HBA-MPM H.B. 1427 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1427 By: Hochberg Public Education 4/12/2001 Introduced BACKGROUND AND PURPOSE Some Texas school districts must struggle with the high cost of educating certain special education students. The cost for even one student with multiple disabilities may be prohibitively high. Moreover, some districts may serve a disproportionate number of special education students, placing them in a financially precarious situation. School districts currently receive funding based on a special allotment for special education students. In some cases, this funding mechanism does not provide sufficient state funding and districts have to turn to local sources. Texas could benefit from a model in which funds are set aside to provide districts with more state funds to pay for high cost special education arrangements. House Bill 1427 provides a mechanism by which districts with a high cost special education student can apply to the Texas Education Agency to be reimbursed for up to 75 percent of the costs incurred that exceed two times the state funding allotment for that student. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly granted to the commissioner of education in SECTION 1 (Section 29.016, Education Code) of this bill. ANALYSIS House Bill 1427 amends the Education Code to authorize school districts to request reimbursement from the Texas Education Agency (TEA) for up to 75 percent of the amount spent for special education and related support services for a specific student exceeding two times the specified special education allotment for that student. The bill requires TEA to reimburse eligible districts to the extent that funds are available within the amount specified in the General Appropriations Act (GAA) for this purpose. The bill requires the commissioner of education (commissioner) to withhold the amount specified in the GAA from funds appropriated for special education and distribute that amount to districts requesting reimbursement. After deducting the withheld amount from the total appropriated amount, the commissioner is required to reduce each district's allotment proportionately and allocate funds accordingly. The bill requires the commissioner to adopt rules to implement the high cost special education reimbursement. EFFECTIVE DATE On passage, or if the Act fails to receive the necessary vote, the Act takes effect September 1, 2001.