SB 0210

AN ACT relative to payment by the state for certain court-ordered placements of special education students.

SPONSORS: Sen. Gordon, Dist 2; Sen. Squires, Dist 12; Sen. Johnson, Dist 3; Sen. Hollingworth, Dist 23; Rep. Alger, Graf 9; Rep. O'Hearn, Hills 26; Rep. Belvin, Hills 14

This bill requires the state to pay the full cost of special education services provided to all court-ordered, out-of-district placements of special education pupils, and requires that the sending district reimburse the department of education for all such cost.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to payment by the state for certain court-ordered placements of special education students.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Special Education; Liability for Court-Ordered Placements Amended. Amend the introductory paragraph and subparagraph (a) of RSA 186-C:19-b, II to read as follows:

II. The [school district liability for] department of education shall be liable for all expenses for special education or for special education and educationally related services for an educationally disabled child in placement for which the department of health and human services has financial responsibility [shall be limited to 3 times the estimated state average expenditure per pupil, for the school year preceding the year of distribution. The liability of a school district under this section shall be prorated if the placement is for less than a full school year and the district shall be liable for only the prorated amount. This section shall not limit a school district's financial liability for children who receive special education or special education and educationally related services in a public school or program identified in RSA 186-C:10] pursuant to subparagraph I(a) of this section.

(a) [~~Any~~] All costs of special education or special education and educationally related services [~~in excess of 3 times the estimated state average expenditure per pupil for the school year preceding the year of distribution~~] shall be the liability of the department of education. Costs for which the department of education is liable under this section shall be paid to education service providers by the department of education. The department of education shall develop a mechanism for allocating the funds appropriated for the purposes of this section.

2 New Paragraph; Liability for Education of Children in Homes for Children or Health Care Facilities; Liability for Costs Amended. Amend RSA 193:29 by inserting after paragraph V the following new paragraph:

VI. For the purpose of determining liability for all costs of special education or special education and educationally related services pursuant to RSA 186-C:19-b, II, the sending district shall be liable to the department of education for either the average per pupil cost as estimated by the department of education or for the actual prorated cost of special education and any educationally related services as defined in RSA 186-C:2 provided by the receiving district, whichever is greater.

AN ACT relative to payment by the state for certain court-ordered placements of special education students.

The Department of Education stated this bill will increase state expenditures and decrease local expenditures by $3,851,803 in FY 2000, by $4,050,693 in FY 2001, by $4,253,228 in FY 2002 and by $4,465,889 in FY 2003. There will be no fiscal impact on county expenditures or state, county and local revenue.

The Department assumed this legislation will take effect July 1, 1999 and 5% annual increases in cost. The Department indicated that for FY 1998, the local district share (3 times the estimated state average expenditure per pupil) resulted in local expenditures of $3,499,141. This bill will make the state responsible for the local share, therefor, based on FY 1998 data, state expenditures will increase and local expenditures will decrease by $3,499,141. The Department is unable to predict future court decision activity.