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 May 2025
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Inside this issue:
Department of Education Resources
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Upcoming Deadlines
Due Date
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What's Due
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May 31
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Deadline for District Budget Amendments
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June 16
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Nonpublic Transportation Claim Due
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June 30
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Last Day to Pay Postsecondary Enrollment Options (PSEO) Tuition Due to Eligible Postsecondary Institutions
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June 30
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Deadline to Submit Notification of Intent to Implement Community Eligibility Provision (CEP)
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July 15
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Special Education Billing Application Due
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Staff Contact Information
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The Department regularly conducts follow-up activities based on audit findings to determine if appropriate and timely corrective action has been taken. A recent analysis of audit results for FY22 and FY23 revealed over 230 segregation of duty findings, including many repeat findings.
Requirement: All school districts, AEAs, and charter schools are expected to establish, document, and maintain effective internal controls in accordance with 2 CFR 200.303. While all districts face unique challenges, districts are expected to demonstrate meaningful improvement in order to address potential issues related to financial management and compliance. Fully segregating duties in smaller districts may be difficult to achieve; however, effort should still be made to strengthen business practices to segregate duties based upon the skills and abilities of existing personnel, including potentially the involvement of staff outside the business office or staff in other districts (e.g., shared staff).
Next Steps: Districts are encouraged to work with their auditor to identify acceptable practices. Internal controls are the responsibility of all officials and employees of the school district and are designed to protect both the district and its employees. Governmental internal control procedures are detailed in the Iowa Auditor of State’s Internal Control Questionnaire located on the Auditor of State website. Under the heading “Other Resources”, select “Audit Practice Aids” and page down to “Internal Control Questionnaire”. The zip file includes questionnaires for FY24: Internal Control Questionnaires - FY2024.
Any progress made toward strengthening segregation of duties (even if the finding cannot be completely resolved) should be documented in the annual audit finding response and included in the response to the Department’s audit finding follow-up request.
For further information, please contact Bobby Wilson at Bobby.Wilson@iowa.gov or 515-210-9674.
Iowa Code section 298A.2 grants school districts the authority to transfer all or any portion of the unexpended, unobligated amounts remaining at the end of a fiscal year to the Flexibility Account from the categorical funds listed below.
- Project 3117: Statewide Voluntary Preschool Program (SWVPP)
- Project 3373 or 3376: Professional Development (PD)
- Project 1113: Home School Assistance Program (HSAP)
- Project 3116: Teacher Leadership & Compensation Supplement (TLC)
- Other categorical sources only if the program, purpose, or requirements for the expenditure of such moneys have been repealed or are no longer in effect
Reminder: Any spending from the Flexibility Account in FY25 must first be presented at a public hearing and subsequently be approved through a board resolution occurring on or before June 30, 2025. The board resolution must include the details below.
- Original source (e.g., SWVPP, PD) and purpose of the funds
- Proposed use of such funds
- Amount of the proposed expenditure
- Fiscal year from which the transfer of such funds to the Flexibility Account occurred
- Certification that the statutory requirements for each original source of the money proposed to be used have been met, have been repealed, or are no longer in effect
Additional information using the flexibility account is available on the Department’s Levies & Funds web page under the General Fund heading.
Further questions may be directed to Song Luong at song.luong1@iowa.gov or 515-205-0259.
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Question: District paid for replacement cafeteria equipment from the SAVE Fund in FY24. In FY25, can the district transfer funds from the Nutrition Fund to the SAVE Fund in the amount of the equipment cost?
Answer: No. A district cannot decide (in a subsequent year) to use a different fund for something that was appropriate from the fund from which it was originally paid.
Question: District paid for cafeteria tables from the Nutrition Fund in FY24. In FY25, it was discovered that the purchase of cafeteria tables is not appropriate from the Nutrition Fund. Can the district transfer funds in FY25 from the fund appropriate for the purchase to the Nutrition Fund in the amount of the cafeteria tables cost?
Answer: Yes. Since cafeteria tables are not an appropriate use of the Nutrition Fund, the district must reimburse the Nutrition Fund (from an appropriate fund) for the purchase of the cafeteria tables. The district should work with the district’s auditor to make the correction.
Question: Is it permissible for a school administrator's contract to include both principal and special education director roles, with a portion of the salary funded through the retained 10% special education support services funds?
