SF 2386 (LSB 5189SV (3) 90)

SENATE FILE 2386

BY  COMMITTEE ON EDUCATION

(SUCCESSOR TO SSB 3073)

A BILL FOR

An Act relating to education, including modifying provisions related to the duties and powers of area education agencies, the department of education, the department of administrative services, area education agency funding, the calculation of the teacher salary supplement district cost per pupil and the minimum teacher starting salary, and including transition, effective date, and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION

    Section 1.  Section 256.9, subsection 54, Code 2024, is amended by striking the subsection.
    Sec. 2.  Section 256B.3, Code 2024, is amended by adding the following new subsections:
   NEW SUBSECTION.  15A.  Beginning July 1, 2025, oversee the operation of each area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education.
   NEW SUBSECTION.  15B.  Beginning July 1, 2025, provide guidance and standards to area education agencies for federal and state education initiatives which the area education agencies must implement statewide.
    Sec. 3.  DEPARTMENT OF EDUCATION AND AREA EDUCATION AGENCIES —— STAFFING AND TRANSITION PLAN.
   1.  The department of education shall coordinate with each area education agency, and with the division of special education of the department, to develop a plan to transfer employees of the area education agency whose primary job duties involve providing oversight and compliance services to the area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education from employment under the area education agency to employment under the division of special education of the department, as needed. The plan shall include a description of how the area education agency will accommodate any space needed in the area education agency’s facilities for employees of the division of special education.
   2.  The department of education will compile all of the plans created pursuant to subsection 1 and submit the compilation to the general assembly on or before January 1, 2025.
DIVISION II
AREA EDUCATION AGENCIES —— GENERAL PROVISIONS

    Sec. 4.  Section 273.1, Code 2024, is amended to read as follows:
   273.1  Intent.
   It is the intent of the general assembly to provide an effective, efficient, and economical means of identifying and serving children from under five years of age through grade twelve who require special education and any other children requiring special education as defined in section 256B.2; to provide for media services and other programs and services for pupils in grades kindergarten through twelve and children requiring special education as defined in section 256B.2; to provide a method of financing the programs and services; and to avoid a duplication of programs and services provided by any other school corporation in the state; and to provide services to school districts under a contract with those school districts; to improve student achievement; and to close student achievement gaps.
    Sec. 5.  Section 273.2, subsections 1, 3, and 4, Code 2024, are amended to read as follows:
   1.  There are established throughout the state fifteen area education agencies, each of which is governed by an area education agency board of directors and, beginning July 1, 2025, by the division of special education of the department of education to the extent described in section 256B.3, subsection 15A. The boundaries of an area education agency shall not divide a school district. The director of the department of education shall change boundaries of area education agencies to take into account mergers of local school districts and changes in boundaries of local school districts, when necessary to maintain the policy of this chapter that a local school district shall not be a part of more than one area education agency.
   3.  a.  The area education agency board shall furnish educational services and programs as provided in  section 273.1, this section, sections 273.3 through 273.8, and chapter 256B to the pupils enrolled in public or nonpublic schools located within its boundaries which are on the list of accredited schools pursuant to section 256.11. The programs and services provided shall be at least commensurate with programs and services existing on July 1, 1974. The programs and services provided to pupils enrolled in nonpublic schools shall be comparable to programs and services provided to pupils enrolled in public schools within constitutional guidelines.
   b.  The area education agencies may furnish evidence-based professional development services to public or nonpublic schools located within its boundaries which are on the list of accredited schools pursuant to section 256.11, subject to the approval of the director of the department of education.
   4.  The area education agency board shall provide do all of the following:
   a.  Provide for special education services and media services for the local school districts in the area and shall encourage that request to receive such services by February 1 of the preceding school year, including by providing for a method of payment for such services and entering into agreements with the area education agency. An area education agency may provide special education services for local school districts in the area that request to receive such services after February 1 of the preceding school year.
   b.  Encourage and assist school districts in the area to establish programs for gifted and talented children. The board shall assist
   c.  Assist in facilitating interlibrary loans of materials between school districts and other libraries.
   d.  Provide for media services for local school districts in the area.
