Iowa Senate passes AEA plan as GOP leaders search for deal on special ed changes

Iowa senators passed a bill Monday to restructure the state's Area Education Agencies, approving a plan that differs from the House's and leaves Republicans in both chambers forced to search for compromise.

A newly amended version of House File 2612 passed on a 28-22 vote, with six Republicans joining Democrats in opposition. But critical details differ between the House and Senate bills, such as how contracting for special education services will be handled, meaning leaders in both chambers will need to work out an agreement if they want to fulfill one of Gov. Kim Reynolds' top priorities this session.

"Schools deserve to have more transparency and accountability for how special education funding is spent," said Sen. Lynn Evans, R-Aurelia. "This bill provides them with more local control to base their spending on the unique needs of students in their districts."

More: As Reynolds pushes big changes to Iowa special education, most like AEAs, Iowa Poll finds

Under the Senate plan, districts would have until Feb. 1 to make an annual decision whether to contract with the AEAs for special education services, as well as media and other general education services.

If a district declines, it can seek out private companies with which to contract. Currently, the AEAs are the provider of those services across the state.

Senate Republicans' bill also takes a different approach to funding services than the House plan, by redirecting money that currently goes to the AEAs and instead sending it to school districts:

• In fiscal year 2025 (beginning July 2024), AEAs will receive all of the money calculated for special education services, 40% for media services and 40% for general education services. The other 60% for media and general education services will be sent to districts.

• In fiscal year 2026 (beginning July 2025) and beyond, AEAs will receive 10% of the funding for special education services, with the other 90% going to districts. The agencies will not receive any guaranteed money for media or general education services.

Districts will have the option, starting in July 2025, to seek private vendors for all services currently provided by AEAs, including special education. AEA services will be offered on a "fee for service" model, provided only if requested and paid for by the district.

The House plan takes a different tack, guaranteeing that the AEAs remain the sole provider of special education services indefinitely while allowing districts to seek private contracts for media and general education services starting in 2025.

More: Iowa House passes GOP plan to change AEA education services and school contracts

Senate Democrats strongly criticized the bill on the floor, calling it unwanted and harmful to schools and students as they urged Republicans to break with Reynolds.

"Do not follow the governor off a cliff," said Sen. Janet Petersen, D-Des Moines, in remarks directed toward Senate Republicans.

And Senate Minority Leader Pam Jochum, D-Dubuque, said that changes to the system — originally drafted by a group including U.S. Sen. Chuck Grassley — would most harm rural districts.

"What you are doing today is creating more instability, more uncertainty, and this system will collapse," said Jochum, whose child received special needs services through the AEAs.

In a statement Monday evening, Reynolds thanked the Senate for passing the bill and "acknowledging that the AEA system needs reform." She pledged to work with chamber leadership to reach a deal.

"I now look forward to working with the House and Senate to reach a compromise that will bring transparency, accountability, and consistency to the AEA system while most importantly improving outcomes for students with disabilities," Reynolds said.

House and Senate have both passed bills on AEAs. What's next?

It remains to be seen what a final agreement between Republicans in the two chambers would look like.

Both Senate Majority Leader Jack Whitver, R-Grimes, and House Speaker Pat Grassley, R-New Hartford, have said in recent weeks that leadership, committee chairs and the governor's office had discussed the bill and made progress.

Whitver said he was optimistic about the prospects of a deal on AEAs between the two chambers, and that "we've had good conversations with both the House and the governor, so I'm optimistic."

Grassley agreed with that sentiment, saying there was common ground that could lead to an eventual agreement.

"It looks like there’s a willingness to want to increase beginning teacher pay. It looks like there’s a willingness to want to have some level of reform when it comes to AEAs," Grassley said last week. "It’s just obviously what are the details and the final products going to look like?”

School leaders continue to lobby on AEA bills

Superintendents and school groups across the state, meanwhile, have continued to lean on lawmakers in both chambers about their AEA bills — both in opposition and support.

A group of 30 superintendents wrote in a letter Sunday that they were "deeply concerned" about proposed changes to AEAs.

"Rural school districts, in particular, rely heavily on AEAs for critical support," the group wrote. "Disrupting a model that has largely worked over the past 50 years will have grave consequences for the students we serve."

Implementing changes quickly, they wrote, risks "destabilizing our educational ecosystem." The group also said that centralizing more authority within the Department of Education represents "an unnecessary overreach by our state government."

Other superintendents have continued to urge lawmakers to make changes at the agencies.

In a Register op-ed last week, leaders from Spirit Lake and Okoboji said the AEA bills "give districts, who know their needs and potential partners the best, several options."

"Many school superintendents across the state believe reforming the AEA system will lead to positive change," they wrote. "We need an efficient and effective system that can be created by giving districts control of the money allocated on their behalf so they can make the most impactful decisions with their funding."

Senate, House at odds on how to address teacher salary boost

Lawmakers in the House and Senate have also diverged in how they address increasing the starting teacher pay in Iowa.

Under the Senate bill to restructure AEAs, the minimum starting teacher pay would be set at $46,250 — higher than the current floor of $33,500 but lower than Reynolds' request of $50,000.

House Republicans have opted to take on teacher pay as a separate issue, a move praised by Democrats and educational groups who are squarely in favor of a pay raise but remain either hesitant or opposed to restructuring AEAs.

Reynolds, in her initial proposal, combined teacher pay and AEA restructuring into a single bill.

A first-year teacher would make a minimum of $47,500 for the first year the House plan would be in effect, before raising to $50,000 in year two.

Grassley said the two-year structure responded to districts who were concerned about managing their budgets while bumping up the rest of the salary scale.

"We want to make sure school districts have time to implement that and make adjustments internally with the changes we made," he said in February.

In her statement, Reynolds urged lawmakers to address teacher pay, including for more experienced teachers. The AEA bill passed by the Senate includes language to increase starting pay but does not address more experienced teachers.

"At the same time we must recognize the important role of teachers in the classroom by increasing minimum salaries for both starting and experienced teachers," she said.

Stephen Gruber-Miller contributed reporting.

Galen Bacharier covers politics for the Register. Reach him at [email protected] or (573) 219-7440, and follow him on Twitter @galenbacharier.

This article originally appeared on Des Moines Register: Iowa Senate passes AEA plan as GOP leaders search for deal