257.35 - AREA EDUCATION AGENCY PAYMENTS.

        257.35  AREA EDUCATION AGENCY PAYMENTS.
         1.  The department of management shall 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 cost,
      and educational services for each school district from the state aid
      due to the district pursuant to this chapter and shall pay the
      amounts to the respective area education agencies on a monthly basis
      from September 15 through June 15 during each school year.  The
      department of management shall notify each school district of the
      amount of state aid deducted for these purposes and the balance of
      state aid shall be paid to the district.  If a district does not
      qualify for state aid under this chapter in an amount sufficient to
      cover its amount due to the area education agency as calculated by
      the department of management, the school district shall pay the
      deficiency to the area education agency from other moneys received by
      the district, on a quarterly basis during each school year.
         2.  Notwithstanding subsection 1, the state aid for area education
      agencies and the portion of the combined district cost calculated for
      these agencies for the fiscal year beginning July 1, 2002, and each
      succeeding fiscal year, shall be reduced by the department of
      management by seven million five hundred thousand dollars.  The
      reduction for each area education agency shall be equal to the
      reduction that the agency received in the fiscal year beginning July
      1, 2001.
         3.  Notwithstanding subsection 1, and in addition to the reduction
      applicable pursuant to subsection 2, the state aid for area education
      agencies and the portion of the combined district cost calculated for
      these agencies for the fiscal year beginning July 1, 2003, and ending
      June 30, 2004, shall be reduced by the department of management by
      ten million dollars.  The department shall calculate a reduction such
      that each area education agency shall receive a reduction
      proportionate to the amount that it would otherwise have received
      under this section if the reduction imposed pursuant to this
      subsection did not apply.
         4.  Notwithstanding subsection 1, and in addition to the reduction
      applicable pursuant to subsection 2, the state aid for area education
      agencies and the portion of the combined district cost calculated for
      these agencies for the fiscal year beginning July 1, 2007, shall be
      reduced by the department of management by five million two hundred
      fifty thousand dollars.  The reduction for each area education agency
      shall be prorated based on the reduction that the agency received in
      the fiscal year beginning July 1, 2003.
         5.  Notwithstanding subsection 1, and in addition to the reduction
      applicable pursuant to subsection 2, the state aid for area education
      agencies and the portion of the combined district cost calculated for
      these agencies for each fiscal year of the fiscal period beginning
      July 1, 2008, and ending June 30, 2010, shall be reduced by the
      department of management by two million five hundred thousand
      dollars.  The reduction for each area education agency for each
      fiscal year of the fiscal period beginning July 1, 2008, and ending
      June 30, 2010, shall be prorated based on the reduction that the
      agency received in the fiscal year beginning July 1, 2003.
         6.  Notwithstanding section 257.37, an area education agency may
      use the funds determined to be available under this section in a
      manner which the area education agency determines is appropriate to
      best maintain the level of required area education agency special
      education services.  An area education agency may also use unreserved
      fund balances for media services or education services in a manner
      which the area education agency determines is appropriate to best
      maintain the level of required area education agency special
      education services.  
         Section History: Recent Form
         89 Acts, ch 135, § 35; 2002 Acts, ch 1167, §2, 6; 2003 Acts, ch
      178, §40, 41, 43; 2004 Acts, ch 1175, §236, 287; 2005 Acts, ch 179,
      §6; 2006 Acts, ch 1185, §6; 2007 Acts, ch 215, §9; 2008 Acts, ch
      1181, §100; 2008 Acts, ch 1191, §8; 2009 Acts, ch 183, §69, 74
         Referred to in § 257.37, 294A.22 
         Footnotes
         2009 amendment to subsection 5 applies retroactively to July 1,
      2008; 2009 Acts, ch 183, §74