AB 527

This bill changes the rate at which the state reimburses school boards,

operators of independent charter schools, cooperative educational service agencies

(CESAs), and county children with disabilities education boards (CCDEBs) for costs

incurred to provide special education and related services to children with

disabilities and for school age parents programs (eligible costs). Under current law,

the state reimburses the full cost of special education for children in hospitals and

convalescent homes for orthopedically disabled children. After those costs are paid,

the state reimburses remaining eligible costs from the amount remaining in the

appropriation account at a rate that distributes the full amount appropriated. The

Legislative Fiscal Bureau estimates that, in the 2023-24 school year, the

reimbursement rate will be 33.3 percent.

The bill changes the appropriation to a sum sufficient and provides that,

beginning in the 2023-24 school year, after full payment of hospital and convalescent

home costs, the remaining costs are reimbursed at 90 percent of eligible costs.

Currently, the Department of Public Instruction provides 1) special education

aid to school districts, independent charter schools, CESAs, and CCDEBs; 2) aid to

school districts, CESAs, and CCDEBs for providing physical or mental health

treatment services to private school and tribal school pupils; and 3) aid for school age

parents programs to school districts only.