Senate File 2386 - Introduced SENATE FILE 2386 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SSB 3073) A BILL FOR An Act relating to education, including modifying provisions 1 related to the duties and powers of area education 2 agencies, the department of education, the department of 3 administrative services, area education agency funding, 4 the calculation of the teacher salary supplement district 5 cost per pupil and the minimum teacher starting salary, and 6 including transition, effective date, and applicability 7 provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 5189SV (3) 90 jda/jh

S.F. 2386 DIVISION I 1 DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION 2 Section 1. Section 256.9, subsection 54, Code 2024, is 3 amended by striking the subsection. 4 Sec. 2. Section 256B.3, Code 2024, is amended by adding the 5 following new subsections: 6 NEW SUBSECTION . 15A. Beginning July 1, 2025, oversee the 7 operation of each area education agency to ensure the area 8 education agency complies with all applicable federal and state 9 laws related to special education. 10 NEW SUBSECTION . 15B. Beginning July 1, 2025, provide 11 guidance and standards to area education agencies for federal 12 and state education initiatives which the area education 13 agencies must implement statewide. 14 Sec. 3. DEPARTMENT OF EDUCATION AND AREA EDUCATION AGENCIES 15 —— STAFFING AND TRANSITION PLAN. 16 1. The department of education shall coordinate with 17 each area education agency, and with the division of special 18 education of the department, to develop a plan to transfer 19 employees of the area education agency whose primary job duties 20 involve providing oversight and compliance services to the area 21 education agency to ensure the area education agency complies 22 with all applicable federal and state laws related to special 23 education from employment under the area education agency to 24 employment under the division of special education of the 25 department, as needed. The plan shall include a description of 26 how the area education agency will accommodate any space needed 27 in the area education agency’s facilities for employees of the 28 division of special education. 29 2. The department of education will compile all of the plans 30 created pursuant to subsection 1 and submit the compilation to 31 the general assembly on or before January 1, 2025. 32 DIVISION II 33 AREA EDUCATION AGENCIES —— GENERAL PROVISIONS 34 Sec. 4. Section 273.1, Code 2024, is amended to read as 35 -1- LSB 5189SV (3) 90 jda/jh 1/ 26

S.F. 2386 follows: 1 273.1 Intent. 2 It is the intent of the general assembly to provide an 3 effective, efficient, and economical means of identifying and 4 serving children from under five years of age through grade 5 twelve who require special education and any other children 6 requiring special education as defined in section 256B.2 ; to 7 provide for media services and other programs and services 8 for pupils in grades kindergarten through twelve and children 9 requiring special education as defined in section 256B.2 ; to 10 provide a method of financing the programs and services; and 11 to avoid a duplication of programs and services provided by 12 any other school corporation in the state; and to provide 13 services to school districts under a contract with those school 14 districts ; to improve student achievement; and to close student 15 achievement gaps . 16 Sec. 5. Section 273.2, subsections 1, 3, and 4, Code 2024, 17 are amended to read as follows: 18 1. There are established throughout the state fifteen 19 area education agencies, each of which is governed by an area 20 education agency board of directors and, beginning July 1, 21 2025, by the division of special education of the department of 22 education to the extent described in section 256B.3, subsection 23 15A . The boundaries of an area education agency shall not 24 divide a school district. The director of the department of 25 education shall change boundaries of area education agencies 26 to take into account mergers of local school districts and 27 changes in boundaries of local school districts, when necessary 28 to maintain the policy of this chapter that a local school 29 district shall not be a part of more than one area education 30 agency. 31 3. a. The area education agency board shall furnish 32 educational services and programs as provided in section 273.1 , 33 this section , sections 273.3 through 273.8 , and chapter 256B 34 to the pupils enrolled in public or nonpublic schools located 35 -2- LSB 5189SV (3) 90 jda/jh 2/ 26

