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State special education fund shortfall leaves payments prorated to about 68% of entitlement, DOE explains
Summary
Department of Education staff outlined how the state’s special education funding formula works, explained the 3.5x cost threshold and the 80% state share above it, and described a proration this year when total eligible claims exceeded appropriation (roughly $49 million in entitlements versus a $33 million appropriation).
Caitlin, a Department of Education staff member working on special education funding, told Finance Division II how the state’s special education reimbursement formula (formerly called catastrophic aid) allocates state support for high‑cost students.
Why it matters: state payments for costly special education placements can be large for individual districts; when total statewide claims exceed the legislature’s appropriation, the department prorates payments and districts receive a fraction of their computed entitlement.
Caitlin summarized the statutory formula in RSA 186‑C and explained the operational steps: districts compile allowable costs for individual students’ IEPs after the school year ends. The formula treats the…
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