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.