Relative to state aid for special education pupils.
The passage of HB 577 is expected to have a significant fiscal impact on school districts across the state. By lowering the expenditure threshold, more districts will likely qualify for additional state aid, thereby alleviating some financial burdens associated with providing special education services. However, the exact fiscal ramifications remain indeterminate, as they depend on the number of students qualifying for aid each year, which cannot currently be predicted. The Department of Education noted that the bill's impact on state expenditures and local district revenue will vary based on the annual student population and funding appropriations.
House Bill 577 aims to provide additional state aid for special education pupils by modifying the liability calculation for school districts. Specifically, the bill reduces the threshold for which districts are responsible for the costs of special education from 3.5 times the estimated state average expenditure per pupil to 1.5 times. This change is intended to enable more students to qualify for state aid, subsequently allowing districts to obtain more funding to cover special education costs. The bill was introduced by representatives Moulton, W. Thomas, and Damon and has been referred to the Education Committee for consideration.
While proponents of the bill argue that it is a necessary step to ensure that students with special needs receive adequate support, some stakeholders express concern over the implications of the reduced liability threshold. Critics may argue that this could lead to an increase in state spending on education without sufficient funding from the state legislature, raising questions about fiscal sustainability. Additionally, the bill includes a mechanism for proration, stating that if the appropriated funds for special education aid are insufficient in any year, they will be distributed proportionally among qualifying districts, which may limit individual district funding in certain fiscal scenarios.