6.__Special education adjustment; local authorization.__ Beginning in fiscal year 2003-04 and notwithstanding any other provision of this chapter or chapter 606-A, the commissioner shall adjust each school administrative unit's state share of state subsidy to include an amount equal to the unit's actual special education costs for the year prior to the year of allocation.__For the purposes of this subsection, the unit's actual special education costs include 100% of the costs defined in subsection 11; section 15603, subsection 22; section 15607, subsection 3, paragraph A, subparagraphs (1) and (2); and section 15613, subsection 5.__School boards may expend the funds allocated without seeking approval from their legislative bodies.

Sec. 3. Appropriations and allocations. The following appropriations and allocations are made.

EDUCATION, DEPARTMENT OF

General Purpose Aid for Local Schools

Initiative: Provides funds to fully fund 100% of actual local special education costs.

General Fund 2003-04 2004-05

All Other $244,758,578 $251,367,160

____________ ____________

General Fund Total $244,758,578 $251,367,160

SUMMARY

This bill provides that the general purpose aid for local schools program would provide state subsidy for 100% of the actual special education costs incurred by each school administrative unit in the State. Under this bill, the Commissioner of Education is required to adjust each school administrative unit's state share of state subsidy to include an amount that equals 100% of the unit's actual special education costs, including the unit's personnel costs, to provide special education services and special education costs for state wards, state agency clients and out-of-district placements. The bill also provides an additional amount of General Fund appropriations for the general purpose aid for local schools program to fully fund the local share of actual local special education costs.