Answer: Yes, the contract can include both positions. The portion of the contract related to the Special Education Director role can be paid from the 10% retained special education support services funds. It is important to ensure that the percentage of time spent serving special education is proportionate to the percentage of the salary charged to these funds. For example, if the individual spends 20% of their time on special education services, then 20% of their salary may be paid from the 10% retained special education support services funds.
Question: Where can districts and AEAs find the amounts of special education support services funding for FY26?
Answer: The funding breakdown is calculated by the Department of Management (DOM) and will be available on DOM’s School Resources web page when the amounts are finalized.
The Department’s HF2612 Implementation web page, specifically the HF 2612 Implementation FAQ, includes a section on special education support services funding and additional information that may be helpful.
Further questions can be directed to Valerie Moos at valerie.moos@iowa.gov or 515-393-8349.
Question: May a district purchase t-shirts from the Nutrition Fund for volunteers for a special celebration or event?
Answer: No. Promotional items are not an appropriate use of the Nutrition Fund in accordance with 2 CFR Part 200. The district may purchase the t-shirts from the General Fund if the board establishes a public purpose for the expenditure.
Question: What entity is responsible for issuing the contract between the district and the AEA for the special education support services required to be provided by the AEA for which the district pays 90% of its special education support services funding?
Answer: The special education support services contract is a two-party contract between the district and the AEA. The Department was informed that some AEAs recently issued and other AEAs will be issuing this month a “Contract for Transfer of State Funding”. Depending on the AEA, the contract will be sent to the Superintendent and/or School Business Official (SBO). If the district does not receive a contract by the end of May, reach out to the district’s AEA.
Question: What is the appropriate process by which parental consent should be obtained?
Answer: The Iowa Medicaid team from Iowa Department of Health and Human services issued Informational Letter No. 2673-FFS which outlines this process.
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The 2025 COPS School Violence Prevention Program (SVPP) is a competitive program that provides funding directly to States, units of local government, Indian tribes, and their public agencies to be used to improve security at schools and on school grounds in the jurisdiction of the grantee. Up to $73 million is available for this program.
Applications are due by June 26, 2025 at 4:59 PM ET. Additional information is available on the 2025 COPS School Violence and Prevention Program web page.
The 2025 COPS Hiring Program (CHP) is a competitive award program designed to provide funding directly to law enforcement agencies to hire and/or rehire additional career law enforcement officers in an effort to increase their community policing capacity and crime prevention efforts. All local, state, territorial, and tribal law enforcement agencies that have primary law enforcement authority are eligible to apply. Up to $156 million is available for this program.
Applications are due by July 1, 2025 at 4:59 PM ET. Additional information is available on the 2025 COPS Hiring Program web page.
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The GASB Codification Section 1800.801 indicates that negative cash in a pooled cash account should be reported as an interfund liability account (Account 401, interfund loans payable) rather than a credit balance in a cash account (negative cash). The same amount of another fund in the pool should be reclassified as an Interfund receivable (Account 131, interfund loans receivable). The district is required to establish an interfund loan in accordance with Iowa Department of Education Declaratory Order 4672. Districts are responsible for determining the specific fund that will report the receivable.
If the pooled account as a whole is overdrawn, the overdraft should be reported as an external liability (Account 424, bank overdrafts) rather than an interfund liability.
Questions regarding account coding can be directed to Jina Brincks at jina.brincks@iowa.gov or 515-313-5942 or Song Luong at song.luong1@iowa.gov or 515-205-0259.
Tuition, including open enrollment, is billed on a semester basis on or before February 15 and July 15 each year (Iowa Code § 282.20(3)). An open enrollment bill from the serving district to the resident district should include the student’s identifier (e.g., name or state student ID), grade, entry date, exit date (if applicable), number of days attended this semester, and the amounts charged for tuition, TLC (Teacher Leadership Compensation), PD (Professional Development), EIC (Early Intervention Childhood), and EL (English Learner), if applicable. State identification numbers for students should not be included with their names in an email. Columns and rows should be totaled. The 2024-2025 Open Enrollment Billing Chart can be found on the Department’s Open Enrollment web page and additional information is located on the Department’s Tuition and Fees web page.
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The Iowa Chart of Account Coding, found on the Department's Uniform Financial Accounting web page, is regularly updated to reflect changes necessary to meet fiscal reporting needs.
