Gov. Reynolds pitches changes to controversial AEA overhaul bill

DES MOINES — Iowa Gov. Kim Reynolds pitched a number of changes in a proposed amendment to a controversial bill that would overhaul the state’s area education agencies.

Reynolds previously said she would propose changes to the bill after state lawmakers said they received a deluge of complaints in response to the proposal. The amendment has not been filed with the Iowa Legislature, but it was shared with lawmakers and published by the School Administrators of Iowa.

Under the proposed amendment, the state’s nine AEAs would be allowed to continue offering education services — like professional development and literacy programs — as well as media services to school districts who request it, if approved by the Department of Education.

Under Reynolds’ original proposal — Senate Study Bill 3073 — AEAs would have been restricted to providing only special education services, which are a central piece of their current function.

Reynolds said the proposal was needed to address Iowa's lagging test scores for students with disabilities. The AEAs, which are governmental agencies separate from the Department of Education, provide special education to school districts in their boundaries and assist with classroom equipment and media services, professional development and talented and gifted instruction, among other services.

In a statement provided by a spokesperson on Monday, Reynolds said she introduced the changes after hearing feedback from parents, teachers and other stakeholders.

“From the start, my focus has been on improving special education for Iowa’s students with disabilities. After introducing the bill, I met with legislators and heard feedback they received from parents, teachers, and school superintendents,” Reynolds said. “While we agreed changes to the AEA system are necessary, our amendment allows us to address some of the issues schools raised. We made significant changes that support teachers and staff, without compromising the students this bill prioritizes.”

I’ve listened and made changes. But we should all agree: we must do better for our students with disabilities. pic.twitter.com/S9JwJLv7bo

— Gov. Kim Reynolds (@IAGovernor) January 29, 2024

What does the amendment change?

Reynolds’ new proposal would keep intact a $35 million property tax levy that schools can use to pay for the AEAs’ educational services, but remove a $33 million property tax stream that funds the agencies’ media services. The education service funds could be used for media services.

The amendment also would dictate that all AEA services be “reasonable and consistent with current market rates for such services.”

The amendment would send state and federal special education funds directly to schools, who could then decide whether or not to contract with the AEAs. If they do not, schools still would have the legal obligation to educate students with disabilities, and could obtain that instruction from a third party, like a private company.

The amendment would move back the deadline for schools to opt in to AEA services from April 30 to Feb. 1 in future years. In the first year, the deadline would be June 1. Under the proposed amendment, AEAs would have the option of adding special education coverage to a school district at any time after the deadline.

The amendment would not change the proposal to bump the starting pay for teachers up to $50,000.

The bill will receive subcommittee meetings on Wednesday. Senate lawmakers will take up the bill at 2 p.m., while House lawmakers will consider it at 12 p.m.

Lawmakers have received thousands of emails

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Democrats said Monday they are not satisfied with the new proposal. Sen. Sarah Trone Garriott, D-Waukee, said the amended bill includes more state control of AEAs than the original bill.

Reynolds' amendment keeps much of the original language that would move an array of oversight, budget and operations responsibilities of the AEAs under the Department of Education.

“It does nothing good to make this bill better,” Trone Garriott said. “And it is not a response to the concerns of Iowans. It's just kind of moving some things around, but nothing has really changed.”

Trone Garriott also said she was concerned about the amendment not reinstating the property tax funding for media services to school districts.

“The previous bill prohibited media services. This bill allows them, but it doesn't fund them,” she said. "So both bills cut the money to fund the services. The schools don't get that money. It just goes away.”

Rep. Sharon Sue Steckman, a Democrat from Mason City, said she thinks the amendment does not do much to address Democrats’ concerns.

Steckman said Democrats don’t have a problem with reviewing the AEAs, but she said the proposal should have been made in consultation with teachers, parents and AEA staff.

“It doesn't look much different than what we had,” she said. “And why you want to put all that power into the Department of Ed in Des Moines and take it away from local schools and local AEAs, I have no idea.”

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Rep. Steven Bradley, a Republican from Cascade, said he passed the proposed amendment on to superintendents in his district and has received mixed feedback.

“It’s just like everything — I like this piece, and I don’t like this piece. So that’s what we’re trying to work through right now,” he said. “That bill is a work in progress.”

Bradley, who has grandchildren who receive AEA services, said he was watching the proposal and listening to feedback from stakeholders. He said he’s received around 2,000 emails about the bill, mostly against it.

“Everything depends on the final bill,” he said. “This is just an amendment, and I’m sure there could be some more, another amendment. So we’ll see what the final bill is. I’m not going to make a decision until I see the final bill, right in front of me.”

AEAs could voluntarily dissolve

The original bill limited the ability of AEAs to voluntarily dissolve and granted the Department of Education director the authority to dissolve and reorganize agencies unilaterally.

The amendment keeps the power to direct reorganization and dissolution of AEAs with the Department of Education director, but also allows an agency to voluntarily dissolve if approved by the Department of Education.

Reynolds’ office previously said the bill is not intended to close any AEAs. In an appearance on “Iowa Press” on Iowa PBS this month, though, Reynolds said she does not think Iowa needs nine AEAs.

“We need to do something big,” she said. “We need to reform. And I think by giving the districts the ability to hold the AEAs accountable, to decide what program works best for the students that they are serving.”