First thing: Many parts of the school system are done by regional Area Education agencies (AEAs), things like special education, curriculum, media, etc. (heres the link to their website if you want to learn more iowaaea.org). Their boards are elected by school districts.
A version of the changes proposed by Governor Reynolds has already passed the Iowa house (hf2612). The part of the bill I'm focusing on here is how it allows for school districts to use state and federal $ that goes to AEAs and use it for themselves.
The thing that got me to start writing this post was a section of the most recent Iowa press. Todd Abrahamson, superintendent of the Okoboji Community School District and one of the few school superintendents in the state in favor of the proposed changes, when asked about what Okoboji would do with the money said (in more diplomatic language, 8:50) that Okoboji would poach staff from the AEAs to work exclusively for Okoboji and not for other districts.
Okoboji is a relatively wealthy tourism town, and is covered by the Prarie Lakes Area Education Agency in Northwest Iowa. Okoboji is an island of wealth in an otherwise especially rural and economically depressed area of the state where school districts just don't have resources to offer many kinds of resources on their own.
There's other things in the bill as well, shifting parts of curriculum more into the private sector. Also it would put the AEAs under the direct control of the state government.
Fascists think they do