April 2025
Account Code
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Description
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Source/Project 3422
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Innovation Division of the Department of Education for the Science, Technology, Engineering, and Mathematics (STEM) Collaborative Initiative – STEM BEST Explore: Realworld Adventures (IC 256.111) (Apr25)
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The Nonpublic Transportation Reimbursement application accessible through the EdPortal is planned to open May 15 and is due Monday, June 16. Information relating to the nonpublic transportation reimbursement process is found on the Department’s Nonpublic Reimbursement web page.
Further questions regarding the nonpublic transportation reimbursement claim may be directed to Tom Simpson at tom.simpson@iowa.gov or 515-336-3965.
Districts offering concurrent enrollment courses and eligible Project Lead the Way (PLTW) courses may bill resident districts for the supplementary weighting generated on open enrolled students enrolled in the contracted courses. Bills for the supplementary weighting can be generated using the information provided in the Student Reporting in Iowa (SRI) application. Before paying a bill for supplementary weighting, the resident district can verify the information by reviewing the Supplementary Weighting (Non-Fall) application in the Iowa Education Portal. The student’s resident district cost per pupil of the year in which the course was taken is used when computing the supplementary weighting. Directions for generating and verifying the bills are located on the Department’s Certified Enrollment Supplementary Weighting.
SRI data is open for final reporting, but data should be considered preliminary until the reporting district’s last day of school. Concurrent enrollment information should not change before the end of the school year, since most community colleges already ended their school year. Districts should bill the resident districts for open enrolled students after the Non-Fall Supplementary Weighting application is available.
Questions regarding the billing process can be directed to Ted Bauer at ted.bauer@iowa.gov or 515-979-5468.
Questions related to student reporting can be directed to Rachel Kruse at rachel.kruse@iowa.gov or 515-281-4153.
Many psychiatric medical institutions for children (PMIC) placements are parent placements and not placements by the Iowa Department of Health and Human Services (Iowa HHS) or the Iowa Juvenile Court System (JCS). Iowa Code section 282.27, “Children living in psychiatric hospitals or institutions - payment”, was changed in 2015 to allow hospital PMIC-placed students to be included in the Foster Care Claim process. Subsection 5 states, “If a child placed in the psychiatric unit or institution was not enrolled in the educational program of the district of residence of the child on October 1 of the current school year, the district of residence may include that student in a [foster care] claim submitted to the department of education pursuant to section 282.31(1)"b"(2)".
Each district must do the following to ensure accurate reporting of hospital PMIC-placements in the Foster Care Claim application:
- Identify students for whom the district received a bill from another district because of a hospital stay involving the student’s placement in a hospital psychiatric ward. Then, determine if the student was included in the district’s certified enrollment count.
- For any students identified above who were NOT in the district’s certified enrollment count, either:
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- Enter the student as a new student in the district’s student information system and show enrollment corresponding to the period of time of the placement with a service/facility type of 2 and service provider/facility code of 97777777. This will usually be for students who are homeschooled, attend a nonpublic school, or resident individuals who dropped out of school and were not enrolled on count date. During a hospital stay while placed in a psychiatric ward, the student is considered a public school student and must be entered into the student information system with an entry code of 1. The student must be exited using the date when the student ended the hospital stay and an exit code to show the current status of the student (transferred to home school, transferred to a nonpublic school, dropped out of school).
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- Add a new enrollment record for any student already in the system for the period of time the student was placed in the hospital psychiatric unit. The service/facility type field must be identified as 2 (PMIC placement) with a service provider/facility code of 97777777 (hospital psychiatric ward).
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Further questions regarding PMIC placement foster care reimbursements can be directed to Ted Bauer at ted.bauer@iowa.gov or 515-979-5468.
Questions related to reporting students in a hospital PMIC-placement can be directed to Rachel Kruse at rachel.kruse@iowa.gov and 515-281-4153.
The Special Education Billing (SEB) application will open May 25 for districts to begin their FY25 final billings. Please remember that all school districts are statutorily required to submit their final billings by July 15 per Iowa Code § 282.20(3).
Student information is required to be entered by the number of days only. Districts must upload a CAR file to activate the SEB application. Districts should also clear edits related to special education accounts in the CAR/COA test records application prior to sending bills through the SEB application. Instructions for the SEB application can be found in the EdPortal, within the application under the “Help” tab.
