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Committee hears gaps in funding when students placed in residential facilities attend local schools
Summary
Lawmakers heard that districts like Winneasquam face unreimbursed regular-education costs when children placed at residential facilities (Spaulding) attend local public schools; DOE and sponsors recommended a study of funding, statutory definitions and apportionment.
Representative Greg Hill introduced House Bill 1099 to address reimbursement questions for school districts that receive students placed in residential facilities by DCYF and other agencies. Hill said the bill grew from Winnesquam School District concerns that children placed at Spaulding Academy attend local schools without a clear reimbursement process.
Elizabeth Brown of the Department of Education told the committee that case law has long allowed students placed in group homes to attend the local school where the placement is located, but that the legal framework leaves funding and apportionment unclear. "The court...recognized that this is a hardship to the local district, but if the legislature wants to change that, it'll be up to the legislature to determine how that is going to be funded," Brown said.
Brown and Representative Hill described a regulatory thicket: definitions such as "court-ordered placement" are unclear, contracting and cross-agency language between DOE and DCYF do not align, and districts report fiscal stress when they must absorb regular-education costs for placed students who do not have IEPs. Hill and committee members recommended further study and drafting to clarify whether costs should fall to the receiving town, the cooperative district, or the district of residence.
Representative Rick Ladd, chair of the House Funding Committee, said his committee found the problem is not unique to Winnesquam or Spaulding and recommended legislative work to resolve billing, apportionment and reimbursement across districts and similar residential providers.
Karen Rosenberg of the Disability Rights Center urged careful study and stakeholder input, noting a past court case that affirmed district responsibility and warning lawmakers not to let children "get lost in the cracks." Committee members questioned whether an amendment or a targeted study would be the next step.
The record shows the committee will consider further drafting to define covered reports, funding responsibilities, and the mechanics of reimbursement.
