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Gloria Durkee, a special education assistant, looks over the work of fourth-grader Grady Putnam, 10, at Westshire Elementary School in West Fairlee. Photo by Charles Hatcher/Valley News

The House Education Committee is drafting a bill that moves on recommendations from two studies to fundamentally change the way the state funds special education.

Funding would shift to a census-based grant from the current reimbursement system, meaning that districts would receive funding based on the total size of the student population, rather than all funding being tied to students identified as needing special education.

This funding can be used as the discretion of local schools, freeing them up to implement programs and hire specialists to serve struggling students before they need special education, or at least thatโ€™s what lawmakers have in mind.

โ€œOur hope is, our idea is, that school districts over the five year period can grow into this and use the flexibility to do many of the things schools would like to do,โ€ said David Sharpe, D-Bristol, chair of the education committee.

He said the funding plan would give districts the financial freedom to hire behavioral specialists, literacy and math specialists to work in elementary schools, for example, so students are brought up to speed before they have to enter special education programs.

Under the census-based grant, districts would get a set amount of special education money for every student in the system, plus additional funding specifically for students who are identified as having special needs.

The legislation is based on two studies that looked at funding and best practices for teaching struggling students.

The bill, which would aim to fully transition to the new funding system by 2025, establishes a working group to help local districts begin implementation.

In the first year under the new arrangement, school districts would get the same amount of money they did in the previous school year. Changes to the funding formula would be made gradually over the next five years, aiming to ensure that districts are still able to meet the needs of students until the new system takes full effect.

The committee is still trying to iron out issues like how to account for schools with high rates of poverty, where there is more need for special education. Members asked for a weighting study from the Agency of Education in Act 49, but funding for the study is still pending. Now lawmakers want to add poverty and other factors including special education to help determine how to best implement the new system.

Another crucial aspect when drafting the special education legislation will be making sure itโ€™s in line with federal regulations, so Vermont doesnโ€™t risk losing existing special education funding, said Dylan Giambatista, D-Essex Junction.

โ€œAt the end of the day,โ€ he said, โ€œthe most important piece of any change we make is that services are provided at the local level to meet the requirement of the Free and Appropriate Public Education,โ€ part of the Individuals with Disabilities Education Act guaranteeing the right to public education in the least restrictive environment for children with disabilities.

Twitter: @tpache. Tiffany Danitz Pache was VTDigger's education reporter.