relative to aid to school districts for the cost of special education.
Summary
HB 773 revises New Hampshire’s special education aid formula for school districts. The bill keeps the existing catastrophic special education aid program, but changes how the state distributes aid when appropriated funds are insufficient. Under the amended language, prorated payments must still be made based on entitlement, but each eligible district must receive at least 80 percent of its catastrophic aid entitlement for the fiscal year. The bill also preserves existing provisions for using unspent funds for court-ordered placements and treatment episodes, and for emergency assistance to districts and very small communities facing severe special education cost pressures.
The bill also rewrites the funding mechanism for special education aid by making the necessary amount a direct appropriation from the education trust fund and authorizing the governor to draw warrants even if the fund balance is insufficient. If that causes the education trust fund to go negative, the comptroller must transfer money from the general fund to cover the deficit. The bill takes effect 60 days after passage and amends RSA 186-C:18, the state’s special education aid statute.
Impact
HB 773 would alter state special education finance law by guaranteeing a minimum payment level for catastrophic aid recipients and by changing the statutory funding mechanism to ensure aid is paid regardless of education trust fund balance. It affects school districts that incur unusually high special education costs, as well as the Department of Education, the governor, and the state comptroller. The fiscal note states the bill aligns with language already passed in the 2025 session in HB 2 and SB 292, and therefore has no additional impact on state, county, or local revenues or expenditures.
Sentiment
The available context suggests the bill is generally procedural and supportive of school district special education funding, with no recorded committee testimony or vote history showing opposition in the provided materials. The fiscal note’s statement that the bill aligns with already enacted 2025 session language indicates it was likely viewed as consistent with existing budget policy rather than a major new policy change. Overall, the tone appears favorable or at least noncontroversial in the materials provided.
Contention
The main policy issue is how to handle shortfalls in special education aid appropriations. The bill removes a pure proportional proration approach and instead requires that districts receive at least 80 percent of their catastrophic aid entitlement, which benefits districts with high-cost special education obligations. Another point of potential concern is the funding backstop: the bill authorizes payments even if the education trust fund lacks sufficient balance and requires a transfer from the general fund if needed. That mechanism could raise questions about budget flexibility and the state’s obligation to cover special education costs, though no explicit opposition is documented in the provided record.
Relating to the authority of the Wood County Central Hospital District of Wood County, Texas, to provide brain and memory care services to residents of the hospital district through the creation and operation of brain and memory health care services districts.