Bill Text: NH HB717 | 2025 | Regular Session | Introduced
Bill Title: Relative to catastrophic aid for special education.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-22 - Full Committee Work Session: 01/31/2025 10:00 am Legislative Office Building 205-207 [HB717 Detail]
Download: New_Hampshire-2025-HB717-Introduced.html
HB 717-FN - AS INTRODUCED
2025 SESSION
25-0654
02/06
HOUSE BILL 717-FN
AN ACT relative to catastrophic aid for special education.
SPONSORS: Rep. Ladd, Graf. 5
COMMITTEE: Education Funding
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ANALYSIS
This bill changes the cost rate at which the department of education shall distribute special education aid to school districts.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0654
02/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACT relative to catastrophic aid for special education.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Special Education; State Aid. Amend RSA 186-C:18, III to read as follows:
III.(a) The state board of education through the commissioner, department of education, shall distribute aid available under this paragraph as entitlement to such school districts as have a special education pupil for whose costs they are responsible, for whom the costs of special education in the fiscal year exceed 3 [1/2] times the estimated state average expenditure per pupil for the school year preceding the year of distribution. If in any year, the amount appropriated for distribution as special education aid in accordance with this section is insufficient therefor, the appropriation shall be prorated proportionally based on entitlement among the districts entitled to a grant. If there are unexpended funds appropriated under this paragraph at the end of any fiscal year, such funds shall be distributed for court-ordered placements and episodes of treatment under RSA 186-C:19-b. The state may designate up to $250,000 of the funds which are appropriated as required by this paragraph, for each fiscal year, to assist those school districts which, under guidelines established by rules of the state board of education, may qualify for emergency assistance to mitigate the impact of special education costs. The state may designate up to an additional $250,000 of the funds which are appropriated under this paragraph for each fiscal year for any community of 1,000 or fewer residents to mitigate the impact of special education costs when emergency assistance is necessary to prevent significant financial harm to such district or community. Upon application to the commissioner of education, and approval by the commissioner, such funds may be accepted and expended by school districts in accordance with this chapter; provided, however, that if a school district has received emergency assistance funds for certain children with disabilities, it shall not receive special education aid for those same children with disabilities. If any of the funds designated for emergency assistance under this paragraph are not used for such emergency assistance purposes, the funds shall be used to assist school districts in meeting special education cost increases in their special education programs as provided by this paragraph.
(b) The school district shall be liable for 3 [1/2] times the estimated state average expenditure per pupil for the school year preceding the year of distribution, plus 20 percent of the additional cost, up to 10 times the estimated state average expenditure per pupil for the school year preceding the year of distribution.
(c) The department of education shall be liable for 80 percent of the cost above the 3 [1/2] times the estimated state average expenditure per pupil for the school year preceding the year of distribution, up to 10 times the estimated state average expenditure per pupil for the school year preceding the year of distribution. The department of education shall be liable for all costs in excess of 10 times the estimated state average expenditure per pupil for the school year preceding the year of distribution.
2 Effective Date. This act shall take effect July 1, 2025.
25-0654
1/11/25
HB 717-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to catastrophic aid for special education.
FISCAL IMPACT:
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| |||||
Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None | |||||
Expenditures* | $0 | Indeterminable - See Methodology | ||||
Funding Source(s) | Education Trust Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
| ||||||
Estimated Political Subdivision Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Local Revenue | $0 | Indeterminable - See Methodology | ||||
Local Expenditures | $0 | $0 | $0 | $0 | ||
METHODOLOGY:
This bill provides school districts with additional state aid by reducing the calculation threshold by which districts are responsible for paying the costs of special education (SPED) from the current 3.5 times the estimated state average expenditure per pupil, down to 3.0 times. The 3.0 times would provide a lower threshold for which more students would qualify for SPED aid, thus allowing districts to receive more money to offset the costs associated with SPED.
The Department of Education states this bill’s impact on state expenditures and local district revenue is indeterminable as the number of students that could qualify each year cannot be predicted. It should be noted this program contains a statutory proration mechanism and total aid paid to districts is adjusted based on amounts appropriated (to be determined in the state operating budget). For informational purposes, the total amount of claims submitted for SPED aid for school year 2023-2024 (FY 2025) was $50,273,602. The FY 2025 appropriation is $33,917,000, resulting in a proration of 67.5%.
AGENCIES CONTACTED:
Department of Education
