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Special education MoE, PreK and Medicaid issues flagged as implementation priorities

Ways & Means Committee · March 26, 2026
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Summary

Committee reviewed special‑education maintenance‑of‑effort language from administrators and discussed how PreK proposals and Medicaid reimbursement intersect with IEP services; members stressed implementation capacity at AOE and requested additional testimony.

Members placed special education and PreK policy at the top of implementation concerns for Act 73 follow‑up. The committee reviewed language provided by the Vermont Council of Special Education Administrators intended to preserve maintenance‑of‑effort (MoE) protections and questioned how extraordinary costs and reimbursement (including Medicaid‑eligible IEP services) would be handled under proposed changes.

Members observed the special‑education language was submitted by the association (the committee asked the group to identify itself on the record) and said the committee needs the association back to explain intent. Several members warned that without additional AOE capacity — technical assistance and staffing — tighter funding constraints could fail in practice and harm students and taxpayers.

The committee also discussed forthcoming PreK legislation from Human Services that is expected to move to Education as statutory language (a memo to incorporate in the larger ED bill). Members asked for fiscal notes that capture both state budget impacts and effects on school districts’ budgets and staffing. The committee agreed to wait for Human Services and House Education actions before taking final steps on PreK and Medicaid language, and to seek more testimony and fiscal analysis on how Medicaid‑reimbursable services would be treated within any special‑education financing changes.