S.F. 2386 within its boundaries which are on the list of accredited 1 schools pursuant to section 256.11 . The programs and services 2 provided shall be at least commensurate with programs and 3 services existing on July 1, 1974. The programs and services 4 provided to pupils enrolled in nonpublic schools shall be 5 comparable to programs and services provided to pupils enrolled 6 in public schools within constitutional guidelines. 7 b. The area education agencies may furnish evidence-based 8 professional development services to public or nonpublic 9 schools located within its boundaries which are on the list of 10 accredited schools pursuant to section 256.11, subject to the 11 approval of the director of the department of education. 12 4. The area education agency board shall provide do all of 13 the following: 14 a. Provide for special education services and media services 15 for the local school districts in the area and shall encourage 16 that request to receive such services by February 1 of the 17 preceding school year, including by providing for a method of 18 payment for such services and entering into agreements with the 19 area education agency. An area education agency may provide 20 special education services for local school districts in the 21 area that request to receive such services after February 1 of 22 the preceding school year. 23 b. Encourage and assist school districts in the area to 24 establish programs for gifted and talented children. The board 25 shall assist 26 c. Assist in facilitating interlibrary loans of materials 27 between school districts and other libraries. 28 d. Provide for media services for local school districts in 29 the area. 30 Sec. 6. Section 273.2, Code 2024, is amended by adding the 31 following new subsections: 32 NEW SUBSECTION . 12. The area education agency board shall 33 charge reasonable costs that are consistent with current 34 market rates for the educational services, special education 35 -3- LSB 5189SV (3) 90 jda/jh 3/ 26

S.F. 2386 services, professional development services, and media services 1 established by the area education agency board. 2 NEW SUBSECTION . 13. The area education agency board 3 shall provide an annual report by October 1 of each year to 4 the general assembly and the department of education that 5 includes a description of the progress the area education 6 agency has made to improve the outcomes achieved by students 7 receiving special education services and a description of how 8 the area education agency is focusing the moneys it receives on 9 providing services in the classroom. 10 Sec. 7. Section 273.3, subsection 11, Code 2024, is amended 11 to read as follows: 12 11. Employ personnel to carry out the functions of the 13 area education agency which shall include the employment of 14 an administrator who shall possess a license issued under 15 chapter 256, subchapter VII, part 3 . The administrator shall 16 be employed pursuant to section 279.20 and sections 279.23 , 17 279.24 , and 279.25 . The salary for an area education agency 18 administrator shall be established by the board based upon 19 the previous experience and education of the administrator ; 20 provided, however, that the salary for an area education agency 21 administrator shall not exceed one hundred twenty-five percent 22 of the average salary of all superintendents of the school 23 districts that are located within the boundaries of the area 24 education agency . Section 279.13 applies to the area education 25 agency board and to all teachers employed by the area education 26 agency. Sections 279.23 , 279.24 , and 279.25 apply to the area 27 education board and to all administrators employed by the area 28 education agency. Section 279.69 applies to the area education 29 agency board and employees of the board, including part-time, 30 substitute, or contract employees, who provide services to a 31 school or school district. 32 Sec. 8. Section 273.3, Code 2024, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 26. Annually, on or before January 1 of 35 -4- LSB 5189SV (3) 90 jda/jh 4/ 26

S.F. 2386 each year, prepare and submit to each school district within 1 the boundaries of the area education agency a report that 2 includes all of the following: 3 a. A monetary accounting of payments the area education 4 agency received from the school district, including payments 5 under section 257.35, during the previous fiscal year. 6 b. A description of the services the area education agency 7 provided to the school district during the previous fiscal 8 year, including a calculation of the cost per pupil for each 9 category of service the area education agency provided to the 10 school district. 11 Sec. 9. Section 273.4, unnumbered paragraph 1, Code 2024, 12 is amended to read as follows: 13 Under direction of the board of directors of the area 14 education agency, and, beginning July 1, 2025, the division of 15 special education of the department of education, to the extent 16 described in section 256B.3, subsection 15A, the administrator 17 of the area education agency shall, in addition to other 18 duties: 19 Sec. 10. Section 273.10, Code 2024, is amended to read as 20 follows: 21 273.10 Accreditation of area education programs. 22 1. The division of special education of the department 23 of education shall develop, in consultation with the area 24 education agencies, and establish an accreditation process for 25 area education agencies by July 1, 1997 . At a minimum, the 26 accreditation process shall consist of the following: 27 a. The timely submission by an area education agency of 28 information required by the division of special education of 29 the department on forms provided by the department division of 30 special education . 31 b. The use of an accreditation team appointed by the 32 director division of special education of the department of 33 education to conduct an evaluation, including an on-site visit 34 of each area education agency. The team shall include, but 35 -5- LSB 5189SV (3) 90 jda/jh 5/ 26

