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 February 2026
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Inside this issue:
Department of Education Resources
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Upcoming Deadlines
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Due Date
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What's Due
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February 2
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Last Day to Request Authority to Charge Administrative Costs to Special Education for the Subsequent Fiscal Year
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February 6
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Deadline to Request to Appear or Submit Exhibits for March 10, 2026 School Budget Review Committee (SBRC) Hearing
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February 16
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Last Day to Bill for First Semester Special Education Tuition
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February 27
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Area Education Agency (AEA) Budget Submission Deadline
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February 27
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IDEA-PBC Application due for Part B Budgets
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March 10
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School Budget Review Committee Hearing
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March 31
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Last Day to Submit LEA and AEA Electronic Annual Audit of Prior Year to the Department and Auditor of the State's Office
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April 17
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Deadline for School Bus Safety Week Poster Contest Submissions
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Staff Contact Information
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Do you enjoy helping others in the realm of school finance and accounting? Do you enjoy troubleshooting account coding practices? Do you consider yourself an account coding guru? Are you intrinsically motivated to help and be a resource for others? Join our team!
Position Name #1: Education Program Consultant (School Finance - Accounting) (closes 3/1/26)
Position Name #2: Education Program Consultant (School Business Operations) (closes 3/1/26)
Reach out to Kassandra Cline at kassandra.cline@iowa.gov or 515-326-2242 if you want to learn more about the incredible impact you can have working on our team supporting SBOs across the State!
The Department is excited to launch a new application in the EdPortal called IDEA PBC. Districts will use this application to complete the IDEA Part B budgets and to submit claims against the approved budgets. This application is required for all subrecipients who receive IDEA Part B funds.
The Department held a webinar on Tuesday, February 10, 2026 to demonstrate the functionality of the application and provide next steps for districts. The webinar recording and slide deck is available on the Department’s Special Education Finance web page, under the IDEA Part B & C Application (IDEA PBC) section. LEA Part B Budgets are due through the IDEA PBC application February 27.
Further questions can be directed to Sarah Sheeder at sarah.sheeder@iowa.gov or 515-326-0854.
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Question: Does the information in the Budget Detail Pages (e.g., contracts, tuition) save before the page is ready to “submit”?
Answer: Yes. The action to “Add Row” as detail is entered into each Budget Detail Pages activates an auto-save feature. The user can navigate through all Budget Detail Pages as well as make edits until the budget has been certified on the Assurances page.
Question: Can a school district pay for the costs of a School Resource Officer (SRO) from the Management Fund?
Answer: No. The Management Fund may not be used to pay for the costs of an SRO.
Appropriate uses of the Management Fund are defined as costs of unemployment benefits; early retirement benefits; insurance agreements; liability insurance to protect the school districts from tort liability, loss of property, and environmental hazards; and judgments or settlements relating to such liability (281 IAC 98.62(2)). Additionally, the rule prohibits any use of the Management Fund which is not expressly authorized (281 IAC 98.62(3)).
Question: Does the school board president have to sign everything by hand?
Answer: No. Iowa Code section 291.1, identified as President - duties, authorizes the president’s signature, or the signature of the president’s designee, to be affixed using an original or facsimile signature. The board of directors, by resolution, may designate an individual, who shall not be the secretary, to sign payments or authorize electronic funds transfers on behalf of the president.
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The "2025-26 District AEA Flowthrough Amounts", "2025-26 Sources for Local Projects", "2025-26 Preschool Funding" (with administrative reduction amounts), and "2025-26 Utility Replacement Tax Payments" documents are available under the heading “Data Used to File FY26 CAR” on the Certified Annual Report (CAR) web page.
Further questions can be directed to Bobby Wilson at bobby.wilson@iowa.gov or 515-210-9674.
Message from the Department of Management:
The February 2026 income surtax payment is the second and final income surtax payment for the 2024 income tax year. The payment represents the remaining amount of income surtaxes collected for your district. Approximately 75% was paid in December so the final payment represents the remaining amount due.
