Heartland AEA begins dramatic restructuring following Republican’s AEA changes and cuts

A state agency that supports students from kindergarten to age 21 with special needs is anticipating major restructuring and reductions in the coming year. This after Iowa Republicans’ law redirecting their funding and scope of service.

Heartland Area Education Agency (AEA) is bracing staff for even larger reductions in staff and services in response to the state’s shifting priority from the organizations known for helping school districts with special education for students with disabilities, professional development for teachers, and more.

In an email to staff obtained by Iowa Starting Line, Chief Administrator Cindy Yelick said the agency is implementing significant cuts across multiple service areas.

These cuts are part of a broader statewide trend affecting Area Education Agencies, following controversial legislation that has dramatically reshaped educational support services in Iowa. Across the state, AEAs are experiencing significant workforce reductions. Back in April, Green Hills AEA reported losing 59 positions—nearly 20% of their workforce—with 19 of those being direct layoffs due to budget constraints. Heartland AEA saw similar upheaval back then, with 70 staff out of 740 leaving, including 50 resignations.

Julie McCarty, Heartland AEA’s spokesperson, noted that employees are choosing early retirement or relocating to states “where they believe public education receives greater priority.” Some staff perceive a “decline in support for public education in Iowa.”

Iowa’s AEAs must turn in budgets to the Department of Education on Feb. 28. They’ll be reviewed by the director and then they are presented to the State Board of Education on March 20.

The cuts

According to Yelick’s letter, Heartland AEA is consolidating special education services  from eight regions to four special education service areas, plus Des Moines. It is reducing staff by 45 full-time equivalent positions. 

Heartland AEA has an expansive category it calls Services for a Fee. This helps districts with, for example, computer science curriculum or professional development in teaching literacy skills. The staff of this department will dramatically reduce from 47 to 15 positions. 

Other cuts include targeting $800,000 in infrastructure cost reduction and a review of support function staffing.

Yelick said she expected to finalize reduction plans by early March.

The explanation 

Yelick explained the cuts are the result of changes by the Iowa Legislature. House File 2612 redirects Educational Services and Media Services funds directly to districts, along with 10% of Special Education funds. For Heartland AEA, that’s a budget reduction of approximately $12 million for the 2025-2026 school year.

Adding to the plan, Iowa Republicans are primed to underfund Iowa’s K-12 public schools for another year. While Republicans argue that they have increased the rate of funding each year, the actual funding for students has not kept pace with inflation for years. Gov. Kim Reynolds proposed a 2% Supplemental State Aid increase, which in a Thursday subcommittee Senate Republicans readily advanced. 

In response to the unpredictability, Yelick said Heartland AEA is preparing for potential budget scenarios based on a 0% increase.