S.F. 2386 is not limited to, department staff members, representatives 1 from the school districts served by the area education agency 2 being evaluated, area education agency staff members from area 3 education agencies other than the area education agency that 4 conducts the programs being evaluated for accreditation, and 5 other team members with expertise as deemed appropriate by the 6 director division of special education . 7 2. Prior to a visit to an area education agency, the 8 accreditation team shall have access to that area education 9 agency’s program audit report filed with the department 10 division of special education of the department of education . 11 After a visit to an area education agency, the accreditation 12 team shall determine whether the accreditation standards for 13 a program, including but not limited to standards established 14 pursuant to section 256.9, subsection 54 section 256B.3, 15 subsection 15B , have been met and shall make a report to the 16 director and the state board division of special education , 17 together with a recommendation as to whether the programs of 18 the area education agency should receive initial accreditation 19 or remain accredited. The accreditation team shall report 20 strengths and weaknesses, if any, for each accreditation 21 standard and shall advise the area education agency of 22 available resources and technical assistance to further enhance 23 the strengths and improve areas of weakness. An area education 24 agency may respond to the accreditation team’s report. 25 3. The state board of education division of special 26 education of the department of education shall determine 27 whether a program of an area education agency shall receive 28 initial accreditation or shall remain accredited. 29 a. Approval of area education agency programs by the state 30 board division of special education shall be based upon the 31 recommendation of the director of the department of education 32 after a study of the factual and evaluative evidence on record 33 about each area education agency program in terms of the 34 accreditation standards adopted by the state board. 35 -6- LSB 5189SV (3) 90 jda/jh 6/ 26

S.F. 2386 b. Approval, if granted, shall be for a term of five years. 1 However, the state board division of special education may 2 grant conditional approval for a term of less than five years 3 if conditions warrant. 4 4. If the state board of education division of special 5 education of the department of education determines that an 6 area education agency’s program does not meet accreditation 7 standards, the director of the department of education 8 division of special education , in cooperation with the board 9 of directors of the area education agency, shall establish a 10 remediation plan prescribing the procedures that must be taken 11 to correct deficiencies in meeting the program standards, 12 and shall establish a deadline date for correction of the 13 deficiencies. The remediation plan is subject to the approval 14 of the state board. 15 5. The division of special education of the department 16 of education may suspend the accreditation of the area 17 education agency program shall remain accredited during the 18 implementation of the remediation plan. The accreditation 19 team shall visit the area education agency and shall determine 20 whether the deficiencies in the standards for the program have 21 been corrected and shall make a report and recommendation 22 to the director and the state board of education division 23 of special education . The state board division of special 24 education shall review the report and recommendation and shall 25 determine whether the deficiencies in the program have been 26 corrected. If the division of special education determines 27 that the deficiencies in the program have been corrected, the 28 division of special education shall reinstate the accreditation 29 of the area education agency program if such accreditation was 30 suspended pursuant to this subsection. 31 6. a. If the deficiencies in an area education program 32 have not been corrected, the agency board division of special 33 education of the department of education shall take one 34 of the following actions within sixty days from removal of 35 -7- LSB 5189SV (3) 90 jda/jh 7/ 26

S.F. 2386 accreditation: 1 (1) Merge the deficient program with a program from another 2 accredited area education agency. 3 (2) Contract with another area education agency or other 4 public educational institution for purposes of program 5 delivery. 6 b. The rules developed by the state board of education for 7 the accreditation process shall include provisions for removal 8 of accreditation, including provisions for proper notice to the 9 administrator of the area education agency, each member of the 10 board of directors of the area education agency, the department 11 of education, and the superintendents and administrators of the 12 schools of the districts served by the area education agency. 13 Sec. 11. Section 273.11, Code 2024, is amended to read as 14 follows: 15 273.11 Standards for accrediting area education programs. 16 1. The state board of education , in consultation with the 17 division of special education of the department of education, 18 shall develop standards and rules for the accreditation of area 19 education agencies. Standards shall be general in nature, 20 but at a minimum shall identify requirements addressing the 21 services provided by each division, as well as identifying 22 indicators of quality that will permit area education agencies, 23 school districts, the division of special education of the 24 department of education, and the general public to judge 25 accurately the effectiveness of area education agency services. 26 2. Standards developed shall include, but are not limited 27 to, the following: 28 a. Support for school-community planning, including a means 29 of assessing needs, developing collaborative relationships 30 among community agencies, establishing shared direction , and 31 implementing program plans and reporting progress toward goals 32 for students with disabilities . 33 b. Professional Evidence-based professional development 34 programs that respond to current needs. 35 -8- LSB 5189SV (3) 90 jda/jh 8/ 26

