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Subject: State Law Changes to Special Education
Source: Melodie Friedebach, Assistant Commissioner
Intended Audience: Special Education Stakeholders
Date: July 20, 2005

Four new pieces of legislation involving special education were recently signed into law by Governor Blunt. Below are brief summaries of each and a link to the full text of the law:

• HB 276: This law provides for changes in due process hearings, mediation, and disciplinary actions, to conform to the new requirements of the reauthorized Individuals with Disabilities Education Act (IDEA 2004). For a full explanation of the extensive changes, review the newly revised “Procedural Safeguards for Children and Parents” document posted on our web site.
The full text of the law can be viewed at: http://www.house.mo.gov/bills051/biltxt/truly/HB0276T.HTM

• HB 258: This law eliminates the state requirement for school districts to conduct an annual census of children with disabilities. This change does not affect the requirement to conduct the annual child count on December 1 that is required by IDEA.
The full text of the law can be viewed at: http://www.house.mo.gov/bills051/biltxt/truly/HB0258T.HTM

• SB 287: This law revises the foundation formula. This revision does affect special education funding as follows:
The act transitions the state’s foundation formula away from a tax-rate driven philosophy to a formula that is primarily student-needs based and sets a minimum payment amount per student of $6,117. The new formula will be phased in over seven years beginning in FY 2007. The new formula will provide additional funding to districts when their count of special education students exceeds a specific threshold.
SB 287 eliminates Exceptional Pupil Aid (EPA). FY 2006 will be the last year districts will receive a separate EPA payment. Beginning in FY 2007 (July 1, 2006), school districts will no longer receive a separate EPA payment. EPA will be embedded in the districts minimum payment per pupil ($6,117). In addition, districts will no longer receive a separate state aid payment for homebound instruction, extended school year services and contract placements with approved private agencies (PA). These changes will require districts to review the process and methods used to budget for all students and services. Districts will receive a single payment to support the educational programs for all students.
This law also revises the definition of “severely handicapped” children, and establishes state funding for high need students with disabilities regardless of their disability category or type of placement if those students cost the school district in excess of three times the current expenditure per average daily attendance. This law does not affect the continued operation of the State Schools for Severely Handicapped, Missouri School for the Deaf, and Missouri School for the Blind, by the state board of education. However, this law effectively reverses the result of the 8th Circuit Court of Appeals’ decision of March 1, 2004, in the Springfield/Lewis case and will eliminate the Severely Handicapped Contract Placement Reimbursement (SHCPR) process. The full text of the law can be viewed at: http://www.senate.mo.gov/05info/billtext/tat/SB287.htm

• SB 500: This law, which primarily focuses on Part C of IDEA (Infants and Toddlers), also amends a bill passed a few years ago, commonly referred to as SB 874. School districts will now only need to give consideration to the value of continuing services with Part C providers for the remainder of a school year when developing the initial IEP for early childhood special education (ECSE) students who had been served under the First Steps program. The revision in the law removes the requirement that preference be given to the continuation of services with the Part C provider unless the cost exceeded the average per student cost of ECSE in the school district.
The full text of the law can be viewed at: http://www.senate.mo.gov/05info/billtext/tat/SB500.htm

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Missouri Department of Elementary and Secondary Education
Division of Special Education
P.O. Box 480
Jefferson City, MO 65102
Email:  webreplyspe@dese.mo.gov
Phone: 573-751-5739   Fax:  573-526-4404

Revised: December 23, 2005

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