NC H771

Establishes a grant program beginning in fiscal year 2021-2022 for local school administrative units to apply for funds from the Special State Reserve Fund to cover extraordinary costs for students with disabilities, including out-of-school placements.

Students are eligible if their service costs equal or exceed four times the State average per pupil expenditure for children with disabilities; the Department of Public Instruction reimburses 75% of extraordinary costs and disburses funds quarterly to approved providers.

Defines extraordinary costs to include only direct special education expenses such as personnel salaries, specialized materials, tuition, and consultant costs, while excluding transportation, administrative overhead, and classroom adaptations used by multiple students.

Requires the Department of Public Instruction to ensure private facilities adhere to state and federal education laws, and mandates local school administrative units remain legally responsible for ensuring free appropriate public education in the least restrictive environment.

Appropriates $1,000,000 in recurring funds for the 2021-2022 school year and requires reporting on homebound, modified day, and institutionalized placements disaggregated by gender, race, ethnicity, disability, and grade level beginning October 15, 2022.