This payment is based upon the income surtax rates established for your 2024-2025 budget. If your district did not have a surtax for the Physical Plant and Equipment (PPEL) Fund, the entire payment should be credited to the General Fund. On the other hand, if you had both General Fund and PPEL surtax, then split the income surtax in accordance with the rates. The PPEL Income Surtax rate can be found on line 19.4 of the Aid and Levy Worksheet. The General Fund income surtax rates can be found on lines 10.15 and 11.4. The Department of Management has provided a summary, including the split between funds, which is posted under the Department’s State Payment Information FY26 web page.
The transportation reimbursement amount for the 2025-26 school year is $751 per student for qualifying open enrolled families. Transportation assistance is only available to families with students who are open enrolled between contiguous districts and meet income requirements. The cost of transportation reimbursement incurred by the resident district should be deducted from the tuition sent to the receiving district. If the application for transportation assistance is filed after the school year begins, the reimbursement request should be prorated.
The resident district has the authority to determine how transportation assistance is provided for eligible students. The type of transportation assistance offered is not determined by the parent/guardian.
The resident district may fulfill its statutory obligation in one of the three ways listed below.
- Provide transportation for the student(s) to a stop on the receiving district’s bus line.
- Allow the receiving district to enter the resident district to pick up the student(s), if requested by the receiving district. If either the sending or receiving district does not approve this arrangement, the resident district is still obligated to provide transportation assistance.
- Provide the parent/guardian with a cash reimbursement amount as determined in Iowa Code Section 285.1(3) or the local cost per pupil for the previous year as specified on the resident district’s Annual Transportation Report, whichever is lower. The amount as determined in Iowa Code Section 285.1(3) for the 2025-26 school year is $751. The maximum number of students can include only one secondary (9-12) student and up to three elementary (K-8) students (Iowa Administrative Code r. 281-17.8).
Additional information is available on the Department’s website, including the Open Enrollment Handbook and Open Enrollment Transportation Assistance handout with income guidelines.
Questions related to transportation assistance can be directed to Tom Simpson at tom.simpson@iowa.gov or 515-336-3965.
Questions related to open enrollment can be directed to Sara Nickel at sara.nickel@iowa.gov or 515-971-7558.
Reminder: There is an important distinction between Property Tax and Utility Excise Replacement Tax. Property Tax is a levy on property. Utility Excise Replacement Tax is an excise tax and is not a property tax. Because these revenues are different, federal reporting, Certified Annual Report (CAR) reporting, and the district budget process are affected by related coding choices.
- Source 1171: Gas and Electric or Utility Replacement or Excise Tax (Iowa Code chapter 437A)
- Source 111X: (Current) Utility (not gas and electric) or Delinquent Utility
Resources: FY26 Utility Excise Replacement Taxes are available on the Department’s Certified Annual Report web page under the section "Data Used to File FY26 CAR", in a file titled “2025-26 Utility Replacement Tax Payments”. Only utility items labeled "Gas and Electric", "Utility Replacement", or "Excise Tax" should be coded as Utility Excise Replacement Taxes, Source 1171. Items labeled "Utilities" or "Current/Delinquent Utilities" are coded as regular property tax, Source 1110 (1111).
An additional resource is available on the Department’s Uniform Financial Accounting web page titled "Property Taxes - Types and Coding" that includes coding detail for different types of taxes. FY26 estimates are available on the Department of Management’s School Resources web page in a file titled Outstanding Property Tax Levies and Maximum Levy Limits. FY26 estimates will be posted this summer.
Questions related to account coding can be directed to Bobby Wilson at bobby.wilson@iowa.gov or 515-210-9674.
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This article serves as a reminder of requirements defined by the Governmental Accounting Standards Board (GASB), Statement 101, Compensated Absences. GASB 101 was issued to improve the clarity and consistency of financial reporting of compensated absences.
