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.
DES MOINES, Iowa (Gray Media Iowa State Capitol Bureau) — U.S. Speaker of the House Mike Johnson told Gray Media Iowa that he got briefed late Thursday afternoon, a few hours before President Donald Trump gave a prime-time speech to make his latest claims about election fraud.
“Yeah, I just got off of a telephone call literally in the motorcade as we were driving here,” Johnson said after arriving at a campaign appearance with U.S. Rep. Mariannette Miller-Meeks (R – 1st District, Ottumwa) at a Pella bakery.
Miller-Meeks is running for re-election in what is again considered a competitive race with Democrat Christina Bohannan, a University of Iowa law professor from Iowa City.
This is the third straight election that the two will meet in a general election.
Johnson said the “off the record” intelligence briefing to leaders in the U.S. House and Senate previewed Trump’s new election fraud claims. He called it “blockbuster information.”
“It’s the result of an investigation that’s been ongoing for some time now about fraud and irregularity in in federal elections, American elections around the country,” Johnson said.
Gray Media Iowa asked Johnson whether he believes congressional colleagues were elected because of fraud.
He did not directly answer that question.
“…everybody’s going to be able to evaluate all that information on their own, and it will lead to other investigations, I’m certain,” Johnson said of the briefing.
He added, “we’ll have to see where all this goes.”
For years, Trump has alleged widespread fraud that cost him the 2020 election. Trump has lost dozens of court cases on the matter.
On January 7, 2021, Congress certified his defeat to Democrat Joe Biden, a day after Trump supporters rushed the U.S. Capitol Building. Some attacked law enforcement officers and damaged the outside and inside of the building.
After returning to office in 2025, President Trump pardoned supporters for their crimes.
Copyright 2026 Gray Media Iowa State Capitol Bureau. All rights reserved.
With the college football season right around the corner, the Iowa State Cyclones will be hoping to have a strong campaign with a new regime coming in. However, a lot of their success might depend on one key player.
Following the departure of Matt Campbell to the Penn State Nittany Lions, the Cyclones saw their roster get completely gutted. Most of their players entered the transfer portal, leaving new head coach Jimmy Rogers with plenty of work to do.
Fortunately, Rogers and the coaching staff were able to get out there and bring in a lot of new players from all over the country. While Iowa State might be lacking star power and aren’t going to be as talented as they were last year, they do have a good amount of depth.
There should be quite a bit of competition for spots in camp, but there are some players who should clearly be starters that transferred in.
Pete Nakos of On3 recently predicted who would be the starting quarterback for every team in the Big 12. Unsurprisingly for the Cyclones, it was Jaylen Raynor who was the choice.
Raynor an Easy Pick
After bringing in the three-year starter from the Arkansas State Red Wolves, Raynor instantly became the favorite to be the starter for the Cyclones in Week 1. Him being predicted as that guy should come as no surprise, and his ability to play against elevated competition on a weekly basis will be key.
There is a lot to like about Raynor’s game, and he could certainly help Iowa State exceed expectations next year.
Last season with the Red Wolves, he totaled 3,361 passing yards, 19 passing touchdowns, and a 66.5 completion percentage. It was career-highs for him in all three of those categories, showing some nice improvement in his junior season.
As a dual-threat player, he also totaled a career-high in rushing yards and rushing touchdowns. The junior recorded 423 yards on the ground to go along with seven rushing scores.
Overall, the numbers for Raynor were really solid, and there is reason to believe he might be even better in his senior season. For the Cyclones, with all of the new players on the roster, there will undoubtedly be some competition for starting spots around the field. However, it should certainly be Raynor who is under center to start.
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CEDAR RAPIDS, Iowa (KCRG) – Syringes from injectable weight loss medications are turning up in drug drop-off boxes across eastern Iowa, creating a safety hazard for law enforcement officers who handle the containers.
Sgt. Erich Lear of the Linn County Sheriff’s Office said emptying the drug drop-off box is part of his daily routine — and the box fills fast.
“It’s probably a 30-gallon tote, and I’d say 3 out of the five days of the week it’s completely full,” Lear said.
Needles found mixed in with other medications
Lear said he has noticed over the past five years that people are placing medicine, nasal sprays and syringes in the bin. He said many of the syringes come from people discarding GLP-1 medications such as Ozempic and Wegovy.
“That tote that I pull out — there’s nothing that protects me from needles other than my observation and using gloves when I sort through things,” Lear said.
The Hiawatha Police Department said it is also seeing an increase in improperly discarded syringes.
Where syringes should go
The Cedar Rapids Linn County Solid Waste Agency is the proper disposal site for sharps. The agency said it has seen syringe intake increase by more than a ton in recent years.
“We’re talking about two thousand pounds of sharps and syringes coming in,” said Joe Horaney of the solid waste agency. “Before 2021 we were around 1.9, maybe 2 tons a year — now we are over 3 tons a year.”
Horaney said any Linn County resident can bring syringes to the facility, provided they are contained properly.
“We just ask that you have it in a heavy plastic container — so one of those medically certified red biohazard containers,” Horaney said. “If you don’t have that, it can be a heavy plastic container like an old laundry detergent [bottle].”
A third-party company picks up the sharps from the facility and incinerates them.
Some drop-off programs discontinued
Lear said another reason sharps are appearing at drop-off locations is that some agencies have ended their disposal programs. The Marion Police Department said it stopped offering the service after people continued to place broken glass, liquids and other garbage inside the box.
Copyright 2026 KCRG. All rights reserved.
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