S.F. 2386 c. Support for curriculum development, instruction, and 1 assessment for services that address the areas of reading, 2 language arts, math , and science, using research-based 3 methodologies , for students with disabilities . 4 d. Special education compliance and support. 5 e. Management services, including financial reporting and 6 purchasing as requested and funded by local districts. 7 f. Support for instructional media services that supplement 8 and support local district media centers and services. 9 g. Support for school technology planning and staff 10 development for implementing instructional technologies. 11 h. A program and services evaluation and reporting system 12 related to special education . 13 i. Support for school district libraries in accordance with 14 section 273.2, subsection 4 . 15 j. Support for early childhood service coordination for 16 families and children , age birth through three years, to 17 meet health, safety, and learning needs , including service 18 coordination . 19 k. Timely submission of required reports and documents to 20 the state board of education, the department of education, 21 and the division of special education of the department of 22 education. 23 l. Support for schools and school districts in analyzing 24 student achievement data related to the learning environment, 25 comparing data to the external knowledge base, and using that 26 information to guide schools and school districts in setting 27 goals and implementing actions to improve student learning for 28 students with disabilities. 29 m. Support for addressing the diverse learning needs of 30 all children and youths with disabilities who are eligible for 31 special education, including through services that include 32 direct services to students with disabilities. 33 n. Support for schools and school districts to ensure 34 compliance with rules adopted by the state board of education 35 -9- LSB 5189SV (3) 90 jda/jh 9/ 26

S.F. 2386 related to special education. 1 o. Support necessary to implement effective instruction 2 for all students with disabilities through school technology 3 services. 4 p. Support for students using educational programs and 5 services in a manner that is consistent with the educational 6 standards established pursuant to section 256.11. 7 q. Support for staff development and adult learners 8 utilizing evidence-based professional development in a manner 9 that meets the professional needs of staff and adult learners 10 consistent with standards adopted by the state board of 11 education. 12 r. Compliance with all relevant federal and state laws 13 in the provision of services and supports to students with 14 disabilities. 15 Sec. 12. TRANSITION PROVISIONS. An area education agency 16 that was accredited pursuant to section 273.10 on or before 17 the effective date of the section of this division of this Act 18 amending section 273.10 shall remain accredited unless and 19 until the division of special education of the department of 20 education takes action to remove accreditation from the area 21 education agency pursuant to section 273.10, as amended in this 22 division of this Act. 23 Sec. 13. EFFECTIVE DATE. The following take effect July 1, 24 2025: 25 1. The section of this division of this Act amending section 26 273.2, subsection 4. 27 2. The section of this division of this Act amending section 28 273.10. 29 3. The section of this division of this Act amending section 30 273.11. 31 Sec. 14. APPLICABILITY. The following applies to 32 employment agreements entered into or renewed between an area 33 education agency and an area education agency administrator on 34 or after July 1, 2024: 35 -10- LSB 5189SV (3) 90 jda/jh 10/ 26

S.F. 2386 The section of this division of this Act amending section 1 273.3, subsection 11. 2 DIVISION III 3 AREA EDUCATION AGENCIES —— FUNDING 4 Sec. 15. Section 257.1, subsection 3, Code 2024, is amended 5 to read as follows: 6 3. Computations rounded. In making computations and 7 payments under this chapter , except in the case of computations 8 relating to funding of special education support services, 9 media services, and educational services provided through the 10 area education agencies under section 257.37 , and the teacher 11 salary supplement, the professional development supplement, 12 the early intervention supplement, and the teacher leadership 13 supplement, the department of management shall round amounts to 14 the nearest whole dollar. 15 Sec. 16. Section 257.10, subsection 7, Code 2024, is amended 16 to read as follows: 17 7. Special education support services district cost. Special 18 education support services district cost for a school district 19 for a budget year is equal to the special education support 20 services district cost per pupil for the budget year multiplied 21 by the special education support services weighted enrollment 22 for the district for the budget year. If the special education 23 support services district cost for a school district for 24 a budget year is less than the special education support 25 services district cost for that district for the base year, the 26 department of management shall adjust the special education 27 support services district cost for that district for the budget 28 year to equal the special education support services district 29 cost for the base year. Funds calculated under this subsection 30 and received by a school district or an area education agency, 31 as applicable, shall be used for special education support 32 services. 33 Sec. 17. Section 257.10, subsection 8, paragraph a, Code 34 2024, is amended to read as follows: 35 -11- LSB 5189SV (3) 90 jda/jh 11/ 26

