Relating to early childhood education and care, including by modifying provisions related to the statewide preschool program, the child development coordinating council, programs for at-risk children, the responsibilities of the department of education, the early childhood Iowa initiative, and the state child care assistance program, and establishing the child care continuum partnership grants pilot program within the department of health and human services

Senate File 445 relates to early childhood education and care, including the Statewide Voluntary Preschool Program (SWVPP), the Child Development Coordinating Council, programs for at-risk children, the responsibilities of the Department of Education (DE), the Early Childhood Iowa (ECI) initiative, the State Child Care Assistance (CCA) program, and establishing a child care continuum partnership grants pilot program within the Department of Health and Human Services (HHS).

Division I — Statewide Preschool Program

Description

Division I of the Bill does the following:

• Authorizes community-based providers to directly participate in the SWVPP by applying with the DE to implement a preschool program.
• Requires the State Board of Education to adopt administrative rules to define the requirements of community-based providers implementing the preschool program.
• Allows a community-based provider participating in the SWVPP to be paid preschool foundation aid directly, in the same manner as a school district.
• Provides that the amount of preschool foundation aid that is payable to a community-based provider for the initial school year is the product of the regular program State cost per pupil for the school year and one-half of the community-based provider’s eligible student enrollment.
• Provides that the amount of preschool foundation aid that is payable to a community-based provider for budget years subsequent to the initial year is the product of the regular program State cost per pupil for the budget year and the community-based provider’s preschool budget enrollment.
• Provides that preschool foundation aid paid directly to community-based providers must be paid in monthly installments beginning on September 15 and ending on or about June 15 of a budget year as determined by the Department of Management, taking into consideration the relative budget and cash position of the State resources.

Background

The SWVPP, established in Iowa Code chapter 256C, provides funding to school districts for eligible preschool-age children and programs. Under current law, only school districts that meet certain requirements established by the State Board of Education are able to participate in the SWVPP. School districts are currently allowed to contract with community-based providers for SWVPP services. State funding provided for the SWVPP is provided to school districts based on the number of eligible students enrolled in the preschool program. If the school district contracts with a community-based provider, any State funding passes from the school district to the community-based provider.

Assumptions and Fiscal Impact

The DE expects to shift resources and staff time within the Bureau of Early Childhood, the Bureau of Information and Analysis Services, School Business Operations, the Bureau of Accounting, the Bureau of School Improvement, and the Division of Special Education for implementation of the Bill, including supports for new community-based providers directly participating in the SWVPP.

