Office of School Facilities and Finance Amendments to Subchapter 18: Tuition for Private Schools for Students with Disabilities Proposal Level Kevin Dehmer, Chief Financial Officer Division of Finance John Worthington, Director, Office of Special Education Programs February 1, 2017

Framework for Proposal Level Presentation Department initiated changes after: Thorough review of all changes by Department Comments received since first discussion Review of goals and targeted changes Clarifications

Department-Initiated Changes Since Second Discussion New School Opening “Shall not begin operations before July 1…except for an APSSD operating in and affiliated with a public school district.” Ensures that APSSDs operating in-district may begin providing those services mid-year if necessary Automobiles “…any passenger vehicle not used for transporting students or supplies…” Clarifies that the limitations do not apply to vehicles for student transportation or moving supplies “Bad Debt” that may be included in tuition Second Discussion proposal excluded uncollectable amounts from public entities from allowable “bad debts” Deleted public entities exclusion APSSD must still show reasonable efforts to collect

Department-Initiated Changes Since Second Discussion (continued) Surcharge – Computation of Allowable Tax Payment Updated citation to correct the reference to an updated section of code Sale of APSSD Real Property Comprehensive amendments to N.J.A.C. 6A:23A-18.18, which have to do with the sale or disposition of assets of an approved private school for students with disabilities Proceeds from sale can be put towards a new facility for the APSSD If proceeds are not used for a new APSSD facility, the sending school districts will receive the amount they have contributed to the cost of the facility through the tuition paid

Goals for the Proposed Amendments Streamline and increase flexibility for APSSDs Tie into a modern data collection system that will: Assist the Department with its monitoring responsibilities Give APSSDs useful budgeting and planning tools Target changes to address concerns raised by: Audit by the Office of Legislative Services (OLS) Investigations by the media Department desk reviews OFAC monitoring

Examples of Targeted Changes in Proposed Amendments Targeted Changes to Address Examples of Targeted Changes in Proposed Amendments Audit and/or Investigative Finding Proposed Reform High salaries of APSSD administrators Exceeded salaries of public school administrators Seven-year freeze on maximum salaries Disproportionate salaries paid to relatives of directors/owners vs. same position title or experience at same school Nepotism policy Annual disclosure statement One-third of APSSDs do business with related parties E.g., bus rentals, food service company Limit on food service costs Cars charged to tuition paid by public schools Noted several high end luxury models driven by school directors Limit on allowable cost of vehicles not used for students

Maximum Salary Chart Freeze for Seven Years Proposed Amendments to Maximum Salaries Maximum Salary Chart Freeze for Seven Years Current code requires Department to create a maximum salary chart Based on the highest salary paid to a public school employee in the: County (instructional positions); or the State (certain positions, including Director) Proposal is not a freeze on the actual salaries of staff members Proposal is a freeze on the: Maximum allowable salary that may be paid to staff; and Included in tuition charged to public schools Seven year length: Corresponds directly with the length the proposed code will be effective Allows Department to initiate a study starting in five years and complete it before any change occurs

Quick Facts on Salaries at APSSDs Proposed Amendments to Maximum Salaries Quick Facts on Salaries at APSSDs Few teachers and related service professionals are currently paid a salary at the maximum salary level Those few are almost always related to the owners or directors of the APSSD Under the current maximums, APSSDs will still be able to increase their employees’ salaries Seven-year freeze on maximum salary chart should have little to no impact on these employees Administrators are the APSSD employees most commonly earning maximum salary (or near maximum salary) Maximum for school directors is $259,005

vs. Average Salary of Public School Teachers in 2015-2016 of $68,589 Proposed Amendments to Maximum Salaries Comparison of Allowable Maximum Salaries at APSSDs to Average Salaries at Public School Districts Position Camden County APSSDs Middlesex County APSSDs Essex County APSSDs General Education Teacher $127, 979 $161,022 $144,894 Special Education Teacher $118,820 $139,017 $127,311 Point out that with the new modern data collection system, we will be able to more easily compare actual salaries at APSSDs with actual salaries of public school employees to align the two vs. Average Salary of Public School Teachers in 2015-2016 of $68,589

vs. Average Salary of Public School Proposed Amendments to Maximum Salaries Comparison of Allowable Maximum Salaries at APSSDs to Average Salaries at Public School Districts Administrators Position Allowable Maximum Salary at APSSDs Director $259,005 Assistant Director $168,849 Business Manager $153,613 Principal $160,817 vs. Average Salary of Public School Administrators in 2015-16 of $119,482

Proposed Increases for Related Service Professionals Proposed Amendments to Maximum Salaries Proposed Increases for Related Service Professionals Proposal includes increased flexibility and allows higher salaries for high demand related service professionals Maximum salary for Occupational Therapist (“OT”), Physical Therapist (“PT”), and Speech and Language Specialist (“SLS”) will: Increase by CPI (inflation) each year Allowance of 35 percent above maximum hourly amount for those contracted as: Purchased service providers or Independent contractors Use of Department-approved clinics and agencies for related services Maximum salary does not apply so long as they obtain three quotes