The proposed bill, Substitute Bill No. 7010, aims to enhance support for paraeducators by establishing a subsidy program for health benefits and retirement contributions. Effective July 1, 2025, the bill repeals and replaces Section 203 of public act 23-204, extending the subsidy program for paraeducators from the fiscal years ending June 30, 2025, to June 30, 2027. The Comptroller will provide subsidies to paraeducators who open health savings accounts or enroll in high deductible health plans, with the subsidy amount determined as a percentage of the deductible, minus any employer contributions. Additionally, local or regional boards of education that provide health coverage to paraeducators will receive subsidies to offset employee premium costs, with specific exclusions for those offering high deductible health plans.

Furthermore, the bill mandates that local and regional boards of education cover the full employee contribution to retirement systems for paraeducators, with the Comptroller responsible for reimbursing at least fifty percent of these costs annually. The bill includes provisions for a memorandum of understanding between the Comptroller and the Commissioner of Education to facilitate the implementation of these subsidies using appropriated funds. Overall, the bill seeks to improve the financial support and benefits available to paraeducators, thereby enhancing their employment conditions.