Committee Summary for House Finance Division II (03/09/2026)

Bill/Time	Type	Title	Sponsor
Unclear 00:13:36.644 - 9:12:27 AM	General Working Session	relative to reimbursement for high-cost special education
HB1563 026-1086H 01:13:36.644 - 10:12:27 AM	Executive Session	relative to the special education aid formula.	Ladd, Rick(R)[B+]2025
HB1571 01:45:00.000 - 10:43:51 AM	Executive Session	requiring the department of education to review statewide academic standards and curriculum and making an appropriation therefor.	Noble, Kristin(R)[A+]2025
HB1827 01:57:00.000 - 10:55:51 AM	Executive Session	(New Title) requiring the department of education to conduct a confidential criminal history record check on all prospective educational personnel.	Ladd, Rick(R)[B+]2025

Unclear: Chairman Nurf Information Only00:13:36.644 - 9:12:27 AM; The chairman apologizes for being late due to a dental appointment and resumes the meeting. He confirms the recess is over and begins reviewing the newest amendment to the bill, noting he will use a marked-up copy of the old amendment and asks for corrections if needed. He explains changes starting from line 12, discussing proration and tiers based on average per pupil spending.
Unclear: Department Representative Information Only00:13:36.644 - 9:12:27 AM; The representative explains the payment timing for reimbursements, typically around December after verification from July. They detail the amendment's changes to tiers: introducing a 2.5 to 3.5 tier with proration, maintaining 3.5 to 10x at 80% state share, and adjusting over 10x to 90% state share. They cover district and state payment percentages, noting additions to current law.
Unclear: Representative Popovich Information Only00:13:36.644 - 9:12:27 AM; Clarifies that the 10% district share over 10x is from the original policy bill, not a change introduced by the amendment.
Unclear: Representative McGuire Information Only00:13:36.644 - 9:12:27 AM; Comments on the awkwardness of the law's structure where percentages add to 100%, suggesting it could be written differently but accepting current law's format to avoid battles.
Unclear: Department Representative Information Only00:13:36.644 - 9:12:27 AM; Continues explaining sections: eligibility now at 2.5x, current law descriptions, and new Section 4 on risk-based monitoring program developed with the department. Details annual review of 20% districts, random selections, targeted reviews, IEP verification, overpayments, and rulemaking for implementation starting FY27 to track from 2.5x.
Unclear: Representative Murray Support00:28:36.644 - 9:27:27 AM; Agrees with collecting data below 3.5x, surprised it's not already done. Questions the missing fiscal note, department coverage, and impact on schools. Notes no change this biennium, starts next.
Unclear: Unnamed Speaker Information Only00:28:36.644 - 9:27:27 AM; Expresses comfort with the timeline as it allows preparation for next biennium budget, giving the department time to assess costs based on current data.
Unclear: Representative Spillsbury Support00:28:36.644 - 9:27:27 AM; Clarifies schools don't track data below 3.5x, emphasizing the bill as an intermediate step to gather data for future policy. Hopes 15% reimbursement incentivizes reporting, aims to adjust based on data, and sees it as a wise approach to addressing funding issues.
Unclear: Representative (Unnamed) Information Only00:28:36.644 - 9:27:27 AM; Asks department about audit process on page 4, suggesting random sampling among students rather than districts for quicker error detection and process fixes.
Unclear: Department Representative Information Only00:28:36.644 - 9:27:27 AM; Explains the proposal reviews 20% of districts annually, ensuring each every five years, with minimum standards. Would not object to changing to student-based but notes it's a minimum.
Unclear: Representative Murray Information Only00:28:36.644 - 9:27:27 AM; Raises privacy concerns with student selection within districts, especially in small state, questioning confidentiality and publication.
Unclear: Department Representative Information Only00:28:36.644 - 9:27:27 AM; Assures following privacy laws, notes current 100% review already publishes district errors, and special ed data is public; nothing worsens issues, audits remain private.
Unclear: Recovering CPA Representative Support00:43:36.644 - 9:42:27 AM; Views the auditor requirement as helpful intervention, not punitive, comparing to town audits where auditors assist in fixing issues.
Unclear: Representative Hagon-Phillips Oppose00:43:36.644 - 9:42:27 AM; Notes additional downshifting to localities: independent auditor if errors, and 10% district share over 10x (from 0%), not reflected in fiscal note; sees as mandate and expense.
Unclear: Mark (Department) Information Only00:43:36.644 - 9:42:27 AM; Provides analysis: reducing state share over 10x saves $1M, but adding 2.5-3.5x adds $2.8M, net $1.7M more aid for known 866 students; unknown population increases costs further.
