WeVote
Log In

Bill

Bill

SB 309

AN ACT CONCERNING THE CREATION OF A CONTINGENCY SPECIAL EDUCATION GRANT, A PROHIBITION ON PRIVATE EQUITY IN SPECIAL EDUCATION AND THE ESTABLISHMENT OF A WORKING GROUP TO CONSIDER INNOVATIONS IN THE PROVISION OF SPECIAL EDUCATION SERVICES.

2026 Regular Session Introduced by John Kissel

SB 309 creates a contingency grant to offset unusually high special education costs, bans private equity–owned providers, and forms a working group to explore innovative service de

PUBLIC HEARING 0304
#educationdepartment #privateprovidersofhumanservices #reports #specialeducation #stateboardofeducation #stategrantstomunicipalities
0
WeVote Research Nonpartisan
Bill Summary · SB 309

Overview

SB 309, introduced in Connecticut's 2026 session, proposes three main changes related to special education:
1) creation of a contingency grant to cover unanticipated special education costs,
2) prohibition on private equity–owned providers of special education services, and
3) establishment of a working group to explore innovations in service delivery, including public-private partnerships.

Purpose and intent

  • Provide a safety-net funding mechanism to help towns district-level budgets absorb unexpected or above-average special education costs.
  • Guard against potential conflicts of interest or financial incentives associated with private equity ownership of special education providers.
  • Explore innovative approaches to delivering special education services and expanding director-approved private provider participation under revised eligibility rules.

Key provisions

1) Contingency special education grant (Sec. 1)

  • Effective date: July 1, 2026.
  • Contingent grants structure:
    • For fiscal years ending June 30, 1996 onward, towns with excess eligible costs relative to state norms can receive a supplemental grant, calculated as the product of eligible excess costs and the town’s base aid ratio, subject to appropriations and proportional adjustments to fit the statewide appropriation.
    • Eligible excess costs are the difference between a town’s net special education costs and the amount it would have spent at the statewide average rate.
  • New directive starting fiscal year ending June 30, 2027:
    • The State Board of Education shall pay a contingency grant on a current basis for any costs in excess of two times the net current expenditures for each student who enrolls or becomes eligible for birth-to-three services on or after March 1 of the school year and requires special education or related services.
  • Practical effect: provides an ongoing, targeted renewal mechanism to offset unusually high per-student special education costs.

2) Prohibition on private equity–owned private providers (Sec. 2)

  • Effective date: July 1, 2026.
  • Prohibition: The State Board of Education may not approve a private provider of special education services that is owned or operated by a private equity company.
  • Definition: A private equity company is an asset class comprising non-publicly traded equity and debt in operating companies.

3) Working group on innovations and provider eligibility (Sec. 3)

  • Effective date: July 1, 2026.
  • Commissioner-appointed working group to consider:
    • Innovations in delivering special education and related services via public-private partnerships (e.g., research and development schools; inclusion of neuropsychological services in an IEP).
    • Expansion of eligibility requirements for private providers of special education services (as defined in 10-91g).
  • Composition requirements:
    • At least one member must represent an approved private provider.
    • At least one member must represent a private provider of services not currently eligible for approval by the State Board of Education.
  • Deliverable: A report with findings and recommendations to the Education Committee by January 1, 2027.

Affected parties and scope

  • Local and regional boards of education: potential changes in funding due to contingency grants.
  • Students receiving special education and birth-to-three services: potential changes in funding mechanisms and service delivery approaches.
  • Private providers of special education services: new eligibility dynamics; prohibition on private equity–owned providers (Sec. 2) and participation in the working group (Sec. 3).
  • State education agencies: administration of contingency grants and oversight of provider approvals; leadership of the working group.

Procedural and timeline aspects

  • Funding provisions trigger in the 2026–2027 fiscal context, with specific grants payable in June for certain years and ongoing contingency coverage starting in 2027 for eligible high-cost cases.
  • Prohibition on private equity–owned providers begins July 1, 2026.
  • Working group to report by January 1, 2027.
  • The act affects sections 10-76g and 10-91g of the General Statutes, with new sections created to implement the contingency grant, the private equity prohibition, and the working group.

Potential impact considerations

  • Financial: May stabilize town budgets against volatile special education costs; the size and distribution of the contingency grant depend on appropriations and statewide cost comparisons.
  • Policy: Shifts in private provider market dynamics by barring private equity ownership and encouraging alternative models or hybrids through public-private partnerships.
  • Operational: Requires administratively tracking eligibility costs, calculating excess costs, and managing grant payments; establishing and coordinating the working group logistics and report.

If you’d like, I can provide a side-by-side comparison of current law vs. SB 309 provisions or a plain-language summary for constituent-facing materials.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.