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Understanding Special Education Funding and Financial Trends: Key Insights from 2007 Discussion

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bradley-manning
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This document discusses special education funding and financial trends, focusing on historical data, funding formulas, and their implications on local districts. It examines the Full-Time Equivalent (FTE) and headcount calculations, details federal IDEIA funding allocations, and illustrates Michigan's unique funding structure. The goal is to equip educators and stakeholders with knowledge about budget considerations, funding sources, and legislative impacts on special education. Understanding these elements is crucial for navigating the complexities of special education finance.

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  1. Special Education DiscussionDecember 4, 2007 Special Education Funding & Financial Trends

  2. Learning Objective …To help you know some things you didn’t know you didn’t know…

  3. Rate what you know…

  4. 1950… County Board of Education Operating Budget

  5. 1962… County Board of Education Operating Budget

  6. Unfunded Special Education Costs

  7. Definitions… • FTE (Full Time Equivalent) • Determined by calculating the percentage of time (hours) a week a student spends in special education divided by total number of hours in the school week. • Example: Student X attends special education classes for three hours per day for a total of fifteen hours per week. The total number of hours in the school week where X attends is 30. Student X's special education FTE would then be 0.5. • Head Count • Number of individual students enrolled regardless of the percentage time spent in general ed. vs. special education • Example: Same as above except that Student X’s special education headcount would be 1.0.

  8. Special Education Funding

  9. Current Funding Formulas… • …Generally favor low numbers of special education student FTE’s and high costs… • …Some counties tried to achieve this by shifting costs from the local districts to the ISD’s… • …The State said “no” and beginning with the 2004-2005 fiscal year, the district or ISD that reported the special education support staff must continue to do so…

  10. Federal IDEIA Funding • The Michigan Allocation was $375,542,353 for 2007-2008 • Taken off the top is the MDE administrative allocation of $6,501,776 and the set-aside for various grants such as monitoring which total $33,667,329. • $107,923,610 is then allocated for the 1998 December 1 headcount and paid to Michigan Schools. • The remaining $227,449,638 is then allocated based on the following: • 85% based on the September 1st count of public and non-public schools • 15% based on poverty levels.

  11. Federal IDEIA Funding • Livingston County 2007-2008 IDEIA Grant Amount: • Base Calculation of 1998 December 1 headcount of 3,019 for Livingston County generates $1,565,689 (this amount is frozen and does not change). • K-12 Public, ISD, and Non-Public September 2006 student FTE count of 32,289 multiplied by the pro-rata allocation of $106.259758275 generates $3,431,021. • Poverty Allocation based on free lunch numbers of 2,541 for Livingston County multiplied by the pro-rata allocation of $64.6013258275 generates $164,152. • Total IDEIA Allocation for 2007-2008 is $5,160,862.

  12. LESA IDEIA Budget – 2007-2008

  13. LESA IDEIA Budget – 2007-2008

  14. Federal IDEIA Allocation • Major Implications: • Maintenance of Effort Impact • Local District Budgeting • State Imposed Restrictions (i.e.: “closing the door”)

  15. State Funding • In Michigan, special education funding from the state is distributed on a per-pupil basis for some districts and on a per-pupil and categorical basis for other districts. • Some districts receive one type of categorical payment while others receive additional amounts for students that are in the care of various government institutions or in alternative residential arrangements.

  16. §51a.2 Foundation Allowance • The foundation allowance for general education is collected partly from local millage (18 mills on non-homestead property) and partly from state-aid payments. • The foundation allowance for special education is paid entirely by state government.

  17. Categorical Payments • Special Education • §51a Special Education • §51a.3 Special Education Hold Harmless • §51a12 Special Education Foundation (non §52) • §51a.6 Special Education Rule Change Costs • §51a.8 Center Program FICA/Retirement • §51a.1 Tuition Deduct - Deaf • §53a Court and State Agency Placed • §54 School for Deaf/Blind

  18. §51a Special Education • A district or ISD qualifies for 51a funds whenever the special education foundation allowance does not equal the sum of • 28.6138% of the total approved “Special Education Costs” and • 70.4165% of the total approved “Special Education Transportation Costs”

  19. §51a Special Education Livingston County – 2006-2007 Per-Pupil Basis • Fowlerville • Howell • Pinckney Per-Pupil and Categorical Basis • Brighton • Hartland

  20. §51a Special Education

  21. §51a.3 Special Education Hold Harmless • Districts qualify for this categorical payment if the sum of money from the special education foundation allowances and the categorical special education payments are not equal to the amount the school received in 1997 for special education programs and services. • The payment is based on the difference between the 1997 funding level and the current funding level.

  22. County Funds • Special Education Millage • 3.31 mills approved in 1962, 1974, and 1988 • Due to Headlee “rollbacks” the current millage levy is 2.2691 mills • According to the Livingston County Plan for Special Education…

  23. County Funds …The method of distributing LESA Special Education Millage is in accordance with the provisions of Rule 340.1811. LESA is the operating district for all low incidence instructional programs and the majority of support services. • LESA will prioritize use of millage revenue for unreimbursed costs as follows: • Priority 1 – Majority of LESA related and support services • Priority 2 – LESA operated classroom programs • In the event funds are insufficient to cover LESA programs and services, the constituent districts shall be billed back based upon the unreimbursed per pupil cost to the district of residence in the following order: • Priority 1 – LESA operated classroom programs • Priority 2 – Majority of LESA related and support services • Millage revenue, to the extent available, will be distributed on an added cost formula: • Total Special Education Costs • - (minus) State Reimbursement (Added Cost) • = (equals) Amount Available for Reimbursement “Operational Support”

  24. County Funds

  25. Trends

  26. Trends

  27. Trends

  28. Trends

  29. Trends

  30. Trends

  31. Trends

  32. Trends

  33. Trends