NC H478

Establishes a grant program beginning in fiscal year 2023-2024 for 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.

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

Defines extraordinary costs as direct special education service expenses such as personnel salaries, specialized materials, tuition, and consultant costs, explicitly excluding administrative overhead, classroom adaptations used by multiple students, and IEP development costs.

Requires the Department of Public Instruction to oversee private school placements for compliance with State and federal special education laws, while local school administrative units remain legally responsible for ensuring students receive a free appropriate public education in the least restrictive environment.

Appropriates $1,000,000 in recurring funds for the 2023-2024 school year and requires annual reporting on grant applications, awards, and out-of-school placements; also mandates monthly monitoring and annual reporting on homebound, modified day, and hospitalized placements disaggregated by student demographics.