HB 318-FN-LOCAL – AS INTRODUCED
2011 SESSION
04/10
HOUSE BILL 318-FN-LOCAL
AN ACT reducing a school district’s liability for special education costs.
This bill reduces the liability of school districts for special education costs to 2 times the estimated state average expenditure per pupil.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0857
04/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT reducing a school district’s liability for special education costs.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Special Education; State Aid. Amend RSA 186-C:18, III to read as follows:
III.(a) The state board of education through the commissioner, department of education, shall distribute aid available under this paragraph as entitlement to such school districts as have a special education pupil for whose costs they are responsible, for whom the costs of special education in the fiscal year exceed [3 1/2] 2 times the estimated state average expenditure per pupil for the school year preceding the year of distribution. If in any year, the amount appropriated for distribution as catastrophic special education 186-C:18 aid in accordance with this section is insufficient therefor, the appropriation shall be prorated proportionally based on entitlement among the districts entitled to a grant. If there are unexpended funds appropriated under this paragraph at the end of any fiscal year, such funds shall be distributed for court-ordered placements under RSA 186-C:19-b. The state may designate up to $250,000 of the funds which are appropriated as required by this paragraph, for each fiscal year, to assist those school districts which, under guidelines established by rules of the state board of education, may qualify for emergency assistance for special education costs. Upon application to the commissioner of education, and approval by the commissioner, such funds may be accepted and expended by school districts in accordance with this chapter; provided, however, that if a school district has received emergency assistance funds for certain children with disabilities, it shall not receive catastrophic special education aid for those same children with disabilities. If any of the funds designated for emergency assistance under this paragraph are not used for such emergency assistance purposes, the funds shall be used to assist school districts in meeting catastrophic cost increases in their special education programs as provided by this paragraph.
(b) The school district shall be liable for [3- 1/2] 2 times the estimated state average expenditure per pupil for the school year preceding the year of distribution, plus 20 percent of the additional cost, up to 10 times the estimated state average expenditure per pupil for the school year preceding the year of distribution.
(c) The department of education shall be liable for 80 percent of the cost above the [3- 1/2] 2 times the estimated state average expenditure per pupil for the school year preceding the year of distribution, up to 10 times the estimated state average expenditure per pupil for the school year preceding the year of distribution. The department of education shall be liable for all costs in excess of 10 times the estimated state average expenditure per pupil for the school year preceding the year of distribution.
2 Special Education; State Aid. Amend RSA 186-C:18, VIII to read as follows:
VIII. A school district shall raise, appropriate and expend funds, reflecting the total cost in meeting catastrophic special education student costs as provided under RSA 186-C:18, including the school district and department of education liability. A school district may issue reimbursement anticipation notes as provided for in RSA 198:20-d to be redeemed upon receipt of reimbursement from the state. The department of education shall be liable for the cost of the school districts borrowing of any funds for special education student costs over [3-1/2] 2 times the estimated state average expenditure per pupil for the school year preceding the year of distribution.
3 Effective Date. This act shall take effect July 1, 2011.
LBAO
11-0857
01/11/11
HB 318-FN-LOCAL - FISCAL NOTE
AN ACT reducing a school district’s liability for special education costs.
FISCAL IMPACT:
The New Hampshire Department of Education states this bill will have an indeterminable effect on state expenditures and local revenue. There will be no fiscal impact on county and local expenditures or state and county revenues.
METHODOLOGY:
This bill reduces the liability of school districts for special education costs from 3½ to 2 times the estimated state average expenditure per pupil. The Department of Education states although the proposed legislation does not effect the appropriation made for catastrophic special education aid; it would significantly increase the number of students whose special education costs would be reimbursable as catastrophic special education aid. The Department also states because this bill does not increase the appropriation and insufficient program appropriations require proportional proration among school districts entitled to the grant, the reimbursement percentage paid to school districts will be reduced. The Department states the program reimbursement rate was 85.1% in FY 2010 and is estimated to be 69.9% in FY 2011.