    Sec. 6.  Section 273.2, Code 2024, is amended by adding the following new subsections:
   NEW SUBSECTION.  12.  The area education agency board shall charge reasonable costs that are consistent with current market rates for the educational services, special education services, professional development services, and media services established by the area education agency board.
   NEW SUBSECTION.  13.  The area education agency board shall provide an annual report by October 1 of each year to the general assembly and the department of education that includes a description of the progress the area education agency has made to improve the outcomes achieved by students receiving special education services and a description of how the area education agency is focusing the moneys it receives on providing services in the classroom.
    Sec. 7.  Section 273.3, subsection 11, Code 2024, is amended to read as follows:
   11.  Employ personnel to carry out the functions of the area education agency which shall include the employment of an administrator who shall possess a license issued under chapter 256, subchapter VII, part 3. The administrator shall be employed pursuant to section 279.20 and sections 279.23, 279.24, and 279.25. The salary for an area education agency administrator shall be established by the board based upon the previous experience and education of the administrator; provided, however, that the salary for an area education agency administrator shall not exceed one hundred twenty-five percent of the average salary of all superintendents of the school districts that are located within the boundaries of the area education agency. Section 279.13 applies to the area education agency board and to all teachers employed by the area education agency. Sections 279.23, 279.24, and 279.25 apply to the area education board and to all administrators employed by the area education agency. Section 279.69 applies to the area education agency board and employees of the board, including part-time, substitute, or contract employees, who provide services to a school or school district.
    Sec. 8.  Section 273.3, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  26.  Annually, on or before January 1 of each year, prepare and submit to each school district within the boundaries of the area education agency a report that includes all of the following:
   a.  A monetary accounting of payments the area education agency received from the school district, including payments under section 257.35, during the previous fiscal year.
   b.  A description of the services the area education agency provided to the school district during the previous fiscal year, including a calculation of the cost per pupil for each category of service the area education agency provided to the school district.
    Sec. 9.  Section 273.4, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   Under direction of the board of directors of the area education agency, and, beginning July 1, 2025, the division of special education of the department of education, to the extent described in section 256B.3, subsection 15A, the administrator of the area education agency shall, in addition to other duties:
    Sec. 10.  Section 273.10, Code 2024, is amended to read as follows:
   273.10  Accreditation of area education programs.
   1.  The division of special education of the department of education shall develop, in consultation with the area education agencies, and establish an accreditation process for area education agencies by July 1, 1997. At a minimum, the accreditation process shall consist of the following:
   a.  The timely submission by an area education agency of information required by the division of special education of the department on forms provided by the department division of special education.
   b.  The use of an accreditation team appointed by the director division of special education of the department of education to conduct an evaluation, including an on-site visit of each area education agency. The team shall include, but is not limited to, department staff members, representatives from the school districts served by the area education agency being evaluated, area education agency staff members from area education agencies other than the area education agency that conducts the programs being evaluated for accreditation, and other team members with expertise as deemed appropriate by the director division of special education.
   2.  Prior to a visit to an area education agency, the accreditation team shall have access to that area education agency’s program audit report filed with the department division of special education of the department of education. After a visit to an area education agency, the accreditation team shall determine whether the accreditation standards for a program, including but not limited to standards established pursuant to section 256.9, subsection 54 section 256B.3, subsection 15B, have been met and shall make a report to the director and the state board division of special education, together with a recommendation as to whether the programs of the area education agency should receive initial accreditation or remain accredited. The accreditation team shall report strengths and weaknesses, if any, for each accreditation standard and shall advise the area education agency of available resources and technical assistance to further enhance the strengths and improve areas of weakness. An area education agency may respond to the accreditation team’s report.
   3.  The state board of education division of special education of the department of education shall determine whether a program of an area education agency shall receive initial accreditation or shall remain accredited.
   a.  Approval of area education agency programs by the state board division of special education shall be based upon the recommendation of the director of the department of education after a study of the factual and evaluative evidence on record about each area education agency program in terms of the accreditation standards adopted by the state board.
   b.  Approval, if granted, shall be for a term of five years. However, the state board division of special education may grant conditional approval for a term of less than five years if conditions warrant.
