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Subcommittee sends catastrophic special-education funding bill to interim study, 3-2

House Education Funding Subcommittee · October 29, 2025
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Summary

A subcommittee voted 3-2 to place HB742, which would require catastrophic special-education aid to be drawn from the Education Trust Fund, into interim study. Members cited an ongoing commission study on special-education costs and significant data gaps as reasons to defer final action while others urged faster relief for districts.

A House education subcommittee voted 3-2 to send HB742 to interim study rather than recommending it be advanced or killed. The bill would require that catastrophic special-education state aid be drawn from the Education Trust Fund, a change proponents said would protect that funding from competition with other general-fund priorities.

Representative Peoples moved to interim study HB742, and Representative Popovich seconded the motion. "In light of everything we have going on with the commission and the other bills that are floating around, I'd like to keep this alive so that we can maybe use it as a vehicle in the future," Peoples said. Supporters argued a retained bill would give lawmakers a working vehicle to respond to commission findings; opponents said interim study could mean delay for districts facing immediate fiscal stress.

Members discussed recent appropriations and the scale of special-education spending. Committee members cited figures discussed during the hearing: $68,000,000 projected for differentiated aid in FY26, roughly $50,000,000 in federal IDEA funds, and a $34,000,000 state appropriation for catastrophic aid that left a $16,000,000 shortfall in the most recent budget cycle. Committee members also noted that local districts currently shoulder a substantial portion of special-education costs.

The clerk recorded the roll on the interim-study motion: Popovich — Aye; Peoples — Yes; Damon — No; Bridal — No; Chairman Ladd — Yes. The motion passed 3-2. The subcommittee will recommend interim study to the full committee and reconvene for further work alongside the commission's data reviews.