House File 2367 - Introduced HOUSE FILE 2367 BY TJEPKES A BILL FOR An Act directing state aid funding for special education 1 support services, media services, educational services, 2 area education agency professional development supplement, 3 and area education agency teacher salary supplement to 4 the applicable school districts, allowing area education 5 agencies and community colleges to bid to provide the 6 services that the funding supports, and including 7 applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 5376YH (2) 83 ak/sc

H.F. 2367 Section 1. Section 257.35, subsection 1, Code Supplement 1 2009, is amended to read as follows: 2 1. The For school budget years beginning prior to July 1, 3 2011, the department of management shall deduct the amounts 4 calculated for special education support services, media 5 services, area education agency teacher salary supplement 6 district cost, area education agency professional development 7 supplement district cost, and educational services for each 8 school district from the state aid due to the district pursuant 9 to this chapter and shall pay the amounts to the respective 10 area education agencies on a monthly basis from September 15 11 through June 15 during each school year. The department of 12 management shall notify each school district of the amount 13 of state aid deducted for these purposes and the balance of 14 state aid shall be paid to the district. If a district does 15 not qualify for state aid under this chapter in an amount 16 sufficient to cover its amount due to the area education agency 17 as calculated by the department of management, the school 18 district shall pay the deficiency to the area education agency 19 from other moneys received by the district, on a quarterly 20 basis during each school year. 21 Sec. 2. NEW SECTION . 257.35A Area education agencies —— 22 state funding redirected. 23 1. Notwithstanding any provision of this chapter to the 24 contrary, for school budget years beginning on or after 25 July 1, 2011, the state aid funding for special education 26 support services, media services, and educational services, 27 as calculated by this chapter, shall be paid directly to the 28 applicable school district. 29 2. A school district may solicit bids from area education 30 agencies and Iowa community colleges to provide special 31 education services, media services, and educational services, 32 as those services are described in chapter 273. However, the 33 school district soliciting bids shall not receive funding for 34 its costs that exceeds the amount determined under subsection 35 -1- LSB 5376YH (2) 83 ak/sc 1/ 3

H.F. 2367 1. 1 3. The department of education shall distribute the 2 appropriate amount of area education agency professional 3 development supplement and area education agency teacher salary 4 supplement funding to a school district if an area education 5 agency successfully bids to provide the services. 6 Sec. 3. Section 260C.14, Code Supplement 2009, is amended by 7 adding the following new subsection: 8 NEW SUBSECTION . 23. To the extent authorized by section 9 273.9A, have the powers and duties with respect to community 10 colleges, not otherwise provided in this chapter, which are 11 prescribed for boards of directors of area education agencies 12 by chapter 273. 13 Sec. 4. Section 273.9, subsection 1, Code 2009, is amended 14 to read as follows: 15 1. School For school budget years beginning prior to July 1, 16 2011, school districts shall pay for the programs and services 17 provided through the area education agency and shall include 18 expenditures for the programs and services in their budgets, in 19 accordance with this section. 20 Sec. 5. NEW SECTION . 273.9A Funding from school districts 21 —— state and local funds. 22 Notwithstanding any provision of this chapter to the 23 contrary, for school budget years beginning on or after July 24 1, 2011, an area education agency or Iowa community college 25 shall receive state aid funding for providing special education 26 support services, media services, and educational services from 27 the applicable school district. Area education agencies and 28 Iowa community colleges may submit bids for providing special 29 education support services, media services, and educational 30 services in a process to be determined by the department of 31 education by rule under chapter 17A. 32 Sec. 6. APPLICABILITY. This Act applies to school budget 33 years beginning on or after July 1, 2011. 34 EXPLANATION 1 -2- LSB 5376YH (2) 83 ak/sc 2/ 3

H.F. 2367 This bill enacts new Code section 257.35A, which directs 2 state aid funding for special education support services, 3 media services, educational services, area education agency 4 professional development supplement, and area education agency 5 teacher salary supplement to the applicable school districts. 6 A school district may solicit bids from area education 7 agencies (AEAs) and Iowa community colleges to receive these 8 services. The bill allows AEAs and community colleges to bid 9 to provide special education support services, media services, 10 and educational services. An AEA or community college that 11 successfully bids to provide these services to a school 12 district will receive the appropriate amount of funding not to 13 exceed the amount determined under new Code section 275.35A. 14 The department of education is tasked with developing the bid 15 process by rule. 16 Under current law, area education agency funding operates 17 pursuant to a “flow-through” concept. With no direct taxing 18 authority, AEAs rely on local school districts to generate 19 funds for their operation. While AEA funding is included 20 within a school district’s budget, the district does not 21 actually receive AEA-related state aid payments. Instead, 22 funds generated by the districts through the operation of the 23 school finance formula and earmarked for AEAs are subtracted by 24 the department of management from the state aid otherwise due 25 to the district and are paid directly to each AEA. 26 The bill applies to school budget years beginning on or after 27 July 1, 2011. 28 -3- LSB 5376YH (2) 83 ak/sc 3/ 3