   4.  If the state board of education division of special education of the department of education determines that an area education agency’s program does not meet accreditation standards, the director of the department of education division of special education, in cooperation with the board of directors of the area education agency, shall establish a remediation plan prescribing the procedures that must be taken to correct deficiencies in meeting the program standards, and shall establish a deadline date for correction of the deficiencies. The remediation plan is subject to the approval of the state board.
   5.  The division of special education of the department of education may suspend the accreditation of the area education agency program shall remain accredited during the implementation of the remediation plan. The accreditation team shall visit the area education agency and shall determine whether the deficiencies in the standards for the program have been corrected and shall make a report and recommendation to the director and the state board of education division of special education. The state board division of special education shall review the report and recommendation and shall determine whether the deficiencies in the program have been corrected.  If the division of special education determines that the deficiencies in the program have been corrected, the division of special education shall reinstate the accreditation of the area education agency program if such accreditation was suspended pursuant to this subsection.
   6.  a.  If the deficiencies in an area education program have not been corrected, the agency board division of special education of the department of education shall take one of the following actions within sixty days from removal of accreditation:
   (1)  Merge the deficient program with a program from another accredited area education agency.
   (2)  Contract with another area education agency or other public educational institution for purposes of program delivery.
   b.  The rules developed by the state board of education for the accreditation process shall include provisions for removal of accreditation, including provisions for proper notice to the administrator of the area education agency, each member of the board of directors of the area education agency, the department of education, and the superintendents and administrators of the schools of the districts served by the area education agency.
    Sec. 11.  Section 273.11, Code 2024, is amended to read as follows:
   273.11  Standards for accrediting area education programs.
   1.  The state board of education, in consultation with the division of special education of the department of education, shall develop standards and rules for the accreditation of area education agencies. Standards shall be general in nature, but at a minimum shall identify requirements addressing the services provided by each division, as well as identifying indicators of quality that will permit area education agencies, school districts, the division of special education of the department of education, and the general public to judge accurately the effectiveness of area education agency services.
   2.  Standards developed shall include, but are not limited to, the following:
   a.  Support for school-community planning, including a means of assessing needs, developing collaborative relationships among community agencies, establishing shared direction, and implementing program plans and reporting progress toward goals for students with disabilities.
   b.  Professional Evidence-based professional development programs that respond to current needs.
   c.  Support for curriculum development, instruction, and assessment for services that address the areas of reading, language arts, math, and science, using research-based methodologies, for students with disabilities.
   d.  Special education compliance and support.
   e.  Management services, including financial reporting and purchasing as requested and funded by local districts.
   f.  Support for instructional media services that supplement and support local district media centers and services.
   g.  Support for school technology planning and staff development for implementing instructional technologies.
   h.  A program and services evaluation and reporting system related to special education.
   i.  Support for school district libraries in accordance with section 273.2, subsection 4.
   j.  Support for early childhood service coordination for families and children, age birth through three years, to meet health, safety, and learning needs, including service coordination.
   k.  Timely submission of required reports and documents to the state board of education, the department of education, and the division of special education of the department of education.
   l.  Support for schools and school districts in analyzing student achievement data related to the learning environment, comparing data to the external knowledge base, and using that information to guide schools and school districts in setting goals and implementing actions to improve student learning for students with disabilities.
   m.  Support for addressing the diverse learning needs of all children and youths with disabilities who are eligible for special education, including through services that include direct services to students with disabilities.
   n.  Support for schools and school districts to ensure compliance with rules adopted by the state board of education related to special education.
   o.  Support necessary to implement effective instruction for all students with disabilities through school technology services.
   p.  Support for students using educational programs and services in a manner that is consistent with the educational standards established pursuant to section 256.11.
   q.  Support for staff development and adult learners utilizing evidence-based professional development in a manner that meets the professional needs of staff and adult learners consistent with standards adopted by the state board of education.
   r.  Compliance with all relevant federal and state laws in the provision of services and supports to students with disabilities.
    Sec. 12.  TRANSITION PROVISIONS.  An area education agency that was accredited pursuant to section 273.10 on or before the effective date of the section of this division of this Act amending section 273.10 shall remain accredited unless and until the division of special education of the department of education takes action to remove accreditation from the area education agency pursuant to section 273.10, as amended in this division of this Act.
