda/jh 17/ 26

Media services and educational services provided by a school 1 district or through the area education agencies agency shall be 2 funded, to the extent provided, by an addition to the combined 3 district cost of each school district, determined as follows: 4 1. For the budget year beginning July 1, 1991, and 5 succeeding budget years, the total amount funded in each area 6 for media services shall be computed as provided in this 7 subsection . For the budget year beginning July 1, 1991, the 8 total amount funded in each area for media services in the 9 base year shall be divided by the enrollment served in the 10 base year to provide an area media services cost per pupil in 11 the base year, and the department of management shall compute 12 the state media services cost per pupil in the base year which 13 is equal to the average of the area media services costs per 14 pupil in the base year. For the budget year beginning July 1, 15 1991, and succeeding budget years, the department of management 16 shall compute the supplemental state aid for media services 17 in the budget year by multiplying the state media services 18 cost per pupil in the base year times the state percent of 19 growth for the budget year, and the total amount funded in each 20 area for media services cost in the budget year equals the 21 area media services cost per pupil in the base year plus the 22 supplemental state aid for media services in the budget year 23 times the enrollment served in the budget year. Funds shall be 24 paid to area education agencies as provided in section 257.35 . 25 Funds not required to be paid to the area education agency as 26 provided in section 257.35 may be used by the school district 27 for media services provided by the district or by contract 28 through the area education agency. A school district may use 29 unreserved fund balances for media services in a manner which 30 the school district determines is appropriate to best maintain 31 the level of special education services. 32 2. Up to thirty percent of the budget of an area for media 33 services may be expended for media resource material including 34 the purchase or replacement of material required in section 35 -18- HF 2612.3393 (1) 90 jda/jh 18/ 26