Committee Summary for House Education Funding (04/14/2025)

Bill/Time	Type	Title	Sponsor
HB742 00:09:19.959 - 9:08:05 AM	General Working Session	requiring catastrophic special education state aid funding to be drawn from the education trust fund.	Luneau, David(D)[CT]2024

HB742: Chair Information Only00:09:19.959 - 9:08:05 AM; The chair opened the subcommittee meeting discussing HB742, which focuses on requiring catastrophic special education state aid funding to be drawn from the education trust fund. The chair noted that this is the second subcommittee meeting on this topic and mentioned the possibility of discussing differentiated aid, a component of the adequacy formula. The previous meeting included a presentation by Henry Lipman from HHS on Medicaid, which raised many questions. The current meeting aims to understand how special education aid is handled from the perspective of district directors, including billing, training, and cost variations among districts.
HB742: Representative Information Only00:17:39.360 - 9:16:25 AM; The representative discussed the need to understand the cost occurrences at different levels of special education aid, such as from 2.5 to 3.5 times the average cost, and above 10 times. They also mentioned the importance of understanding the process of approving services for students with IEPs and how these services may be reimbursed by Medicaid or private insurance, which affects claims for special education aid reimbursement.
HB742: Dan Carter, Boothby Therapy Services, Laconia Information Only00:22:24.799 - 9:21:10 AM; Dan Carter, general counsel at Boothby Therapy Services in Laconia, explained that their company works with school districts to provide staffing for related services under IEPs and offers consulting on compliance with Medicaid to schools program requirements. He emphasized the importance of understanding the statutory language and philosophy behind the Medicaid funding program, highlighting that Medicaid is meant to fund services that qualify as special education or related services, but only within the sub-universe of Medicaid-covered services.
HB742: Jess Pickford, Assistant Superintendent, SAU 53 (Allenstown, Chichester, Deerfield, Epsom, Pembroke) Information Only00:23:27.240 - 9:22:13 AM; Jess Pickford, assistant superintendent for SAU 53, which includes Allenstown, Chichester, Deerfield, Epsom, and Pembroke, described their approach to special education billing and Medicaid. They use the MSB platform for data management and only input students with medically necessary services. They also utilize the state system Nessus for reporting and recording billing for special education, focusing on students likely to meet the three and a half times threshold.
HB742: Lisa Horn, Assistant Director of Special Services, Bedford School District Information Only00:24:49.440 - 9:23:35 AM; Lisa Horn from the Bedford School District, the third largest in the state, explained that they track between 60 and 80 students annually for special education aid, with about 36 students qualifying over the past six years. They use the MSB system to log medically based services and pursue Medicaid dollars simultaneously with special education aid. Bedford does not pursue private insurance to ensure free and appropriate public education.
HB742: Esther Kennedy, Director of Student Services, Guilford Information Only00:24:49.440 - 9:23:35 AM; Esther Kennedy, director of student services in Guilford, shared that they have about 1,200 students, with 200 in special education. They track students with paraprofessionals to meet the three and a half times threshold and use Medicaid billing to maximize funding. She suggested allowing Medicaid billing up to the $70,000 threshold to benefit the district financially and discussed the increasing costs due to the autistic population.
HB742: Representative Damon Information Only00:29:17.360 - 9:28:03 AM; Representative Damon asked about the process of choosing between billing Medicaid or applying for catastrophic aid, to which Esther Kennedy responded that they mathematically figure out the best financial option for each student. She also mentioned that they expect more students to meet the over $70,000 category due to increased service costs.
HB742: Representative Information Only00:56:00.160 - 9:54:46 AM; The representative discussed the complexity of billing private insurance and Medicaid, noting that some states require billing private insurance first. They also highlighted the importance of administrative support in managing these processes and the potential need for specialized personnel if requirements expand.
HB742: Representative Information Only01:01:09.599 - 9:59:55 AM; The representative raised concerns about parental consent for Medicaid billing and the potential conflict between insured and uninsured students in terms of state funding guarantees. They suggested that the state should guarantee payment at various thresholds regardless of insurance status and provide incentives for districts to seek reimbursements.
HB742: Lisa Horn, Bedford School District Information Only01:05:51.119 - 10:04:37 AM; Lisa Horn discussed the extensive training required for staff to comply with federal and state regulations for Medicaid billing, including case managers, administrators, related service providers, and paraprofessionals. She highlighted the challenges of managing denials and the significant time and resources needed for effective billing.
HB742: Dan Carter, Boothby Therapy Services, Laconia Information Only01:09:20.080 - 10:08:06 AM; Dan Carter explained the complexities of billing third-party payers, noting that Medicaid is considered the payer of last resort but recognizes the primary responsibility of the LEA to fund FAPE services. He discussed the risks of billing private insurance and the potential impact on parental premiums, suggesting that New Hampshire avoids requiring districts to pursue private insurance first.
