Iowa Education Savings Account Costs Increased

Iowa State Auditor Rob Sand has revealed that the cost of managing the Education Savings Account (ESA) program will more than double due to amendments made to the contract with Odyssey, the overseeing company. Initially contracted for $682,333.75 in the first year and $729,550 in subsequent years, the amended contract includes transaction fees that significantly increase costs, projected to reach an additional $2.3 million by 2027. Sand criticized the Iowa Department of Education for not following proper procedures during these amendments and failing to provide justification for the cost increases. The ESA program, established to fund private school tuition for eligible students, is anticipated to serve over 30,000 Iowa students next school year. Despite the raised costs, the Department of Education claims the contract remains the lowest bid available. Sand's report emphasizes the lack of transparency regarding the contract alterations, raising concerns about taxpayer expenditure.