Prove private scholarship skeptics wrong

When the Republican-controlled Iowa Legislature approved using public money to fund private school scholarships, one of the main concerns raised was a fear that there would be little or no transparency in how the money is spent.

This week, we found out a contract with New York-based Odyssey, the firm administering the scholarship program, was changed by the Reynolds administration without following proper procedures.

The contract change wasn’t disclosed. So instead of being careful with public funds, the administration basically proved its critics right.

It was State Auditor Rob Sand who discovered the change and provided information to the public. He found contract changes would cost the state hundreds of thousands of dollars more than planned.

Originally, Odyssey was set to be paid $682, 000 in the first year of scholarships, limited to families with an income below 300% of poverty, Then, in the second year, with the income limit increasing to 400%, Odyssey was to receive nearly $730,000.

But an amendment to the contract gives Odyssey 0.25% of the total amount spent on “qualified education expense.” Sand contends that amendment means the state’s payment to Odyssey will more than double by Fiscal Year 2027.

A document describing the change with the Bureau of Accounting for review was delayed and didn’t include an explanation for the contract amendment.

Sure, the money we’re talking about seems like a small detail within as massive entitlement program that will cost the state an estimated $345 million in FY 2027. So far, the true cost of the program has blown though estimates. Most families accessing scholarships are already sending their kids to private schools.

The Department of Education insists that even with the contract amendment, Odyssey is the lowest bidder seeking to manage the scholarship effort.

But this episode is a bad sign as the program moves forward. Transparency was tossed aside. Iowans have a right to know how their tax dollars are spent.

This would be a good time for the House and Senate Oversight Committees to ask some questions. But Republican lawmakers and the Republican governor are on the same team, so the administration has no fear of legislative oversight. It no longer exists.

We urge the Reynolds administration to embrace transparency and prove its critics wrong.

(319) 398-8262; editorial@thegazette.com