Unclear: Unnamed Representative Support00:43:36.644 - 9:42:27 AM; Frustrated with rushed process, suggests resubmitting amendment for more work; hangs up on district vs. student sampling, monitoring vagueness, auditor impact, financial wiggle room.
Unclear: Brian Eaton, Department of Education Information Only00:43:36.644 - 9:42:27 AM; Explains estimating unknown 2.5-3.5x students is guesswork; suggests voluntary district feedback or passing law to gather data; no precise estimate possible without it.
Unclear: Representative Spillsbury Support00:43:36.644 - 9:42:27 AM; Sees net gain for districts from 2.5-3.5x outweighing 10% top curtailment; auditor only if systemic errors, as intervention, not undesirable downshift.
Unclear: Representative Murray Information Only00:43:36.644 - 9:42:27 AM; Notes 'may' allows department discretion, but district has no choice if required; appreciates $1.7M increase but concerns per-district impacts could vary.
Unclear: Representative McGuire Support00:58:36.644 - 9:57:27 AM; Proposes student-based sampling across districts for 20% review to catch issues quicker; clarifies it's reviewing claims, not students every five years, to rotate and prevent errors.
Unclear: Senator Murray Information Only00:58:36.644 - 9:57:27 AM; Understands student approach value but questions ensuring each student reviewed every five years, as students move; seeks ed funding implications.
Unclear: Representative Ladd Information Only00:58:36.644 - 9:57:27 AM; Agrees student may not be reviewed if short tenure; purpose is to rotate selections for comprehensive coverage via rulemaking.
Unclear: Representative Spillsbury Information Only00:58:36.644 - 9:57:27 AM; Suggests semantics: review 20% claims per district annually, ensuring full district review over five years; prefers district-based to detect systemic errors, trusts department's targeting.
Unclear: Unnamed Representative Oppose00:58:36.644 - 9:57:27 AM; Disagrees with student-based across state as impractical for systemic detection; favors district approach, noting current full reviews inform targeting.
Unclear: Representative Spillsbury Support00:58:36.644 - 9:57:27 AM; Emphasizes department developed monitoring; implementation next biennium allows budget process refinement; goal is increase reimbursement, gather data on ballooning costs exceeding national rates.
Unclear: Unnamed Representative Information Only00:58:36.644 - 9:57:27 AM; Takeaway: efficient monitoring compensates for expanded claims; estimates 10,000 new students in 2.5-3.5x category.
Unclear: Brian Eaton Information Only00:58:36.644 - 9:57:27 AM; Confirms proportional estimate around 10,000 students in lower bands, around $25-30K average costs.
HB1563 026-1086H: Representative Ladd Support01:13:36.644 - 10:12:27 AM; Discusses the need for a database to input IEP information for accurate funding appropriation for catastrophic aid. Emphasizes acquiring district information and moving forward despite difficulties in calculating multipliers like 2.5 or 3.5.
HB1563 026-1086H: Representative Hatke Phillips Information Only01:13:36.644 - 10:12:27 AM; Questions the recoupment of overpayments, suggesting it should be proportional to the error rather than in whole, especially for minor administrative errors.
HB1563 026-1086H: Representative Bottles Information Only01:15:00.000 - 10:13:51 AM; Seeks clarification on language regarding permissive and mandatory recoupment on page 4, lines 26-27, expressing concern about full recoupment versus proportional.
HB1563 026-1086H: Representative Ladd Information Only01:16:00.000 - 10:14:51 AM; Explains that the language requires recoupment of only the overpayment portion, not the entire funding, and that the department already rejects misaligned claims.
HB1563 026-1086H: Representative Spilsbury Support01:17:00.000 - 10:15:51 AM; Agrees that the language is clear regarding adjustments and recoupments.
HB1563 026-1086H: Representative McGuire Information Only01:18:00.000 - 10:16:51 AM; Discusses errors in claim submissions, suggesting they may be district-specific due to poor training, and advocates for annual sampling across districts to detect issues early rather than every five years.
HB1563 026-1086H: Representative Ladd Information Only01:20:00.000 - 10:18:51 AM; Describes examples of rejected claims, like improper billing for group services, and supports periodic auditing every five years with sampling, noting that rulemaking and IDEA law will address systematic errors.
HB1563 026-1086H: Representative McGuire Information Only01:25:00.000 - 10:23:51 AM; Follows up on the example of improper billing in a district, emphasizing early detection through annual reviews to provide corrective support promptly.