GASB 101 defines compensated absences as any of the following:
- Cash payments when the leave is used for time off;
- Other cash payments, such as payment for unused leave upon termination of employment; or
- Noncash settlements, such as conversion to defined benefit postemployment benefits.
Examples of compensated absences are below.
- Vacation leave
- Sick leave
- Paid time off (PTO)
- Holidays
- Parental leave
- Bereavement leave
- Certain types of sabbatical leave
Liabilities for compensated absences must be recognized for the leaves below.
- Leave that has not been used if the leave is attributable to services already rendered, the leaves accumulate, and it is more likely than not (a likelihood of more than 50 percent) to be used or be paid for the leave.
- Leave that has been used but not yet paid or settled through noncash means.
Exceptions to the liability recognition under this Statement.
- The following leaves should not be recognized as liabilities until the leave begins:
- Parental leave
- Military leave
- Jury duty leave
In addition:
- Unlimited leave should not be recognized as liabilities until the leave is used.
- Holiday leave that is taken on a specific date and not at the employee’s discretion.
- Termination benefits under GASB Statement 47.
Measurement
- Liabilities for compensated absences are measured using the employee’s pay rate at the financial statement date. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. Examples include FICA, IPERS, or other payroll taxes.
Additional detailed guidance for GASB 101 implementation can be found listed below.
GASB 101 journal entry examples are still listed on the Department’s Uniform Financial Accounting web page on the “UFA journal entries” spreadsheet under the “GASB 101 Comp Absences (Gov)” and "GASB 101 Comp Absences (Prop)” tabs.
Further questions can be directed to Bobby Wilson at bobby.wilson@iowa.gov or 515-210-9674.
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The School Budget Review Committee (SBRC) met in regular session to hold hearings on January 27, 2026. The Committee was presented with information requested from the December 16, 2025 hearing, including the historical special education population and expenditure data, an initial description of the special education fiscal monitoring activities occurring, and detail of an expenditure review related to requests in December for modified supplemental amounts (MSA) due to excess costs of the English Learner (EL) program.
The Committee approved a negative MSA request for FY25 for costs incorrectly coded to the EL program and the Committee took action to not revert any AEA special education balances because none exceeded ten percent. The Summary of Action is available on the SBRC Hearing Information web page under the Summary of SBRC Hearing Decisions.
Further questions can be directed to Stephanie Edler, SBRC Liaison, at stephanie.edler@iowa.gov or 515-689-2258.
The Bureau of School Business Operations hosted the Finance Roundtable at the Grimes Building on Wednesday, January 28. Led by Bureau Chief Kassandra Cline, 24 members attended and discussed various agenda topics including the new IDEA Part B Application, January SBRC recap, continuing conversation surrounding spending authority in context, and other current topics.
Membership in this invited focus group includes representatives from the Department of Education, Department of Management, Legislative Services Agency, State Auditor's Office, school districts, area education agencies, Iowa Association of School Business Officials, Iowa Association of School Boards, School Administrators of Iowa, Iowa School Finance Information Services, and Iowa State Education Association. The group meets three times during the school year to discuss school finance-related issues and is scheduled to meet again in April.
As districts are preparing for the upcoming Iowa Statewide Assessment of Student Progress (ISASP) testing window, please be sure that you have discussed the testing protocols and security guidance provided by the publisher. This discussion should include building level administrators and staff who will be included in the assessment process, as well as staff who may be working with home school families to complete the assessment. Please remember the ISASP is not to be sent home for completion by students outside of the school building, AEA, or other location designated for testing and is to be supervised by district or AEA personnel who have completed the required training modules for those administering the assessment. Students who are homeschooled under Independent Private Instruction (IPI) assume the cost of an annual assessment if one is requested by the family. Competent Private Instruction (CPI) students are never charged for an annual assessment.
