State Auditor Rob Sand recently raised concerns about the Iowa Department of Education not following proper procedures when amending a contract with the company that administers the private school choice program. Sand’s report revealed that the amended contract is expected to more than double the original annual cost to the state by fiscal 2026.
The Education Department defended the increased costs, stating that the contract with Odyssey still represented the lowest bid for administering the program and was a significant savings compared to other competitors. Sand criticized the lack of justification for the cost increase and highlighted that the contract was amended just months after the original contract was signed without proper documentation.
The initial contract with Odyssey was part of Iowa’s education savings account program, allowing students to use public funds to pay for private school tuition. Sand’s report noted that the amended contract included new variable fees, which will significantly raise the costs of administering the program.
Despite the controversy, the Education Department maintained that Odyssey’s costs were significantly lower than other competitors and defended the decision to include transaction fees in the contract amendment. Governor Kim Reynolds also supported the Education Department’s decision and praised the work done to establish the school choice program. Moving forward, the department has committed to providing proper documentation for contract approvals to address the concerns raised in the audit report.
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