Kim Reynolds signs AEA overhaul, teacher pay raise into law. Here's how it will work:

Gov. Kim Reynolds has signed a far-reaching education law restructuring funding for the state's Area Education Agencies, raising starting teacher pay to $50,000 and giving Iowa schools a 2.5% funding increase for the coming year.

Reynolds, a Republican, signed the education package in a ceremony Wednesday afternoon in the governor's office in the Iowa State Capitol building in Des Moines.

The law, House File 2612, contains the top education priorities Reynolds laid out in her Condition of the State address in January.

"House File 2612 will improve special education for students with disabilities and raise salaries for new and experienced teachers — two foundational pillars of a world-class education system, which is exactly what we strive to provide for every student in our state," Reynolds said.

It gives school districts control over pools of state funding that now go to the AEAs for general education and media services, allowing them to spend the money on private vendors or continue working with the AEAs under a "fee for service" model.

The AEAs — currently the sole provider of special education services — will continue receiving 90% of the state funding that they currently receive for special education, while school districts will control the remaining 10%.

The bill has been highly controversial.

Education advocates organized protests at the Capitol and the governor's mansion in opposition to the bill. Parents of students with disabilities showed up at legislative hearings, saying they believe the legislation would harm the services that their children receive. And Democrats vowed to make the legislation a campaign issue in this fall's elections.

More: Iowa lawmakers pass AEA bill, move to increase teacher pay, handing win to Gov. Reynolds

House Minority Leader Jennifer Konfrst, D-Windsor Heights, told reporters that Reynolds' celebration of the bill shows she's "completely out of touch" with Iowans.

"When you look at the celebration she's having, I want you to think about the families who have so much uncertainty now as they're wondering what will happen to the services in their communities, what will happen to their kids who are getting AEA services," she said. "There are so many questions."

Some superintendents have argued for giving school districts more control over the money so they can better tailor services to their students' needs.

How will special education funding change under the AEA law?

The legislation makes several changes to how the AEAs are funded and whether school districts must continue using the agencies for certain services.

The AEAs are funded through a combination of state, federal and local property tax dollars. They offer special education services to school districts as well as media services and general education services.

The law does not make any changes to funding for special education in the 2024-25 school year. In the 2025-26 school year and beyond, districts will receive the state special education funding that goes to the AEAs, but they would be required to send 90% of that money to the AEAs, while keeping the remaining 10%.

The AEAs received about $156 million in special education funding from the state during the current fiscal year, according to an analysis of the bill by the nonpartisan Legislative Services Agency.

Federal special education funding will continue to go to the AEAs.

How will funding for other AEA services change under the law?

The law also gradually gives school districts control over all the state money for media services and general education services the AEAs now receive.

In the 2024-25 school year, school districts will receive 60% of the media and general education services funding and AEAs will receive 40%. Schools can choose whether to continue contracting with the AEAs for those services under a "fee for service" model, or use a private provider.

Beginning the following year, school districts will receive all the state funding for media and general education services and can choose whether to use the AEAs.

The AEAs currently receive about $35.7 million for general education services and $32.3 million for media services, according to the bill analysis.

More: Which Iowa lawmakers voted to overhaul AEAs, raise teacher pay? Here's the rundown:

The law creates a new special education division in the Iowa Department of Education

The law authorizes the Department of Education to create a Division of Special Education with 13 new staff members in Des Moines and another 40 who would be based within AEAs around the state.

The law also creates a task force to study and make recommendations on the AEA system. The group must submit a report with its findings to the Iowa Legislature by Dec. 31.

The law caps how much AEA administrators can be paid

Pay for AEA administrators will not be allowed to exceed 125% of the average salary of the superintendents within their AEA region.

A Des Moines Register/Mediacom Iowa Poll conducted in late February found a majority of Iowans (56%) have a favorable view of the AEAs, while 24% view them unfavorably and 20% are not sure.

How does the bill increase pay for teachers, paraeducators?

The legislation raises minimum pay for beginning teachers to $47,500 in the coming school year and to $50,000 the following year, up from $33,500 under current law.

It sets a minimum salary of $60,000 for teachers with at least 12 years of experience in the coming school year, before raising that minimum to $62,000 the next year.

And the law has $22 million for schools to use to raise experienced teacher pay and another $14 million to increase pay for non-salaried school staff, like paraeducators.

"Iowa currently ranks in the bottom half of states for starting teacher pay, and with this increase we soar to the top five in the nation," Reynolds said. "But even better than our ranking is the message it sends to current and prospective teachers: Iowa values education and those who dedicate their careers to students, and their pay should absolutely reflect it."

The Iowa Poll found 76% of Iowans favor raising minimum teacher pay to $50,000 per year, while 22% oppose an increase and 2% are not sure.

How much funding do Iowa K-12 schools receive under the law?

The law also increases state per-pupil aid to schools by 2.5%, an increase of $191 per pupil, bringing total state funding for public K-12 schools to $3.8 billion.

The state also is expected to spend $179.2 million in the upcoming year on private school education savings accounts.

What are Iowa politicians saying about the AEA legislation?

Reynolds said she's traveled around the state to meet with superintendents and other representatives of about 150 school districts on the bill, including supporters and opponents.

"Everyone was willing to come to the table with their questions, their concerns and their ideas. And I'm proud to say that actually much of their feedback is reflected in the final bill," she said. "So I want to thank everyone who took the time to meet with me. That input made a difference and I believe that your students will be better served because of your involvement in the process."

Rep. Skyler Wheeler, R-Hull, the House Education Committee chair, said at Wednesday's bill signing that Republicans "brought everybody to the table" to discuss the bill.

"We held numerous meetings with everyone and worked with all sides to come to an agreement that is a win for education in our state," he said.

Senate Minority Leader Pam Jochum, D-Dubuque, released a statement thanking the Iowans who spoke out against the bill, saying Reynolds failed to listen to their concerns.

"Gov. Reynolds demanded an attack on Iowa’s Area Education Agencies that no one asked for and no one wanted. She bullied it through the Republican-led legislature, and today she signed it into law," Jochum said. "Every step of the way, Iowans told her to stop, to slow down, to engage stakeholders and collaborate on real improvements to special education in Iowa. She never listened, and now parents and children will face the consequences."

Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at [email protected] or by phone at 515-284-8169. Follow him on Twitter at @sgrubermiller.

This article originally appeared on Des Moines Register: What to know about the AEA, teacher pay bill Kim Reynolds just signed