Special Education Fiscal Requirements

1. Special EducationFiscal Requirements VASBO Fall Conference October 3, 2014 Tracie L. Coleman

2. Overview • Individual’s with Disabilities Education Act (IDEA) • Excess Cost Calculation • IDEA Funding Formula • IDEA Annual Plan Application • Maintenance of Effort Requirement • Eligibility • Compliance • Coordinated Early Intervening Services & Proportionate Share Calculation • General Federal Grant Requirements

3. What is IDEA? • IDEA reauthorized in 2004, implementing federal regulations released 2006 and Virginia’s special education regulations were revised, most recently in 2010. • 34 CFR Part 300 Assistance to States for the Education of Children with Disabilities and Preschool Grants for Children with Disabilities. • Virginia regulations set forth the requirements of the Board of Education regarding the provision of Special Education • Each school division shall provide free and appropriate education, including special education for the children with disabilities residing within its jurisdiction….

4. Excess Costs • IDEA Part B funds may be used only to pay for the excess costs of providing special education and related services to children with disabilities, except as otherwise provided. • Excess costs are those costs for the education of an elementary school or secondary school student with a disability that are in excess of the average annual per student expenditure in an LEA during the preceding school year for an elementary school or secondary school student, as may be appropriate. • An LEA must spend at least the average annual per student expenditure on the education of an elementary school or secondary school child with a disability before funds under Part B of the Act are used to pay the excess costs of providing special education and related services. • VDOE re-started collecting this data in April 2014 • For additional information see • Superintendent’s Memorandum #063-14

5. Excess Cost Worksheet

6. IDEA Federal Funding • Federal funds are available for preschool (619) and school-age (611) special education programs. The amounts received by each school division are determined by a formula that • considers historical federal funding (i.e., December 1, 1998 Child Count), • total school enrollment (i.e., school census data), and • poverty levels (free and reduced lunch percentages). • School divisions must apply annually for any federal funds, and cannot commingle federal special education funds with other funds. Upon approval from the State, the school division spends the money and then is reimbursed for approved expenditures. • For allocation information see • Superintendent’s Memorandum #196-14

7. Allocation of 611 Funds

8. Allocation of 619 Funds

9. LEA’s Eligibility for IDEA • Established under Subpart C of regs • An LEA is eligible for assistance under IDEA for a fiscal year if the agency submits a plan that provides assurances to the SEA that the LEA meets each of the conditions in § § 300.201 through 300.213 • Assurances are included with the division’s Annual Plan Application

10. Annual Plan Application • The Annual Application (aka Annual Plan) is the LEA’s application to request federal special education funding. • Includes, in part, the following: • Assurances of legal compliance; • Updated information regarding local special education advisory committees (LAC), local & regional jails, implementation of previous application; and • Proposed budgets

11. Workbook Tabs • Welcome • LEA Instructions • Cover & Certifications • LEA Assurances & Certifications • LEA Local & Regional Jails (Not applicable for SOPs) • Implementation Narrative • MOE Eligibility(Not applicable for SOPs) • CEIS & PSA(Not applicable for SOPs) • Section 611 • Section 619

12. Prior to Submission • Each school division shall • Review Application with its local special education advisory committee; • Submit Application to the local school board for approval. • SOPs are required to submit their Application to the State Special Education Advisory Committee. • The VSDB is required to submit its Application to its board for approval and then to the State Special Education Advisory Committee. • Have Superintendent to Sign the Application (Maintain Signed Copy for Audit Purposes) • The Application must be completed and submitted electronically (via SSWS-OMEGA).

13. MOE Planning/Eligibility • Report the projected budget for 2014-2015 and compare against actual 2012-2013 expenditures Divisions Must Budget Enough to Meet MOE Requirements If enough wasn’t budgeted, ineligible to receive funding the next year and Divisions may have to repay funds if MOE is not met, further analysis by VDOE will be required.

14. MOE Eligibility • LEAs Required to Meet MOE Requirements • Spend at least the Same Amount in Local or Local plus State Funds in Current Year as Spent in Prior Year • Further Requires LEA to Both Budget in each Subsequent Year at least the Same Amount that it Expended in the Most Recent Prior Year for Which Information is Available and Expend Year to Year the Amount it Expended in the Prior Year.

15. MOE Compliance • The Individuals with Disabilities Education Act (IDEA), §300.203, requires the VDOE to determine that a school division complies with the maintenance of effort requirement to spend (four tests) • at least the same total amount of • either local or local plus state dollars or • per capita amount of either local or local plus state dollars for the education of children with disabilities • that the school division spent from the same source for that purpose in the previous year.

16. MOE Requirement • There is no flexibility in the IDEA for any waiver or variance to a school division’s MOE requirement. • Under certain conditions specified in the IDEA regulations, a school division may reduce the expenditures needed to meet its MOE requirement.

17. MOE Allowable Exceptions/Adjustments • The possible allowable exceptions specified in IDEA are below. • §300.204(a), “ … The voluntary departure, by retirement or otherwise, or departure for just cause of special education or related services personnel.” • §300.204(b), “ … A decrease in the enrollment of children with disabilities.” • §300.204(c), “ … The termination of the obligation of the agency, consistent with this part, to provide a program of special education to a particular child with a disability that is an exceptionally costly program, as determined by the SEA, because the child–” • §300.204(d), “ … The termination of costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities.” • §300.205,“ … Adjustment to local fiscal efforts in certain fiscal years up to 50% of excess in allocation.” CEIS is a factor.

