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Bill

Bill

HB 742

requiring catastrophic special education state aid funding to be drawn from the education trust fund.

2025 Regular Session Introduced by Peggy Balboni and 4 co-sponsors

HB 742 redirects catastrophic special education funding from general state appropriations to the Education Trust Fund, potentially stabilizing but constraining education budget flexibility.

Committee Report: Refer for Interim Study 11/13/2025 (Vote 18-0; CC)
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Bill Summary · HB 742

Legislative bill overview

HB 742 would require New Hampshire to fund catastrophic special education costs through the Education Trust Fund rather than through the state's general appropriations process. Catastrophic special education typically refers to extraordinary costs for students with severe disabilities that exceed normal special education budgets.

Why is this important

Special education funding is a significant state expense, and how it's sourced affects overall budget flexibility and school district planning. Moving catastrophic costs to a dedicated trust fund could provide more predictable funding streams but may also create accounting distinctions that shift financial pressures between different state funding mechanisms.

Potential points of contention

  • Trust fund adequacy: Whether the Education Trust Fund has sufficient revenue and growth to sustainably cover catastrophic special education costs without depleting resources for other educational priorities
  • Definition and eligibility: Unclear criteria for what qualifies as "catastrophic" could lead to disputes over which cases receive this funding designation and potential inequities between districts
  • Budget flexibility: Dedicating trust fund resources to catastrophic special education may reduce flexibility to address other educational emergencies or needs, and could shift costs back to general fund in fiscal crises

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

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