This bill amends the current law regarding state aid for special education costs in school districts. It changes the threshold for state aid eligibility from 3.5 times to 1.5 times the state average expenditure per pupil for the previous school year. Additionally, the bill removes the provision for proration of appropriations when the allocated funds are insufficient, ensuring that school districts receive at least 80% of their entitlement in any given fiscal year. The bill also eliminates the specific allocations of $250,000 for emergency assistance to school districts and communities with populations of 1,000 or fewer residents, which were previously intended to mitigate the financial impact of special education costs.

The bill is set to take effect on July 1, 2026, and is expected to have a significant impact on state funding for special education, as it would potentially increase the number of students qualifying for aid. However, it does not provide any funding or authorization for new positions to manage the increased administrative workload that would arise from processing claims for special education aid. The Department of Education anticipates that the changes will necessitate a substantial increase in staffing to handle the documentation and verification processes associated with the aid distribution, but no specific details or funding for these additional positions have been included in the bill.

Statutes affected:
HB1557 text: 186-C:18