1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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 of $68,589

10. 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 of $119,482

11. 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