S.F. 2386 a. Combined district cost is the sum of the regular program 1 district cost per pupil multiplied by the weighted enrollment, 2 the special education support services district cost, the 3 total teacher salary supplement district cost, the total 4 professional development supplement district cost, the total 5 early intervention supplement district cost, and the total 6 teacher leadership supplement district cost, plus the sum of 7 the additional district cost allocated to the district to fund 8 media services and educational services provided through the 9 area education agency under section 257.37 , the area education 10 agency total teacher salary supplement district cost and the 11 area education agency total professional development supplement 12 district cost. 13 Sec. 18. Section 257.35, subsection 1, Code 2024, is amended 14 to read as follows: 15 1. a. (1) The For fiscal years beginning before July 1, 16 2024, the department of management shall deduct the amounts 17 calculated for special education support services, media 18 services, area education agency teacher salary supplement 19 district cost, area education agency professional development 20 supplement district cost, and educational services for each 21 school district from the state aid due to the district pursuant 22 to this chapter and shall pay the amounts to the respective 23 area education agencies on a monthly basis from September 15 24 through June 15 during each school year. 25 (2) (a) For the fiscal year beginning July 1, 2024, the 26 department of management shall deduct the following amounts 27 from the state aid due to each school district pursuant to 28 this chapter and shall pay the amounts to the respective area 29 education agencies on a monthly basis from September 15 through 30 June 15 during each school year: 31 (b) The amount calculated for special education support 32 services for the school district. 33 (c) Forty percent of the amount calculated for media 34 services for the school district. 35 -12- LSB 5189SV (3) 90 jda/jh 12/ 26

S.F. 2386 (d) The area education agency teacher salary supplement 1 district cost. 2 (e) The area education agency professional development 3 supplement district cost. 4 (f) Forty percent of the amount calculated in section 257.37 5 for educational services for the school district. 6 (3) For the fiscal year beginning July 1, 2025, and each 7 fiscal year thereafter, the department of management shall 8 deduct the following from the state aid due to each school 9 district pursuant to this chapter and shall pay the amounts to 10 the respective area education agencies on a monthly basis from 11 September 15 through June 15 during each school year: 12 (a) Ten percent of the amount calculated for special 13 education support services for the school district. 14 (b) Forty percent of the amount calculated for media 15 services for the school district. 16 (c) The area education agency teacher salary supplement 17 district cost. 18 (d) The area education agency professional development 19 supplement district cost. 20 (e) Forty percent of the amount calculated in section 257.37 21 for educational services for the school district. 22 b. The department of management shall notify each school 23 district of the amount of state aid deducted for these purposes 24 and the balance of state aid shall be paid to the district. If 25 a district does not qualify for state aid under this chapter 26 in an amount sufficient to cover its amount due to the area 27 education agency as calculated by the department of management, 28 the school district shall pay the deficiency to the area 29 education agency from other moneys received by the district, on 30 a quarterly basis during each school year. 31 Sec. 19. Section 257.37, Code 2024, is amended to read as 32 follows: 33 257.37 Funding media and educational services. 34 Media services and educational services provided by a school 35 -13- LSB 5189SV (3) 90 jda/jh 13/ 26

