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Board approves contract to pass 90% of special‑education funds to Mississippi Bend AEA
Summary
Trustees voted to contract with Mississippi Bend Area Education Agency to transfer 90% of special‑education funding through the district beginning in FY2026, a change driven by recent funding law and state aid timing.
The Davenport Community School District board approved a three‑year contract with Mississippi Bend Area Education Agency (AEA) to transfer 90% of special‑education funding through the district for fiscal years 2026–2028.
District staff said the approval implements a change in funding flow: funds that historically went directly to the AEA will now be included in district state aid and must be passed through to the AEA in 10 equal monthly payments beginning Sept. 15.
“Historically, the AEA received the money directly from the state of Iowa. Now we’re gonna get the funds via state aid, and then we have to make 10 equal payments to the AEA,” said Kevin (district staff member) during the board presentation. He said the contract governs the payment schedule and does not alter the services the AEA provides.
Kevin said the district’s estimate for the 90% payment is about $4.2 million over the covered period; the remaining 10% will be the district’s choice of purchased services for special education. “The $4,200,000 that we are going to pay, the AEA is what this contract is about. The other 10% is simply services that we are going to choose that we need for special education services,” he said.
Board members asked whether the change would affect the district’s special‑education deficit reporting; Kevin replied, “It truly doesn’t touch it at all. These are dollars that the AEA was receiving already taken off the top of our state aid.” He also explained the timing: the district will receive state aid on the 15th of each month (or the following business day) and must remit one‑tenth to the AEA by that date each month for 10 months beginning Sept. 15.
Trustee Director Barnes asked whether the district will track the pass‑through as an expenditure line; Kevin said the state is still finalizing reporting instructions and “they have not been able to answer that question yet.”
Director Beck moved approval of the contract; the motion passed on a voice vote with no recorded roll call.
The board’s action implements the funding transfer mechanism established by state guidance and sets a monthly payment schedule; district staff said the board will determine which services to purchase with the remaining 10% of special‑education funds.
