DIVISION OF PROGRAM MANAGEMENT

EXCESS COSTS

Excess Cost Requirement –Prevents usage of Part B funds to pay for all costs directly attributable to the education of a child with a disability. –Costs that are in excess of the average annual per student expenditure during the preceding school year. –Required to spend at least the average annual per student expenditure before Part B funds are used. –Must be computed separately for elementary and secondary students. –Cannot be computed on a combination of the enrollments in elementary schools and secondary schools. April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 3

Calculation –Determine the total amount of expenditures from all sources – Local, State, and Federal Exclude –Capital outlay –Debt services –Subtract these amounts from the total expenditures IDEA, Part B and Preschool Elementary and Secondary Education Act (ESEA) Funds –Title I –Title II –Title III –Title V State and local funds for Special Education –1120 –1130 April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 4

Calculation –Determine the average annual per student expenditure. –Determine the total minimum amount of funds to be spent before Part B funds can be used. April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 5

Excess Cost Computation –Each LEA must Identify the grades that are elementary Identify the grades that are secondary –Calculations will be made based on expenditures expenditures April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 6

Excess Cost Computation –Each LEA will be provided Total Dollar amounts Enrollment numbers December 1 Child Count April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 7

Step 1: Previous year’s expenditures from all elementary school students, minus capital outlay and debt service. Column C (State, Local, and Federal Funds) Minus Column D (Capital outlay) and Column E (Debt Services) Equals Total adjusted previous year’s expenditure (Column F) April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 8

Step 2: Previous year’s elementary school expenditures from: IDEA, Part B (Columns G & H) ESEA Title I (Column I) ESEA Title III (Column J) ESEA Title II (Column K) ESEA Title V (Column L) State and local Special Education Funds (Columns M & N) Total expenditures (Column O) Column F minus Column O equals Column P April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 9

Step 3 Number of elementary students enrolled the previous year (Column R) Number of elementary students with disabilities in the previous year (Column V) Column P divided by Column R equals the average annual expenditure per elementary student (Column T). April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 10

Step 4 Average annual expenditure per elementary student (Column T) Minimum amount the LEA must spend in the current year Column T times Column V equals Column X April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 11

Step 1 Column C $16,697, minus Column D $ 494, Column E $ 289, Column F $ 15,914, Total Adjusted Previous Year’s Expenditures April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 12

Step 2 ADD Column G $ 302, Column H $ 14, Column I $ 1,110, Column J $ 0.00 Column K $ 141, Column L $ Column M $ 908, Column N $ Column O (Total Expenditures) $ 2,476, April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 13

Step 2 cont Column F $15,914, Minus Column O (Total Expenditures) $ 2,476, Column P $13,437, April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 14

Step 3 Elementary School Enrollment Column R1318 (Total enrollment) Column V 157 (Total SWD) Column P ($13,437,100.71) divided by Column R (1318) Column T ($10,195.07) Average per pupil expenditure April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 15

Step 4 Column T ($10,195.07) X Column V (157) = Column X ($1,600,625.99) Minimum Amount to be spent April 2012 Office of Instructional Enhancement and Internal Operations/Office of Special Education 16