S.F. 2386 district or through the area education agencies agency shall be 1 funded, to the extent provided, by an addition to the combined 2 district cost of each school district, determined as follows: 3 1. For the budget year beginning July 1, 1991, and 4 succeeding budget years, the total amount funded in each area 5 for media services shall be computed as provided in this 6 subsection . For the budget year beginning July 1, 1991, the 7 total amount funded in each area for media services in the 8 base year shall be divided by the enrollment served in the 9 base year to provide an area media services cost per pupil in 10 the base year, and the department of management shall compute 11 the state media services cost per pupil in the base year which 12 is equal to the average of the area media services costs per 13 pupil in the base year. For the budget year beginning July 1, 14 1991, and succeeding budget years, the department of management 15 shall compute the supplemental state aid for media services 16 in the budget year by multiplying the state media services 17 cost per pupil in the base year times the state percent of 18 growth for the budget year, and the total amount funded in each 19 area for media services cost in the budget year equals the 20 area media services cost per pupil in the base year plus the 21 supplemental state aid for media services in the budget year 22 times the enrollment served in the budget year. Funds shall be 23 paid to area education agencies as provided in section 257.35 . 24 Funds not required to be paid to the area education agency as 25 provided in section 257.35 may be used by the school district 26 for media services provided by the district or by contract 27 through the area education agency. A school district may use 28 unreserved fund balances for media services in a manner which 29 the school district determines is appropriate to best maintain 30 the level of special education services. 31 2. Up to thirty percent of the budget of an area for media 32 services may be expended for media resource material including 33 the purchase or replacement of material required in section 34 273.6, subsection 1 . Funds shall be paid to area education 35 -14- LSB 5189SV (3) 90 jda/jh 14/ 26

S.F. 2386 agencies as provided in section 257.35 . 1 3. For the budget year beginning July 1, 1991, and 2 succeeding budget years, the total amount funded in each area 3 for educational services shall be computed as provided in this 4 subsection . For the budget year beginning July 1, 1991, the 5 total amount funded in each area for educational services 6 in the base year shall be divided by the enrollment served 7 in the area in the base year to provide an area educational 8 services cost per pupil in the base year, and the department of 9 management shall compute the state educational services cost 10 per pupil in the base year, which is equal to the average of 11 the area educational services costs per pupil in the base year. 12 For the budget year beginning July 1, 1991, and succeeding 13 budget years, the department of management shall compute the 14 supplemental state aid for educational services by multiplying 15 the state educational services cost per pupil in the base year 16 times the state percent of growth for the budget year, and the 17 total amount funded in each area for educational services for 18 the budget year equals the area educational services cost per 19 pupil for the base year plus the supplemental state aid for 20 educational services in the budget year times the enrollment 21 served in the area in the budget year. Funds shall be paid 22 to area education agencies as provided in section 257.35 . 23 Funds not required to be paid to the area education agency as 24 provided in section 257.35 may be used by the school district 25 for educational services provided by the district or by 26 contract through the area education agency. A school district 27 may use unreserved fund balances for educational services in a 28 manner which the school district determines is appropriate to 29 best maintain the level of special education services. 30 4. “Enrollment served” means the basic enrollment of all 31 school districts within the boundaries of the area education 32 agency plus the number of nonpublic school pupils served by 33 the area education agency with media services or educational 34 services, as applicable, except that if a nonpublic school 35 -15- LSB 5189SV (3) 90 jda/jh 15/ 26

S.F. 2386 pupil or a pupil attending another district under a whole grade 1 sharing agreement or open enrollment receives services through 2 an area other than the area of the pupil’s residence, the 3 pupil shall be deemed to be served by the area of the pupil’s 4 residence, which shall by contractual arrangement reimburse 5 the area through which the pupil actually receives services. 6 Each school district shall include in the enrollment report 7 submitted pursuant to section 257.6, subsection 1 , the number 8 of nonpublic school pupils within each school district for 9 media and educational services served by the area. However, 10 the school district shall not include in the enrollment report 11 nonpublic school pupils receiving classes or services funded 12 entirely by federal grants or allocations. 13 5. a. If an area education agency does not serve nonpublic 14 school pupils in a manner comparable to services provided 15 public school pupils for media and educational services, as 16 determined by the state board of education, the state board 17 shall instruct the department of management to reduce the funds 18 for media services and educational services within the area one 19 time by an amount to compensate for such reduced services. The 20 media services budget shall be reduced by an amount equal to 21 the product of the cost per pupil in basic enrollment for the 22 budget year for media services times the difference between 23 the enrollment served and the basic enrollment recorded for 24 the area. The educational services budget shall be reduced by 25 an amount equal to the product of the cost per pupil in basic 26 enrollment for the budget year for educational services times 27 the difference between the enrollment served and the basic 28 enrollment recorded for the area. 29 b. This subsection applies only to media and educational 30 services which cannot be diverted for religious purposes. 31 c. Notwithstanding this subsection , an area education agency 32 shall distribute to nonpublic schools media materials purchased 33 wholly or partially with federal funds in a manner comparable 34 to the distribution of such media materials to public schools 35 -16- LSB 5189SV (3) 90 jda/jh 16/ 26