    Sec. 13.  EFFECTIVE DATE.  The following take effect July 1, 2025:
   1.  The section of this division of this Act amending section 273.2, subsection 4.
   2.  The section of this division of this Act amending section 273.10.
   3.  The section of this division of this Act amending section 273.11.
    Sec. 14.  APPLICABILITY.  The following applies to employment agreements entered into or renewed between an area education agency and an area education agency administrator on or after July 1, 2024:
   The section of this division of this Act amending section 273.3, subsection 11.
DIVISION III
AREA EDUCATION AGENCIES —— FUNDING

    Sec. 15.  Section 257.1, subsection 3, Code 2024, is amended to read as follows:
   3.  Computations rounded.  In making computations and payments under this chapter, except in the case of computations relating to funding of special education support services, media services, and educational services provided through the area education agencies under section 257.37, and the teacher salary supplement, the professional development supplement, the early intervention supplement, and the teacher leadership supplement, the department of management shall round amounts to the nearest whole dollar.
    Sec. 16.  Section 257.10, subsection 7, Code 2024, is amended to read as follows:
   7.  Special education support services district cost.  Special education support services district cost for a school district for a budget year is equal to the special education support services district cost per pupil for the budget year multiplied by the special education support services weighted enrollment for the district for the budget year. If the special education support services district cost for a school district for a budget year is less than the special education support services district cost for that district for the base year, the department of management shall adjust the special education support services district cost for that district for the budget year to equal the special education support services district cost for the base year.  Funds calculated under this subsection and received by a school district or an area education agency, as applicable, shall be used for special education support services.
    Sec. 17.  Section 257.10, subsection 8, paragraph a, Code 2024, is amended to read as follows:
   a.  Combined district cost is the sum of the regular program district cost per pupil multiplied by the weighted enrollment, the special education support services district cost, the total teacher salary supplement district cost, the total professional development supplement district cost, the total early intervention supplement district cost, and the total teacher leadership supplement district cost, plus the sum of the additional district cost allocated to the district to fund media services and educational services provided through the area education agency under section 257.37, the area education agency total teacher salary supplement district cost and the area education agency total professional development supplement district cost.
    Sec. 18.  Section 257.35, subsection 1, Code 2024, is amended to read as follows:
   1.  a.  (1)  The For fiscal years beginning before July 1, 2024, the department of management shall deduct the amounts calculated for special education support services, media services, area education agency teacher salary supplement district cost, area education agency professional development supplement district cost, and educational services for each school district from the state aid due to the district pursuant to this chapter and shall pay the amounts to the respective area education agencies on a monthly basis from September 15 through June 15 during each school year.
   (2)  (a)  For the fiscal year beginning July 1, 2024, the department of management shall deduct the following amounts from the state aid due to each school district pursuant to this chapter and shall pay the amounts to the respective area education agencies on a monthly basis from September 15 through June 15 during each school year:
   (b)  The amount calculated for special education support services for the school district.
   (c)  Forty percent of the amount calculated for media services for the school district.
   (d)  The area education agency teacher salary supplement district cost.
   (e)  The area education agency professional development supplement district cost.
   (f)  Forty percent of the amount calculated in section 257.37 for educational services for the school district.
   (3)  For the fiscal year beginning July 1, 2025, and each fiscal year thereafter, the department of management shall deduct the following from the state aid due to each school district pursuant to this chapter and shall pay the amounts to the respective area education agencies on a monthly basis from September 15 through June 15 during each school year:
   (a)  Ten percent of the amount calculated for special education support services for the school district.
   (b)  Forty percent of the amount calculated for media services for the school district.
   (c)  The area education agency teacher salary supplement district cost.
   (d)  The area education agency professional development supplement district cost.
   (e)  Forty percent of the amount calculated in section 257.37 for educational services for the school district.
   b.  The department of management shall notify each school district of the amount of state aid deducted for these purposes and the balance of state aid shall be paid to the district. If a district does not qualify for state aid under this chapter in an amount sufficient to cover its amount due to the area education agency as calculated by the department of management, the school district shall pay the deficiency to the area education agency from other moneys received by the district, on a quarterly basis during each school year.
