Iowa
Iowa auditor: School choice deal hiked cost without justification
DES MOINES — The Iowa Department of Education did not follow proper procedures when amending a contract with the company that administers the private school choice program — a move that will increase costs significantly, State Auditor Rob Sand said Tuesday.
In response, the Education Department said that even with the increased costs, the contract represented the lowest bid for administering the program and was a significant savings compared with other competitors.
Sand, a Democrat, released a report detailing his office’s inquiry into the contract with Odyssey, a company that manages programs like Iowa’s that allow students to use public funds to pay for tuition at private schools.
Iowa’s education savings account program allows students to use the full per-pupil state funding that would go to their public school district to instead pay for private school tuition and other costs. More than 30,000 Iowa students have been approved for the coming school year.
According to Sand’s report, the amended contract, which previously was not disclosed publicly, is expected to more than double the original annual cost to the state for Odyssey to administer the program by fiscal 2026.
“The cost to Iowa taxpayers for the administration of the school vouchers program has doubled with no apparent justification for it whatsoever,” Sand told reporters. “This is a contract that was signed just a couple of months after the original contract was signed, and still today there has been no justification provided whatsoever.”
A spokesperson for Odyssey did not immediately respond to a request for comment.
Iowa selected Odyssey in a competitive bidding process in April 2023 to administer the state’s ESA program. The initial contract was for three years, with three optional annual extensions, and totaled $4.3 million for the six-year period. The annual cost to administer the program initially was listed at $730,000 by year two of the contract.
The administration cost is a small piece of the overall cost of the ESA program, which cost the state $128 million in the last fiscal year and is expected to increase to at least $345 million by the 2026-27 school year.
Amendment ramped up costs
Sand’s report said the contract was amended in July 2023, three months after it was approved, to include new variable fees. One those fees calls for Odyssey to be paid 25 basis points — or 0.25 perecnt — of the total amount paid out as a “qualified education expense” that includes tuition and fees, textbooks, tutoring and certain supplies.
That payment, according to estimates by Sand’s office, will increase the cost to administer the ESA program by hundreds of thousands of dollars per year. It will likely double the annual cost of the contract by fiscal 2026, Sand said.
Sand said the Education Department did not follow proper policy to amend the contract.
According to the report, the department’s policy requires a document describing the need to modify the agreement and requires the Bureau of Accounting to review and approve any contract amendments. The report said the amendment was not formally approved by the Bureau of Accounting until July 12, the same day the department provided the documentation to Sand’s office and six months after Sand requested it.
The department also did not include an explanation of the need for the amendment, but did say it estimated the cost increase for years two and three to be $540,500.
The audit report also said Odyssey proposal to qualify for the contract said it planned to open an office in Des Moines. The company later said it had secured temporary accommodations and listed the address of the Iowa Capitol building.
“There does not appear to be any legitimate means to make this claim,” Sand’s report says. “However, based on documentation provided, this claim was not questioned by those reviewing the proposals.”
Department says Odyssey kept costs low
In a written statement, Iowa Department of Education spokesperson Heather Doe said the transaction fees added in the amendment are a necessary part of any e-commerce platform and were far lower than other competitors. She said the state “conducted a thorough evaluation” to determine whether the added costs would remain competitive.
Other vendors administering ESAs charge a 2.5 percent transaction fee compared to Odyssey’s 0.25 percent, Doe said. Doe said the department estimates the transaction fees in the first year would cost about $300,000, bringing the total to about $985,000.
“Even with the additional transaction fee costs, Odyssey’s costs were nearly four times lower than the next closest competitor,” Doe said.
The state received one other viable bid to administer the program from a company called Merit, Doe said. Merit would have charged $8 million over the first three years of the contract. The cost for Odyssey, including transaction fee estimates, is expected to be about $3.7 million over the first three years, Doe said.
Doe also said the department will ensure it has documentation of contract approvals going forward. “Processes can always be improved upon and the Department of Education notified the Office of the Auditor of State that it will have documentation of all relevant approvals at the time of execution moving forward, which was also accepted by the Auditor of State,” Doe said.
Republican Gov. Kim Reynolds said in a statement that the transaction fees added to the contract should not be passed on to ESA families. She also pointed to the cost difference between Odyssey and Merit’s proposal.
“I’m proud of the work that Director (McKenzie) Snow and the department have done to establish one of the leading school choice programs in the country, and I look forward to the start of its second year,” Reynolds said.
With June rapidly finishing up, that means the Iowa high school softball season is preparing to enter the stretch run of the year.
The Iowa Girls High School Athletic Union State Softball Tournament will begin Monday, July 20, in Fort Dodge at Rogers Park, bringing together many of the top teams and players in the state. High School On SI Iowa currently provides a Top 25 state softball power rankings, so now, we need to see who the top players are.
Below are the nominees for the High School On SI Iowa Class 1A Softball Midseason Player of the Year in each classification. Stats listed with the player are from Bound and based on those numbers imputed as of June 26, 2026 at noon CT.
Feel free to vote as many times as you like, with voting set to close on Friday, July 3, 2026 at 11:59 p.m. CT.
High School On SI Iowa Class 1A Softball Midseason Player Of The Year Nominees
Rachel Eglseder, Edgewood-Colesburg, Senior
Eglseder owns a 16-5 record, striking out 225 batters with a 1.66 earned run average while adding 11 extra-base hits and 40 RBI at the plate.
