Virginia Department of Education’s Update on Special Education Regional Program Funding Presented to the Virginia Association of School Superintendents (VASS) and Virginia Association of School Business Officers (VASBO) January 7, 2019

TOPICS TO BE ADDRESSED Background of the Project Current Status Superintendent’s Memo #343-18, December 21, 2018 Conversation 1 – new recipients of funds Conversation 2 - original recipients of funds

Background Purpose of the Project is to achieve a transition from the existing funding model to a new model resulting in a More Equitable Distribution of the Appropriated Funds, with all divisions receiving a proportionate share of these funds. The new funding model is being called the “Equity Model”

Background Make Appropriated Funds available to students with Intensive Support Needs. The VDOE should develop a system to track and report the outcomes of students with Intensive Support Needs.

Background In May, 2015 the VDOE released a Superintendent’s Memorandum announcing the start of a study to review Special Education Regional Programs and the funding for these programs. VDOE has presented information on the Study and on the Project to the Commission on Youth in December, 2015, October, 2016 and November, 2017. VDOE also made a presentation to a sub-committee of the General Assembly in November, 2017. All presentations are available upon request. Today’s presentation is an update of the Status of this Project.

Background After the November, 2017 presentations, VDOE was directed to move forward with: addressing the disparity in the current distribution of funds; make funds available to new recipients, starting with Fiscal Year 2018 begin discussions on how to transition to a new funding model – the “Equity Model” develop policies and procedures to ensure oversight accountability for the distribution of and the use of the Appropriated Funds.

Findings & Issues from Initial Study Growth in number of students served in regional programs. Shift in disability categories – growth in Autism. Movement away from services based on disability category in favor of specific need of the individual child. Growth in number of students with expensive and/or Intensive Support Needs.

Findings & Issues from Initial Study Use of Special Education Regional Programs funds may have “drifted” from the original intent of supporting special education instructional costs for students with low incidence disabilities. The majority of students (75 percent) claimed for tuition reimbursement are served in classrooms in regular school buildings. Growth in number of school divisions interested in participating in an Special Education Regional Programs. Non-recipients serve same kids in same programs.

Current Status For school year 2017 – 2018 (Fiscal Year 2018), 18 new divisions submitted claims for tuition reimbursement and received funds. VDOE is currently in discussions with 30 + additional new divisions and plans to provide funds for Fiscal Year 2019. VDOE will work with the remaining new recipients/divisions in the event additional funds are available for Fiscal Year 2020.

Superintendent’s Memorandum #343 – 18, dated December 21, 2018 The purpose of this memo is to provide an update to all divisions on the status of this project/transition and what divisions can expect in the next several years, as VDOE implements this Equity Model of Funding for Students with Intensive Support Needs. This Equity Model will include several aspects which differ from the current funding model:  Distribute funds for Students with Intensive Support Needs, rather than for students in the current “reimbursable disability categories” in “regional programs”. Use a formula to distribute funds; one possible formula that could be used was presented to the Commission on Youth and would apportion funds based on 5% of a division’s population of students with disabilities. NOTE: Until a new funding methodology is approved, VDOE will continue using the current funding model to apportion funds to previous and new recipients. VDOE will review existing statutory and regulatory language as part of the transition to an Equity Model.

Superintendent’s Memorandum #343 – 18, dated December 21, 2018 Change from Regional Programs submitting a Rate Package, to individual divisions submitting an Application for Funds for Students with Intensive Support Needs. VDOE will provide specific direction in the coming months concerning when the change from a Rate Package to an Application will begin. All divisions that have previously received funds under the current funding model will receive specific information from VDOE as to what they can expect as far as changes to their level of funding. VDOE recognizes the potential impact of revised levels of funding and any changes will be made over the course of several years and will be made through individual discussions with divisions.

Conversation 1 New recipients of funds VDOE plans to reimburse claims for the 2018 – 2019 school year (FY 2019). New recipients will have to follow the current funding model/process. Data submission process and reimbursement process/cycle will be addressed in detail in group and individual meetings with new recipients. See following example:

New Recipients - Possible New Funding Model EAST JEFFERSON COUNTY REGIONAL PROGRAM ESTIMATED FUNDS 1ST SEMESTER 2018 – 2019  FUTURE STATE FORMULA  CC 17 5% Approp Per Pupil 172,925 x 5% 8,646 $87 million $10,062 FUTURE JEFFERSON CO FORMULA  CC 17 5% Per Pupil Formula $ 2,000 100 $10,062 $1,006,200 CURRENT FUNDING MODEL  CLAIMS PP $ CLAIM $ CI ST SHARE ADM $ ADM - NET 35 $14,000 $490,000 .5000 $245,000 $4,000 $140,000 $105,000

Conversation 2 - Original recipients of funds VDOE understands divisions are preparing budgets for FY 2019. If possible, VDOE will ask original recipients to try to reduce claims for FY 2019. As per Superintendent’s Memorandum #343-18, VDOE will work with divisions as reductions start for 2019-2020 and 2020-2021. As specified in Memo #343-18, the transition to a new funding model will take several years. VDOE will work with each division on an individual Transition Plan. See following example:

Transition Plan Components Each Division’s Individual Transition Plan will include the following: Projected Annual Payment derived from potential state formula Actual School Year Semester Claims from the most recent school year Actual Fiscal Year payments from most recent Fiscal Year Estimated Semester Claims projected for the next several School Years Estimated Fiscal Year payments for the next several Fiscal Years The time frame to transition from most recent Fiscal Year payments to projected formula based payments will be determined through individual discussions

Transition Plan Example 17-18 SEM CLAIMS 18-19 SEM CLAIMS 19-20 SEM CLAIMS 20-21 SEM CLAIMS   1st sem 17 2nd sem 18 1st sem 18 2nd sem 19 1st sem 19 2nd sem 20 1st sem 20 2nd sem 21 $3,000,000 $2,750,000 $2,250,000 $2,000,000 $,000,000 $6,000,000 $5,500,000 $4,500,000 FY 18 PAYMENTS 2nd sem 16 2nd sem 17 $3,250,000 $6,250000 $5,000,000 $4.500,000

VDOE Contact Mr. Paul Raskopf paul.raskopf@doe.virginia.gov 804-225-2038