C.R.S. § 22-20-114: Funding of programs - application for reimbursement - rules - legislative declaration - definition - repeal.

(1) Subject to subsection (3) of this section, the total amount appropriated to the department for the payment of costs incurred by administrative units for the provision, or expenses related to the provision, of special education programs must be distributed to each administrative unit that provides, or pays for the provision of, educational services for children with disabilities as follows:

(a) (I) For the 2026-27 budget year and each budget year thereafter, one million dollars to fund reimbursements for administrative units that pay tuition or education expenses that ensure a free appropriate public education for a student in out-of-home placement, as defined in section 22-32-138 (1)(h), if:

(A) The student has an individualized education program;

(B) The student does not have a parent or legal guardian, as described in section 22-20-103 (19.7)(a)(I), (19.7)(a)(II), or (19.7)(a)(III), who is available or authorized to make decisions concerning education for the student; and

(C) The student is placed by a public agency, as defined in section 22-20-103 (20), in a residential child care facility or residential treatment facility that is located out of state or in an approved facility school, as defined in section 22-2-402.

(II) In the 2026-27 budget year and each budget year thereafter, the department shall distribute the appropriation described in subsection (1)(a)(I) of this section pursuant to an application for reimbursement process. The state board shall adopt rules related to the application for reimbursement process.

(a.5) and (a.7) Repealed.

(b) Except as specified in subsection (1.3) of this section, an amount equal to one thousand seven hundred fifty dollars for each child with disabilities receiving special education services from the administrative unit; and

(c) (I) If any amount of the total annual appropriation remains after the distributions specified in subsections (1)(a) and (1)(b) of this section have been made, and after the distribution of the portion of the total annual appropriation designated for high-cost grants pursuant to subsection (2) of this section has been made, six thousand dollars per child with one or more disabilities, as described in subsection (1)(c)(II) of this section, for a percentage of such children receiving special education services from the administrative unit. The department shall annually determine the percentage of such children for which an administrative unit may receive additional funding pursuant to this subsection (1)(c) based on the amount of the remaining appropriation, the money available pursuant to subsection (1)(c)(III) of this section, and the per pupil amount of six thousand dollars.

(II) An administrative unit that provides special education services to children who have one or more of the following disabilities may receive funding pursuant to this paragraph (c):

(A) A visual impairment, including blindness, as defined by the state board;

(B) A hearing impairment, including deafness, as defined by the state board;

(C) Deaf-blindness, as defined by the state board;

(D) A serious emotional disability as defined by the state board;

(E) Autism spectrum disorders as defined by the state board;

(F) A traumatic brain injury as defined by the state board;

(G) Multiple disabilities as defined by the state board; or

(H) An intellectual disability as defined by the state board.

(III) (A) For the 2013-14 budget year and each budget year thereafter, in addition to any amount that is available pursuant to subsection (1)(c)(I) of this section, the general assembly shall appropriate twenty million dollars from the state education fund to the department for the purposes of this subsection (1)(c).

(B) For the 2019-20 budget year and each budget year thereafter, in addition to any amount that is available pursuant to subsections (1)(c)(I) and (1)(c)(III)(A) of this section, the general assembly shall appropriate twenty-two million dollars, which amount may be appropriated from the state education fund or the general fund or as amounts from both funds, to the department for the purposes of this subsection (1)(c).

(B.1) Except as specified in subsection (1.3) of this section, for the 2022-23 budget year and each budget year thereafter, in addition to any amount that is available pursuant to subsections (1)(c)(I), (1)(c)(III)(A), and (1)(c)(III)(B) of this section, the general assembly shall appropriate twenty-six million eight hundred twenty-five thousand dollars, which amount may be appropriated from the state education fund or the general fund or as amounts from both funds, to the department for the purposes of this subsection (1)(c).

(B.2) Except as specified in subsection (1.3) of this section, for the 2023-24 budget year and each budget year thereafter, in addition to any amount that is available pursuant to subsections (1)(c)(I), (1)(c)(III)(A), (1)(c)(III)(B), and (1)(c)(III)(B.1) of this section, the general assembly shall appropriate forty million two hundred three thousand six hundred seventy-one dollars, which amount may be appropriated from the state education fund created in section 17 (4) of article IX of the state constitution or the general fund, or as amounts from both funds, to the department for the purposes of this subsection (1)(c).