S.F. 2386 as determined by the director of the department of education. 1 6. For the budget year beginning July 1, 2002, and each 2 succeeding budget year, notwithstanding the requirements of 3 this section for determining the budgets and funding of media 4 services and education services, an area education agency or 5 school district may , within the limits of the total of the 6 funds provided for the budget years pursuant to section 257.35 , 7 expend for special education support services an amount that 8 exceeds the payment for special education support services 9 pursuant to section 257.35 in order to maintain the level 10 of required special education support services in the area 11 education agency or the school district, as applicable . 12 Sec. 20. APPLICABILITY. This division of this Act applies 13 July 1, 2024, for school budget years beginning on or after 14 that date. 15 DIVISION IV 16 INITIAL TEACHER COMPENSATION 17 Sec. 21. Section 257.10, subsection 12, paragraph d, Code 18 2024, is amended to read as follows: 19 d. Except as otherwise allowed under this paragraph, for 20 the budget year beginning July 1, 2014, and succeeding budget 21 years, the use of the funds calculated under this subsection 22 shall comply with the requirements of chapter 284 and shall 23 be distributed to teachers pursuant to section 284.15 . The 24 funds shall be used only to increase the payment for a teacher 25 assigned to a leadership role pursuant to a framework or 26 comparable system approved pursuant to section 284.15 ; to 27 increase the percentages of teachers assigned to leadership 28 roles; to increase the minimum teacher starting salary to 29 thirty-three thousand five hundred dollars the amount provided 30 in section 284.15, subsection 2, paragraph “a” , subparagraph 31 (1) ; to cover the costs for the time mentor and lead teachers 32 are not providing instruction to students in a classroom; 33 for coverage of a classroom when an initial or career 34 teacher is observing or co-teaching with a teacher assigned 35 -17- LSB 5189SV (3) 90 jda/jh 17/ 26

S.F. 2386 to a leadership role; for professional development time to 1 learn best practices associated with the career pathways 2 leadership process; and for other costs associated with a 3 framework or comparable system approved by the department of 4 education under section 284.15 with the goals of improving 5 instruction and elevating the quality of teaching and student 6 learning. If all requirements for the school district for 7 the use of funds calculated under this subsection are met 8 and funds received under this subsection remain unexpended 9 and unobligated at the end of a fiscal year beginning on or 10 after July 1, 2020, the school district may transfer all or a 11 portion of such unexpended and unobligated funds for deposit 12 in the school district’s flexibility account established 13 under section 298A.2, subsection 2 . At the end of a fiscal 14 year beginning on or after July 1, 2022, school districts may 15 use all or a portion of funds under this subsection for the 16 purposes authorized under subsection 9 , paragraph “d” , and, 17 notwithstanding any provision of law to the contrary, school 18 districts shall not be required to participate in or comply 19 with section 284.15 in order to continue to receive funding 20 under this subsection . 21 Sec. 22. Section 284.15, subsection 2, paragraph a, 22 subparagraph (1), Code 2024, is amended to read as follows: 23 (1) The salary for an initial teacher who has successfully 24 completed an approved practitioner preparation program as 25 defined in section 256.145 or holds an initial or intern 26 teacher license issued under chapter 256, subchapter VII, 27 part 3, shall be at least thirty-three thousand five hundred 28 forty-six thousand two hundred fifty-one dollars, which shall 29 also constitute the minimum salary for an Iowa teacher. 30 Sec. 23. Section 284.16, subsection 1, paragraph a, 31 unnumbered paragraph 1, Code 2024, is amended to read as 32 follows: 33 The beginning teacher shall be paid not less than 34 thirty-three thousand five hundred forty-six thousand two 35 -18- LSB 5189SV (3) 90 jda/jh 18/ 26