    Sec. 19.  Section 257.37, Code 2024, is amended to read as follows:
   257.37  Funding media and educational services.
   Media services and educational services provided by a school district or through the area education agencies agency shall be funded, to the extent provided, by an addition to the combined district cost of each school district, determined as follows:
   1.  For the budget year beginning July 1, 1991, and succeeding budget years, the total amount funded in each area for media services shall be computed as provided in this subsection. For the budget year beginning July 1, 1991, the total amount funded in each area for media services in the base year shall be divided by the enrollment served in the base year to provide an area media services cost per pupil in the base year, and the department of management shall compute the state media services cost per pupil in the base year which is equal to the average of the area media services costs per pupil in the base year. For the budget year beginning July 1, 1991, and succeeding budget years, the department of management shall compute the supplemental state aid for media services in the budget year by multiplying the state media services cost per pupil in the base year times the state percent of growth for the budget year, and the total amount funded in each area for media services cost in the budget year equals the area media services cost per pupil in the base year plus the supplemental state aid for media services in the budget year times the enrollment served in the budget year. Funds shall be paid to area education agencies as provided in section 257.35.  Funds not required to be paid to the area education agency as provided in section 257.35 may be used by the school district for media services provided by the district or by contract through the area education agency. A school district may use unreserved fund balances for media services in a manner which the school district determines is appropriate to best maintain the level of special education services.
   2.  Up to thirty percent of the budget of an area for media services may be expended for media resource material including the purchase or replacement of material required in section 273.6, subsection 1. Funds shall be paid to area education agencies as provided in section 257.35.
   3.  For the budget year beginning July 1, 1991, and succeeding budget years, the total amount funded in each area for educational services shall be computed as provided in this subsection. For the budget year beginning July 1, 1991, the total amount funded in each area for educational services in the base year shall be divided by the enrollment served in the area in the base year to provide an area educational services cost per pupil in the base year, and the department of management shall compute the state educational services cost per pupil in the base year, which is equal to the average of the area educational services costs per pupil in the base year. For the budget year beginning July 1, 1991, and succeeding budget years, the department of management shall compute the supplemental state aid for educational services by multiplying the state educational services cost per pupil in the base year times the state percent of growth for the budget year, and the total amount funded in each area for educational services for the budget year equals the area educational services cost per pupil for the base year plus the supplemental state aid for educational services in the budget year times the enrollment served in the area in the budget year. Funds shall be paid to area education agencies as provided in section 257.35.  Funds not required to be paid to the area education agency as provided in section 257.35 may be used by the school district for educational services provided by the district or by contract through the area education agency. A school district may use unreserved fund balances for educational services in a manner which the school district determines is appropriate to best maintain the level of special education services.
   4.  “Enrollment served” means the basic enrollment of all school districts within the boundaries of the area education agency plus the number of nonpublic school pupils served by the area education agency with media services or educational services, as applicable, except that if a nonpublic school pupil or a pupil attending another district under a whole grade sharing agreement or open enrollment receives services through an area other than the area of the pupil’s residence, the pupil shall be deemed to be served by the area of the pupil’s residence, which shall by contractual arrangement reimburse the area through which the pupil actually receives services. Each school district shall include in the enrollment report submitted pursuant to section 257.6, subsection 1, the number of nonpublic school pupils within each school district for media and educational services served by the area. However, the school district shall not include in the enrollment report nonpublic school pupils receiving classes or services funded entirely by federal grants or allocations.
   5.  a.  If an area education agency does not serve nonpublic school pupils in a manner comparable to services provided public school pupils for media and educational services, as determined by the state board of education, the state board shall instruct the department of management to reduce the funds for media services and educational services within the area one time by an amount to compensate for such reduced services. The media services budget shall be reduced by an amount equal to the product of the cost per pupil in basic enrollment for the budget year for media services times the difference between the enrollment served and the basic enrollment recorded for the area. The educational services budget shall be reduced by an amount equal to the product of the cost per pupil in basic enrollment for the budget year for educational services times the difference between the enrollment served and the basic enrollment recorded for the area.
   b.  This subsection applies only to media and educational services which cannot be diverted for religious purposes.
   c.  Notwithstanding this subsection, an area education agency shall distribute to nonpublic schools media materials purchased wholly or partially with federal funds in a manner comparable to the distribution of such media materials to public schools as determined by the director of the department of education.