HB742: Representative Information Only01:13:40.320 - 10:12:26 AM; The representative discussed the potential of lowering the threshold for special education aid from three and a half to two and a half times the average cost, noting the difficulty in predicting the cost increase. They mentioned the need for collaboration with districts to gather data and the complexities due to varying costs and demographics across different towns.
HB742: Jess Pickford, SAU 53 Information Only01:18:16.159 - 10:17:02 AM; Jess Pickford explained the use of the New Hampshire Special Education Information System (Nessus) for mandatory state and federal reporting data. They noted that some districts use other systems for additional data points and highlighted the cost differences due to varying demographics within their SAU.
HB742: Unidentified Speaker, SAU 53 Information Only01:19:01.280 - 10:17:47 AM; The speaker discussed the challenges with the Nessus system, which is set to be discontinued in 2027. They highlighted the process of uploading bills for special education aid, focusing on the requirement to include detailed information such as the child's name, dates of service, and vendor contracts. The speaker noted that they only upload bills for students expected to meet the three and a half times threshold, and mentioned the additional staffing needed to handle more uploads.
HB742: Unidentified Speaker, Bedford Information Only01:20:18.400 - 10:19:04 AM; The speaker addressed the unpredictability of students meeting the three and a half times threshold, mentioning an example where a student was just short of the threshold. They discussed tracking between 60 to 80 students annually, noting that student attendance and paraprofessional attendance can impact eligibility. The speaker also explained the monthly invoicing process for the tracked students.
HB742: Unidentified Speaker, Bedford Information Only01:22:18.639 - 10:21:04 AM; The speaker elaborated on the costs associated with employing paraprofessionals, including benefits and New Hampshire retirement contributions, which significantly increase the hourly rate. They detailed how these costs can lead to reaching the $70,000 cap for special education services, emphasizing the importance of consistent attendance for both students and paraprofessionals.
HB742: Unidentified Speaker, Bedford Information Only01:23:03.679 - 10:21:49 AM; The speaker mentioned the high costs of transportation and out-of-district placements for special education students, using Gilmanton as an example of a small sending district. They emphasized that paraprofessionals and transportation are major cost factors for most districts, and that tracking students who might reach the $70,000 threshold is necessary due to the unpredictability of meeting this threshold.
HB742: Unidentified Speaker, Bedford Information Only01:24:10.880 - 10:22:56 AM; The speaker discussed the need to monitor a larger number of students to determine their eligibility for special education aid, noting that doubling the number of students tracked would also increase the administrative burden. They highlighted the potential inefficiency of tracking more students for a lower reimbursement rate.
HB742: Unidentified Speaker, Bedford Information Only01:25:17.199 - 10:24:03 AM; The speaker explained that all districts are required to use the Nessus system to report 16 data points for every student with an IEP, although districts may choose different data management systems for creating the IEP itself. They noted that Bedford writes IEPs within the Nessus system, and suggested that Rebecca from the Department of Education could clarify further.
HB742: Unidentified Speaker, Bedford Information Only01:27:32.639 - 10:26:18 AM; The speaker emphasized the importance of a unified data system across districts, mentioning the current user experience issues with Nessus. They advocated for involving field practitioners in the development of any new system to ensure it is user-friendly and practical for daily use.
HB742: Unidentified Speaker, Bedford Information Only01:28:57.520 - 10:27:43 AM; The speaker discussed the challenges with data collection and system usability, suggesting that a more unified and user-friendly system could benefit districts. They noted the current system's impending discontinuation and the lack of involvement in decision-making processes for new systems.
HB742: Unidentified Speaker, Bedford Information Only01:30:02.719 - 10:28:48 AM; The speaker detailed the process of generating data for special education services, explaining that data is only entered into the system for students expected to meet the three and a half times threshold. They discussed the difficulties with the current system and the need for better involvement in decision-making processes for future systems.
HB742: Unidentified Speaker, Bedford Information Only01:31:22.480 - 10:30:08 AM; The speaker suggested that looking at the number of paraprofessionals in each district could help estimate the number of students meeting the two and a half percent threshold. They noted that out-of-district placements would remain a constant cost factor, while transportation costs might not meet the threshold.
HB742: Unidentified Speaker, Bedford Information Only01:33:28.840 - 10:32:14 AM; The speaker, a retired elementary principal, discussed the decision-making process for assigning paraprofessionals to students. They explained that the IEP team, including the LEA representative, makes these decisions based on the need for additional support, and outlined the process for obtaining Medicaid orders for services.
HB742: Unidentified Speaker, Bedford Information Only01:34:45.840 - 10:33:31 AM; The speaker detailed the process for obtaining Medicaid dollars, emphasizing the need for parental consent and orders from licensed professionals within their scope of practice. They explained how their district contracts with a third-party agency for orders and the annual updates required for these orders.