Source

• Department of Education
• Division II — Child Development Coordinating Council and Programs for At-Risk Children
• Description
• Division II of the Bill does the following:
• • Eliminates the Child Development Coordinating Council and transfers the Council’s
• responsibilities to the DE.
• • Removes a provision related to persons the director of the DE is required to consult when
• developing certain standards and materials per Iowa Code section 256.9(31).
• • Removes certain provisions related to child development services for at-risk three- and
• four-year-old children in Iowa Code section 256A.3.
• • Beginning July 1, 2025 (FY 2026), reduces the Child Development General Fund standing
• appropriation, provided in Iowa Code section 279.51(1), from $12,606,196 to $10,524,389
• and modifies the following allocations within the standing appropriation:
• • Reduces the allocation to Area Education Agencies (AEAs) from $275,864 to $229,262.
• • Increases the allocation for purposes of Iowa Code sections 279.51(2) and 256A.3 and
• to be used for grants to early childhood programs that demonstrate the greatest need for
• programs for at-risk children and their families from $8,536,740 to $10,012,527 and
• allocates the funds to the DE.
• • Removes the $3,510,992 allocation for innovative programs for early elementary at-risk
• students.
• • Permits up to $282,600 of the Child Development appropriation to be used for administrative
• costs.
• • Provides that moneys allocated for the purpose of awarding grants to school districts to
• establish programs for at-risk children may be used for children three and four years of age
• but no longer for children five years of age. Provides that these moneys will be allocated to
• the DE rather than the Council.
• • Removes language requiring the DE to seek assistance from foundations and public and
• private agencies in evaluating programs funded by the Child Development General Fund
• standing appropriation.
• Background
• The Child Development Coordinating Council was established to promote child development
• services for at-risk three- and four-year-old children. The duties of the Council are provided in
• Iowa Code section 256A.3. Iowa Code section 279.51 provides for an annual Child
• Development standing appropriation of $12.6 million to the DE. Of the amount, $8.5 million is
• required to be allocated to the Council. The Council may use these funds for the purposes set
• out in Iowa Code sections 279.51(2) and 256A.3. These purposes include awarding grants to
• school districts to establish programs for three-, four-, and five-year-old at-risk children (Shared
• Visions Preschool Program), and grants for educational support services to parents of at-risk
• children from birth through age three (Shared Visions Parent Support Program).
• The Child Development General Fund standing appropriation is for programs for at-risk children.
• The appropriation is allocated to four areas: AEAs, the Council, innovative programs for at-risk
• early elementary students, and DE administrative costs. If the standing appropriation is limited
• for a given fiscal year, the amounts allocated to these purposes are prorated. Beginning in
• FY 2019, the standing appropriation has been reduced to $10,524,380 in the annual Education
• Appropriations Act.
• Assumptions and Fiscal Impact
• The DE reports that existing staffing and resources will be adjusted as necessary to implement
• Division II of the Bill.
• The Bill reduces the Child Development General Fund standing appropriation by $2,081,807
• beginning in FY 2026. This is no change compared to the estimated FY 2025 appropriation
• since the appropriation was reduced by the same amount in 2024 Iowa Acts, Senate File 2435
• (FY 2025 Education Appropriations Act). However, the Bill makes the change to the General
• Fund standing appropriation permanent.
• Source
• Department of Education
• Division III — Department of Education Responsibilities
• Description
• Division III of the Bill does the following:
• • Requires the Director of the DE to review and conduct research related to the most effective
• evidence-based curricula, instructional materials, and evidence-based or promising
• practices used in prekindergarten programs and in preschools, and to make a list available
• on the DE’s website.
• • Requires the Director of the DE to develop a preschool accountability system representing,
• at minimum, developmental and learning outcomes and continuous implementation of
• high-quality program standards for prekindergarten and preschool programs.
• • Requires the Director of the DE to provide, in coordination with the HHS, an alignment of an
• outcomes-based accountability system for prekindergarten and preschool programs.
• • Requires the Director of the DE to review and revise the State early learning standards and
• standards related to preschool programs.
• • Requires the Director of the DE to provide professional development services to assist
• preschool programs in implementing the revised early learning standards, preschool
• assessments, high-quality program standards, and standards related to preschool
• programs.
• Assumptions and Fiscal Impact
• The DE reports that existing staffing and resources will be adjusted as necessary to implement
• Division III of the Bill.
• Source
• Department of Education
• Division IV — Early Childhood Iowa Initiative
• Description
• Division IV of the Bill does the following:
• • Requires the HHS to designate ECI areas in the same number and using the same
• geographic boundaries as the behavioral health districts designated by the HHS.
• • Requires ECI area boards to implement evidence-based services that are eligible for
• funding under Title IV-E of the federal Social Security Act.
• • Prohibits the HHS from using State moneys that are appropriated for the ECI initiative to
• supplant existing programs, services, or activities funded by other funding sources.
• • Prohibits the HHS from using State moneys appropriated for the ECI initiative for CCA for an
• individual who is otherwise eligible for the CCA program, unless the individual provides
• documentation to the HHS demonstrating denial of eligibility for the CCA program.
• Division IV of the Bill takes effect July 1, 2026.
• Background
• The ECI initiative, established in Iowa Code chapter 256I, facilitates the collaboration of public
• and private entities to improve early care, education, health, and human services for children
• aged five years and younger and their families. The ECI State Board oversees State and local
• efforts and serves as an advisory group to the Iowa Legislature and the Governor’s Office. The
• Board also approves the geographic boundaries for the ECI areas throughout the State and
• approves proposed changes in the boundaries. The current requirements for ECI areas include
• the following:
• • An area cannot encompass more than four counties.
• • The counties encompassing a multicounty area must have contiguous borders.
• • A single-county area must have a minimum population of children aged 0 through 5 in
• excess of 5,000, based on the most recent population estimates issued by the U.S. Census
