The Iowa House of Representatives has advanced a new proposal for the state's local education agency that makes significant changes compared to Gov. Kim Reynolds' overhaul plan.
Reynolds introduced significant changes to the AEA system at the start of the session and then released a scaled-down version of the plan after receiving strong feedback from parents and educators.
As a central part of the plan, Reynolds proposed flexibility for local governments to use special education funding to contract with local non-AEA services if they wish. Her plan included tighter control over AEA at the Iowa Department of Education and a $35 million reduction in property tax funding for AEA's media services. These services include printing lesson materials and lending curriculum packages to schools.
The three-year plan (HSB 713) released by House leadership Wednesday does not cut any funding or services from the AEA system.
Starting in the 2025-26 school year, school districts will be able to choose where to direct funding for media services. And in the 2026-27 school year, schools may decide to increase funding for educational services and hire another provider.
However, throughout the process, school districts would be required to disburse special education funds to local AEAs, as they currently do.
“We wanted to bring certainty to special education,” said House Speaker Pat Grassley (R-New Hartford). “The feedback we get from people in Iowa is that special education services are perfect, that they need improvement, and in some cases they are not satisfied with them. We wanted some level of certainty in that. That's why we kept it there going forward through the AEA.”
What will change, Grassley said, is that state funding for special education will no longer automatically go through school districts to AEA. It will stop in that area first. Although school districts cannot buy special education services, they still need to calculate what the costs and payments will be for the services they are receiving.
“One of the things that no one has shared with us, whether it's from the administration side or the AEA side, is that no one can sit down and say, 'This is what the district paid for services to this student.' That means we can't do that,” Grassley said. He said. “In my opinion, this system reveals what it costs to provide a service.”
The House bill maintains a scaled-down version of Reynolds' plan to create a new division within the Iowa Department of Education to oversee special education. Instead of hiring 139 staff members under the House plan, Grassley would hire five staff members in each of the AEA's nine regions to provide oversight, with an additional 13 staff located in the department's office in Des Moines. He said it would happen.
It would also limit the salary of the AEA's top administrator to the average income of superintendents in the region.
The bill was filed Wednesday, and Grassley said Republicans plan to advance it at Thursday's House Education Committee meeting to meet legislative funnel deadlines.
Governor Reynolds responded with a short statement to the new bill introduced by House Republicans.
“I’m grateful to be able to continue the dialogue,” she said.
Grassley said the debate over the AEA does not end with the House bill. He also plans to establish a task force to study the services provided by the various AEAs, the real estate they own, and how special education students are faring academically.
“We are going to conduct a legislatively-driven investigation, so we feel we can bring all parties to the table in a fair manner,” Grassley said.
raise teachers' salaries
The House has separated the issue of teacher pay from the AEA bill. House Republicans are considering a separate proposal to raise the minimum salary for new teachers to $50,000, the same as Reynolds' proposal, but it would take two years to implement. The minimum salary for the first year will increase from $33,500 to $47,500. The second year will be $50,000.
The bill does not set a new minimum salary for educators like Reynolds with 12 years of experience, but it does include $14 million to help pay increases for classroom support staff. There is.
“Our caucus felt very strongly about support staff, especially all support staff, but also classroom paraeducators and others that we believe districts are currently struggling to find and retain. I’m also looking at other people I know,” he said.
Grassley said increasing the minimum wage for new teachers will ripple through the district's pay scale. Implementing changes over two years gives you time to plan and adjust your budget.
Ultimately, Grassley said he expects the new funding amount to be similar to what Reynolds proposed, except for a difference in distribution between teacher salaries and a significant increase in state funding for public schools. He said he is doing so. The House of Representatives is proposing a 3% increase compared to the governor's proposal of 2.5%.
Senate Education Committee passes its own alternative bill
Senate Republicans are proposing their own alternative to Governor Reynolds' proposal to overhaul Iowa's AEA system.
Under the amended bill (SSB 3073) passed by the Senate Education Committee on Wednesday night, school districts would have control over how 90% of state special education funding is spent, and 10% would go to local AEA will be donated directly to.
Similarly, school districts can decide how to spend 60% of state funds on media and educational services, but AEA is guaranteed at least 40% of state funds in these categories.
Sen. Lynn Evans (R-Aurelia) told committee members that splitting the funds would provide a safety net for the AEA system even if some districts opt out.
“Everything that is provided by the AEA will continue to be provided by the AEA and we have re-established the funding that the governor took away,” Evans said.
Sen. Claire Celsi, D-West Des Moines, said she worries the plan could leave both sides without the resources they need.
“The system with the AEA is working,” Celsi said. “It's not fair to come here with bulldozers like this, we don't need it, and the people of our state don't want this.”
The Senate bill would require AEA directors to submit a plan to reduce administrative costs by 30% and produce a detailed report on services provided to each district. Each AEA will be required to report on its progress in closing the student proficiency gap in special education.
The Senate bill includes resetting the minimum salary for new teachers to $46,251, which Evans said is the average starting salary offered by school districts in the state. However, it is lower than the $50,000 proposed by both the governor and House Republicans.
Evans said the difference would allow for a larger increase in state school funding than Reynolds proposed.
