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Committee considers lowering threshold for catastrophic special-education aid; fiscal effect modest but delayed
Summary
The panel reviewed a proposal to create an intermediate aid band for special-education costs between 2.5 and 3.5 times the statewide average, providing up to 15% reimbursement; sponsors said it would ease district costs, particularly in the lower band, and estimated a $5 million impact by 2029, while some senators warned it could raise costs for larger districts.
Senators debated a proposal to alter how the state reimburses very high-cost special-education students. A committee member (label 11) said the amendment would create a new band for catastrophic aid, paying up to 15% for costs between 2.5 and 3.5 times the statewide average rather than only providing aid above 3.5 times.
The sponsor said the change lowers the bar and provides relief to districts with students whose costs fall in that intermediate range, and estimated the proposal would have an approximately $5 million impact when it takes effect. The sponsor and other supporters said the change will not go into effect until later budget cycles (discussion placed effective timing into the 2029 budget window) to allow budget adjustments. Some senators expressed concern the formula could increase costs for larger districts, urging caution and further analysis.
The committee considered the policy's budget timing and the sponsor noted the governor's budget begins with past law, so any change would be incorporated in the governor's HB 1 and HB 2 process; the bill was discussed and moved along with other consent matters.
