NC H1035

Establishes a grant program beginning in the 2024-2025 fiscal year allowing local school administrative units to apply for funds from the Special State Reserve Fund to cover extraordinary costs for students with disabilities, including private school placements with approved nonpublic education programs.

Requires local school administrative units to demonstrate that a student's total service costs equal or exceed four times the State average per pupil expenditure for children with disabilities in the prior fiscal year to be eligible for grants.

Department of Public Instruction reimburses 75% of extraordinary costs (defined as direct special education services like personnel salaries, specialized materials, tuition, and consultant costs) and disburses funds quarterly to approved providers.

Local school administrative units retain legal responsibility for ensuring students receive free appropriate public education in the least restrictive environment and must conduct annual IEP reviews for students placed in private schools.

Appropriates $1,000,000 in recurring funds for the 2024-2025 school year and requires the Department to report grant program data to the Joint Legislative Education Oversight Committee by March 15, 2025; mandates annual reports on homebound, modified day, and hospital placements beginning October 15, 2025.