Modifies cost thresholds for reimbursement of extraordinary special education costs; requires State to bear full cost of nonpublic school transportation for certain school districts.

This bill lowers the cost threshold for reimbursing extraordinary special education costs from $40,000 to $35,000 for students in integrated public school programs, while maintaining 75% reimbursement for separate public and private school placements. It also phases in full state funding for these extraordinary costs over five years, increasing from 80% to 100% annually. Additionally, the bill requires the state to cover the full cost of nonpublic school student transportation for eligible districts - those with over 5,000 students requiring transportation where at least 25% are nonpublic school students. These changes directly affect school districts serving students with special needs and those providing transportation to nonpublic school students.