Aid for Special Education and Support Services

V.S.A. tit. 16, ch. 101, subch. 2

in effect

16 V.S.A. § 2961 Census grant [Repealed July 1, 2029 if contingency met]

2961. Census grant [Repealed July 1, 2029 if contingency met] (a) As used in this section: (1) “Average daily membership” has the same meaning as in subdivision 4001(1) of this title, except it excludes State-placed students. (2) “Average daily membership of a supervisory union” means the aggregate average daily membership of the school districts that are members of the supervisory union or, for a supervisory district, the average daily membership of the supervisory district. (3) “Long-term membership” of a supervisory union in any school year means the average of the supervisory union’s average daily membership over the most recent three school years for which data are available. (4) “Uniform base amount” means $2,350.00, as adjusted for inflation. The uniform base amount shall be adjusted for inflation each fiscal year beginning in fiscal year 2028 by adjusting the uniform base amount for the preceding fiscal year by the most recent three-year average annual percentage change in the National Income and Product Accounts (NIPA) implicit price deflator for state and local government consumption expenditures and gross investment published by the U.S. Department of Commerce, Bureau of Economic Analysis, and rounding upward to the nearest whole dollar amount. (b) The State commits to satisfying its special education maintenance of fiscal support requirement under 34 C.F.R. § 300.163(a). (c) Each supervisory union shall receive a census grant each fiscal year to support the provision of special education services to students on an individualized education program. Supervisory unions shall use this funding and other available sources of funding to provide special education services to students in accordance with their individualized education programs as mandated under federal law. A supervisory union may use census grant funds to support the delivery of the supervisory union’s comprehensive system of educational services under sections 2901 and 2902 of this title but shall not use census grant funds in a manner that abrogates its responsibility to provide special education services to students in accordance with their individualized education programs as mandated under federal law. (d) The amount of the census grant for a supervisory union shall be the uniform base amount multiplied by the supervisory union’s long-term membership. Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 230 (Adj. Sess.), § 15, eff. July 1, 1991; 1995, No. 157 (Adj. Sess.), § 13; 1997, No. 60, §§ 30, 30a, eff. July 1, 1998; 2003, No. 130 (Adj. Sess.), § 6; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2021; 2019, No. 112 (Adj. Sess.), § 1, eff. July 1, 2022; 2021, No. 175 (Adj. Sess.), § 1, eff. July 1, 2022; 2025, No. 169 (Adj. Sess.), § 5, eff. July 1, 2026; contingently repealed on July 1, 2029 by 2025, No. 73, § 42(c).

