1 Education; Special Education; State Aid. Amend RSA 186-C:18, III to read as follows:

III.(a) The 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 and 1/2 times the most current state average expenditure per pupil for the school year preceding the year of distribution . If in any year, the amount appropriated for distribution as special education 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, provided that the department of education shall distribute to the school district not less than 80 percent of the district's entitlement in the fiscal year. 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 to mitigate the impact of special education costs. The state may designate up to an additional $250,000 of the funds which are appropriated under this paragraph for each fiscal year for any community of 1,000 or fewer residents to mitigate the impact of special education costs when emergency assistance is necessary to prevent significant financial harm to such district or community. 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 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 special education cost increases in their special education programs as provided by this paragraph.

(b) The school district shall be liable for 3 and 1/2 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 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 New Paragraph; Education; Special Education; State Aid. Amend RSA 186-C:18 by inserting after paragraph XI the following new paragraph:

XII. A district shall be deemed eligible to apply for reimbursement for special education aid when the costs associated with an individual student, after offsets from other available revenue sources, exceed $60,000 of the expenditure per pupil pursuant to paragraph III(a).

(a) In calculating costs associated with an individual student, the costs shall be incurred solely as a result of the provision of special education and related services to the student's individual education program pursuant to RSA 186-C:7.

(b) Ineligible costs shall include the basic cost of the classroom, including the maintenance and operation of the classroom, basic materials and supplies, transportation not required by the student's individual education program, and other routine or normal costs associated with the provision of special education and related services to children with disabilities.

(c) Eligible expenses for reimbursement under the special education aid program shall primarily include costs for services and resources to provide a free appropriate public education (FAPE) for students with disabilities, including those with special education instruction, therapies, adaptive equipment, assistive technology, and transportation specifically for students requiring special assistance.? Such costs shall be necessary, reasonable, and directly benefit the student's education and disability needs as outlined in their individualized education program. The state shall provide funding to school districts to help offset such expenses, but districts shall also be responsible for a portion of the costs.

(d) The district shall demonstrate and document that it has fully accessed, to the maximum extent possible, other available revenue sources, including Medicaid, or provide documentation as to why other revenue sources were unavailable to the district for special education aid.

(e) Other available revenue sources, including Medicaid, shall be applied by the district as offsets to reimbursable costs for each special education cost reimbursed through special education aid.

3 Effective Date. This act shall take effect July 1, 2028.

1 Education; Special Education; State Aid. Amend RSA 186-C:18, III to read as follows:

III.(a) The 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 $60,000 . If in any year, the amount appropriated for distribution as special education 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, provided that the department of education shall distribute to the school district not less than 80 percent of the district's entitlement in the fiscal year. 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 to mitigate the impact of special education costs. The state may designate up to an additional $250,000 of the funds which are appropriated under this paragraph for each fiscal year for any community of 1,000 or fewer residents to mitigate the impact of special education costs when emergency assistance is necessary to prevent significant financial harm to such district or community. 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 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 special education cost increases in their special education programs as provided by this paragraph.

(b) The school district shall be liable for $60,000 , plus 20 percent of the additional cost, up to $200,000 per pupil , and 10 percent of the cost above $200,000 per pupil.

(c) The department of education shall be liable for 80 percent of the cost above $60,000 per pupil , up to $200,000, and 90 percent of the cost above $200,000; however, no special education aid shall be eligible for reimbursement by the department of education for more than a total of $160,000 per pupil.

2 New Paragraph; Education; Special Education; State Aid. Amend RSA 186-C:18 by inserting after paragraph XI the following new paragraph:

XII. A district shall be deemed eligible to apply for reimbursement for special education aid when the costs associated with an individual student, after offsets from other available revenue sources, exceed $60,000 of the expenditure per pupil pursuant to paragraph III(a).

(a) In calculating costs associated with an individual student, the costs shall be incurred solely as a result of the provision of special education and related services to the student's individual education program pursuant to RSA 186-C:7.

(b) Ineligible costs shall include the basic cost of the classroom, including the maintenance and operation of the classroom, basic materials and supplies, transportation not required by the student's individual education program, and other routine or normal costs associated with the provision of special education and related services to children with disabilities.

(c) Eligible expenses for reimbursement under the special education aid program shall primarily include costs for services and resources to provide a free appropriate public education (FAPE) for students with disabilities, including those with special education instruction, therapies, adaptive equipment, assistive technology, and transportation specifically for students requiring special assistance.? Such costs shall be necessary, reasonable, and directly benefit the student's education and disability needs as outlined in their individualized education program. The state shall provide funding to school districts to help offset such expenses, but districts shall also be responsible for a portion of the costs.

(d) The district shall demonstrate and document that it has fully accessed, to the maximum extent possible, other available revenue sources, including Medicaid, or provide documentation as to why other revenue sources were unavailable to the district for special education aid.

(e) Other available revenue sources, including Medicaid, shall be applied by the district as offsets to reimbursable costs for each special education cost reimbursed through special education aid.

3 Effective Date. This act shall take effect July 1, 2028.