FY 13 Special Education & Other Funding IssuesIASBO Annual ConferenceMay 17, 2012Illinois State Board of Education Funding and Disbursement ServicesTim Imler, Division AdministratorDivision Phone: 217/782-5256
Presentation Outline • FY 12 State Backlog Report • FY 13 State Special Education Funding • FY 13 Federal Special Education Funding • Federal Sequestration • FY 13 Federal Year End Expenditure Report Changes
FY 12 State Backlog Report • Comptroller Report – General Revenue Fund • May 14 • Current ISBE Backlog - $559 Million • Current State Backlog - $3.5 Billion • Oldest Voucher Date – March 5, 2012 • September & December MCAT released • March & June MCAT pending
FY 13 State Special Education What is a Mandated Categorical Program? In general, a mandated categorical program and the funds appropriated for it are earmarked and mandated by statute for a particular purpose or population and may be used for that purpose or population only.
FY 13 State Special Education • FY 13 ISBE Board Request Sp Ed MCAT (-$6.7M) • Sp Ed Personnel (-$25.5M) • Funding for Children Requiring Sp Ed Services (-$29.2M) • Sp Ed Private Tuition (+36.1M) • Sp Ed Summer School (-$1.1M) • Sp Ed Orphanage (+9.3M) • Sp Ed Transportation (+3.7M)
FY 13 State Special Education • Sp Ed Personnel (-$25.5M) • P.A. 96-257, amended Section 14-1.10 of the School Code to provide a definition of “qualified worker” and replace “professional worker” for the purpose of reimbursement under Section 14-13.01 of the School Code. • The standard for reimbursement of staff are defined as those who are necessary to deliver direct and related services to special education students.
FY 13 State Special Education • Sp Ed Personnel (-$25.5M) • Rule changes in Part 226.850 and 226.860 were added to list the specific positions, and the qualifications for reimbursement. • Certain certified positions are no longer reimbursable. These staff are often are in regedclassrooms where spedstudents are placed but instruction is gen edrather than sped(e.g. Art, Home Economics, Industrial Arts) • Part 226 Rule Changes Effective May 26, 2011
FY 13 State Special Education Funding for Children Requiring Sp Ed Services (-$29.2M) School Year State Count Change 2006-2007 326,539 2007-2008 322,683 -1.18% 2008-2009 318,461 -1.31% 2009-2010 312,533 -1.86% 2010-2011 302,830 -3.10% 2011-12 (EST) 298,742 -1.35%
FY 13 State Special Education House Resolution 706 - Concerns Elem and Secondary Education Reduction of $258.5M from FY 12 FY 12 Final GRF – $6,750,386,600 HR 706 FY 13 GRF - $6,491,836,794
FY 13 State Special Education • House Resolution 706 - Concerns • General State Aid Impact • Flat Approp $4.4B – 91.6% ($5,857 FL) • Board Request $4.6B – 96.1% ($6,006 FL) • Sp Ed Federal MOE Impact – Year to Year Student Per Capita • Impact to other Programs (e.g. Early Childhood, Bilingual, Regular Transportation etc.)
FY 13 Federal Special Education • IDEA PART B FUNDS • FY 2012FY 2013 • Flow Through$501,248,821$505,651,259(+4,402,438) • Preschool$17,337,847$17,308,047 • (-$29,800)
FEDERAL SEQUESTRATION • The Budget Control Act (BCA) of 2011 established a Joint Select Committee (JSC) on deficit reduction to propose legislation reducing deficits by $2.3 trillion over 10 years. A “sequestration” procedure was approved to increase the incentive on the JSC to reach a compromise. • Because the JSC failed to achieve its goal, sequestration — a form of automatic cuts at $1.2 trillion largely across the board — is scheduled to occur starting in January 2013.
FEDERAL SEQUESTRATION • Cuts to grants in Fed FY 13 (i.e. State FY 14) are estimated at 7.8% or $700 Billion in non-defense cuts. • October 25, 2011 National Education Association Letter to the JAC included estimates: • $3.54 billion cut to Education • $1.1 billion cut to Title I • $896 million cut to IDEA and • $590 million cut to Head Start • Estimated loss of more than 70,000 jobs
Review of Major Changes • Effective July 1, 2011 (FY 2012) • Traditional monthly payment schedules eliminated • Grant recipients must document immediate cash need to receive Federal funds (i.e. expenditure reports) • Two funding methods: Reimbursement & Modified Advance • Cumulative expenditure reports must be submitted on a cash accounting basis(i.e. expenses are recognized when cash is actually paid)
Review of Major Changes • Effective July 1, 2011 (FY 2012) • Liabilities/Obligations are not permitted to be reported during the project year • Weekly ISBE Vouchering • Every Wednesday-Business Day • Payments can be expected within 3-5 business days from voucher date
Primary Changes • Obligation amount can be entered • Reports can be filed with through dates AFTER the project end date until all obligations have been paid (should be within 90 days) • Payments will continue to be made on cumulative cash basis expenditures plus the Commitment Amount but will NOT include obligations reported • Reporting outstanding obligations ONLY keeps the project active and open, not final
Obligations • Any liability (e.g. purchase order) recorded on or before the end of the project and is expected to be paid within 90 days. • Payroll expenditures must be supported by time and effort or equivalent records for individual employees. • Payments will be processed towards your actual cash expenditures and will not include the obligated amount.
Completion vs. Final Reports • CompletionReport: • All approved project activities are complete by the project end date • Expenditure report is equal to or greater than the project end date • Obligation amount entered (90 days) • Commitment Amount allowed (30 days) • Commitment Amount cannot be entered without an Obligation amount reported • Commitment Amount cannot be > than obligation
Completion vs. Final Reports • Final Report: • All approved project activities are complete by the project end date • Expenditure report is equal to or greater than the project end date • NO obligations reported • Commitment Amount Not Available • Final payment calculated • Carryover, if applicable, will be determined
Completion/Final Expenditure Report FY12 Federal Project Project End Date: 06-30-2012 Budget: 10,000
Reminders • Obligations AND project activities cannot occur until a “substantially approvable” application has been received at ISBE • Expenditure reports (requests for payment) cannot be submitted prior to an APPROVED application on file at ISBE • Regardless of when the application is approved, the begin date will determine the required quarterly reports that must be submitted
Questions Phone: (217) 782-5256