16 V.S.A. § 2962 Extraordinary special education reimbursement

2962. Extraordinary special education reimbursement (a)(1) As used in this section, “child” means a student with disabilities who is three years of age or older in the current school year. (2) As used in this subchapter, “extraordinary expenditures” means a supervisory union’s allowable special education expenditures that for any one child in a fiscal year exceed $60,000.00, increased annually by the annual change in the National Income and Product Accounts (NIPA) Implicit Price Deflator for State and Local Government Consumption Expenditures and Gross Investment as reported by the U.S. Department of Commerce, Bureau of Economic Analysis. (3) The State Board of Education shall define allowable special education expenditures that shall include any expenditures required under federal law in order to implement fully individual education programs under the Individuals with Disabilities Education Act, 20 U.S.C. chapter 33, and any costs of mediation conducted by a mediator who is approved by the Secretary. (b) If a supervisory union has extraordinary expenditures, it shall be eligible for extraordinary special education reimbursement (extraordinary reimbursement) as provided in this section. (c) A supervisory union that has extraordinary expenditures in a fiscal year for any one child shall be eligible for extraordinary reimbursement equal to: (1) an amount equal to its special education expenditures in that fiscal year for that child that exceed the extraordinary expenditures threshold amount under subdivision (a)(2) of this section (excess expenditures) multiplied by 95 percent; plus (2) an amount equal to the lesser of: (A) the amount of its excess expenditures; or (B)(i) the extraordinary expenditures threshold amount under subdivision (a)(2) of this section; minus (ii) the base amount of the census grant received by the supervisory union under subsection 2961(d) of this title for that fiscal year; multiplied by (iii) 60 percent. (d) The State Board of Education shall establish by rule the administrative process for supervisory unions to submit claims for extraordinary reimbursement under this section and for the review and payment of those claims. (e) Under section 2973 of this title, a supervisory union, in its role as the local education agency, may place a student with an individualized education program under the Individuals with Disabilities Education Act, 20 U.S.C. chapter 33, with certain approved independent schools that accept public tuition. If the approved independent school is entitled to special education cost reimbursement under that section, it may bill the supervisory union for excess special education costs incurred by the independent school in providing special education services to that student beyond those covered by general tuition. If those costs for that student exceed the extraordinary expenditures threshold as defined in subdivision (a)(2) of this section, the supervisory union shall be entitled to extraordinary reimbursement under this section for that student as if it incurred those costs directly. Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 107, § 6; 1989, No. 230 (Adj. Sess.), §§ 18, 26; 1995, No. 157 (Adj. Sess.), § 14, eff. July 1, 1997; 1995, No. 157 (Adj. Sess.), § 22; 1997, No. 60, § 30b, eff. July 1, 1998; 2003, No. 36, § 13; 2003, No. 130 (Adj. Sess.), § 7; 2013, No. 92 (Adj. Sess.), § 205, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 14, eff. July 1, 2019; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022.

16 V.S.A. § 2965 Withholding of aid

2965. Withholding of aid If a supervisory union, school district, or agency fails to meet its legally established obligations toward a child with a disability or the child’s parent, and as a result the Agency of Education incurs costs to meet these obligations beyond those otherwise incurred under this chapter, the Secretary shall withhold the amount of funds incurred from any grants due the supervisory union, school district, or agency under this subchapter. Added 1987, No. 235 (Adj. Sess.), § 7; amended 1995, No. 157 (Adj. Sess.), § 22; 2013, No. 92 (Adj. Sess.), § 208, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017.

16 V.S.A. § 2967 Aid projection

2967. Aid projection (a) On or before December 15, the Secretary shall publish an estimate, by each supervisory union, of its anticipated State special education funding under this chapter for the ensuing school year. (b) As used in this section, State special education funding shall include: (1) funds eligible for grants and reimbursements under sections 2961 and 2962 of this title; (2) funds for services for persons who are visually impaired; (3) funds for persons who are deaf or hard of hearing; (4) funds for the interdisciplinary team program; (5) funds expended for training and programs to meet the needs of students with emotional or behavioral challenges under subsection 2969(c) of this title; and (6) funds expended for training under subsection 2969(d) of this title. Added 1987, No. 235 (Adj. Sess.), § 7; amended 1989, No. 230 (Adj. Sess.), § 27; 1995, No. 157 (Adj. Sess.), § 17; 1997, No. 60, § 30d, eff. July 1, 1998; 1997, No. 71 (Adj. Sess.), § 88, eff. March 11, 1998; 2003, No. 36, § 15; 2003, No. 130 (Adj. Sess.), § 9; 2011, No. 58, § 5, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 209, eff. Feb. 14, 2014; 2013, No. 96 (Adj. Sess.), § 79; 2013, No. 142 (Adj. Sess.), § 31; 2015, No. 131 (Adj. Sess.), § 25; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022; 2019, No. 112 (Adj. Sess.), § 2, eff. July 1, 2022.

