This bill amends the special education aid formula and the administration of state special education aid by lowering the eligibility threshold for reimbursement from 3.5 times the average cost per pupil (ACPP) to 2.5 times ACPP. This change allows more students to qualify for aid and establishes a new reimbursement structure where the state will cover 15% of costs between 2.5X and 3.5X ACPP, while reducing the state's share for costs exceeding 10X ACPP from 100% to 90%. Additionally, the bill requires school districts to submit certified reports detailing the services provided and associated costs for each student seeking reimbursement, ensuring that districts document their claims and demonstrate access to other revenue sources, such as Medicaid and private insurance.

Key provisions of the bill include the insertion of new language that outlines the calculation of special education costs and the establishment of a risk-based monitoring program for state special education aid. The Department of Education is mandated to conduct annual reviews of at least 20% of districts submitting claims, with targeted reviews based on risk indicators. The bill also includes measures for adjusting reimbursement amounts based on monitoring findings, recouping overpayments, and requiring corrective action plans for districts with systemic errors. While it does not provide funding or authorize new positions, it is estimated to increase state aid to districts by approximately $5 million to $12 million per year starting in FY 2029, with an effective date of July 1, 2028.

Statutes affected:
Introduced: 186-C:18
As Amended by the House: 186-C:18
As Amended by the House (2nd): 186-C:18
HB1563 text: 186-C:18