Recommended Timeline for Successfully Completing the SEB Application and Claims Timely:
By June 30: Enter all students into the SEB application, including those who will populate the special education foster care, termination of rights, non-public, and high cost claims.
Between July 1-15: Review and verify the accuracy of the tuition out information through the Tuition Payable tab in the SEB application. If it is determined that a student has been omitted, contact the district that provided educational services to add the student in their SEB application.
By August 1: Submit claims for special education foster care, termination of rights, nonpublic, and high costs.
Questions can be directed to Valerie Moos at valerie.moos@iowa.gov or 515-393-8349.
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The Final Rule was released by the U.S. Department of Agriculture (USDA), reducing the minimum Identified Student Percentage (ISP) from 40% to 25% to participate in Community Eligibility Provision (CEP). Student data schools reported as of April 1 will be used to calculate the ISP and the school’s free/paid reimbursement claiming percentages. A school must have an ISP of 25% or greater to operate CEP. CEP allows School Food Authorities (SFAs) located in high poverty areas to offer breakfast and lunch at no cost to all enrolled students. However, under CEP, not all meals are automatically claimed at the free federal reimbursement rate. There may be considerable ongoing cost so electing to participate in CEP may not be a financially viable option. Some SFAs have a generous balance in the nonprofit school food service account (NSFSA) and view operating CEP as a favorable option. However, there are some limitations on using all of the available funds to support CEP. Only the nonprogram revenue (from a la carte, vended or catered meals, adult meal sale, etc.) in excess of the required amount to meet requirements at 7 CFR 210.14(f) may be used to support CEPs. SFAs must carefully determine the funding available in the NSFSA before implementing CEP.
SFAs interested in participating in the CEP for the 2025-26 school year and returning SFAs operating CEP must complete the CEP Intent to Implement no later than June 30, 2025. For additional information on CEP, visit the USDA CEP Resource Center for the Estimator Tool and other resources, or contact the school’s regional school nutrition program consultant.
Iowa Code section 280.32 requires each Iowa public school district’s board of directors to establish a radon plan and a subsequent schedule for short-term testing for radon gas at each attendance center. Each attendance center shall be tested, at least once, by July 1, 2027. Once initial testing is done by July 1, 2027, each attendance center must be tested again at least once every five years. The results of each test are required to be published on the district’s internet site in a timely manner.
Radon testing done on and after July 1, 2022 shall be done by a person certified to conduct radon testing in accordance with Iowa Code section 136B.1 or by district employees who have completed a radon testing training program approved by the Department and Iowa HHS.
Additional information is available on the Iowa HHS K-12 Schools Radon Information web page as listed below.
- Iowa Code Chapter 280 requirements
- Related radon legislation
- Radon training information for school district employees
For questions regarding radon testing training or how to become eligible to conduct radon tests, please reference the K-12 Schools Radon Information web page.
Questions about the radon testing guidance can be directed to Ted Bauer at ted.bauer@iowa.gov or 515-979-5468.
Special education claims are found in the Special Education Billing application on screens 4 through 7. Claims submitted will flow to the Department automatically from data entered on the student information screen and will not be included in the estimated or final billing screens. Claims are due on August 1st and are anticipated to be paid at the end of August.
Special Education Foster Care Claims
Claims for students in this status are eligible if all of the items below are applicable.
- The student is served pursuant to an Individualized Education Program (IEP).
- Parental rights have not been terminated.
- The student's parents do not live in Iowa, or where the parents live cannot be determined after reasonable efforts to locate them.
- No Iowa school district counted the student on the special education weighted headcount in October of the current school year.
If any one of these items do not apply, the serving district will bill the district where the parents lived on the dates served, or bill the district that counted the student on the special education count if the parents moved out of state or could not be located after due diligence. Use the “Look Back” tool in the Special Education Billing application to determine if another district counted the student on the special education weighted headcount in October of the current school year.
Special Education Termination of Parental Rights Claims
Claims for students with this status are eligible if both of the items below are applicable.
- The student is served pursuant to an IEP.
- The parental rights of the student have been terminated.
Note: The school district will file a claim regardless of whether the district counted the student on the special education weighted headcount in October of the current school year.
