Senate Bill 960 would update North Carolina’s funding formula for students with disabilities by increasing the cap on the share of a school district’s average daily membership that can be counted for state special education funding from 13% to 16%. The bill is framed as a response to the growing number of students with disabilities served by local school units and the mismatch between current funding limits and actual service needs. It also directs recurring General Fund appropriations to the Department of Public Instruction to support this higher funding cap beginning in the 2026-2027 fiscal year.
The bill also creates a new High-Cost Disabilities Support Fund within the Department of Public Instruction to help local school administrative units and charter schools cover extraordinary costs for students with intensive and specialized needs. The fund is intended to provide additional reimbursement when special education costs exceed a threshold set by the State Board of Education, with rules to govern eligibility, reimbursement levels, and reporting. The stated purpose is to reduce financial strain on districts and help them serve students with the most complex disabilities without diverting resources from general classroom instruction.
Impact
S960 would amend G.S. 115C-111.05 to raise the state funding eligibility cap for children with disabilities from 13% to 16% of a district’s ADM, expanding the number of students for whom districts can receive state special education funds. It would also add new G.S. 115C-111.11 establishing the High-Cost Disabilities Support Fund and require the State Board of Education to adopt implementing rules. The bill appropriates $82.8 million in recurring funds for the expanded base formula and $15 million in recurring funds for the new support fund, both beginning in fiscal year 2026-2027. Its practical effect would be to increase state aid to school districts and charter schools serving higher numbers of students with disabilities, while shifting more of the cost burden from local operating budgets to the state.
Sentiment
The bill’s overall tone is supportive of special education funding expansion and reflects concern that current state formulas do not match the needs of districts serving more students with disabilities. The findings in the bill emphasize compliance with federal IDEA obligations and the pressure on districts when state funding lags behind actual service demands. No committee transcripts or recorded votes were provided, so there is no documented opposition or amendment debate in the available materials; based on the text alone, the measure appears designed as a funding modernization and support initiative.
Contention
The main policy tension is fiscal: the bill would require significant recurring General Fund spending to raise the cap and create a new high-cost reimbursement program. Another likely point of contention is the change in the funding threshold from 13% to 16%, which could affect how state education dollars are distributed among districts and whether the new cap is sufficient or too broad. The bill also leaves key implementation details to the State Board of Education, including the cost threshold for high-cost reimbursements and reporting requirements, which could become a source of debate over administrative discretion and accountability.