Special education funding shift proposed
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For over 50 years, Iowa’s schools have depended on the statewide network of Area Education Agencies (AEAs) to provide special education support, and related services.
Now, Iowa Governor Kim Reynolds has announced her intent to reform Area Educational Agencies (AEA), by giving state funds directly to school districts, rather than the regional AEAs, so they can decide how best to meet the needs of their students.
Who schools choose to work with for special education services could change altogether.
Under the proposed plan, schools would be able to contract with a private company, partner with other districts to share a speech or behavioral therapist, or spend more on special education teachers and put the funds right into the classroom. They could also continue using the services provided by their AEA, or use a neighboring AEA.
Additionally, the state would take control of general supervision and related funds to ensure the AEA system is held accountable and results for students with disabilities improve.
“Independent oversight will move to the Department of Education,” Reynolds stated in her 2024 Condition of the State address, “and most importantly, school districts will now control their special education funds, meaning they no longer will be mandated to send those funds to the AEAs.”
While AEA special education funding is included in individual school budgets, the funds actually “flow through” to AEAs currently.
Each district’s special education funds are calculated based on a state school aid formula, and then subtracted from what a district would receive from the state, being passed on the respective AEA.
According to Reynolds, Iowa is the only state in the nation that operates this way.
The initial plan Reynolds announced, would have restricted AEAs to providing special education services only, putting over 30 programs or services schools currently utilize at risk of being cut.
An amended version of the governor’s plan is now being drafted that would allow AEAs to continue providing professional training and media services to schools.
In an open letter to Iowans issued January 19, Reynolds states “AEAs have expanded well beyond the scope of special education, providing a wide array of other offerings for teachers, schools, and districts. These range from athletic coaching certification, cybersecurity, and classroom book sets, to providing graphic design and printing.”
According to Reynolds, only about one-third of the services AEAs list today are focused on supporting children with disabilities.
The Iowa AEAs website states special education services comprise about 80 percent of the AEA budget.
The nine regional AEAs were established by the Iowa Legislature in 1974, and state funds were allocated to serve children and students with disabilities from birth to age 21.
In addition, all states receive federal funding thanks to the Education For All Handicapped Children Act in 1975, mandating special education services in K-12 schools.
In 2004, the federal law was reauthorized and renamed the Individuals With Disabilities Education Act (IDEA).
The Individuals with Disabilities Education Act makes a free appropriate public education (FAPE) available to eligible children with disabilities in the United States and ensures special education and related services to those children.
