Bill > SF2329

Introduced Session

This bill relates to education, including by modifying provisions related to the duties and powers of area education agencies, the department of education, and area education agency funding. DIVISION I —— AREA EDUCATION AGENCIES —— PROGRAMMATIC CHANGES. Current law requires the division of special education within the department of education to oversee the operation of each area education agency to ensure the area education agency complies with all applicable federal and state laws related to special education. The bill strikes this provision. Current law provides that each area education agency is under the general supervision of the director of the department of education and that the area education agency board of directors serves in an advisory capacity. The bill provides that each area education agency is governed by a board of directors. The bill makes conforming changes. The bill modifies provisions related to students that an area education agency may provide services to. Current law provides that an area education agency may furnish evidence-based professional development services to public or nonpublic schools which are on the list of accredited schools if certain specified requirements are satisfied. The bill strikes this provision. Current law requires area education agencies to prepare a proposed annual budget and submit the proposed budget to the director of the department of education for approval not later than March 1 of each year. Under current law, the director is required to either approve or reject the proposed budget for changes within 10 days after submission. The bill modifies this provision to require area education agencies to prepare a proposed annual budget and post notice of a public hearing on the proposed budget on the area education agency’s internet site and by publication in the newspaper of general circulation in the territory of the area education agency in which the principal place of business of a school district that is part of the area education agency is located. The notice shall specify the date, which shall be not later than March 1 of each year, the time, and the location of the public hearing. Current law requires an area education agency to, on a quarterly basis, prepare and submit to each school district that receives services from the area education agency a report that includes certain specified financial and programmatic information. The bill strikes this provision. Current law requires that the director of special education within each area education agency be an employee of the division of special education of the department of education and not be an employee of the area education agency, receive compensation from the area education agency, supervise or manage employees of the area education agency, or directly provide special education services for the agency. Current law also provides that the director of special education’s primary job duties and responsibilities to the area education agency are to provide oversight of the area education agency’s special education services. The bill strikes these provisions. Current law provides that the board of directors shall consist of nine members, with five members being elected in director district conventions and four members being appointed by the majority vote of the superintendents of school districts located within the boundaries of the area education agency. The bill modifies this provision to provide that the board of directors of an area education agency shall consist of not less than five nor more than nine members, each a resident of and elected in the manner provided in this Code section from a director district that is approximately equal in population to the other director districts in the area education agency. The bill makes conforming changes. This provision applies to the election of directors and vacancies occurring on or after July 1, 2026. DIVISION II —— AREA EDUCATION AGENCIES —— FUNDING. The bill modifies provisions related to the calculation of the combined foundation base, the area education agency professional development supplement state cost per pupil, and the combined district cost. The bill also modifies provisions related to the computation of the additional property tax levied by school districts to include the total area education agency professional development supplement district cost. Current law provides that funds calculated under Code section 257.10(7) (special education support services district cost) and received by a school district are required to be used for special education support services. Current law also provides that for budget years beginning on or after July 1, 2025, not less than 90 percent of funds calculated under Code section 257.10(7) and received by a school district are required to be used by the school district for special education support services contracted from an area education agency. The contract between the school district and the area education agency shall not require the school district to describe the specific special education support services the school district will receive from the area education agency. The special education services provided by the area education agency to the school district pursuant to the contract shall not be limited by the amount of funding the school district provided to the area education agency. The bill strikes these provisions. The bill provides that for the fiscal year beginning July 1, 2026, and each fiscal year thereafter, the department of management is required to deduct the amounts calculated for special education support services, media services, area education agency teacher salary supplement district cost, area education agency professional development supplement district costs, and educational services for each school district from the state aid due to the district pursuant to Code chapter 257 and pay the amounts to the respective area education agencies on a monthly basis from September 15 through June 15 during each school year. The bill requires the department of management to notify each school district of the amount of state aid deducted for these purposes and the balance of state aid is required to be paid to the district. If a district does not qualify for state aid under Code chapter 257 in an amount sufficient to cover its amount due to the area education agency as calculated by the department of management, the school district is required to pay the deficiency to the area education agency from other moneys received by the district, on a quarterly basis during each school year. Current law provides that, notwithstanding the deduction and payment called for under Code section 257.35(1), the amounts specified for school districts and area education agencies in Code section 257.35(1)(a) for the fiscal year beginning July 1, 2025, and each succeeding fiscal year, shall be reduced by the department of management by $7.5 million. The bill provides that this reduction does not apply to fiscal years after the fiscal year beginning July 1, 2025. The bill modifies provisions related to moneys available to school districts and area education agencies for special education support services and the funding and provisions related to the media and educational services provided by school districts or through area education agencies, including by modifying Code section 257.37 (funding media and educational services) to strike a provision that state funds that are not required to be paid to an area education agency may be used by the school district for any school district general fund purpose and by modifying the definition of “enrollment served” in Code section 257.37. The bill modifies Code section 257.37A (area education agency salary supplement funding), including by providing that, if the department of management determines that the unadjusted area education agency professional development supplement district cost of an area education agency for a budget year is less than 100 percent of the unadjusted area education agency professional development supplement district cost for the base year for the area education agency, the area education agency shall receive a budget adjustment for that budget year equal to the difference. The division takes effect upon enactment and applies July 1, 2026, for school budget years beginning on or after that date.

AI Summary

Committee Categories

Sarah Trone Garriott (D)*, 

Subcommittee: Sinclair, Rozenboom, and Trone Garriott. S.J. 295. (on 02/16/2026)

Official Document