16 V.S.A. § 2969 Payments

2969. Payments (a)(1) On or before August 15, December 15, and April 15 of each fiscal year, the State Treasurer shall withdraw from the Education Fund, based on a warrant issued by the Commissioner of Finance and Management, and shall forward to each supervisory union one-third of the census grant due to the supervisory union under section 2961 of this title for that fiscal year. (2) On or before November 15, January 15, April 15, and August 1 of each school year, each supervisory union, to the extent it incurs extraordinary expenditures under section 2962 of this title, shall file a financial report with the Secretary in a form prescribed by the Secretary. The report shall describe total extraordinary expenditures actually incurred during the reporting period. (3) On or before December 15, February 15, May 15, and September 15 of each school year, based on a warrant issued by the Commissioner of Finance and Management, the State Treasurer shall withdraw from the Education Fund and shall forward to each supervisory union the amount of extraordinary reimbursement incurred by the supervisory union under section 2962 of this title that is unreimbursed and determined by the Agency of Education to be payable to the supervisory union. (b) [Repealed.] (c) For the purpose of meeting the needs of students with emotional or behavioral challenges, each fiscal year the Secretary shall use for training, program development, and building school and regional capacity up to one percent of the State funds appropriated under this subchapter. (d) For the training of teachers, administrators, and other personnel in the identification and evaluation of and provision of educational services to children who require educational supports, each fiscal year the Secretary shall use up to 0.75 percent of the State funds appropriated under this subchapter. In order to set priorities for the use of these funds, the Secretary shall identify effective practices and areas of critical need. The Secretary may expend up to five percent of these funds for statewide training and shall distribute the remaining funds to school districts or supervisory unions. (e) School districts and supervisory unions that apply for funds under this section must submit a plan for training that will result in lasting changes in their school systems and give assurances that at least 50 percent of the costs of training, including in-kind costs, will be assumed by the applicant. The Secretary shall establish written procedures and criteria for the award of such funds. In addition, the Secretary may identify schools most in need of training assistance and may pay for 100 percent of the assistance to the supervisory union or school district for these schools to fund the provision of training assistance for these schools. Added 1989, No. 107, § 9; amended 1989, No. 230 (Adj. Sess.), §§ 7, 22; 1995, No. 157 (Adj. Sess.), § 19 eff. July 1, 1997; 1995, No. 157 (Adj. Sess.), § 24; 1997, No. 60, § 30e, eff. July 1, 1998; 1997, No. 71 (Adj. Sess.), § 116, eff. March 11, 1998; 2005, No. 71, § 267; 2013, No. 92 (Adj. Sess.), § 211, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022.

