This bill proposes changes to the calculation of adequate education grant amounts for pupils receiving special education services. It introduces a tiered system of differentiated aid based on the level of special education services a pupil receives. The current flat rate of $2,079.89 per pupil is replaced with three categories: Category A provides an additional $2,642 for pupils receiving special education services inside regular class 80 percent or more of the day; Category B offers $5,285 for those inside regular class less than 40 percent of the day and 40 percent through 79 percent of the day; and Category C allocates $7,927 for pupils in separate schools, residential facilities, or homebound/hospital placements. Pupils not identified in the Department’s data collection efforts will default to Category A. The bill is set to take effect on July 1, 2024.

The fiscal impact of the bill indicates an increase in state expenditures, with an estimated increase of approximately $17,700,000 for FY 2025 for district public schools. The impact on charter public schools and education freedom accounts is indeterminable. The funding source for these changes is the Education Trust Fund. The bill does not provide for new positions to implement these changes, and it does not affect local expenditures. The methodology used to arrive at the increased grant amount is based on the average daily membership-residence (ADMR) data, which, when applied to the FY 2025 adequacy formula, results in a final state grant increase of $17,727,172 compared to the current law.

Statutes affected:
Introduced: 198:40-a