The serving district should bill the district that counted the student in October (if applicable) until the date of the rights being terminated. Use the “Look Back” tool in the Special Education Billing application to determine if a district counted the student on the special education weighted headcount in October of the current school year. The claim may begin on the date the parental rights were terminated.
Special Education Nonpublic Claims
Claims for students with this status are eligible if the items below are applicable.
- The student is served pursuant to an IEP.
- The student is attending an accredited nonpublic school for general education services while receiving special education services from the public school district.
- The cost of providing special education services to the student exceeds the funds generated by the resident district for counting the student on its special education count.
- Costs are defined as the actual special education costs incurred to serve the student pursuant to the IEP.
- Funds generated include the funds generated by the student from being included on the special education count.
Special Education High-Cost Fund Claims
Claims for students with this status are eligible if the items below are applicable.
- The student is served pursuant to an IEP.
- The costs of educating the student exceed three times the state’s average per-pupil expenditure, as calculated annually by the Department, plus the calculated amount of Medicaid eligible expenditures.
- The claim filed by the district or area education agency (AEA) does not qualify as a foster care claim, termination of rights claim, or a nonpublic claim under current Iowa law.
High-cost fund claims are paid by the state from a set-aside portion of IDEA, Part B funds. The amount set aside might be less than the total amount of high-cost fund claims received. In that case, the amount paid to each district will be prorated. If a claim is filed late, funding will not be available to cover that high-cost fund claim because the available funding will already have been allocated to districts that filed timely.
The English Learner (EL) Excess Costs application is available in September each year. Information used in the September 2025 application is generated from fiscal year 2024-2025 data.
Reminder: Continue to code EL (formerly LEP) expenditures to program codes 410-419, even if expenditures exceed the amount of revenue coded to Project 1112 or 4644. Excess EL expenditures will use Project 0000 and retain program codes 410-419. This information is used when submitting the EL Excess Costs application. If the program code is not used, the excess costs will not populate in the application.
For EL Excess Costs application questions, please contact Ted Bauer at ted.bauer@iowa.gov or 515-979-5468.
The Bureau of School Business Operations hosted the Finance Roundtable at the Grimes Building on Wednesday, April 23. Led by Bureau Chief Kassandra Cline, there were 32 attendees who participated in discussing agenda topics including committed and assigned balances, SBO professional development opportunities, segregation of duties findings, HF2612 implementation progress, charter school funding, and spending authority in context. This diverse group is an invited focus group comprised of school business officials, superintendents, and AEA representatives from around the state; members of the Department, Department of Management, Legislative Services Agency, and the Office of the Auditor of State; as well as individuals from various organizations that support school districts across the state including IASBO, IASB, SAI, ISFIS, ISEA, and an auditing firm. The group meets three times during the school year to discuss school finance-related issues and will meet again in October.
Information regarding Iowa’s Students First Education Savings Account (ESA) program can be found on the Department's Students First Education Savings Accounts web page.
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For School-Based Medicaid policy questions, contact Tashina Hornaday, Medical Policy Program Manager at Iowa Health and Human Services, at tashina.hornaday@hhs.iowa.gov or 515-201-3553.
For Medicaid procedure questions, contact Melissa Walker, Administrative Consultant of School Health at the Department of Education, at melissa.walker@iowa.gov or 515-864-6701.
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Districts may use vans that are purchased new, up to 10-passenger, including the driver, and vans that are purchased used, up to 12-passenger, including the driver, for pupil transportation (Iowa Code § 321.373(3)). If the district is considering purchasing vans for pupil transportation, helpful notes are provided below.
- Districts that purchase new passenger vans with a capacity of 11 or 12 may not use the vans for pupil transportation.
- The Safe, Accountable, Flexible, Efficient Transportation Equity Act of 2005 requires that any vehicles over 10-passenger capacity which are purchased new for student transportation must be built to yellow school bus specifications. Vans do not meet these specifications, meaning 10-passenger vans are allowed and anything larger and purchased new must be a school bus.
- Seating capacity rating may not be changed or modified except by the original equipment manufacturer (OEM), dealer, or remanufacturer. Seating capacities which vary from the OEM are required by the National Highway Traffic Safety Administration (NHTSA) to be identified by an alterer’s certification and information label, affixed to the frame of the driver’s door. Additional information and a sample alterer’s certificate can be found on the "Type III Vehicle Information" document posted on the Department's Pupil Transportation web page.
