In a letter dated June 21, 2011, the U.S. Dept. of Education informed the Iowa Dept. of Education that it would not grant its request for a waiver to reduce state financial aid to local districts for special education in FY 2011 in the amount of $4.1 million. In addition, the state asked for a waiver to make an additional reduction in FY 2010 of $1.4 million. The state was previously granted a waiver for FY 2010 for a reduction of $38.1 million.
According to the letter, unless Iowa provides confirmation that it will make available the amounts requested above, the USED will reduce its federal support to Iowa by the same amount – $5.5 million.
Lastly, the USED reminds Iowa that it must maintain its previous (pre-2009 waiver) level of financial support to district in FY 2012 — for a total of $525.6 million.
The response letter is available here.