AN ACT CONCERNING THE CREATION OF A CONTINGENCY SPECIAL EDUCATION GRANT, A PROHIBITION ON PRIVATE EQUITY IN SPECIAL EDUCATION AND THE ESTABLISHMENT OF A WORKING GROUP TO CONSIDER INNOVATIONS IN THE PROVISION OF SPECIAL EDUCATION SERVICES.

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General Assembly Raised Bill No. 309
February Session, 2026 LCO No. 1874

Referred to Committee on EDUCATION

Introduced by:
(ED)

AN ACT CONCERNING THE CREATION OF A CONTINGENCY
SPECIAL EDUCATION GRANT, A PROHIBITION ON PRIVATE EQUITY
IN SPECIAL EDUCATION AND THE ESTABLISHMENT OF A
WORKING GROUP TO CONSIDER INNOVATIONS IN THE PROVISION
OF SPECIAL EDUCATION SERVICES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (c) of section 10 -76g of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective July 1, 2
2026): 3
(c) (1) Commencing with the fiscal year ending June 30, 1996, and for 4
each fiscal year thereafter, within available appropriations, each town 5
whose ratio of [(1)] (A) net costs of special education, as defined in 6
subsection (h) of section 10 -76f, for the fiscal year prior to the year in 7
which the grant is to be paid to [(2)] (B) the product of its total need 8
students, as defined in section 10-262f, and the average regular program 9
expenditures, as defined in section 10 -262f, per need student for all 10
towns for such year exceeds the state -wide average for all such ratios 11
shall be eligible to receive a supplemental special education grant. Such 12
grant shall be equal to the product of a town's eligible excess costs and 13

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the town's base aid ratio, as defined in section 10 -262f, provided each 14
town's grant shall be adjusted proportionately if necessary to stay 15
within the appropriation. Payment pursuant to this subsection shall be 16
made in June. For purposes of this subsection, a town's eligible excess 17
costs are the difference between its net costs of special education and the 18
amount the town would have expended if it spent at the state -wide 19
average rate. 20
(2) Commencing with the fiscal year ending June 30, 2027, and for 21
each fiscal year thereafter, within available appropriations, the State 22
Board of Education shall pay a contingency special education grant to a 23
local or regional board of education on a current basis for any costs in 24
excess of two times the net current expenditures for each student who 25
enrolls in the school district or becomes ineligible for birth -to-three 26
services on or after March first of the school year and requires special 27
education or related services. 28
Sec. 2. (NEW) (Effective July 1, 2026) On and after July 1, 2026, the State 29
Board of Education shall not approve a private provider of special 30
education services, as defined in section 10 -91g of the general statutes, 31
that is owned or operated by a private equity company. As used in this 32
section, "private equity company" means an asset class consisting of 33
equity securities and debt in operating companies that are not publicly 34
traded on a stock exchange. 35
Sec. 3. (NEW) (Effective July 1, 2026) The Commissioner of Education 36
shall convene a working group to consider and make recommendations 37
concerning (1) innovations in the provision of special education and 38
related services through public -private partnerships, such as through 39
the creation of research and development schools and the inclusion of 40
neuropsychological services in a child's individualized education 41
program, and (2) expansion of the eligibility requirements for who may 42
be approved as a private provider of special education services , as 43
defined in section 10-91g of the general statutes. The commissioner shall 44
select the members of the working group, provided at least one member 45

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is a representative from an approved private provider of special 46
education services and at least one member is a representative from a 47
private provider of special education services that is ineligible to be 48
approved by the State Board of Education. Not later than January 1, 49
2027, the working group shall submit a report on its findings and any 50
recommendations to the joint standing committee of the General 51
Assembly having cognizance of matters relating to education, in 52
accordance with the provisions of section 11-4a of the general statutes. 53
This act shall take effect as follows and shall amend the following
sections:

Section 1 July 1, 2026 New section
Sec. 2 July 1, 2026 New section
Sec. 3 July 1, 2026 New section

Statement of Purpose:
To (1) provide a contingency special education grant for certain
unanticipated special education costs, (2) prohibit the Department of
Education from approving a private provider of special education
services that is owned or operated by a private equity company, and (3)
establish a working group to consider innovations in the provision of
special education and related services through public -private
partnerships.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]