HB742: Unidentified Speaker, Bedford Information Only01:36:46.320 - 10:35:32 AM; The speaker clarified that the 16 data points required for special education aid are entered into the Nessus system by someone designated to do so, typically from data generated by the IEP team. They explained the verification process for ensuring services are delivered as reported.
HB742: Unidentified Speaker, Bedford Information Only01:39:06.159 - 10:37:52 AM; The speaker discussed the role of the LEA representative in special education decision-making, noting that in smaller districts, case managers may also serve as LEA reps. They emphasized the importance of data-driven decisions and the checks and balances in place to ensure proper allocation of funds.
HB742: Unidentified Speaker, Bedford Information Only01:41:12.840 - 10:39:58 AM; The speaker clarified the distinction between the LEA representative and case manager roles, noting that in smaller districts, the case manager might also serve as the LEA rep but must seek permission for fund allocation. They emphasized the importance of checks and balances in the decision-making process.
HB742: Unidentified Speaker, Bedford Information Only01:42:17.840 - 10:41:03 AM; The speaker discussed the challenges faced by small districts where staff wear multiple hats, explaining the legal requirement for the LEA to be able to expend funds. They noted that external factors like medical fragility or behavioral issues often necessitate the assignment of paraprofessionals.
HB742: Unidentified Speaker, Bedford Information Only01:47:16.400 - 10:46:02 AM; The speaker suggested changes to state law to incentivize districts to fully engage in the Medicaid to Schools program without penalizing them by reducing their special education aid cap. They emphasized the complexity of special education funding and the need for better support.
HB742: Unidentified Speaker, Bedford Information Only01:48:33.920 - 10:47:19 AM; The speaker advocated for fully funding the Individuals with Disabilities Education Act (IDEA) and lowering the cap on special education costs to reduce the burden on local taxpayers. They discussed the need for Medicaid funds to offset costs and the potential for using these funds to support the community.
HB742: Unidentified Speaker, Bedford Information Only01:51:32.080 - 10:50:18 AM; The speaker highlighted the high costs of special education services, especially for out-of-state placements, and the need for better funding models. They discussed the current proration of special education aid and the potential for increasing funding to support students and districts.
HB742: Unidentified Speaker, Bedford Information Only01:54:54.080 - 10:53:40 AM; The speaker explained the process of calculating transportation costs and the costs associated with specialized programs. They detailed how Bedford calculates the cost per student per day for different programs and the challenges of submitting invoices for special education aid.
HB742: Unidentified Speaker, Bedford Information Only01:57:57.520 - 10:56:43 AM; The speaker described the process of submitting invoices to the state for special education aid, noting the labor-intensive nature of the process. They mentioned that the Department of Education reviews these submissions and may request additional evidence or clarification.
HB742: Unidentified Speaker, Bedford Information Only02:01:44.239 - 11:00:30 AM; The speaker discussed the oversight of out-of-state placements, explaining that Bedford hires an out-of-district coordinator to manage these placements. They noted that the district works collaboratively with out-of-state programs to ensure IEP services are delivered and that Medicaid dollars are sought only for specific services.
HB742: Jess Pickford, SAU 53 Information Only02:03:52.800 - 11:02:38 AM; Jess Pickford shared a vision for improving education by focusing on general education supports to reduce the need for special education. They emphasized the importance of training teachers in post-secondary education to better handle diverse classroom needs and advocated for a more integrated approach between special and general education.
HB742: Unidentified Speaker, Bedford Information Only02:09:10.400 - 11:07:56 AM; The speaker suggested expanding special education funding to include response to intervention supports and services for at-risk students. They discussed the need for consistent leadership and the potential for desiloing functions within the education system to improve outcomes.
HB742: Unidentified Speaker, Bedford Information Only02:12:29.840 - 11:11:15 AM; The speaker emphasized the importance of leadership in driving educational change, suggesting that professional development should be inclusive of both special education and general education leaders. They discussed the need for a more collaborative approach to education and the impact of federal funding on the education system.

Ladd, Rick(Chairman)(R)[B+]2024	Brown, Pam(Clerk)(R)	Spilsbury, Walter(V Chairman)(R)[B+]2024
McGuire, Dan(R)[A+]2024	Ames, Dick(D)[CT]2024	Burton, Wayne(D)[CT]2018
Luneau, David(D)[CT]2024	Colcombe, Riché(R)[A-]2024	Chretien, Suzanne(D)
Popovici-Muller, Daniel(R)[A+]2024	Damon, Hope(D)[CT]2024	Kofalt, Jim(R)[A+]2024
Fellows, Sallie(D)[CT]2024	Erf, Keith(R)[A]2024	Bricchi, Tracy(D)
Weinstein, Toni(D)	Peeples, Raymond(R)	Mehegan, Peter(R)