18. IDEA MOE Not Met? • The VDOE will be required to pay the amount of the division’s shortfall to the U.S. Department of Education. • The VDOE will then establish a payment plan for the division to reimburse the VDOE. • Federal funds cannot be used to make this payment.

19. Coordinated Early Intervening Services (CEIS) • What are CEIS? • CEIS are services provided to students in kindergarten through grade 12 (with a particular emphasis on students in kindergarten through grade three) who are not currently identified as needing special education or related services, but who need additional academic and behavioral supports to succeed in a general education environment. • The IDEA (20 U.S.C. §1413(f)(2)) and its regulations (34 CFR §300.226(b)) identify the activities that may be included as CEIS: • Professional development for teachers and other school staff to enable such personnel to deliver scientifically based academic and behavioral interventions, including scientifically based literacy instruction, and, where appropriate, instruction on the use of adaptive and instructional software; and • Providing educational and behavioral evaluations, services, and supports, including scientifically based literacy instruction.

20. Proportionate Set-Aside (PSA) • § 300.132 (a) “… To the extent consistent with the number and location of children with disabilities who are enrolled by their parents in private, including religious, elementary schools and secondary schools located in the school district served by the LEA, provision is made for the participation of those children in the program assisted or carried out under Part B of the Act by providing them with special education and related services, including direct services determined in accordance with § 300.137....”

21. Proportionate Set Aside (PSA) • Each local education agency (LEA) must spend a proportionate amount of its Sections 611 and 619 allocations on providing special education and related services (including direct services) to parentally-placed private school children with disabilities. Section 300.133 of the Individuals with Disabilities Education Act (IDEA) specifies a formula that an LEA is required to use to determine the proportionate amount the LEA is to make available or spend to meet the requirements of § 300.132(a). • The Calculation is defined under Appendix B to Part 300 – Proportionate Share Calculation • Funds must be Set-Aside during the Grant Period • Additional Guidance is Available

22. PSA Worksheet

23. Coordinated Early Intervening Services (CEIS) • Required for LEA identified with having significant disproportionality based on race or ethnicity • Permits LEAs to use Part B funds to develop and provide CEIS for students who are currently not identified as needing special education (i.e., general education students), but need additional academic and behavioral support to succeed in a general education environment • Requires student level tracking for two years

24. CEIS (continued) • The rationale for using IDEA funds for CEIS is based on research showing that the earlier a child’s learning problems or difficulties are identified, the more quickly and effectively the problems and difficulties can be addressed and the greater the chances that the child’s problems will be ameliorated or decreased in severity. • Conversely, the longer a child goes without assistance, the longer the remediation time and the more intense and costly services might be.

25. CEIS (continued) • The IDEA and its implementing regulations permit LEAs to use not more than 15 percent of the amount the LEA receives under Part B of the IDEA, less any amount reduced by the LEA pursuant to 34 CFR §300.205 (adjustment to local fiscal efforts), to develop and implement CEIS. See 34 CFR §300.226. The regulations also specify: • how CEIS funds may be spent; • on whom CEIS funds may be spent; • the reporting requirements for LEAs providing CEIS; • the requirement for using CEIS funds by an LEA identified as having significant disproportionality based on race or ethnicity; and • the relationship of CEIS to maintenance of effort requirements (34 CFR §§300.226, 300.646(b) and 300.205(d)). • LEAs may be Required or Volunteer to Set-Aside Funds • Requires Additional Reporting

26. LEA Responsibilities • Expend Funds in Accordance with Approved Plan • Ensure Procurement mechanisms conform to Federal and State laws and standards • Document time & effort in accordance with OMB Circular A-87 for employees funded from federal grant sources • Maintain financial & programmatic records as required by Federal & State law. • General Rule – Sole Use of property purchased with Part B funds. • Maintain a physical inventory of property purchased with Part B funds (Ipads, computers, etc.,). • Submit Timely & Accurate Reimbursement Requests

27. CEIS & PSA & Annual Plan • Each local school division shall ensure CEIS and PSA requirements have been addressed • Provide Narrative • Provide Preliminary Budget

28. Important Reminders • Ensure procurement mechanisms conform to Federal and State laws and standards • LEAs must document time & effort in accordance with OMB Circular A-87 for employees funded from federal grant sources • LEAs must maintain financial & programmatic records as required by Federal & State law. • General Rule – Sole Use of property purchased with Part B funds. • LEAs must maintain a physical inventory of property purchased with Part B funds (Ipads, computers, etc.,).

29. Throughout the School Year? • Spend Funds in Accordance with Approved Application • Submit Application Amendments, if major change to how funds are being used • Submit Budget Amendments, if necessary for category spending changes • Submit Timely Reimbursement Requests • Maintain Time & Effort Reports and other Supporting Documentation

30. SESS Budget & Finance Staff Members’Contact Information • Pat Brooks – 804-786-9153 • Patricia.Brooks@doe.virginia.gov • Emily Boothe – 804-225-2701 • Emilia.Boothe@doe.virginia.gov • Tracie Coleman – 804-225-2704 • Tracie.Coleman@doe.virginia.gov • Sherry Hubbard – 804-225-2339 • Sherry.Hubbard@doe.virginia.gov

31. Questions