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DESE warns of special-education funding shortfalls: high-needs fund and First Steps face gaps
Summary
DESE told the House Budget Committee that mandated early-childhood special education, IDEA high-needs cases, and the First Steps birth-to-3 program face material funding shortfalls in FY26; the department requested NDIs totaling more than $50 million to cover FY24 carryovers, contract increases and lost Medicaid revenue.
Department of Elementary and Secondary Education staff told the House Budget Committee on Feb. 3 that several special-education and early-intervention lines face funding pressure heading into FY26.
Early-childhood special education: DESE reported an FY24 shortfall in the early-childhood special education (ECSE) allocation, which reimburses districts for services to children ages 3—. Reimbursements are paid the year after services are delivered; DESE said a carryover practice and timing differences produce year-to-year variability. For FY26 the department asked for a $20.7 million new decision item to address the FY24 shortfall (DESE said it carried $2.7…
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