This bill amends current law regarding special education state aid by eliminating the requirement for prorated distribution in cases of insufficient funding. Specifically, it removes the provision that required the state to proportionally distribute special education aid among districts if the appropriated amount was insufficient. Instead, the bill mandates that funding for special education programs be sourced from the education trust fund, ensuring that districts receive the full entitlement for special education costs that exceed a specified threshold.

Additionally, the bill introduces new legal language that allows the governor to draw funds from the education trust fund to meet the state's obligations for special education aid, regardless of the fund's balance. If the fund's balance falls below zero after such withdrawals, the state comptroller is required to transfer sufficient funds from the general fund to cover the deficit. This change is expected to significantly increase special education funding, with estimates suggesting an increase of at least $16.4 million per year starting in FY 2026, as the number of qualifying students and their associated costs cannot be precisely predicted.

Statutes affected:
Introduced: 186-C:18