- Vans purchased for student transportation with a rated capacity of 11 or 12, including the driver, must be acquired in used condition. "Used" is defined in Iowa Administrative Code r. 281-44.5(1)(b)(2) as a vehicle that has had a title transfer from a dealer to one or more previous retail owners.
- Per Iowa Administrative Code r. 281-44.5(1), alteration of a Type III vehicle, following manufacture by the OEM, is prohibited. While this includes the addition or removal of seats, the Department will grant an exception for seats which are added or removed as long as the seating capacity does not exceed the capacity as certified by the OEM or on the installed alterer’s certification and information label as referenced above.
Further questions regarding Type III vehicles used for student transportation may be directed to Tom Simpson at tom.simpson@iowa.gov or 515-336-3965.
Effective May 2024, Type III vehicles (typically vans) that are equipped with ramps may be purchased and used for student transportation. Prior to this change, only vehicles constructed by the original equipment manufacturer (OEM) as wheelchair accessible vehicles could be used for student transportation.
Iowa Administrative Code r. 281-44.5(1) authorizes the use of Type III vehicles modified by conversion companies to be wheelchair accessible and requires compliance with all applicable Federal Motor Vehicle Safety Standards (FMVSS) and Americans with Disabilities Act (ADA) requirements.
Please note that only “curb-side” ramps are allowed. Ramps to the rear are not allowed for student transportation.
New Resource: Type III Ramp-Equipped Vehicles: Requirements and Considerations can be found on the Pupil Transportation page of the Department’s website under the “Guidance, Information, & Instructions” section.
Questions relating to the use of these vehicles can be directed to Tom Simpson at tom.simpson@iowa.gov or 515-336-3965 or to the district’s local school bus inspector listed below.
Joe Funk (Southeast Region) at joe.funk@iowa.gov or 515-669-4987
Chris Errthum (Northeast Region) at chris.errthum@iowa.gov or 515-669-4994
Codie Kellen (West Region) at codie.kellen@iowa.gov or 515-326-1022
A valued partner of the Department’s School Bus Inspection Team is the Iowa State Patrol’s Public Resource Officer (PRO) Unit. The PRO Unit was created in 1964 when the Iowa State Patrol received a request from the Iowa Department of Public Instruction for an officer to teach first aid at annual school bus driver training. For over 60 years, the PRO Unit has continued to assist the Department and educate pupil transportation professionals.
The PRO Unit consists of 14 officers, with one officer assigned to each District Headquarters. Although these officers also speak at schools, businesses, service clubs, churches, and other groups, one of their primary roles is assisting with school bus inspections. Another, possibly lesser known, function of the PROs is to assist school districts with the mandatory school bus evacuation drills in which students are required to participate twice per year.
Districts can contact their local Iowa State Patrol PRO for assistance with evacuation drills or other presentation topics offered by the officers. Contact information is available on the website of the Iowa Department of Public Safety, on the Public Resource Officer Unit page.
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It is the policy of the Iowa Department of Education not to discriminate on the basis of race, creed, color, sexual orientation, gender identity, national origin, sex, disability, religion, age, political party affiliation, or actual or potential parental, family or marital status in its programs, activities, or employment practices as required by the Iowa Code sections 216.9 and 256.10(2), Titles VI and VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000d and 2000e), the Equal Pay Act of 1973 (29 U.S.C. § 206, et seq.), Title IX (Educational Amendments, 20 U.S.C.§§ 1681 – 1688), Section 504 (Rehabilitation Act of 1973, 29 U.S.C. § 794), and the Americans with Disabilities Act (42 U.S.C. § 12101, et seq.). If you have questions or complaints related to compliance with this policy by the Iowa Department of Education, please contact the legal counsel for the Iowa Department of Education, Grimes State Office Building, 400 E. 14th Street, Des Moines, IA 50319-0146, telephone number: 515-281-5295, or the Director of the Office for Civil Rights, U.S. Department of Education, Citigroup Center, 500 W. Madison Street, Suite 1475, Chicago, IL 60661-4544, telephone number: 312-730-1560, FAX number: 312-730-1576, TDD number: 877-521-2172, email: OCR.Chicago@ed.gov.
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