The state allocates funding for a program of special education for students with disabilities using an excess cost formula. ?For eligible students in kindergarten through age 21 (K-21), the formula multiplies a school district's base allocation by an excess cost multiplier up to an enrollment limit of 15 percent of a school district's full-time student enrollment.? K-21 students receiving special education generate funding through both the base allocation and excess cost formulas.

School districts receive a tiered excess cost multiplier based on inclusion in a general education setting for K-21 special education students.? A multiplier of 1.12 is provided for special education students that spend at least 80 percent of the school day in a general education setting. ?For students in a general education setting less than 80 percent of the time, districts receive a 1.06 multiplier.??

The formulas for special education also apply to charter schools and tribal schools in state-tribal education compacts.

The enrollment limit for K-21 special education funding is increased from 15 percent to 16 percent.

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The State Auditor (Auditor) must review the prevalence of disabilities and whether the provisions and funding for evaluating students and providing services reflects the prevalence of disabilities, including whether any populations are disparately underevaluated or underserved.? The Auditor must report findings and recommendations to the Governor and fiscal and education committees of the Legislature by November 30, 2025.