Modifying provisions related to area education agency funding, and including effective date and applicability provisions

This bill modifies provisions related to area education agency funding. The bill modifies provisions related to the calculation of the combined foundation base, the area education agency professional development supplement state cost per pupil, and the combined district cost. The bill also modifies provisions related to the computation of the additional property tax levied by school districts to include the total area education agency professional development supplement district cost.10(7) (special education support services district cost) and received by a school district are required to be used for special education support services. 10(7) and received by a school district are required to be used by the school district for special education support services contracted from an area education agency. The contract between the school district and the area education agency shall not require the school district to describe the specific special education support services the school district will receive from the area education agency. The special education services provided by the area education agency to the school district pursuant to the contract shall not be limited by the amount of funding the school district provided to the area education agency. The bill strikes these provisions. The bill provides that for the fiscal year beginning July 1, 2026, and each fiscal year thereafter, the department of management is required 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 costs, and educational services for each school district from the state aid due to the district pursuant to Code chapter 257 and pay the amounts to the respective area education agencies on a monthly basis from September through June during each school year. The bill requires the department of management to notify each school district of the amount of state aid deducted for these purposes and the balance of state aid is required to be paid to the district. If a district does not qualify for state aid under Code chapter 257 in an amount sufficient to cover its amount due to the area education agency as calculated by the department of management, the school district is required to pay the deficiency to the area education agency from other moneys received by the district, on a quarterly basis during each school year.5 million. The bill provides that this reduction does not apply to fiscal years after the fiscal year beginning July 1, 2025.37.37A (area education agency salary supplement funding), including by providing that, if the department of management determines that the unadjusted area education agency professional development supplement district cost of an area education agency for a budget year is less than 100 percent of the unadjusted area education agency professional development supplement district cost for the base year for the area education agency, the area education agency shall receive a budget adjustment for that budget year equal to the difference. The bill takes effect upon enactment and applies July 1, 2026, for school budget years beginning on or after that date.