   6.  For the budget year beginning July 1, 2002, and each succeeding budget year, notwithstanding the requirements of this section for determining the budgets and funding of media services and education services, an area education agency or school district may, within the limits of the total of the funds provided for the budget years pursuant to section 257.35, expend for special education support services an amount that exceeds the payment for special education support services pursuant to section 257.35 in order to maintain the level of required special education support services in the area education agency or the school district, as applicable.
    Sec. 20.  APPLICABILITY.  This division of this Act applies July 1, 2024, for school budget years beginning on or after that date.
DIVISION IV
INITIAL TEACHER COMPENSATION

    Sec. 21.  Section 257.10, subsection 12, paragraph d, Code 2024, is amended to read as follows:
   d.  Except as otherwise allowed under this paragraph, for the budget year beginning July 1, 2014, and succeeding budget years, the use of the funds calculated under this subsection shall comply with the requirements of chapter 284 and shall be distributed to teachers pursuant to section 284.15. The funds shall be used only to increase the payment for a teacher assigned to a leadership role pursuant to a framework or comparable system approved pursuant to section 284.15; to increase the percentages of teachers assigned to leadership roles; to increase the minimum teacher starting salary to thirty-three thousand five hundred dollars the amount provided in section 284.15, subsection 2, paragraph “a”, subparagraph (1); to cover the costs for the time mentor and lead teachers are not providing instruction to students in a classroom; for coverage of a classroom when an initial or career teacher is observing or co-teaching with a teacher assigned to a leadership role; for professional development time to learn best practices associated with the career pathways leadership process; and for other costs associated with a framework or comparable system approved by the department of education under section 284.15 with the goals of improving instruction and elevating the quality of teaching and student learning. If all requirements for the school district for the use of funds calculated under this subsection are met and funds received under this subsection remain unexpended and unobligated at the end of a fiscal year beginning on or after July 1, 2020, the school district may transfer all or a portion of such unexpended and unobligated funds for deposit in the school district’s flexibility account established under section 298A.2, subsection 2. At the end of a fiscal year beginning on or after July 1, 2022, school districts may use all or a portion of funds under this subsection for the purposes authorized under subsection 9, paragraph “d”, and, notwithstanding any provision of law to the contrary, school districts shall not be required to participate in or comply with section 284.15 in order to continue to receive funding under this subsection.
    Sec. 22.  Section 284.15, subsection 2, paragraph a, subparagraph (1), Code 2024, is amended to read as follows:
   (1)  The salary for an initial teacher who has successfully completed an approved practitioner preparation program as defined in section 256.145 or holds an initial or intern teacher license issued under chapter 256, subchapter VII, part 3, shall be at least thirty-three thousand five hundred forty-six thousand two hundred fifty-one dollars, which shall also constitute the minimum salary for an Iowa teacher.
    Sec. 23.  Section 284.16, subsection 1, paragraph a, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   The beginning teacher shall be paid not less than thirty-three thousand five hundred forty-six thousand two hundred fifty-one dollars and shall meet the following requirements:
    Sec. 24.  Section 284.17, subsection 1, Code 2024, is amended to read as follows:
   1.  A minimum salary of thirty-three thousand five hundred forty-six thousand two hundred fifty-one dollars for a full-time teacher.
DIVISION V
AREA EDUCATION AGENCIES —— REQUIRED EVALUATIONS AND REPORTS

    Sec. 25.  AREA EDUCATION AGENCIES —— CONTINUOUS IMPROVEMENT.  On or before January 1, 2025, each area education agency shall submit a report to the director of the department of education and the general assembly that contains all of the following information:
   1.  Progress the area education agency has made in reducing expenses associated with executive administration by at least thirty percent by July 1, 2026.
   2.  A proposal for the reorganization of services provided by area education agencies to centralize some services provided by the area education agencies, including media services, and to create centers of excellence for other services.
