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Lawmakers probe special‑education funding, high‑cost contracts and district liability
Summary
Committee members heard Legislative Council and DPI briefings on state funding mechanics, special education student contract reimbursements, and a recent $22 million appropriation; members requested deeper study of alternative funding models and the consequences of resident‑district liability for open enrollment.
Legislators and staff began a focused review of how North Dakota funds special education and how the state reimburses for high‑cost and out‑of‑district placements. Sheila Sandis, senior fiscal analyst with Legislative Council, reviewed the study charge and summarized key finance provisions: the state reimburses school districts for high‑cost students through a student contract system and provides special education funding through the state school aid formula (weighted student units multiplied by the per‑pupil payment).
Why it matters: agency‑ and school‑placed contracts can exceed six figures and can quickly consume a school district’s resources; the committee heard that the state reimburses for ‘‘excess cost’’ above district liability thresholds, but committee members raised questions about liability when parents or other agencies place students out of their home district.
How the funding works: Adam Tesher, school finance officer at DPI, reviewed the school aid worksheet and explained the…
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