• Bureau.
• 2024 Iowa Acts, House File 2673 (Behavioral Health Service System Act), established a
• Behavioral Health Service System under the control of the HHS that is responsible for
• implementing a statewide system related to mental health and addiction disorders beginning in
• FY 2026. House File 2673 consolidated programs related to mental health, behavioral health,
• and substance abuse. The new System divides the State into seven behavioral health districts.
• The HHS has published the map of the new system and a map overview.
• Assumptions and Fiscal Impact
• Division IV is anticipated to have no fiscal impact to the State.
• Source
• Department of Health and Human Services
• Division V — Child Care Workforce — State Child Care Assistance Eligibility
• Description
• Division V of the Bill does the following:
• • Provides that a child is eligible for the CCA program if the child’s parent, guardian, or
• custodian is employed at a child care facility or child care home that has an agreement with
• the HHS to accept reimbursement from the CCA program and meets other requirements.
• • Provides that a director, co-director, or other administrative staff member of a child care
• facility may qualify for the CCA program if the individual is regularly counted in the minimum
• child-to-staff ratio established by the HHS.
• • Requires a person participating in the CCA program pursuant to eligibility established in this
• Division to make copayments based on the person’s household income for services
• received from the CCA program.
• • Requires the HHS to adopt administrative rules to administer this Division.
• Background
• The CCA program, established in Iowa Code section 237A.13, is administered by the HHS and
• was established in 2000. The CCA program subsidizes child care costs for low-income families
• with working parents, parents gaining work skills, parents going to school, and parents unable to
• care for children for a limited time due to physical or mental illness. On July 5, 2023, the HHS
• implemented a one-year pilot program allowing the child care workforce to be eligible for CCA
• for their own children if they met certain criteria. The pilot program was extended for another
• year in 2024 Iowa Acts, House File 2658 (Child Care Assistance, Reimbursement Rates and
• Eligibility Act). The pilot program is currently serving an average of 1,457 children per month at
• an average monthly cost per child of $523.14. Approximately 60.0% of the children being
• served through the pilot program are eligible for federal Child Care and Development Fund
• (CCDF) moneys.
• Assumptions
• • An average of 1,457 children per month will remain eligible for CCA.
• • The average monthly cost per child will remain $523.14.
• • The State will pay 60.0% of the CCA costs, while the federal government will pay 40.0%.
• Fiscal Impact
• Division V of the Bill is estimated to increase annual CCA costs by approximately $9.1 million.
• Of the amount, the State may be responsible for approximately $5.5 million annually, which the
• HHS anticipates will be funded by current CCA funds.
• Source
• Department of Health and Human Services
• Division VI — Child Care Continuum Partnership Grants — Pilot Program
• Description
• Division VI of the Bill does the following:
• • Creates a Child Care Continuum Partnership Grants Pilot Program Account under the
• authority of the Director of the HHS.
• • Beginning July 1, 2026 (FY 2027), requires the HHS to allocate no more than $11.0 million
• into the Account annually from the ECI General Fund allocation.
• • The Child Care Continuum Partnership Grants Pilot Program Account is appropriated to the
• HHS to create and administer a Child Care Continuum Partnership Grants Pilot Program in
• collaboration with ECI area boards and the DE.
• • Requires the HHS to publish information on the HHS’s website related to the opportunities
• available under the Pilot Program on or before November 1, 2025.
• • Requires the Pilot Program to award competitive grants to partnerships between providers
• of SWVPPs and licensed child care centers to provide full-day early childhood education
• and care programming for participants in the SWVPP beginning July 1, 2026.
• • Requires the HHS to maintain discretionary funding for local decision making relating to the
• ECI initiative.
• • In addition to the $11.0 million appropriation, beginning July 1, 2025 (FY 2026), the HHS will
• allocate no more than $5.0 million to the Child Care Continuum Partnership Grants Pilot
• Program Account from the amounts appropriated to the HHS pursuant to the portion of 2025
• Iowa Acts, Senate File 626 (FFY 2026 and FFY 2027 Federal Block Grant Appropriations
• Bill), that appropriates moneys in the amounts anticipated to be received from the federal
• government under 42 U.S.C. Chapter 105, Subchapter II-B, or any successor legislation, if
• enacted. Provides that any moneys credited to the Account from such legislation must be
• used by the HHS to create and administer the Pilot Program in collaboration with ECI area
• boards and the DE.
• • Requires the HHS to adopt administrative rules to administer this Division.
• • Repeals the Pilot Program on July 1, 2029 (FY 2030).
• Background
• During the Governor’s 2025 Condition of the State address, the Governor recommended a new
• Early Childhood Continuum of Care grant program to provide three-year grants for preschool
• providers and child care providers partnering to provide an all-day continuum of care for
• preschool-age children. As part of the program, grants in the amount of $16.0 million would be
• funded with existing State ECI funding and supported by federal funds through the CCDF. In
• addition, $3.6 million in existing Shared Visions funding, which is included in the State Child
• Development appropriation, would be used for preschool grants. Shared Visions programs
• would be required to participate in the SWVPP.
• 2024 Iowa Acts, House File 2698 (FY 2025 Health and Human Services Appropriations Act),
• appropriated $35.3 million from the General Fund to the HHS for Early Intervention and
• Supports. Of the appropriation, $29.3 million was allocated for purposes of the ECI Fund,
• created in Iowa Code section 256I.11.
• Assumptions and Fiscal Impact
• The Child Care Continuum Partnership Grants Pilot Program will be funded from an
• $11.0 million ECI General Fund allocation in FY 2027 and $5.0 million in federal funds from the
• CCDF in FY 2026.
• The DE reports that existing staffing and resources will be adjusted as necessary to implement
• Division VI of the Bill.
• Sources
• Department of Health and Human Services
• Department of Education
• Division VII — Early Childhood Iowa Area Boards — Reporting
• Description
• Division VII of the Bill requires each ECI area board, beginning July 1, 2025, and ending June
• 30, 2026, to submit a monthly report to the HHS that includes a detailed monetary accounting of
• the ECI area board’s expenditures during the preceding month.
• Assumptions and Fiscal Impact
• Division VII is anticipated to have no fiscal impact to the State.
• Source
• Department of Health and Human Services