[SE-Dir] IDEA Funding Changes

[SANDBERG Ruby]

TO:  All District, ESD, and Program Special Education Directors and Business Managers

The message below is being sent to you on behalf of:


Nancy Latini, PhD
Assistant Superintendent
Student Learning & Partnerships
______________________________________________
April 6, 2011

RE:  IDEA Funding Changes

As most of you are aware, the Office of Special Education Programs (OSEP) at the US Department of Education conducted a verification visit in Oregon last September.  OSEP issued a verification letter to the Oregon Department of Education (ODE) in February, and it contained two findings related to IDEA fiscal requirements.  The purpose of this memo is to inform you of the changes that the ODE has implemented in response to those findings.

I.      Availability of Federal Funds
*       ODE's past practice for IDEA grants was to make these funds available for 18 months (e.g., July 1, 2008 - December 31, 2009), with a 45-day window to submit claims for reimbursement in the Electronic Grants Management System (EGMS).  If districts were unable to expend the funds within this time period, they were contacted and given an extension through September 30.  This was contrary to federal regulations.
*       Beginning with the FFY 2009 IDEA grants, all IDEA formula grants will be available to districts for 27 months (e.g., July 1, 2009 - September 30, 2011).
*       At the end of the 27-month period, districts will have 90 days to submit claims for reimbursement in EGMS.
*       The Special Education Finance Q&A (http://www.ode.state.or.us/data/schoolanddistrict/funding/sped/fundingqa.doc) has been updated to reflect this change (see question #9 on page 3), and all FFY 2009 and FFY 2010 awards have been extended to 9/30/11 and 9/30/12 respectively.  New sub-grant award notifications for FFY 2010 grants were issued in late March when the final allocations were made available in the EGMS.

II.     IDEA Part B, Section 619 Funds
*       ODE's past practice for IDEA Part B, Section 619 funds was to direct 100% of the flow-through amount to Early Intervention/Early Childhood Special Education programs for services to children ages 3 through 5.  This was contrary to federal regulations.
*       IDEA Part B, Section 619 funds are for children with disabilities ages 3 through 5, and a portion of the funds should have been directed to school districts based on the 5 year-old kindergarten students with disabilities that districts are responsible for serving.
*       Beginning with the FFY 2009 IDEA Part B, Section 619 grant, ODE has calculated the gross amount of funds that a district would receive if it were responsible for the education of all children with disabilities ages 3-5 residing within its boundaries.  The calculation was computed according to the requirements outlined in 34 CFR § 300.816.
*       As per the verification letter, ODE then calculated a per student amount based on the Special Education Child Count (SECC) for children ages 3-5 and determined how much of the district's gross amount must be distributed to the district to provide special education and related services to the eligible 5 year-old children with disabilities residing in the district who are enrolled in kindergarten.  This amount is the net amount of 619 funds that will be made available in EGMS.
*       The amount of the distribution must go to all eligible districts, which in some cases will be very small.
*       For FFY 2009 and FFY 2010, the net amount for districts will come from state set-aside funds for those years.  The current EI/ECSE contracts will not be reduced.
*       For FFY 2011 and forward, the amount of 619 funds distributed to districts will result in a reduced amount of 619 funds available for EI/ECSE contracts as these funds should from now on be distributed to the entity serving the children.
*       For districts identified with significant disproportionality in FFY 2009 or FFY 2010, the gross amount of 619 funds must be included in the 15% CEIS calculations for those years.  Those districts will be contacted directly by ODE to ensure all requirements related to significant disproportionality are met.
*       FFY 2009 and FFY 2010 sub grants will be available in EGMS later this month, and sub grant award notifications will be issued at that time.
*       The grant manager for 619 sub grants is Alan Garland (alan.garland at state.or.us<mailto:alan.garland at state.or.us> or 503.947.5759).



Ruby Sandberg, Executive Support to
Nancy Latini, Assistant Superintendent
Oregon Department of Education
Office of Student Learning & Partnerships
503-947-5738   FAX: 503-378-5156
ruby.sandberg at state.or.us






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