This bill amends the special education aid formula and the administration of state special education aid, aiming to reduce the administrative burden on school districts while ensuring effective use of state funds. It lowers the eligibility threshold for state aid from 3.5 times the average cost per pupil (ACPP) to 2.5 times ACPP, allowing more students to qualify for assistance. The Department of Education is required to distribute aid for special education costs that exceed 2.5 times the state average expenditure per pupil, with specific thresholds for district liability and state reimbursement. Additionally, costs associated with an individual student must exceed 2.5 times the average expenditure after offsets from other revenue sources, such as Medicaid and private insurance, are applied.

The bill also mandates that each school district seeking reimbursement submit a certified report for each student, detailing services provided and eligible expenditures, certified by the superintendent. It restructures the cost-sharing arrangement, with the state covering a larger share of costs for students whose expenses fall between 2.5 and 3.5 times ACPP. New provisions include the department's authority to adjust reimbursement amounts based on monitoring findings, recoup overpayments, and require corrective action plans for districts with systemic errors. The bill does not provide additional funding or authorize new positions, and its fiscal impact is indeterminable, with potential increases in state aid to districts estimated between $5 million to $12 million annually starting in FY 2029. The effective date for the bill is set for 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
Version adopted by both bodies: 186-C:18
HB1563 text: 186-C:18