Permits special education services and programs for preschool children with handicapping conditions to establish reserve funds

This bill allows preschool special education programs for children with disabilities to save excess funds - up to 1% of annual costs each year, with a cumulative maximum of 4% - into reserve accounts. These funds must be used for approved expenses like paying prior-year debts or future services and automatically increase future funding calculations. Schools must report reserve balances annually to the education department. The changes apply to programs serving preschoolers with disabilities and take effect July 2025.