Relating to education, including modifying provisions related to the duties and powers of area education agencies, the membership of the boards of directors of area education agencies, the department of education, area education agency funding, the calculation of the teacher salary supplement district cost per pupil and minimum teacher salaries, Iowa public employees’ retirement system bona fide retirement requirements, and property tax replacement payments, establishing the state percent of growth and the categorical state percent of growth for supplemental state aid calculations for the budget year beginning July 1, 2024, and including transition, effective date, and applicability provisions

The bill provides that, from July 1, 2024, to June 30, 2025, the division of special education shall devote full-time equivalent positions to oversight of the area education agencies and shall devote five full-time equivalent positions within the main office of each area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education and to review the services provided by the area education agency. DIVISION II —— AREA EDUCATION AGENCIES —— GENERAL PROVISIONS. The bill provides that, effective July 1, 2025, the area education agencies will be under the general supervision of the director of DE, and the boards of directors of the area education agencies will serve in an advisory capacity. Current law requires the area education agency boards of directors to determine the policies of the area education agency for providing programs and services. The bill provides that, beginning July 1, 2025, the area education agency boards of directors are required to advise and consult with the area education agency on policies and procedures for providing programs and services. Current law requires area education agencies to furnish educational services and programs, including special education services and programs, to the pupils enrolled in public or nonpublic schools located within the area education agency’s boundaries. The bill modifies this provision to provide that area education agencies shall furnish such educational services and programs to pupils enrolled in public or nonpublic schools, regardless of location within this state, that request to receive such services. The bill authorizes area education agencies to furnish evidence-based professional development services to public or nonpublic schools located within their boundaries. The bill requires an administrator employed by an area education agency to, beginning July 1, 2025, possess either a teaching license with a special education endorsement or a special education support personnel authorization. Current law requires the board of directors of an area education agency to establish the administrator’s salary based upon the previous experience and education of the administrator. The bill provides that the salary for an area education agency administrator shall not exceed the average salary of all superintendents of the school districts that are located within the boundaries of the area education agency. The bill provides that this provision 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. Current law requires the board of directors of an area education agency to conduct a public hearing related to the area education agency’s proposed annual budget. The bill strikes this provision and, instead, requires the area education agency to submit the proposed annual budget to the director of DE for approval not later than March of each year. Current law provides that, if during the accreditation process deficiencies in an area education agency program have not been corrected, the board of directors of the area education agency is required to either merge the deficient program with a program from another accredited area education agency or contract with another area education agency or other public educational institution for purposes of program delivery. The bill modifies this provision to, instead, require the director of DE to take one of these steps. The bill requires DE to be notified if the accreditation of an area education agency is removed. The bill modifies the standards that are used for the accreditation of area education agencies to include several new standards, including but not limited to support for schools and school districts to ensure compliance with rules adopted by the state board of education related to special education, support necessary to implement effective instruction for all students with disabilities through school technology services, support for students using educational programs and services in a manner that is consistent with the educational standards, and support for staff development and adult learners utilizing 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. The bill requires the majority leader of the senate, the minority leader of the senate, the speaker of the house of representatives, and the minority leader of the house of representatives to convene an area education agency task force. The bill establishes what the task force is to study and make recommendations related to. The bill requires the task force to submit its findings and recommendations to the general assembly on or before December 31, 2024. DIVISION III —— AREA EDUCATION AGENCIES —— FUNDING. The bill modifies funding methodologies for area education agencies and certain educational services provided by area education agencies under current law.35 generally requires the department of management to 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 Code chapter 257 and, instead, pay the amounts to the respective area education agencies on a monthly basis. Beginning with the fiscal year beginning July 1, 2025, the bill eliminates the required payment transfer to the area education agencies, except for the amount of the area education agency teacher salary supplement and also directs the department of management to pay the amount of the area education agency professional development supplement to DE to be used for professional development opportunities as required by the bill. Consequently, the amounts that were formerly paid to the area education agency will remain part of the state aid paid to school districts. The bill allows districts to use unreserved fund balances for media services or educational services for special education support services. The bill makes corresponding changes to other provisions governing funding reductions for unreserved and undesignated fund balances and the purposes for which such funding supplements may be used by school districts. This division of the bill takes effect January 1, 2025, and applies July 1, 2025, for school budget years beginning on or after that date. DIVISION IV —— SHARED OPERATIONAL FUNCTIONS. Current law allows school districts to share operational functions with several types of political subdivisions, including area education agencies, in order to provide additional funding to increase student opportunities and redirect more resources to student programming for such school districts. The bill provides that area education agencies are no longer considered political subdivisions for purposes of shared operational functions.11(5) (shared operational functions) shall be available to an area education agency through the budget year beginning July 1, 2034. The minimum amount of additional funding for which an area education agency shall be eligible in a budget year pursuant to this provision is $30,000, and the maximum amount is $200,000. The bill modifies this provision to provide that such supplementary weighting shall not be available to an area education agency after the budget year beginning July 1, 2023. The bill provides that the division applies July 1, 2024, for school budget years beginning on or after that date. DIVISION V —— DEPARTMENT OF EDUCATION REQUIREMENTS. The bill requires the director of DE to develop and distribute to school districts and accredited nonpublic schools a process to facilitate the development of individualized education programs, certain professional learning materials, and an implementation plan related to identifying, evaluating, and promoting strategies and models for providing special education and related services with accredited nonpublic schools, provide professional learning and other support materials and tools for individualized education program teams, and establish sustainable accountability and data collection systems related to special education. DIVISION VI —— STATE MANDATE.3.2(3), which would relieve a political subdivision from complying with a state mandate if funding for the cost of the state mandate is not provided or specified. Therefore, political subdivisions are required to comply with any state mandate included in the bill.