16 V.S.A. §§ 2970, 2971 [Reserved for future use.]

16 V.S.A. § 2973 Independent school tuition rates

2973. Independent school tuition rates (a)(1) Notwithstanding any provision of law to the contrary, an approved independent school that accepts public tuition shall enroll any student with an individualized education program who requires special education services and who is placed in the approved independent school as an appropriate placement and least restrictive environment for the student by the student’s individualized education program team or by the local education agency (LEA); provided, however, that this requirement shall not apply to an independent school that limits enrollment to students who are on an individualized education program or a plan under Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, and who are enrolled pursuant to a written agreement between the LEA and the school. (2) In placing a student with an independent school under subdivision (1) of this subsection, the student’s individualized education program team and the LEA shall comply with all applicable federal and State requirements. (3) An approved independent school is not required to demonstrate that it has the resources to serve every category of special education as defined under State Board of Education rules in order to be approved or retain its approval to receive public funding for general tuition. (4) The terms “special education services,” “LEA,” and “individualized education program” or “IEP” as used in this section shall have the same meanings as defined by State Board rules. (b)(1) The Secretary of Education shall establish minimum standards of services for students receiving special education services in independent schools in Vermont and may advise independent schools as to the need for certain special education services in Vermont. (2)(A) The Secretary of Education shall set, after consultation with independent schools in Vermont, and based on the level of services provided by the schools, the maximum rates to be paid by the Agency and supervisory unions or school districts for tuition, room, and board for residential placement of students who require special education services. The amount charged by an independent school for tuition shall reflect the school’s actual or anticipated costs of providing special education services to the student and shall not exceed the maximum rates set by the Secretary, provided that the Secretary may permit charges in excess of these maximum rates where the Secretary deems warranted. (B)(i) An approved independent school that enrolls a student under subdivision (a)(1) of this section may bill the responsible LEA for excess special education costs incurred by the independent school in providing special education services beyond those covered by general tuition. Reimbursement of these excess special education costs shall be based on the direct-cost rates approved by the Secretary for services actually provided to the student consistent with the Agency of Education Technical Manual for special education cost accounting. The Agency of Education shall publish specific elements that must be included as part of an independent school’s invoice for excess special education costs, and these elements shall be included in the written agreement required under subdivision (c)(2) of this section. (ii) In establishing the direct-cost rates for reimbursement under this subdivision (B), the Secretary shall apply the principle of treating an approved independent school and a public school with parity in the amount of federal, State, and local contributions to cover the costs of providing special education services. (iii) An approved independent school that enrolls a student under subdivision (a)(1) of this section shall provide such documentation to the Secretary as the Secretary deems necessary in order to ensure that amounts payable under this subdivision (B) to the school are reasonable in relation to the special education services provided by the school. The Secretary may withhold, or direct an LEA to withhold, payment under this subdivision pending the Secretary’s receipt of required documentation under this subdivision, or may withhold, or direct an LEA to withhold, an amount determined by the Secretary as not reasonable in relation to the special education services provided by the school. (C)(i) The Secretary shall set, after consultation with independent schools in Vermont, the maximum tuition rates to be paid by the Agency and supervisory unions or school districts to independent schools that limit enrollment to students who are on an IEP or a plan under Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794, and who are enrolled pursuant to a written agreement between the LEA and the school. The maximum tuition rates shall be based on the level of services provided by the school. (ii) The tuition rates established by the Secretary under this subdivision (C) shall be no more than the costs that are reasonably related to the level of services provided by the school and shall be set forth on a form prescribed for that purpose by the Secretary of Education. The Secretary shall determine the relationship between costs and the level of services by using generally accepted accounting principles, such as those set forth in the Handbook (II) for Financial Accounting of Vermont School Systems. (iii) After the Secretary approves a tuition rate for an independent school under this subdivision (C), the school shall not exceed that tuition rate until such time as a new tuition rate is approved by the Secretary. (c)(1) In order to be approved as an independent school eligible to receive State funding under subdivision (a)(1) of this section, the school shall demonstrate the ability to serve students with disabilities by: (A) demonstrating an understanding of special education requirements, including the: (i) provision of a free and appropriate public education in accordance with federal and State law; (ii) provision of education in the least restrictive environment in accordance with federal and State law; (iii) characteristics and educational needs associated with any of the categories of disability or suspected disability under federal and State law; and (iv) procedural safeguards and parental rights, including discipline procedures, specified in federal and State law; (B) committing to implementing the IEP of an enrolled student with special education needs, providing the required services, and appropriately documenting the services and the student’s progress; (C) employing or contracting with staff who have the required licensure to provide special education services; (D) agreeing to communicate with the responsible LEA concerning: (i) the development of, and any changes to, the IEP; (ii) services provided under the IEP and recommendations for a change in the services provided; (iii) the student’s progress; (iv) the maintenance of the student’s enrollment in the independent school; and (v) the identification of students with suspected disabilities; and (E) committing to participate in dispute resolution as provided under federal and State law. (2) An approved independent school that enrolls a student requiring special education services who is placed with the school under subdivision (a)(1) of this section: (A) shall enter into a written agreement with the LEA committing to the requirements under subdivision (1) of this subsection (c); and (B) shall ensure that qualified school personnel attend planning meetings and IEP meetings for the student. (d)(1) If a student is placed with an approved independent school under subsection (a) of this section and either the LEA and the school each certifies, or the hearing officer under subdivision (3) of this subsection certifies, to the Secretary of Education that the school is unable to provide required IEP services due to its inability to retain qualified staff, then the LEA shall make another placement that satisfies the federal requirements to provide the student with a free and appropriate public education in the least restrictive environment. (2) If the conditions in subdivision (1) of this subsection are satisfied: (A) the approved independent school shall not be subject to any disciplinary action or the revocation of its approved status by the State Board of Education due to its failure to enroll the student; and (B) no private right of action shall be created on the part of the student or his or her family members, or any other private party, to: (i) require the LEA to place the student with the approved independent school or the school to enroll the student; or (ii) hold the LEA or the approved independent school responsible for monetary damages due to the failure of the school to enroll the student or the necessity for the LEA to make an alternative placement. (3) If the LEA and approved independent school do not agree on whether the school is unable to retain qualified staff under subdivision (1) of this subsection, then the LEA and the school shall jointly contract with a hearing officer to conduct a hearing with the parties and make a determination, which shall be final. The cost for the hearing officer shall be split evenly between the two parties. (e) Neither a school district nor any State agency shall pay rates for tuition, room, and board for students receiving special education in independent schools outside Vermont that are in excess of allowable costs approved by the authorized body in the state in which the independent school is located, except in exceptional circumstances or for a child who needs exceptional services, as approved by the Secretary. (f) The State Board is authorized to enter into interstate compacts with other states to regulate rates for tuition, room, and board for students receiving special education in independent schools. Added 1989, No. 230 (Adj. Sess.), § 28; 1991, No. 24, § 11; 2013, No. 92 (Adj. Sess.), § 212, eff. Feb. 14, 2014; 2017, No. 173 (Adj. Sess.), § 21, eff. July 1, 2023.

