Sec. 2. 20-A MRSA §15612, sub-§6-A is enacted to read:

6-A.__Special education adjustment; residential placements.__ Beginning in fiscal year 2004-05 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:

A.__An amount equal to 100% of the unit's actual special education costs for the placement of state agency clients and state wards in a residential placement within the unit during the year of allocation;

B.__An amount equal to 100% of the local share of the foundation allocation for the placement of each state agency client and state ward placed in a residential placement within the unit during the year of allocation; and

C.__Notwithstanding any provision of chapter 219, an amount equal to 100% of the actual local per-pupil expenditure for each state agency client and state ward placed in a residential placement within the unit who is educated as a tuition student in another school administrative unit or at a private school.__State payments for this paragraph must be made during 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.

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 of the placement of state agency clients and state wards in a residential placement within the unit. 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.