64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Legal Issues and Best Practices for School Fees Amy Dickerson Partner, Franczek Radelet Brittany Tjardes Business and Support Staff Services Coordinator Lake Forest School Districts 67 & 115

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 School Fees: Hot Topics Do’s and Don’ts for Charging Fees State Waivers & School Fees Collection of Unpaid Fees Waivers & Deferred Payment Options Tips for CSBOs

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 School Fees: Do’s & Don’ts

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What are School Fees?

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Any monetary charge collected by a public school from a student or parent/guardian as a prerequisite for the student’s participation in any curricular or extracurricular program of the school or school district.

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What if a School Board does not charge fees? –It must adopt a policy so stating. Parents must be notified of the policy. What if a School Board does charge fees? –It must adopt a policy and procedures.

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Quiz Name one of the three items that must be included in the policy adopted by the School Board regarding school fee waivers.

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What fees may school districts charge? Fees for materials and services that are incidental to such educational services

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Quiz The Constitutional requirement of “Free Schools” does not prohibit School Districts from charging fees for these required reading materials.

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Examples of Permissible Fees Textbooks, workbooks, and consumable items Field Trips Charges/deposits related to sports or to fine arts programs Items retained by the school –Lock for locker –Towels –Lab chemicals –Materials for industrial arts, sewing, and cooking classes

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 How much can a district charge for fees? Items retained by student –Actual cost Items retained by school –Average cost per student over the usual life of the item

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Can students with disabilities be charged fees? Yes, but... –Cannot charge fees for activities or materials identified as part of the child’s individualized education program –Cannot charge fees to parents of students who do not participate at all in the general education program

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Can districts charge fees for transportation? Only in limited situations, including: –Transportation to/from voluntary extracurricular activities Participants Spectators –Transportation to/from summer school (non- special education students) –Transportation to/from field trips

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What can’t districts charge for? Tuition –the price or payment for instruction What about... –Required class field trips? –Outdoor education program? –E-period class?

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Can school districts charge for pre-school? Full-day kindergarten?

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What is not defined as a fee?

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 School does not impose a fee when it requires that a student provide his own ordinary supplies or materials Example: Pencils, Library Fines, Admission to School Dances

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 State Waivers & School Fees

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 How does a District get a Waiver from a State mandate? Waiver from School Code requirements Waiver from ISBE Administrator Rules Special Rules for Driver Education Fee Waiver Requests

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 How much can districts charge for driver education?

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 $50 (without hearing or resolution) $51 - $250  Board must hold public hearing and adopt resolution $251+  Board must obtain waiver from General Assembly Inclusion of employee salaries and benefits into fee calculation  Board must obtain waiver from ISBE

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Other Possible State Waivers? Any mandate where district demonstrates it can address intent in a more effective, efficient, or economical manner OR when necessary to stimulate innovation or improve student performance NOT mandates pertaining to: –special education, –teacher tenure and seniority, –teacher certification, –voter eligibility, –NCLB –student growth indicators and evaluation ratings

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Frequently Asked Questions Collection of Unpaid Fees

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What actions can be taken to collect fees from students who don’t pay? Limit student participation in non-mandatory activities Withhold student’s official transcript Withhold student’s report card Issue demand letter to parents Refer to collection agency File complaint in small claims court What actions can a district NOT take to collect fees? Cannot limit access to educational activities Cannot deny enrollment

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What about graduation ceremonies?

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Waivers and Deferred Payment Options

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Student Fee Waiver Eligibility

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 How do parents qualify for a fee waiver? 1.Direct Certification 2.Categorical Eligibility 3.Extenuating Circumstances

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What fees must be waived for students who cannot afford them? 23 Ill. Admin. Code Textbooks and instructional materials Fees for use of school property (locks, towels, etc.) Field trips Uniforms or equipment for sports or arts programs Class supplies Graduation fees School records and school health fees Drivers Education Fees

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What fees do NOT have to be waived for students who cannot afford them? Library fines and other charges for loss or misuse of school property Purchases of class rings, yearbooks, pictures, etc. Optional travel taken by school club outside of school hours Admission to school athletic and social events Optional community service programs

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 What criteria should be used to determine eligibility for fee waivers? Must be established by Board policy Must include: –Students who qualify for free lunches/breakfast under School Breakfast and Lunch Program Act –Other extenuating circumstances described by Board policy, such as: Eligibility for reduced price lunch or breakfast Significant loss of income due to unforeseen circumstance

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Districts may choose between 1 of 2 options when implementing state requirements for fee waivers: Option 1: School participating in a federally funded free meals program and uses a student’s application for that program as the basis for waiving fees. Must follow federal requirements for verifying a student’s eligibility for both. Option 2: Establish application process for determining eligibility for fee waivers that is completely independent from process for eligibility for the free meals program

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Is a student’s application for free meals sufficient to establish eligibility for a fee waiver? It depends on which application option the district has chosen –Option 1: Student’s application for free meals is basis for eligibility determination –Option 2: Separate application process is used to determine eligibility

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Quiz If a school does not participate in federal nutrition programs, must it still offer fee waivers to eligible students?

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 How can we verify a student’s eligibility for a fee waiver? Verification procedures depend on which application option the school district uses

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Verification Option 1 (Student’s free meals application): Can only verify 3% of approved meals applications on file by October 1 Cannot re-verify Just cause

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Verification Option 2 (Separate application): –As often as every 60 days –If income is not within federal guidelines, can deny student waiver, but cannot deny participation in free meals

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Are there any notice requirements related to fee waivers? Yes 23 Ill. Admin. Code Notice requirements include: –Must provide fee waiver policy to parents of all students enrolling in district for first time Must include dispute resolution procedure –Must include procedures for applying for waiver on first fee bill of each school year

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Deferred Payment Option Overview of Lake Forest School District 67 & 115’s deferred payment option –Defer required fees –Signed agreement –Billed monthly –Credit card authorization form option

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Tips for Chief School Business Officials District fee “philosophy” –BOE included in discussion Review/approve fees with BOE on annual basis Transparent fee schedule Proper accounting records Multiple payment options Open fee payment window early Thoughts from audience?

64 th ILLINOIS ASBO CONFERENCE AND EXHIBITIONS APRIL 29 – MAY 1, #iasboAC15 Q&A