16 V.S.A. § 2973a Special education; best practices; policy

2973a. Special education; best practices; policy It is the public policy of the State that integrated special education services are recognized as an essential responsibility of the educational system that benefits all students and contribute to the good of the State. This section and section 2974 of this title recognize that best practices in delivery of such services promote this policy. Added 2007, No. 82, § 26.

16 V.S.A. § 2974 Special education program; fiscal review

2974. Special education program; fiscal review Annually, the Secretary shall report to the State Board regarding: (1) the total amount of census grants made to supervisory unions under section 2961 of this title; (2) the total amount of extraordinary special education reimbursement made to supervisory unions under section 2962 of this title; (3) results for special education students; (4) the availability of special education staff; (5) the consistency of special education program implementation statewide; (6) the status of tiered systems of supports in supervisory unions; and (7) a statewide summary of the special education student count, including: (A) the percentage of the total average daily membership represented by special education students statewide and by supervisory union; (B) the percentage of special education students by disability category; and (C) the percentage of special education students served by public schools within the supervisory union, by day placement, and by residential placement. Added 1997, No. 60, § 31, eff. June 26, 1997; amended 1997, No. 71 (Adj. Sess.), § 115, eff. March 11, 1998; 1999, No. 117 (Adj. Sess.), § 6; 2007, No. 82, § 10; 2013, No. 92 (Adj. Sess.), § 213, eff. Feb. 14, 2014; 2015, No. 11, § 14; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 74, § 24; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2022.

16 V.S.A. § 2975 Unusual special education costs; financial assistance

2975. Unusual special education costs; financial assistance The Secretary may use funds for allowable special education expenditures, as defined in State Board of Education rules, to directly assist supervisory unions with special education expenditures of an unusual or unexpected nature. These funds shall be appropriated in the amount of two percent times the census grant as defined in section 2961 of this title. The Secretary’s decision regarding a supervisory union’s eligibility for and amount of assistance shall be final. Added 2007, No. 66, § 13; amended 2013, No. 92 (Adj. Sess.), § 214, eff. Feb. 14, 2014; 2015, No. 148 (Adj. Sess.), § 1, eff. July 1, 2017; 2017, No. 173 (Adj. Sess.), § 5, eff. July 1, 2021; 2019, No. 112 (Adj. Sess.), § 3, eff. July 1, 2022.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/16/101Fetched: 10/21/2026