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Representative seeks cap on state-driven tuition increases for out-of-district special-education placements
Summary
Representative Irina DeRozi told the committee that OSD raised out-of-district special-education tuition by 14% and 5% the following year, and urged House Bill 505 to cap municipal charges at 2.5% and require earlier notice of rate increases so small towns can budget.
Representative Irina DeRozi told the Joint Committee on Education that municipalities face sudden, large increases in out-of-district special-education tuition and that House 505 would limit the amounts municipalities may be charged and improve the timing of state notice.
DeRozi said the Operational Services Division applied a 14% increase for out-of-district tuition and then a 5% increase the next year — nearly 20% in two years — and called that unfair to small towns constrained by Proposition 2-1/2. The bill would cap municipal charges at 2.5 percent and require OSD to announce rate increases by March 1 for the next school year, giving local leaders time to plan.
She said the limit would not prevent the state from setting higher rates but would require the Commonwealth to find offsetting funds in the state budget. The representative asked committee members to work further with her on the proposal to support small towns and cities that lack flexibility to absorb large unplanned costs.
The committee heard this testimony as part of a broader special-education docket; members encouraged written submissions with more fiscal detail.
