Public School Academies and Special Education

1. Public School Academies and Special Education Office of Special Education Fall Forum November 4, 2013

2. Introductions Nancy Rotarius State Policy Coordinator Joni Jay Financial Analyst

3. Today’s Agenda • Explain the PSA structure • Understanding Compliance Requirements

4. What is a Public School Academy? A public school academy is a public school under section 2 of article VIII of the 1963, is a school district for the purposes of section 11 of state constitution of article IX of the state constitution of 1963 and for the purposes of section 1225 and section 1351a, and is subject to the leadership and general supervision of the state board over all public education under section 3 of article VIII of the state constitution of 1963. A public school academy is a body corporate and is a governmental agency. The powers granted to a public school academy under this part constitute the performance of essential public purposes and governmental functions of this state. MCL 380.501

5. Where does a PSA fit in? In the state of Michigan, charter schools are referred to as public school academies (PSAs). A PSA is considered a public school district under Michigan law and has the same responsibilities regarding special education as the local educational agencies (LEAs) in the state.

6. Important Elements of a Public School Academy • Federal and state education laws. • Nonprofit board of directors. • Free of charge and open to all students.

7. What is the Role of the Authorizer? • Issue a charter contract. • Monitor legal and contract compliance. • Terminate, suspend, or renew contracts.

8. Enrollment of Students with Disabilities • Non-Discriminatory Enrollment • Random Selection Process • Placement Decisions

9. Staffing a PSA • Certification Requirements • Contractual Services

10. The ISD Plan and a PSA • Contents of the Plan • Development of the Plan • Signatures on the Plan • Approval of the Plan

11. Accountability of a PSA • Formal Monitoring Process • State Complaints • Due Process

12. PROGRAM FINANCE

13. Agenda • Distributing Federal Funds for Special Education • ISDs distribution of Federal Funds for Special Education to LEAs and PSAs • Requirements for ISDs and Equitable Treatment • Requirement to allocate Federal Funds to New and Significantly Expanding PSAs • Timelines New and Significantly Expanding PSAs must notify SEA prior to opening

14. Federal Funds, Part B of IDEA All Federal IDEA Part B Flow through funds are distributed by Federal Statutory Formula to the LEA for distribution to provide programs and services within their ISD

15. ISD Equitable Treatment • ISDs are required to provide funds under Part B of the Act to those PSAs on the same basis and at the same time as the LEAs within their jurisdiction • ISDs that provide services to their LEAs must also provide those same services to their PSAs

16. NONREGULATORY GUIDANCE 34 CFR PART 76, SUBPART H HOW DOES A STATE OR LOCAL EDUCATIONAL AGENCY ALLOCATE FUNDS TO CHARTER SCHOOLS THAT ARE OPENING FOR THE FIRST TIME OR SIGNIFICANTLY EXPANDING THEIR ENROLLMENT?

21. How do new or significantly expanding PSAs receive $ from their ISD? • EDGAR §76.788(a) PSAs or its authorizer must notify the SEA, in writing, at least 120 days in advance of the date the PSA is scheduled to open or significantly expand its enrollment. • PSAs must receive an Educational Entity Master (EEM) number to be included in the ISD’s allocation for $ in MEGS+

22. What happens if a PSA opens but does not send notice to the SEA? • If no notice is sent to the SEA in the appropriate timeline, there is no obligation to get allocation to the PSA

23. How do New or significantly expanding PSAs receive $ for Special Education? • Contact the ISD to find out their distribution method • Initially the PSA may base their count as an estimated number of students with IEPs so the ISD can estimate the needed allocation

24. What is significantly expanding? • Has a two pronged approach • PSAs must show that there has been a substantial increase in the free meal count from the previous October to the current October AND that they have increased the grade span served by the addition of grade level(s) or a new building or campus. For our purposes, a substantial increase has been determined to be 50 or more students eligible for free lunch.

25. Under what circumstances is a State required to adjust an allocation previously made to a new or expanding charter school under the final regulation? Section 76.789(b) provides States with the flexibility to allocate funds to new or expanding charter schools based on reasonable estimates of projected enrollment at the charter school. Actual enrollment or eligibility data show that the State has allocated more or fewer funds to the charter school than the amount for which the charter school was eligible, then the State must make appropriate adjustments to the allocation previously made to the charter school.

26. ESEA section 5206; 34 C.F.R. part 76, subpart H; PSAs that open for the first time or significantly expand on or before November 1 of any year must receive the proportionate amount of Federal formula funds for which it is eligible within five months of the date the charter schools opens or significantly expands

27. ESEA section 5206; 34 C.F.R. part 76, subpart H; For PSAs that open for the first time or significantly expand after November 1st, but before February 1st; they must receive at least a pro rata portion of the funds for which it is eligible.

28. ESEA section 5206; 34 C.F.R. part 76, subpart H; For PSAs that open or significantly expand on or after February 1st the ISD may allocate $, but is not required to provide the PSA with a pro rata portion of funds for which the charter school is eligible on or before the date $ is allocated

31. Center for Educational Performance and Information (CEPI) ISD Officials need to be kept up to date in the EEM so that these notices to the ISDs about new or significantly expanding PSAs can be communicated and proper allocations can be made

32. If a PSA closes during the year • Required to file a 4096 for their State Funds • Required to complete an IFER for their Federal Funds

33. Q & As

34. Questions Please call or email Joni Jay (517) 241-4518 jayj1@michigan.gov