[esd-dir] State School Fund Estimates and High Cost Disability Grant

[ZERBE Debra]

On behalf of:

Nancy Latini
Associate Superintendent
Office of Special Education

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To: Special Education Directors, Business Managers and Superintendents
Re:  State School Fund Estimates and High Cost Disability Grant

The School Finance Office will post the State School Fund estimates for fiscal years 2002-03, 2003-04, and 2004-05 on February 27th, 2004.  At that time, we will also post the estimated allocations of the Small High School grants and High Cost Disability grants.

OAR 581-023-0009 contains the draft guidelines for districts to submit requests for reimbursement from the High Cost Disability Grant.  The hearing for the OAR was held in mid-January and we anticipate the State Board will adopt the rules at their February meeting.

You will find attached the draft OAR.  [This document was copied below, instead of being attached]

If based on these guidelines, you need to revise your estimated High Cost Special Education expenditures, your data in the Estimate of Membership and Revenue Web Survey is available for editing and will close on Friday, February 20th at 12 noon.  **Please note that there will be no exceptions to this deadline.**  Districts will have the opportunity to submit actual expenditures in Fall, 2004 and payments will be reconciled in the May 2005 payment.

Please also note that this is your final opportunity to make changes in your projections prior to the establishment of your 2004-05 payment schedule.  **We will not accept subsequent changes prior to July 15, 2004!**

If you have questions about the rules regarding the High Cost Disability Grant, contact Trish Black (mailto:trish.black at state.or.us, 503.378.3600, Ext. 2323).  Technical questions regarding the State School Fund Payments, Estimate of Membership and Revenue or State School Fund estimates should be directed to Tony Alpert (mailto:tony.alpert at state.or.us, 503.378.3600, Ext. 2656).


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DRAFT OAR (copied here instead of attached)

581-23-103	Reimbursement to School Districts for Children with Disabilities Placed in Out-of-State Residential Programs

Above repealed as of January 1, 2004
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NEW RULE

Reimbursement to School Districts for Children with High Cost Disabilities

(1) Consistent with the provisions of this rule, a school district may apply to the Department for reimbursement of special education expenditures from the high cost disability fund when combined district and ESD general fund expenditures for any student eligible and served under IDEA exceed $25,000 in a fiscal year.

(2) To be eligible for the reimbursement, the school district shall have:

	(a) Determined that the student is eligible for special education and related services under one of the disability categories set forth in OAR 581 015 0051;

	(b) Provided services to the student on the basis of the student's current or previous individualized education program in effect during the fiscal year; and

	(c) Submitted a timely application as per Department requirements.

(3) The Department shall only distribute the reimbursement to a school district for:

	(a) Expenditures exceeding $25,000 for special education and related services that are required by the individualized education program of an individual student with a disability.  Qualifying expenditures include those incurred by the school district and those incurred by the ESD through the resolution process.

	(b) Transportation expenditures, exclusive of local, state, and federal reimbursements;

	(c) Special education general fund expenditures, exclusive of federal sources, as set forth in the Maintenance of Effort requirements of the federal IDEA.  District and School Level administrative expenditures (e.g. salaries) may be included by first averaging the expenditures across all the special education students enrolled as identified on the most recent SECC;

(4) Expenditures not eligible for reimbursement include:

	(a) Regional Program expenditures;

	(b) Reimbursed Medicaid expenditures; and

	(c) Expenditures associated with facility operations and maintenance (e.g. heat, electricity, and custodial services).

(5) In December of each year, school districts will provide the Department with an estimate of the aggregate number of students eligible for reimbursement from the High Cost Disabilities Fund and the total estimated aggregate amount of reimbursable expenditures, including ESD expenditures that will be incurred during the school year.  As requested by the Department, districts will also report during the school year, updated information listing eligible students, SSID, names, estimated expenditures, and other information as requested.

(6) A school district may submit an application for each student identified who meets the criteria set forth in section (2) and (3) of this rule.

(7) The Department shall provide school districts with an application that shall require documentation that identifies all the school district's and ESD's expenditures for each student.  Additional supporting documentation, subject to ODE review, may include a copy of the contract(s) between the school district and the service provider(s), invoices reflecting actual expenses, and any additional documentation of expenditures incurred as determined by the Department.  These documents must be maintained at the District for at least 3 years after the submission of the student-level data.

(8) The Department shall develop and implement a process for reviewing applications.

(9) The Department shall prorate the distribution of funds for each school year to eligible school districts if sufficient funds are not available.

(10) Based on the outcome of section (8), the Department will exclude from re-imbursement those expenditures deemed excessive, ineligible or unsubstantiated.

(11) Funds will be distributed to districts on May 15th for the current fiscal based on expenditure estimates.  Adjustments will be made May 15th of the following year based on audited data and Department reviews of district records.

(12) The decision of the Department regarding reimbursement of costs pursuant to this rule shall be final.




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