Therapeutic independent schools tell House panel they fill a 'missing middle' for high‑needs students and urge funding predictability

Elisa Walker, school director at the Mills School in Winooski, told the House Education Committee on Feb. 6 that therapeutic independent schools provide intensive, clinically informed education for a small group of students with high special‑education needs and trauma histories — students public schools often cannot safely serve.

Walker said the Mills School serves approximately 20–25 students in grades 6–12, all on individualized education plans, and uses a high staff‑to‑student ratio, daily case reviews and embedded clinicians to manage safety and stabilize students. She described discipline as restorative and accountability‑focused: rather than relying primarily on suspension, students who cause physical damage participate in repair (for example, weeks of repairs and restorative tasks) and make amends to peers and staff.

Walker asked the legislature for three types of predictability to support therapeutic schools: financial predictability (to avoid wild swings in special‑education budgets and placement payments), regulatory predictability (clear, consistent guidance from the Agency of Education), and statutory predictability (clarity about how therapeutic schools fit into the long‑term special‑education continuum).

Drew Gradinger of Bridal Farm School, operated by HCRS, argued designated‑agency schools bring clinical infrastructure that allows tighter care coordination and can leverage Medicaid to reduce costs passed on to districts. Gradinger said there are 11 designated‑agency therapeutic schools serving 374 students statewide and cautioned that cutting therapeutic placements before building a "missing middle" of intermediate options would risk more crises, hospital‑level interventions and higher long‑term costs.

Committee members pressed presenters on capacity and who pays tuition for out‑of‑district placements. Walker and Gradinger said districts (LEAs) typically pay tuition; Gradinger described how his agency’s Medicaid billing can lower the net cost for district partners. Parent public commenter Jeff Mallon said his son, who attended the Mills School, recovered academically and socially after the placement and is now enrolled at Vermont State University; Mallon confirmed the LEA paid the tuition for his son’s placement under his IEP.

Witnesses said therapeutic schools are a small portion of Vermont’s total student population (less than 1%) but serve a disproportionate share of students with special‑education needs; they said schools frequently operate near capacity and that state budget uncertainty constrains their ability to expand.

The committee did not take immediate action; members said they will continue conversations with superintendents, AOE and other stakeholders in subsequent sessions.