1. (a) The secretary of education may contract with in-state or out-of-state public and private schools, state agencies, or child caring institutions (as defined in IC 12-7-2.1-60 (1)) to pay, with any funds appropriated for this purpose, the excess costs of educating children of school age:

   1. (1) who have been identified as eligible for special education services; and

   2. (2) whose disability is of such intensity as to preclude achievement in the existing local public school setting.

      The state shall pay the costs of the services that exceed the amount a school corporation is required to pay, as determined by the department under subsection (b).

2. (b) The department shall determine the amount a school corporation must pay before the state will pay excess costs described in subsection (a). At a minimum, school corporations shall pay their share of the total tuition costs for children with disabilities served under this section.
3. (c) The state board shall adopt rules under IC 4-22-2 necessary to implement this section.

4. (d) Money appropriated for the purposes of this section does not revert to the state general fund.

   [Pre-2005 Elementary and Secondary Education Recodification Citation: 20-1-6-19.]

As added by P.L.1-2005, SEC.19. Amended by P.L.43-2021, SEC.118; P.L.245-2023, SEC.12; P.L.145-2026, SEC.122.