Department would withhold some special-education aid from community and STEM schools

The Department of Education and Workforce would withhold 5% of each community school’s and STEM school’s special-education funding. The rule covers community schools created under Chapter 3314 and STEM schools created under Chapter 3326. The amount is based on the special-education funding paid under the listed state funding law. The department would use the withheld money for community-school and STEM-school funding purposes, and would redistribute any unused amount among those schools in proportion to their original contributions. For later years, the General Assembly would determine the amount, if any, to be withheld and how it would be used. The 5% withholding applies in fiscal years 2026 and 2027. Beginning in fiscal year 2028, the amount and use would depend on later General Assembly decisions.

The bill would provide up to $360 million in the listed Special Education Threshold Cost Reimbursement budget item for additional state aid. The aid would go to city, local, exempted village, and joint vocational school districts for special-education students. The money would be used under the state laws identified in the bill. The actual amount available depends on the appropriation becoming law and on the statutory payment rules.