(C) The general assembly finds and declares that, for the purposes of section 17 of article IX of the state constitution, providing additional money to children with one or more disabilities, as described in subsection (1)(c)(II) of this section, for a percentage of such children receiving special education services from an administrative unit is a program for accountable education reform and may therefore receive funding from the state education fund created in section 17 (4) of article IX of the state constitution.

(D) It is the intent of the general assembly to increase funding for special education services as necessary for the 2023-24 budget year and budget years thereafter to fully fund special education services pursuant to this subsection (1)(c).

(1.3) The dollar amounts set forth in subsections (1)(b) and (1)(c)(III) of this section are annually increased by the rate of inflation. The amounts must be rounded to the nearest dollar. As used in this subsection (1.3), "inflation" means the annual percentage change in the United States department of labor bureau of labor statistics consumer price index for Denver-Aurora-Lakewood for all items paid by all urban consumers, or its applicable successor index.

(2) (a) (I) In addition to the amount appropriated for distribution pursuant to subsection (1) of this section, for the 2006-07 and 2007-08 budget years, subject to available appropriations, the general assembly shall appropriate two million dollars from the general fund or from any other source to the department to fund grants to administrative units as provided in section 22-20-114.5 for reimbursement of high costs incurred in providing special education services in the preceding budget year.

(II) (A) In addition to the amount appropriated for distribution pursuant to subsection (1) of this section, for the 2008-09 budget year and each budget year thereafter, subject to available appropriations, the general assembly shall appropriate four million dollars from the general fund or from any other source to the department to fund grants to administrative units as provided in section 22-20-114.5 for reimbursement of high costs incurred in providing special education services in the preceding budget year.

(B) The general assembly hereby finds and declares that for the purposes of section 17 of article IX of the state constitution, providing grants to administrative units for reimbursement for high costs incurred in providing special education services is a program for accountable education reform and may therefore receive funding from the state education fund created in section 17 (4) of article IX of the state constitution.

(b) Any amount received by an administrative unit as a reimbursement pursuant to this subsection (2) shall be in addition to the amount received by the administrative unit pursuant to subsection (1) of this section. The moneys appropriated by the general assembly to the department shall be distributed by the Colorado special education fiscal advisory committee in accordance with section 22-20-114.5.

(3) (a) Except as otherwise provided in paragraph (b) of this subsection (3), for the 2005-06 budget year, the department shall recalculate the distribution of funds to administrative units for providing educational services to children with disabilities as necessary to comply with the provisions of subsection (1) of this section.

(b) Notwithstanding the provisions of subsection (1) of this section, if the application of the provisions of subsection (1) of this section would result in an administrative unit receiving a lesser amount for providing educational services to children with disabilities for the 2005-06 budget year than it would have received under the provisions of this section as they existed prior to April 28, 2006, then the department shall not recalculate the distribution of funds for the administrative unit for the 2005-06 budget year.

(4) An administrative unit shall not receive the amount of funding to which it is entitled under the provisions of subsection (1) of this section unless the administrative unit has provided to the department the data collected concerning special education programs, as required by subsection (6) of this section, including the count of assessed children with disabilities.

(5) Payments made under the provisions of this part 1 shall not affect the amount of other state aid for which an administrative unit may qualify.

(6) Each administrative unit shall be required to collect the data required by the federal government concerning special education programs. Each administrative unit shall provide to the department the data collected concerning special education programs in order to receive the amount of funding to which it is entitled under the provisions of subsection (1) of this section.

(7) It is the general assembly's intent that, as a result of receiving an increase in the distribution of state moneys, an administrative unit, in complying with the maintenance of effort requirement specified in the federal "No Child Left Behind Act of 2001", 20 U.S.C. sec. 6381 et seq., shall not reduce the level of state and local expenditures below the level of state and local expenditures for the preceding budget year. Any additional appropriation of moneys for distribution pursuant to this section is intended to alter the ratio between state and local expenditures, but the overall level of expenditures may remain the same, thereby satisfying the federal maintenance of effort requirements.

(8) Repealed.

(9) (a) The department shall engage stakeholders on the issue of public placements in facility schools and whether to make recommendations to the state board regarding rules or to the general assembly regarding statutes related to public placements in facilities. The stakeholders that the department shall engage with include, but are not limited to, administrative units, medicaid managed care entities, organizations that represent licensed residential child care facilities, and other public entities.

(b) This subsection (9) is repealed, effective July 1, 2027.