    Sec. 26.  AREA EDUCATION AGENCY FACILITIES AND PROPERTY.  On or before January 1, 2025, the department of administrative services, in coordination with the department of education and each area education agency, shall submit a report to the general assembly that contains all of the following information:
   1.  An inventory of all real property and facilities owned by the area education agencies.
   2.  An evaluation of the value of all real property and facilities owned by the area education agencies.
   3.  An evaluation of how the real property and facilities owned by the area education agencies are used.
DIVISION VI
TEACHER SALARY SUPPLEMENT DISTRICT COST PER PUPIL

    Sec. 27.  Section 257.10, subsection 9, paragraph a, Code 2024, is amended to read as follows:
   a.  (1)  For the budget year beginning July 1, 2009, the department of management shall add together the teacher compensation allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 284.13, subsection 1, paragraph “h”, Code 2009, and the phase II allocation made to each district for the fiscal year beginning July 1, 2008, pursuant to section 294A.9, Code 2009, and divide that sum by the district’s budget enrollment in the fiscal year beginning July 1, 2009, to determine the teacher salary supplement district cost per pupil. For the budget year beginning July 1, 2010, and succeeding budget years beginning before July 1, 2024, the teacher salary supplement district cost per pupil for each school district for a budget year is the teacher salary supplement program district cost per pupil for the base year plus the teacher salary supplement supplemental state aid amount for the budget year.
   (2)  For the budget year beginning July 1, 2024, the teacher salary supplement district cost per pupil for a school district shall be the greater of the following:
   (a)  The teacher salary supplement district cost per pupil for the school district for the base year plus the teacher salary supplement supplemental state aid amount for the budget year.
   (b)  The per pupil amount necessary, as calculated by the department of management, to allow the school district to provide a minimum teacher starting salary of forty-six thousand two hundred fifty-one dollars in accordance with the requirements of chapter 284, including costs associated with the employer’s share of contributions to the Iowa public employees’ retirement system and the employer’s share of the tax imposed by the federal Insurance Contributions Act.
   (3)  For the budget year beginning July 1, 2025, and succeeding budget years, the teacher salary supplement district cost per pupil for each school district for a budget year is the teacher salary supplement program district cost per pupil for the base year plus the teacher salary supplement supplemental state aid amount for the budget year.
DIVISION VII
STATE MANDATE

    Sec. 28.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection 3, shall not apply to this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to education, including modifying provisions related to the duties and powers of area education agencies, the department of education (DE), the department of administrative services, area education agency funding, and the calculation of the teacher salary supplement district cost per pupil and the minimum teacher starting salary.
   DIVISION I —— DIVISION OF SPECIAL EDUCATION OF THE DEPARTMENT OF EDUCATION. Current law requires the director of DE to provide guidance and standards to area education agencies for federal and state education initiatives which the area education agencies must implement statewide. The bill transfers this responsibility to the division of special education of DE, beginning July 1, 2025. The bill also requires the division of special education to oversee the operation of each area education agency beginning July 1, 2025.
   The bill requires DE to coordinate with each area education agency, and with the division of special education, to develop a plan to transfer certain specified employees of the area education agency from employment under the area education agency to employment under the division of special education. The bill establishes that DE is to compile the plans and submit the compilation to the general assembly on or before January 1, 2025.
   DIVISION II —— AREA EDUCATION AGENCIES —— GENERAL PROVISIONS. The bill authorizes the area education agencies to furnish evidence-based professional development services to public or nonpublic schools located within the area education agency’s boundaries, subject to the approval of the director of DE. 
   The bill requires area education agencies to provide special education services to local school districts that request to receive such services by February 1 of the preceding school year. The bill authorizes an area education agency to provide such services to local school districts that request to receive such services after February 1 of the preceding school year. The bill also authorizes area education agencies to provide for media services for local school districts in the area. The bill establishes that these provisions are effective July 1, 2025.
   The bill requires area education agency boards to charge reasonable costs that are consistent with market rates for the educational services, special education services, professional development services, and media services provided by the area education agency. 
   The bill requires area education agency boards to provide an annual report to the general assembly and DE related to student outcomes and use of moneys.
   The bill provides that the salary for an area education agency administrator shall not exceed 125 percent of the average salary of all superintendents of school districts that are located within the boundaries of the area education agency. The bill establishes that this provision applies to employment agreements entered into or renewed on or after July 1, 2024.
   The bill requires area education agencies to prepare and submit to each school district within the area education agency’s boundaries an annual report containing information related to an accounting of payments and a description of services provided.
