This bill amends RSA 186-C:18, III(a) to authorize the governor to draw a warrant from the education trust fund to fulfill the state's obligation to distribute special education aid to school districts when appropriated funds are insufficient. The previous provision that required the appropriation to be prorated proportionally among districts entitled to a grant has been deleted. The new language ensures that the governor can issue a warrant for payment regardless of the balance in the education trust fund, and if the fund's balance falls below zero after the warrant is issued, the comptroller is required to transfer sufficient funds from the general fund to cover the deficit. Additionally, the commissioner of the department of administrative services must inform the fiscal committee and the governor and council of the fund's balance, although this reporting will not delay the distribution of aid.

The bill is expected to have a significant fiscal impact, with an indeterminable increase in expenditures likely exceeding $16.4 million per year starting in FY 2026. This is due to the elimination of the proration provision, which previously limited the amount of special education aid distributed to school districts. The total claims for special education aid for the 2023-2024 school year were approximately $50.3 million, while the FY 2025 appropriation was only $33.9 million, resulting in a proration of 67.5%. By allowing the Department of Education to draw necessary funds from the education trust fund, the bill aims to ensure that school districts receive the full amount of aid they are entitled to, thereby addressing the financial challenges they face in providing special education services. The act is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 186-C:18