§ 79-1142 — Department; reimbursement for special education programs and support services; to whom; manner; limitations; transfers

(1) Level I services refers to services provided to children with disabilities who require an aggregate of not more than three hours per week of special education services and support services and includes all administrative, diagnostic, consultative, and vocational-adjustment counselor services.
(2)(a) The total allowable excess cost for special education programs and support services is (i) the excess cost for special education programs plus (ii) the total allowable reimbursable cost for support services minus (iii) federal medicaid funds received pursuant to section 43-2511 for services to school-age children excluding amounts designated pursuant to such section as reimbursement for costs associated with the implementation and administration of the billing system.
(b) The total allowable reimbursable cost for support services shall not exceed a percentage, established by the State Board of Education, of the school district's or approved cooperative's total allowable reimbursable cost for all special education programs and support services. The percentage established by the board for support services shall not exceed the difference of ten percent minus the percentage of the appropriations for special education approved by the Legislature set aside for reimbursements for support services pursuant to subsection (5) of this section.
(3)(a) Except as provided in subsection (6) of this section, for special education and support services provided in each school fiscal year, the department shall reimburse each school district in the following school fiscal year a pro rata amount of the total allowable excess costs for all special education programs and support services as determined by the department pursuant to subdivision (3)(b) of this section. Cooperatives of school districts or educational service units shall also be eligible for reimbursement for cooperative programs pursuant to this section if such cooperatives or educational service units have complied with the reporting and approval requirements of section 79-1155 for cooperative programs which were offered in the preceding school fiscal year.
(b) The department shall reimburse the total allowable excess costs for all special education programs and support services from the General Fund and Education Future Fund appropriations approved by the Legislature for special education pursuant to section 79-1145 , minus the amounts set aside pursuant to subsection (5) of this section, on a pro rata basis at the maximum rate of reimbursement such appropriations will allow as determined by the department.
(4) The department shall make the reimbursement payments to the school district of residence, cooperative of school districts, or educational service unit each school fiscal year in a minimum of seven payments between the fifth and twentieth day of each month beginning in December. Such reimbursement payments may be adjusted as claims are reviewed and finalized. The State Treasurer shall, between the fifth and twentieth day of each month, notify the Director of Administrative Services of the amount of funds available in the General Fund and the Education Future Fund for payment purposes. The director shall, upon receiving such certification, draw warrants against such funds as appropriated.
(5) Residential settings described in subdivision (10)(c) of section 79-215 shall be reimbursed for the educational services, including special education services and support services, in an amount determined pursuant to the average per pupil cost of the service agency. Reimbursements pursuant to this section shall be made from funds set aside for such purpose within sixty days after receipt of a reimbursement request submitted in the manner required by the department and including any documentation required by the department for educational services that have been provided, except that if there are not any funds available for the remainder of the state fiscal year for such reimbursements, the reimbursement shall occur within thirty days after the beginning of the immediately following state fiscal year. The department may audit any required documentation and subtract any payments made in error from future reimbursements. The department shall set aside separate amounts from the appropriations for special education approved by the Legislature for reimbursements pursuant to this subsection for students receiving special education services and for students receiving support services for each state fiscal year. The amounts set aside for each purpose shall be based on estimates of the reimbursements to be requested during the state fiscal year and shall not be less than the total amount of reimbursements requested in the prior state fiscal year plus any unpaid requests from the prior state fiscal year.
(6) For each school district that received a payment pursuant to the Extraordinary Increase in Special Education Expenditures Act in the school fiscal year for which special education expenditures were reimbursed pursuant to subsection (3) of this section, an amount equal to such payment shall be subtracted from the reimbursement calculated pursuant to subsection (3) of this section and such amount shall be transferred to the Education Future Fund.
(7) On or before November 15 of each year, the department shall submit to the Governor, the Appropriations Committee of the Legislature, and the Education Committee of the Legislature:
(a) The total allowable excess costs for all special education programs and support services for all school districts, cooperatives of school districts, and educational service units; and
(b) The total reimbursements requested pursuant to subsection (5) of this section for the most recently completed school fiscal year.

Legislative History

Source: Laws 1973, LB 403, § 8; Laws 1975, LB 555, § 4; Laws 1975, Spec. Sess., LB 3, § 1; Laws 1976, LB 903, § 1; Laws 1986, LB 929, § 1; Laws 1986, LB 942, § 10; Laws 1986, Fourth Spec. Sess., LB 2, § 2; R.S.Supp.,1986, § 43-648; Laws 1987, LB 367, § 32; Laws 1987, LB 413, § 1; Laws 1995, LB 742, § 6; R.S.Supp.,1995, § 79-3332; Laws 1996, LB 900, § 824; Laws 1997, LB 346, § 30; Laws 1997, LB 865, § 8; Laws 1998, Spec. Sess., LB 1, § 48; Laws 1999, LB 813, § 43; Laws 2000, LB 1243, § 7; Laws 2001, LB 797, § 45; Laws 2010, LB1087, § 7; Laws 2019, LB675, § 32; Laws 2023, LB583, § 11; Laws 2023, LB705, § 92; Laws 2025, LB264, § 167. Operative Date: May 22, 2025 Cross References: Extraordinary Increase in Special Education Expenditures Act, see section 79-10,148. Option enrollment program, determination of reimbursement, see section 79-246.