   The bill modifies several provisions related to the accreditation of area education agency programs to incorporate the division of special education of DE into the accreditation process and to incorporate additional standards related to accreditation. The bill provides that an area education agency that was accredited on or before July 1, 2025, will remain accredited unless and until the division of special education takes action to remove accreditation. The bill establishes that these provisions are effective July 1, 2025.
   DIVISION III —— AREA EDUCATION AGENCIES —— FUNDING. The bill provides that the funds calculated under Code section 257.10(7) (special education support services district cost) and received by a school district or an area education agency shall be used for special education support services. 
   Under current law, amounts calculated for special education support services, media services, area education agency teacher salary supplement district cost, area education agency professional development supplement district cost, and educational services are deducted by the department of management from state aid for each school district and instead paid to the school district’s area education agency.
   The bill provides that, for the fiscal year beginning July 1, 2024, the department of management shall instead deduct the following amounts from the state aid due to each school district and pay the amounts to the respective area education agencies: the amount calculated for special education support services for the school district, 40 percent of the amount calculated for media services for the school district, the area education agency teacher salary supplement district cost, the area education agency professional development supplement district cost, and 40 percent of the amount calculated for educational services for the school district. 
   The bill provides that, for the fiscal year beginning July 1, 2025, and each fiscal year thereafter, the department of management shall deduct the following amounts from the state aid due to each school district and pay the amounts to the respective area education agencies: 10 percent of the amount calculated for special education support services for the school district, 40 percent of the amount calculated for media services for the school district, the area education agency teacher salary supplement district cost, the area education agency professional development supplement district cost, and 40 percent of the amount calculated for educational services for the school district.
   The bill modifies provisions related to the funding of media services and educational services provided by a school district or through an area education agency. The bill provides that funds not required to be paid to the area education agency pursuant to Code section 257.35 (area education agency payments) may be used by the school district for media services provided by the district or by contract through the area education agency. The bill authorizes a school district to use unreserved fund balances for media services in a manner which the school district determines is appropriate to best maintain the level of special education services. 
   The bill provides that, for purposes of Code section 257.37 (funding media and educational services), “enrollment served” means the basic enrollment of all school districts within the boundaries of the area education agency plus the number of nonpublic school pupils served by the area education agency. 
   The bill authorizes area education agencies and school districts to expend for special education support services an amount that exceeds the payment for special education support services in order to maintain the level of required special education support services in the area education agency or the school district.
   DIVISION IV —— INITIAL TEACHER COMPENSATION. Current Code chapter 284 (teacher compensation) provides that the minimum annual salary for an initial teacher who has successfully completed an approved practitioner preparation program or holds an initial or intern teacher license issued by the board of educational examiners shall be at least $33,500. The bill increases this minimum annual salary to $46,251. The bill makes conforming changes to Code chapter 257 (financial school programs).
   DIVISION V —— AREA EDUCATION AGENCIES —— REQUIRED EVALUATIONS AND REPORTS. The bill requires each area education agency, on or before January 1, 2025, to submit a report to DE and the general assembly that contains information related to progress the area education agency has made in reducing executive administration expenses and a proposal for the reorganization of services provided by area education agencies. 
   The bill requires the department of administrative services, in coordination with DE and each area education agency, on or before January 1, 2025, to submit a report to the general assembly that contains an inventory of all real property and facilities owned by the area education agencies, an evaluation of the value of all real property and facilities owned by the area education agencies, and an evaluation of how the real property and facilities owned by the area education agencies are used. 
   DIVISION VI —— TEACHER SALARY SUPPLEMENT DISTRICT COST PER PUPIL. The bill provides that, for the budget year beginning July 1, 2024, the teacher salary supplement district cost per pupil for a school district shall be the greater of the teacher salary supplement district cost per pupil for the school district for the base year plus the teacher salary supplement supplemental state aid amount for the budget year or the per pupil amount necessary to allow the school district to provide a minimum teacher starting salary of $46,251. Additionally, the bill provides that for the budget year beginning July 1, 2025, and succeeding budget years, the teacher salary supplement district cost per pupil for each school district for a budget year is the teacher salary supplement program district cost per pupil for the base year plus the teacher salary supplement supplemental state aid amount for the budget year. 
   DIVISION VII —— STATE MANDATE. The bill provides that Code section 25B.2(3) (effect of unfunded state mandate) shall not apply to the bill.