The bill amends Chapter 16-7.1 of the General Laws by establishing a new section that creates a high-cost special education fund to support municipalities facing excess costs associated with special education students. This fund will enable participating municipalities to pool their financial resources through voluntary contributions. The fund will be managed by the office of the general treasurer, which is responsible for investing and maximizing the contributions to generate income that will help defray the expenses related to high-cost special education.

Awards from the fund will be determined by the Department of Elementary and Secondary Education based on specific district needs and the total contributions made by the municipality. Participation in the fund is voluntary; however, municipalities must have made a contribution in the fiscal year prior to applying for an award. The initial contribution required from a municipality will be equal to its high-cost special education expenses from the previous fiscal year. The bill also defines "extraordinary costs" and "high-cost special education" in accordance with existing law. This act will take effect upon passage.