Questions related to Home Schooling (Private Instruction) can be directed to Buffy Campbell at buffy.campbell@iowa.gov or 515-954-8651.
School districts and AEAs may purchase goods and services through master agreements negotiated by the Iowa Department of Administrative Services (DAS) available on the Iowa Management and Procurement Contracts web page. A wide variety of goods and services are available at rates that are already negotiated. Items range from copy paper to automobiles. Purchases from master agreements do not require a competitive bid process.
If the school district is responsible for providing textbooks for a concurrent enrollment course, the expectation is that textbooks are provided to students enrolled in the concurrent enrollment course consistent with the district's established textbook policy and in the same manner as the district provides textbooks for all students of the district (Iowa Code chapter 301).
If the district charges an annual textbook rental fee to all students, that established fee covers all textbooks for all courses (e.g., high school credit only, concurrent enrollment). If the district charges no fee for textbooks, then no fee may be charged to students for concurrent enrollment textbooks. Only if a district’s policy is to charge on a book-by-book basis to all students for all courses can a district charge a textbook fee for each concurrent enrollment course.
It would not be permissible for a district to establish a separate textbook policy specific to concurrent enrollment courses which may require a student to purchase textbooks for their concurrent enrollment courses; doing so would set additional restrictions on participation in the course, such as charging tuition which is expressly prohibited in state law (281 IAC 22.7(2)).
Helpful tips are provided below.
- This applies to all instructional delivery methods (e.g., in the high school, online, on-campus, through a career academy).
- There would be nothing preventing the student from purchasing the textbook for the concurrent enrollment course if they want to keep it, but requiring the student to purchase the book would equate to charging tuition, which is not permissible.
- Refer to page 27 of the Senior Year Plus Guide for additional information.
Further questions can be directed to Lisa Washington, Senior Year Plus, at lisa.washington@iowa.gov or 515-326-5389, or Ted Bauer, School Business Operations, at ted.bauer@iowa.gov or 515-979-5468.
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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Questions relating to the articles below may be sent to State Director for Pupil Transportation, Tom Simpson at tom.simpson@iowa.gov or 515-336-3965 or one of the inspectors below.
On January 9, 2026, the National Transportation Safety Board (NTSB) released their preliminary report of a 5-year-old student that was fatally injured while boarding his school bus in Maine on December 16, 2025.
According to the report, a 7-year-old student boarded the bus and a 5-year-old student was approaching the bus from the right rear. As the younger student reached the service door, it began to close. The student extended his left arm into the bus, between the closing doors, and his arm became pinned between the doors as they closed. The driver then left the bus stop and began to drive down the road. The student was dragged about 280 feet before he became dislodged from the door. He then fell to the roadway, and was run over by the bus, sustaining fatal injuries.
Incidents where students are caught in the service door are relatively rare, but they are completely preventable. In addition to pinned limbs, student backpacks, bags, or even clothing items have caused students to be dragged by their school bus.
To prevent students from being dragged by their school bus, drivers should check all mirrors and check the door, once more, to ensure all students are clear of the service door before moving the school bus.
The Iowa Pupil Transportation Association (IPTA) provides professional development opportunities available for school transportation directors.
Between March 30 and April 15, IPTA will sponsor nine regional meetings across Iowa. The Department’s transportation team will once again be presenting at all nine meetings. The team will provide information related to driver training format and rule changes, post-crash drug and alcohol testing and crash reporting, changes in medical examiner certificate protocols, and other safety suggestions and training opportunities.
A member of the Department’s Pupil Transportation team will be available to answer inspection questions as well as other questions related to safe and efficient student transportation.
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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, 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. § 2000d2000e), 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, Cesar E. Chavez Memorial Building, 1244 Speer Boulevard, Suite 310, Denver, CO 80204-3582, telephone number: 303-844-5695, TDD number: 800-877-8339, email: OCR.Denver@ed.gov.
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