Rylee Mudderman, Kee, Junior
Mudderman continues to be a difficult out, batting .488 this season with two homers, 11 doubles and four triples. She has driven in 38 and scored 35 times, stealing 10 bases.
Faith Shirbroun, St. Edmond, Senior
Speaking of tough outs, Shirbroun owns a batting average of .606 this season, recording seven homers, 17 doubles and five triples. She has driven in 36 and scored 37 times, stealing 22 bases while setting several school records for hitting.
Sydney Lovrien, Clarksville, Senior
The ace for the defending state champions, Lovrien is 13-5 with 100 strikeouts in 86 innings pitched. She also has 23 hits and 21 RBI at the plate.
Sam Kruckenberg, Mason City Newman Catholic, Senior
A veteran now, Kruckenberg owns an 18-4 record with 227 strikeouts and a 1.23 earned run average. She is batting .440 with five homers, 11 doubles and 23 RBI at the plate.
About Our Midseason Player of the Year Voting
High School on SI voting polls are meant to be a fun, lighthearted way for fans to show support for their favorite athletes and teams. Our goal is to celebrate all of the players featured, regardless of the vote totals. Sometimes one athlete will receive a very large number of votes — even thousands — and that’s okay! The polls are open to everyone and are simply a way to build excitement and community around high school sports. Unless we specifically announce otherwise, there are no prizes or official awards for winning. The real purpose is to highlight the great performances of every athlete included in the poll.
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The Iowa chapter of the Land Improvement Contractors of America (LICA) officially opened a new facility on its 80-acre demonstration farm in Marshall County Thursday.
Iowa LICA President Scott Bohle said having classroom and meeting space will make it easier to educate the next generation of professional contractors, along with government employees, lawmakers and students, to help conserve soil and water in the state.
Bohle said the building “gives people a place to gather, collaborate and continue the important work that defines our association.”
Just outside the new space are wetlands, terraces, sediment control basins, bioreactors and other features, which members have built since LICA purchased the farm near Melbourne in 2000.
“We call it the one-stop shop, where you can see anything being put to practice by our landowners,” said Kelby Kiefer, executive director of Iowa LICA.
Together, these “edge-of-field” practices remove 50% of phosphates and almost 100% of the nitrates from the runoff of a 1,000-plus acre watershed, according to the association.
Adding more wetlands, saturated buffers and bioreactors across the state are a key part of Iowa’s Nutrient Reduction Strategy. It aims to cut nitrogen and phosphorus losses from farm fields by 41% and 29%, respectively.
The strategy is part of a broader effort to reduce nutrient pollution in the state’s waterways and the Gulf of Mexico by 45% compared to the 1980-96 baseline period. It does not include a target date.
Iowa Secretary of Agriculture Mike Naig said the state has accelerated edge-of-field practices in recent years, in part through the Batch and Build model. The approach bundles projects in a targeted watershed to reduce costs and save time for farmers and contractors.
Nearly 150 nitrate reducing wetlands and around 500 saturated buffers, bioreactors and multi-purpose oxbows had been built in the state as of 2024. Thousands more will be needed to meet the state’s nutrient reduction targets.
“[Clean water is] something we need to be focused on, and we can be proud of the work that’s happened, but we know that we need to do more,” Naig said. “Buildings like this help.”
Naig said scaling up conservation infrastructure across the state will require more skilled contractors. He described them as the “critical link” between concepts and “getting things on the ground.”
“It’s from that point where you say, ‘We have a design that’s ready to go, a willing landowner,’ but somebody needs to make it happen,” Naig said. “The land improvement contractor sits in that very important spot.”
IOWA CITY, Iowa — Mark Roering returned to Iowa City Regina 30 years after serving as an assistant coach, and in just two seasons, he has transformed the Regals into one of Class 2A’s most dangerous teams.
“I was a senior in college. I just had finished playing baseball myself and was doing high school in the summers. Had one of those magical seasons here losing in the state finals,” Roering said. “I was just ready for something new.”
Prior to being hired at Iowa City Regina in 2024, Roering coached nine seasons at Dowling Catholic, where he helped the Maroons reach the state tournament six times. Regina was below .500 in three of the four seasons before his arrival. His first season at the helm, Regina went 22-6.
“I think the biggest difference is practice. Everybody is so much more locked in. Really that just comes from him. He gets on us everyday, he has to make the drive and hour and a half every day so we want to give that back to him for all the time and effort he’s put into us,” junior Trey Streb said.
Streb also described Roering as a very emotional coach who cares deeply about the team and winning.
The Regals’ bats have become a significant threat. Regina ranks fifth in the state and second in Class 2A with a .379 batting average and has the fourth fewest strikeouts among state teams.
“It’s like nothing I’ve ever experienced and it’s been super competitive and it’s nice to be with people who want to win and will do whatever it takes to win,” senior Emmett Burke said.
The team already sits at 20 wins with eight regular season games remaining.
Roering said the transformation comes when players start believing they can win in any situation.
“Winning is contagious just like losing is contagious,” Roering said. “Kids they start believing and it gets really dangerous you know that they can win no matter what situation they’re in.”
The turnaround has positioned the Regals to make a postseason run. With only one senior on the roster, the team could remain a threat next season.
“No matter what, we’re going to fight and we’re not going to roll over. We’re going to do what we need to do to win,” Burke said.
“We’re big competitors. We don’t accept defeat and I think that’s one of my favorite parts about this team,” Streb added.
Copyright 2026 KCRG. All rights reserved.
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