AZ SB1189

Amends the extraordinary special education needs fund to establish continuous appropriation (rather than subject to annual appropriation) and allows the Department of Education to retain up to 2% of fund monies for administration.

Makes school districts and charter schools eligible for fund awards if a student receiving special education services has incurred costs of at least three times the statewide per pupil funding average in the current year.

Changes the fund application process to require demonstration of total costs incurred, evidence of seeking other funding sources, and allows claims for expenses from independent educational evaluations; establishes quarterly evaluation of claims with prioritization based on funding gaps.

Requires the Department of Education to adopt annual policies and procedures for the fund and submit an annual report by December 15 detailing the number of claims funded, how monies were used, and total claims received.

Appropriates $5,000,000 from the state general fund in fiscal year 2021-2022 to the extraordinary special education needs fund.