HB1563 026-1086H: Representative Ladd Support01:30:00.000 - 10:28:51 AM; Highlights the incentive in the 2.5 to 3.5 multiplier as a carrot for districts compared to previous proposals, and believes the bill is on course with rulemaking.
HB1563 026-1086H: Representative McGuire Information Only01:32:00.000 - 10:30:51 AM; Reiterates concern that district-specific audits every five years could allow problems to persist undetected for years, preferring annual sampling of students across districts.
HB1563 026-1086H: Representative Popovich Support01:38:58.947 - 10:37:49 AM; Moves for Ought to Pass (OTP) on HB1563FN and to adopt amendment 026-1086H.
HB1563 026-1086H: Representative Popovich Information Only01:39:30.000 - 10:38:21 AM; Notes that further discussion on the amendment is unnecessary as it has been extensively covered.
HB1563 026-1086H: Representative Hackingfilip Support01:40:00.000 - 10:38:51 AM; Acknowledges costs downshifted to districts for audits but hopes departmental shifts neutralize them; notes need for future appropriations; views it as an improvement for understanding special education needs; expresses discomfort with rushed process without public hearing and vague language, preferring not to send imperfect bill to Senate.
HB1563 026-1086H: Clerk Vote01:42:00.000 - 10:40:51 AM; Roll call vote on amendment: passes unanimously.
HB1563 026-1086H: Clerk Vote01:43:00.000 - 10:41:51 AM; Roll call vote on OTPA with amendment: Representative Popovich-Miller yes, Spillsbury yes, Weiler absent, Clerk yes, Murray yes, Hocken-Phillips yes, Kelly yes, Chairman Erb yes. Motion carries 7-0.
HB1571: Chairman Erb Information Only01:45:00.000 - 10:43:51 AM; Opens discussion on HB1571, notes amendment changes effective date to start of next biennium.
HB1571: Representative Popovich Information Only01:46:00.000 - 10:44:51 AM; Seeks clarification on amendment replacing all after section 2, confirming it keeps section 2 and only affects section 3.
HB1571: Representative Popovich Information Only01:47:00.000 - 10:45:51 AM; Expresses discomfort with section 2 part C requiring department to provide list of high-quality curriculum materials, questioning if it's new and if it interferes with local choice.
HB1571: Chairman Erb Information Only01:48:00.000 - 10:46:51 AM; Notes the bill passed House on voice vote; calls for department input.
HB1571: Melissa White, Division Director for Learner Support Information Only01:49:00.000 - 10:47:51 AM; Confirms department does not currently provide such a list; explains it would likely use vetted sources like What Works Clearinghouse for ELA, math, science, and notes many states are adopting similar practices; social studies more challenging.
HB1571: Representative Popovich Information Only01:50:00.000 - 10:48:51 AM; Questions potential expense for creating and evaluating the list.
HB1571: Melissa White Information Only01:51:00.000 - 10:49:51 AM; Suggests low cost as materials are already vetted nationally; department would reference other states' work.
HB1571: Chairman Erb Information Only01:52:00.000 - 10:50:51 AM; Explains delaying effective date allows time for budget inclusion and further analysis.
HB1571: Representative Popovich Support01:53:58.947 - 10:52:49 AM; Agrees that state-level assessment of curricula reduces burden on local districts by allowing reliance on departmental work.
HB1571: Representative Hackingfilip Information Only01:54:30.000 - 10:53:21 AM; Acknowledges future budget costs and ties hands of next legislature during fiscal crisis.
HB1571: Chairman Erb Information Only01:55:00.000 - 10:53:51 AM; Disagrees, stating future legislature can adjust if needed.
HB1571: Representative Popovich Support01:56:00.000 - 10:54:51 AM; Notes fiscal note shows revenue covers expenses, making it budget neutral; comfortable passing as is.
HB1827: Representative Maury Support01:57:00.000 - 10:55:51 AM; Notes the bill is unfortunate but necessary; appreciates clarifications to avoid excluding parents or helpers, addressing concerns about broad language.
HB1827: Representative Popovich Support01:58:00.000 - 10:56:51 AM; Moves for Ought to Pass (OTP) on HB1827.
HB1827: Clerk Vote01:59:00.000 - 10:57:51 AM; Roll call vote on OTP: Representative Popovich-Miller yes, Spillsbury yes, Weiler absent, Clerk yes, Murray yes, Hocken-Phillips yes, Kelly yes, Chairman Erb yes. Motion carries 7-0.